2024 ANNUAL REPORT AND FORM 10-K
INVESTING FOR TOMORROW
1 | 2024 DUKE ENERGY ANNUAL REPORT / LETTER FROM LYNN GOOD
DEAR SHAREHOLDER:
As I reflect on the last decade, there are many years that I’m proud of, but perhaps none more than 2024.
We started the year with significant momentum, as we repositioned our investment proposition and
transformed our business into a fully regulated utility. With a clear path to growth, we took every
opportunity to deliver, building on our strong regulatory track record, advancing new generation and
sustaining the industry-leading operational excellence for which our company is known.
We experienced energy demand thanks to strong residential customer growth and the expansion of
new and existing businesses across our service territories. And we are taking the actions today to meet
anticipated 3% to 4% load growth at the enterprise and 4% to 5% in the Carolinas beginning in 2027.
However, what fills me with the greatest sense of pride is the way we delivered for our customers
and communities in their time of need. We experienced the most significant storm season in company
history, responding to about 5.5 million outages from three back-to-back hurricanes. We restored
our customers as quickly and safely as possible in some of the toughest conditions we’ve ever seen
and rebuilt large portions of the system in a matter of days.
Our 26,000 employees banded together during these storms and demonstrated Duke Energy at its best.
I know this team will respond with the same passion and unwavering commitment to our mission, creating
value for our customers, communities and investors along the way.
Over the next decade, as we power a modern economy – one that’s evolving rapidly thanks to growth
in U.S. manufacturing, technology advancements and electrification – we are executing the largest
infrastructure build we’ve ever undertaken.
LYNN J. GOOD
Chair and Chief Executive Officer
INVESTING FOR TOMORROW
2 | 2024 DUKE ENERGY ANNUAL REPORT / LETTER FROM LYNN GOOD
RISING TO THE OCCASION
Historic Hurricane Response
Last year was largely defined by our response to hurricanes Debby, Helene and Milton –
each of which devastated large swaths of our communities. In fact, Helene carved a 600-mile
path of destruction impacting every one of our service territories from Florida to Indiana.
Over the course of the three storms, we assembled more than 20,000 resources from
across the U.S. and Canada. Innovative thinking and creative solutions were needed to
navigate the treacherous landscape and scale of destruction our front-line workers faced.
Our crews used drones to assess damage and flew helicopters to set power
poles. In western North Carolina, lineworkers hiked through mountainous,
muddy terrain to help reconnect portions of the grid. Teams brought in
mobile substations weighing hundreds of thousands of pounds.
From downed trees and branches falling on power lines
to storm surge flooding our equipment – which causes
almost immediate corrosion – our infrastructure was
severely damaged by Hurricane Milton in Florida.
As the trifecta of hurricanes Debby, Helene
and Milton devastated our service areas,
the Duke Energy Foundation responded with
same-day relief dollars, organized volunteer projects
and supported our employees who were impacted
by the storms with $400,000 in direct aid.
We were moved by our communities’ outpouring of support
and appreciation for our work during these historic storms.
Our success in responding to storms of this magnitude
was due to the tireless work of our employees and utility-partners,
collaboration with state and federal officials, near-constant
communication with customers and stakeholders, and strategic preparation.
As a result of recent investments, we’ve seen significant customer benefits,
with more than 550,000 customer outages avoided and 7 million hours of total outage
time saved during Debby, Helene and Milton.
To advance our continuous, ongoing preparedness and resiliency work, we initiated our first
formal analysis of climate and resiliency in 2023. It was conducted to help ensure a consistent
and comprehensive approach, revealing ways to mitigate negative impacts to our Carolinas
transmission and distribution system.
To expand upon this work, in 2024, we conducted a more comprehensive analysis that
evaluated the possible impacts of climate hazards in 2050 – such as extreme heat, wind,
flooding, precipitation, and extreme cold and ice – on major transmission, distribution,
and generation assets and operations across all six of our regulated electric utilities,
as well as the Piedmont Natural Gas (PNG) utility. We shared this study in late 2024
to provide our stakeholders with additional insight into the steps we’re taking.
3 | 2024 DUKE ENERGY ANNUAL REPORT / LETTER FROM LYNN GOOD
Sustained Financial Performance
For the year, our adjusted earnings per share (EPS) were $5.90, finishing within our
guidance range. Our results were driven by topline growth from rate cases and riders along
with our growing generation fleet and grid improvements; these were partially offset
by the impacts of the historic hurricane season and weak industrial volumes.
In 2024, we continued our track record of regulatory execution with the approval of $45 billion
of rate-based investments. The regulatory work of the last two years minimizes rate case
exposure in 2025 and 2026. We also advanced generation through our integrated resource plans
(IRPs), Certificates of Public Convenience and Necessity (CPCNs) and other permitting approvals.
We delivered a total shareholder return of 15.5% as investors recognized the benefits
of our simplified portfolio, track record of constructive regulatory outcomes and
compelling growth story. And we increased our dividend by 2% in 2024 – the 98th
consecutive year we’ve paid quarterly cash dividends to our shareholders.
We enter 2025 in a position of strength and are excited about the future. This February,
we announced our 2025 adjusted EPS guidance range of $6.17 to $6.42 per share.
We extended our long-term growth rate of 5% to 7% through 2029, with growth driven
by our solid, $83 billion capital plan. Our capital plan reflects significant generation
infrastructure spending, driven by growing jurisdictions and underpinned by robust regulatory
processes, including integrated resource plans (IRPs) and approved grid spending. All of this is
supported by constructive regulatory frameworks in jurisdictions that are healthy and growing.
We remain committed to delivering on our earnings growth commitment and maintaining a strong
balance sheet, while at the same time providing superior service to our customers and communities.
4 | 2024 DUKE ENERGY ANNUAL REPORT / LETTER FROM LYNN GOOD
EXECUTING OUR STRATEGY
In this new era of growing and dynamic energy demand, Duke Energy’s strategy remains
the same – to continue modernizing our grid and generation fleet while prioritizing
reliability and affordability for our customers.
Meeting this growth will require three things – collaborating with stakeholders to advocate
for constructive energy policy, transforming and readying the system and creating sustainable
value for customers and shareholders.
Collaborating with Stakeholders and Advocating for Constructive Policies
We made strong progress in 2024 working with an array of stakeholders at the
federal, state and local levels. This work focused on policies to support
investments in critical infrastructure necessary to provide reliable energy
sources in the face of growing demand, the timely recovery of and on these
investments, and lowering the cost of energy for our customers.
At the state level, we advanced jurisdictional priorities at our commissions
for the benefit of our communities. It was another busy rate case year,
and I’m pleased to say we achieved constructive outcomes in our four rate
cases throughout the year, including electric cases for Duke Energy Carolinas
(DEC) in South Carolina, Duke Energy Florida (DEF), Duke Energy Indiana,
and PNG in North Carolina. These rulings approve historic and future rate-
based investments and minimize rate case exposure in 2025 and 2026.
We also advanced generation through our integrated resource plans (IRPs)
filed in North Carolina, South Carolina, Indiana and Kentucky. These filings outline
long-term plans to meet our customers’ growing electricity demands. Importantly,
the plans allow us to advance our near-term investments while preserving reliability
and affordability as we meet our states’ growing demand for power.
Oconee Nuclear Station
5 | 2024 DUKE ENERGY ANNUAL REPORT / LETTER FROM LYNN GOOD
In North Carolina, we received CPCN approvals on over 2 gigawatts of natural gas
generation. These projects advance our ability to meet the strong economic growth in
the region, support local communities through these additions and continue our orderly
transition out of aging coal plants. And in the first several weeks of 2025, we filed
additional CPCNs for our next round of natural gas plants in the Carolinas and Indiana.
In Florida, we filed our Ten-Year Site Plan to the Florida Public Service Commission.
This plan provides a description of the future electric generating unit additions and
retirements to meet projected DEF customer resource needs for 2024 through 2033.
On the federal front, we continued to work closely with the Treasury Department on
the nuclear production tax credits earned under the Inflation Reduction Act. As an
operator of 11 low-cost nuclear units in the Carolinas, the credits provide a valuable
means to pass on substantial savings to our customers. In 2024, we monetized more
than $500 million in tax credits, which will benefit our customers over time.
We also continued to engage with policymakers on funding opportunities under
the Infrastructure Investment and Jobs Act. We submitted seven concept papers to the
Department of Energy (DOE) and supported two state-led applications in Indiana and
North Carolina for grid resiliency and modernization funding. We were selected for four
funding awards totaling over $70 million in grants, including the North Carolina state-led
project that was awarded a $57 million grant for the North Carolina Innovative Transmission
Rebuild Project, which will increase transmission capability in a climate-resilient design.
Certainly, 2024 was also an important election year, as energy priorities were at the forefront
of the national conversation. We share the new administration’s commitment to ensuring the
availability of reliable and affordable energy to meet our country’s aspirations for technology
leadership and economic growth. These priorities align with our business strategy, and we
look forward to working with President Trump, both parties in Congress and all our states
to build, operate and protect the critical infrastructure needed to deliver on these goals.
W.S. Lee Station
6 | 2024 DUKE ENERGY ANNUAL REPORT / LETTER FROM LYNN GOOD
Transforming and Readying the System
Over the last year, we continued to make great progress executing our
all-of-the-above generation strategy to replace aging infrastructure and
meet our customers’ energy demands – now and into the future.
Generation Investments
An expansive and diverse economic development pipeline and continued
operations in some of the fastest-growing and most attractive jurisdictions
in the U.S. are accelerating the need for new generation in the near
term. More than $35 billion of our five-year capital plan is devoted
to generation investments and we expect that amount to increase
over time. And as we continue to focus on serving our customers, we
have established ourselves as one of the largest clean energy producers
in the U.S. offering competitive rates with leading reliability measures.
Our diverse mix of resources includes dispatchable natural gas, which is essential
to maintaining reliability and affordability for customers and complements our
renewables investment. As I mentioned above, we are starting construction on
over 2 gigawatts of natural gas generation. By year-end 2029, we plan to have
approximately 5 gigawatts of new natural gas in service across our jurisdictions.
Bad Creek Hydroelectric Station
7 | 2024 DUKE ENERGY ANNUAL REPORT / LETTER FROM LYNN GOOD
We also continue our renewable generation buildout. Last year, we added another 300
megawatts in Florida, bringing the total of utility-owned solar in the state to 1,500 megawatts.
In the Carolinas, we’re also completing annual solar procurements that will add
approximately 1,500 megawatts to the grid each year, beginning in 2027.
To support this growth, we continue to bring on line new energy storage as we make
progress toward our 2,700-megawatt storage goal for North Carolina and South Carolina
by 2031. In 2024 we saw 55 megawatts of stand-alone storage come on line with an
additional 175 megawatts in construction that is expected to begin operating this year.
Finally, approximately 800 megawatts of new stand-alone storage projects were
filed in 2024 for grid interconnection studies.
And we continued to invest in our valuable pumped-storage hydro generation. In 2024,
we completed upgrades on our four units at Bad Creek Station in South Carolina,
bringing its total capacity to more than 1,600 megawatts.
Nuclear remains the workhorse of our fleet, running nearly 95% of the time. We expect
to soon receive a decision on our first subsequent license renewal application to extend the
life of Oconee Nuclear Station. We are pursuing renewals for all 11 of our units and continue
making important investments to ensure safe, reliable operation throughout their service lives.
We are seeing strong growth in our natural gas local distribution business and placed two new
Energy Reliability Centers in service in North Carolina as part of the Eastern Carolinas Economic
Expansion Project. In support of this project, Williams Transco placed the Southside Reliability
Enhancement Project in service, providing current and future North Carolina customers access
to much-needed natural gas. In addition, the Greenville County Reliability Project was
placed in service, adding natural gas capacity to the rapidly growing Upstate region of
South Carolina served by PNG.
Hines Energy Complex
8 | 2024 DUKE ENERGY ANNUAL REPORT / LETTER FROM LYNN GOOD
Grid Modernization
Working with stakeholders across our jurisdictions, we have tailored state-specific,
multiyear investment plans that strengthen the grid. The grid is the backbone of the
energy system and enables us to operate our all-of-the-above generation strategy. With
generation coming on line at varying times, and a more dynamic customer use case,
it is critical to invest in grid modernization infrastructure to meet the growing needs of
our communities. This is why it accounts for 45% of our capital plan spending over the
next five years as we improve the reliability and resiliency of our system.
As we continue to transform the largest transmission and
distribution system in the country, we’re making targeted
investments across a variety of programs to improve
the reliability and resiliency of our system.
In 2024, advanced, self-healing technology helped to avoid
more than 2.3 million customer outages and saved more
than 11 million hours of total outage time. Of those hours
saved, 75% occurred during major storm events. About
60% of Duke Energy customers are served by self-
healing, automated power restoration technology, with a
goal of increasing that to more than 80% of customers in
the coming years. This same selfhealing technology also
supports the two-way power flows needed to support
the sustainable, reliable integration of more renewable
energy and distributed technologies on our system.
We continue to strengthen the grid against the reliability
impacts of severe weather, including strategically upgrading
wooden transmission poles to stronger steel and concrete,
improving protections around equipment in flood-prone areas, and
managing vegetation across our system to reduce outages and shorten
outage time for customers. We are also increasing our physical security and
cybersecurity and monitoring capabilities around substations and other essential equipment
across our six-state service area, helping to ensure the service we provide remains reliable.
We are growing our system to serve rapidly increasing energy needs, expanding capacity
as we see more industrial and commercial growth and increased technology demands,
while also protecting reliability for our existing customers and keeping costs as low as
possible. It is important that we stay ahead of this demand, and we will rely on a smarter
grid and a diverse energy mix that includes carbon-free nuclear, natural gas and renewable
energy sources to meet current and future energy needs in the communities we serve.
9 | 2024 DUKE ENERGY ANNUAL REPORT / LETTER FROM LYNN GOOD
Emerging Technologies
We continue to play an important role working with public and private sectors
to help advance next-generation technologies.
We see promise in small modular and advanced nuclear reactor technologies.
With support from the North Carolina Utilities Commission (NCUC)
and the Public Service Commission of South Carolina (PSCSC),
we continue to work on an early site permit application for a
location near our Belews Creek Steam Station in North Carolina.
In 2024, we completed initial field work, including monitoring
well installations, core drilling and environmental studies, and
started collecting weather data from our meteorological tower.
We are focused on finalizing and submitting the early site permit
application to the Nuclear Regulatory Commission in late 2025.
Earlier this year, we also announced our participation in a U.S.
coalition on small modular reactors. Led by Tennessee Valley Authority,
this public-private coalition submitted a DOE grant application for up to
$800 million in federal funding, which would be used to help offset
technology development costs for customers. We believe the DOE will
select the grant recipients later this year.
Belews Creek Steam Station
10 | 2024 DUKE ENERGY ANNUAL REPORT / LETTER FROM LYNN GOOD
We continue to test different energy storage chemistries, including fuel cells and long-duration
batteries, as we look to extend storage capabilities and lower the cost of these technologies over time.
And our support for hydrogen technologies is ongoing, as well. We expect the first-ever U.S.
commercial operation of a natural gas turbine on 100% green hydrogen at our DeBary,
Florida, peaking power plant to be operational this year. Once on line, the hydrogen
system will provide peak power at times of increased electricity demand.
Creating Sustainable Value for Customers and Shareholders
At Duke Energy, customer needs – most importantly, reliability,
resilience and affordability – are front and center.
To support these customer needs, we’ve been evaluating
a merger of our DEC and Duke Energy Progress (DEP) utilities
in North Carolina and South Carolina to create efficiencies,
simplify operations and regulatory processes, and add
operational flexibility. Through 2050, we believe this
move could create more than $1 billion in customer
savings. We are targeting 2027 for the effective date
of the merger and anticipate filing for approval with
the NCUC, PSCSC and Federal Energy Regulatory
Commission in the second half of 2025.
In 2024, nearly $148 million was provided in energy
bill assistance to Duke Energy customers, supporting over
210,000 households through programs like Share the Light
Fund®, Low-Income Home Energy Assistance Program
and various other customer assistance programs.
Duke Energy also focuses on reducing energy usage for our
customers through our energy efficiency and weatherization programs.
We continue to transform the customer experience through our use of
customer data to better inform operational priorities and performance levels.
And that work continues to be recognized by our customers, with strong customer satisfaction
scores in our jurisdictions including Piedmont, which was ranked No. 1 in customer satisfaction by
J.D. Power for residential natural gas service in the South for the third year in a row. We are grateful
to have the opportunity to provide essential services to our communities and serve our customers.
The path forward is clear as we navigate this decade of record infrastructure build, and we remain
focused on delivering value to our shareholders, while meeting our customers’ energy demands
now and into the future.
11 | 2024 DUKE ENERGY ANNUAL REPORT / LETTER FROM LYNN GOOD
BUILDING ON A STRONG FOUNDATION
Operational Excellence and Safety
All of our strategic progress is underpinned by a strong foundation and track record of safety
and operational excellence.
We successfully managed the grid and operated our generation fleet with excellence
across our jurisdictions.
In addition to unprecedented storm response, most of our service territories
experienced above-average temperatures last summer, including the warmest
July on record in Florida, new energy peaks in the Carolinas and weather
alerts from PJM and MISO in the Midwest. In January 2025, due to 65
hours of freezing or below freezing temperatures, DEC and DEP achieved
a new record combined peak usage. We prepared for the arrival of
extreme weather and delivered on our customer commitments.
In 2024, our 11 nuclear units in the Carolinas achieved a capacity factor
of 94.8% – marking the 26th consecutive year the fleet has exceeded a
90% or greater capacity factor. Our nuclear fleet achieved record safety
performance in 2024 and completed a fifth consecutive year without a
reportable environmental event. Our Regulated and Renewable Energy fleet
performed exceptionally well. A strong year was capped with the addition of
Lincoln 17 – the most efficient combustion turbine facility in Duke Energy’s fleet.
In addition to an incredible front-line hurricane response, our Power Grid Operations
team executed capital investment plans to improve reliability, implemented a process
framework to realize efficiencies and helped create a wildfire risk and mitigation plan.
Our employees delivered strong safety results in 2024, consistent with our industry-leading
performance levels since 2018. We expect to be the top company for safety total incident
case rate compared to peer utilities for the 10th consecutive year. And we anticipate our gas
operations organization to finish in the top 10%, according to a gas industry survey, for the
fourth year in a row. Our commitment to continuous improvement around safety remains
steadfast to ensure every employee returns home from work each and every day.
Lincoln Combustion Turbine Station
12 | 2024 DUKE ENERGY ANNUAL REPORT / LETTER FROM LYNN GOOD
Community Engagement and Foundation
At Duke Energy, we’re focused on supporting the thriving economies and communities where
we and our customers live and work.
The level of economic development success and growth experienced in our service territories
is significantly above what we have experienced over the last two decades, and we
anticipate even more growth in the near term. We successfully worked with our state
partners to win 78 economic development projects in 2024 alone, representing approximately
$26 billion in new capital investment and over 16,000 new jobs within our service territories.
Our economic development wins would not be possible without our world-class
workforce. And their dedication continues in their communities with numerous service
projects and financial contribution campaigns. In 2024, Duke Energy teammates
volunteered over 101,000 hours in our Hours4Good and Teams4Good programs,
helping nonprofit organizations that are important to them and pooling their hours to
support a common cause. Employee contributions for our Power of Giving campaign
last year reached an incredible $6.4 million with 4,831 causes supported.
Last year, the Duke Energy Foundation celebrated its 40th anniversary and $500 million
milestone of investments to address the unique needs of its communities, including funding
critical home repairs for seniors and providing food, housing and other essentials for families.
Our innovation and ability to positively impact the communities in which we operate
continue to gain external recognition. This past year, Duke Energy was named one
of America’s most JUST Companies as well as one of the World’s Most Admired
Companies. We were also an EEI Emergency Response Award recipient.
13 | 2024 DUKE ENERGY ANNUAL REPORT / LETTER FROM LYNN GOOD
A NEW CHAPTER
Today’s Duke Energy is in a strong and enviable position.
As many of you know, I announced my retirement effective April 1, 2025. It has been
the honor of a lifetime to lead Duke Energy for the past 11 years as CEO.
In my first annual report letter in 2013, I vowed to you that “despite all that will be different
in the years ahead, our customers and communities will remain at the heart of who we are
and why we’re here.” I’m proud to say we’ve never wavered from that commitment.
I’m also proud that I’m stepping aside at a time when the fundamentals of the business have never
been better. We have a simplified business model, modernized regulatory models, excellence in safety
and operations, and a laser focus on delivering value. And underscoring it all is our highly skilled and
innovative workforce that reflects our aspiration to mirror the customers and communities we serve.
Duke Energy is ready for a record decade of growth with Harry Sideris as its next leader.
Harry is a 29-year veteran of the company with a background in nearly every facet of our
business, including deep experience in engineering, operations, customer service, strategy, and
stakeholder and regulatory engagement. Harry raised his hand for every challenging assignment,
has a proven track record and will continue to lead this company to great success.
With Harry as CEO and a strong, experienced leadership team around him,
Duke Energy is well positioned to execute the next phase of our business strategy and
build a smarter energy future. I am confident in all that the company will achieve on
behalf of our customers, shareholders and employees. I thank you for your confidence
in me over the last 11 years and for your continued investment in Duke Energy.
Lynn J. Good
Chair and Chief Executive Officer
14 | 2024 DUKE ENERGY ANNUAL REPORT
0
1
2
3
4
5
6
0
1
2
3
4
5
0
3
6
9
12
15
Earnings per share (in dollars)
Reported earnings per
share (GAAP)
Adjusted earnings per share
(Non-GAAP)(a)
Capital and investment
expenditures (dollars in billions)
(a) For further information on Adjusted earnings per share (non-GAAP), including a reconciliation to Reported earnings per share as prepared on a GAAP basis, please refer to disclosures related to Non-GAAP
Financial Measures included within this 2024 Annual Report and Form 10-K.
Common stock dividends
declared per share (in dollars)
2023
2024
(In millions, except per share amounts)
2024
2023
Operating Results
Total operating revenues
$30,357
$29,060
Income from continuing operations
$4,604
$4,329
Net income
$4,614
$2,874
Net income available to Duke Energy Corporation
common stockholders
$4,402
$2,735
Cash Flow Data
Net cash provided by operating activities
$12,328
$9,878
Common Stock Data
Shares of common stock outstanding
Year-end
776
771
Weighted average – basic and diluted
772
771
Reported earnings per share (GAAP)
$5.71
$3.54
Adjusted earnings per share (non-GAAP)(a)
$5.90
$5.56
Common stock dividends declared per share
$4.14
$4.06
Balance Sheet Data
Total assets
$186,343
$176,893
Long-term debt including finance leases, less current maturities
$76,340
$72,452
Total Duke Energy Corporation stockholders’ equity
$50,127
$49,112
Our Financial Highlights
2023
2024
4.06
4.14
2023
2024
12.6
12.3
5.71 5.90
5.56
3.54
15 | 2024 DUKE ENERGY ANNUAL REPORT
Electric Utilities and Infrastructure
Generation Diversity (percent owned capacity)1
45% Natural Gas/Fuel Oil
28% Coal
17% Nuclear
10% Hydro and Renewable
Generated (net output gigawatt-hours (GWh))2
44% Natural Gas/Fuel Oil
35% Nuclear
18% Coal
3% Hydro and Renewable
Customer Diversity (in billed GWh sales)2
34% Residential
31% General Services
18% Industrial
17% Wholesale/Other
Electric Utilities and Infrastructure conducts operations primarily
through the regulated public utilities of Duke Energy Carolinas,
Duke Energy Progress, Duke Energy Florida, Duke Energy
Indiana, Duke Energy Ohio and Duke Energy Kentucky.
Electric Operations
¡ Owns approximately 55,139 megawatts (MW) of
generating capacity
¡ Service area covers about 90,000 square miles with
an estimated population of 27 million
¡ Service to approximately 8.6 million residential,
commercial and industrial customers
¡ 286,600 miles of distribution lines and
a 31,700-mile transmission system
¡ 21% of coal generation capacity has dual-fuel capability
1As of December 31, 2024. 2For the year ended December 31, 2024.
Duke Energy at a Glance
59% Power Gen
15% Industrial
13% Residential
9% General Services
4% Other
¡ Regulated natural gas transmission and distribution
services to over 1.7 million customers in the Carolinas,
Tennessee, southwestern Ohio and Northern Kentucky
¡ Maintains 36,300 miles of natural gas transmission and distribution
pipelines and 29,700 miles of natural gas service pipelines
Natural Gas Operations (throughput)
Natural Gas Customer Diversity
Gas Utilities and Infrastructure conducts natural gas distribution operations primarily
through the regulated public utilities of Piedmont Natural Gas and Duke Energy Ohio.
16 | 2024 DUKE ENERGY ANNUAL REPORT
ANNETTE K. CLAYTON
Former Chairwoman, North America
Operations, Schneider Electric SA
THEODORE F. CRAVER, JR.
Independent Lead Director*
Retired Chairman, President and Chief
Executive Officer, Edison International
ROBERT M. DAVIS
Chairman and Chief Executive Officer,
Merck & Co., Inc.
NICHOLAS C. FANANDAKIS
Retired Executive Vice President,
DuPont de Nemours, Inc. (formerly known
as DowDuPont, Inc.)
CAROLINE DORSA
Retired Executive Vice President
and Chief Financial Officer,
Public Service Enterprise Group, Inc.
W. ROY DUNBAR
Retired Chairman and Chief Executive
Officer, Network Solutions, LLC
OUR LEADERSHIP
BOARD OF DIRECTORS
DERRICK BURKS
Retired Managing Partner of Ernst & Young,
LLP, Indianapolis office
LYNN J. GOOD
Chair and Chief Executive Officer,*
Duke Energy Corporation
JOHN T. HERRON
Retired President, Chief Executive Officer
and Chief Nuclear Officer,
Entergy Nuclear
IDALENE F. KESNER
Dean Emerita, Indiana University
Kelley School of Business
E. MARIE MCKEE
Retired Senior Vice President,
Corning Incorporated
WILLIAM E. WEBSTER, JR.
Retired Executive Vice President,
Institute of Nuclear Power Operations
THOMAS E. SKAINS
Retired Chairman, President
and Chief Executive Officer,
Piedmont Natural Gas Company, Inc.
HARRY K. SIDERIS
President,*
Duke Energy Corporation
MICHAEL J. PACILIO
Retired Executive Vice President and
Chief Operating Officer, Exelon Generation,
Exelon Corporation
*Effective April 1, 2025, Mr. Sideris will become President, CEO, and a member of the Board of Directors of Duke Energy Corporation; Ms. Good will retire from her roles
with Duke Energy Corporation; and Mr. Craver will transition from Lead Independent Director to Chair of the Board of Directors of Duke Energy Corporation.
17 | 2024 DUKE ENERGY ANNUAL REPORT
LYNN J. GOOD
Chair and Chief Executive Officer*
SCOTT L. BATSON
Senior Vice President and
Chief Power Grid Officer
BRIAN D. SAVOY
Executive Vice President and
Chief Financial Officer
HARRY K. SIDERIS
President*
BONNIE B. TITONE
Senior Vice President and
Chief Administrative Officer
KODWO GHARTEY-TAGOE
Executive Vice President,
Chief Legal Officer and Corporate Secretary
ALEXANDER J.
“SASHA” WEINTRAUB
Executive Vice President and
Chief Customer Officer
R. ALEXANDER GLENN
Executive Vice President and CEO,
Duke Energy Florida and Midwest
T. PRESTON GILLESPIE
Executive Vice President,
Chief Generation Officer and
Enterprise Operational Excellence
JULIE S. JANSON
Executive Vice President and CEO,
Duke Energy Carolinas
LOUIS E. RENJEL
Executive Vice President and
Chief Corporate Affairs Officer
OUR LEADERSHIP
SENIOR MANAGEMENT COMMITTEE
*Effective April 1, 2025, Mr. Sideris will become President, CEO, and a member of the Board of Directors of Duke Energy Corporation, and Ms. Good will retire from
her roles with Duke Energy Corporation.
Annual Meeting of Shareholders
Duke Energy’s 2025 Annual Meeting of
Shareholders will be:
Date:
May 1, 2025
Time:
1:00 p.m. Eastern time
Visit:
www.virtualshareholdermeeting.com/DUK2025
Audio broadcast: 877.328.2502
To participate in the online Annual Meeting,
shareholders will need the 16-digit control number
included in their Notice Regarding the Availability
of Proxy Materials, in their proxy card, and in the
instructions that accompanied their proxy materials.
Shareholder Services
Shareholders may call Broadridge Corporate Issuer
Solutions, LLC, Duke Energy’s transfer agent and
InvestorDirect Choice Plan Administrator, toll-free at
800.488.3853 or 754.238.3853 with questions about
their stock accounts, legal transfer requirements, address
changes, or replacement dividend checks. Additionally,
registered shareholders can view their account online at
duke-energy.com/investors. Send written requests to:
Broadridge Shareholder Services
c/o Broadridge Corporate Issuer Solutions, LLC
P.O. Box 1342
Brentwood, NY 11717-0718
For electronic correspondence, visit
shareholder@broadridge.com.
Stock Exchange Listing
Duke Energy’s common stock is listed on the
New York Stock Exchange. The Company’s
common stock trading symbol is DUK.
Website Addresses
Company homepage: duke-energy.com
Investor Relations: duke-energy.com/investors
InvestorDirect Choice Plan
The InvestorDirect Choice Plan provides a simple and
convenient way to purchase common stock directly
through the Company. Plan features include one-time
or recurring monthly purchases through an ACH debit
from your bank account, dividend reinvestment for all or
a portion of your dividends, and online account access
through a shareholder portal providing a convenient
way to monitor and manage your investment.
Financial Publications
Duke Energy’s Annual Report and related financial
publications can be found on our website at
duke-energy.com/investors. Printed copies are
also available free of charge upon request.
Duplicate Mailings
If your shares are registered in different accounts,
you may receive duplicate mailings of annual reports,
proxy statements, and other shareholder information.
Call Investor Relations for instructions on eliminating
duplications or combining your accounts.
Transfer Agent and Registrar
Broadridge Corporate Issuer Solutions, LLC maintains
shareholder records and acts as transfer agent and
registrar for the Company’s common stock.
Dividend Payment
Duke Energy has paid quarterly cash dividends on
its common stock for 98 consecutive years. For the
remainder of 2025, dividends on common stock are
expected to be paid, subject to declaration by the Board of
Directors, on June 16, September 16, and December 16.
Bond Trustee
If you have questions regarding your bond account,
call toll-free at 800.254.2826 or write to:
The Bank of New York Mellon
Global Trust Services
101 Barclay Street – 21st Floor
New York, NY 10286
Send Us Feedback
We welcome your opinion on this annual report.
Please visit duke-energy.com/investors, where you
can view and provide feedback on both the print
and online versions of this report, or contact Investor
Relations directly. Duke Energy is an equal opportunity
employer. This report is published solely to inform
shareholders and is not to be considered an offer, or
the solicitation of an offer, to buy or sell securities.
Products with a Mixed Sources label support the development of responsible
forest management worldwide. The wood comes from Forest Stewardship
Council® (FSC®)-certified well-managed forests, company-controlled sources
and/or recycled material. This annual report is printed on paper manufactured
with energy generated from renewable sources.
Cautionary Statement
Regarding Forward-Looking
Information
Non-GAAP Financial
Measures
DUKE ENERGY
CORPORATION
2024
Form 10-K
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
(Mark One)
☒
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2024 or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
to
Commission
File Number
Registrant, State of Incorporation or Organization, Address of
Principal Executive Offices, Zip Code and Telephone Number
IRS Employer
Identification No.
1-32853
DUKE ENERGY CORPORATION
(a Delaware corporation) 525 South Tryon Street
Charlotte, North Carolina 28202 800-488-3853
20-2777218
1-4928
DUKE ENERGY CAROLINAS, LLC
(a North Carolina limited liability company) 525 South Tryon Street
Charlotte, North Carolina 28202 800-488-3853
56-0205520
1-15929
PROGRESS ENERGY, INC.
(a North Carolina corporation) 411 Fayetteville Street
Raleigh, North Carolina 27601 800-488-3853
56-2155481
1-3382
DUKE ENERGY PROGRESS, LLC
(a North Carolina limited liability company) 411 Fayetteville Street
Raleigh, North Carolina 27601 800-488-3853
56-0165465
1-3274
DUKE ENERGY FLORIDA, LLC
(a Florida limited liability company) 299 First Avenue North
St. Petersburg, Florida 33701 800-488-3853
59-0247770
1-1232
DUKE ENERGY OHIO, INC.
(an Ohio corporation) 139 East Fourth Street
Cincinnati, Ohio 45202 800-488-3853
31-0240030
1-3543
DUKE ENERGY INDIANA, LLC
(an Indiana limited liability company) 1000 East Main Street
Plainfield, Indiana 46168 800-488-3853
35-0594457
1-6196
PIEDMONT NATURAL GAS COMPANY, INC.
(a North Carolina corporation) 525 South Tryon Street
Charlotte, North Carolina 28202 800-488-3853
56-0556998
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Registrant
Title of each class
Trading symbols
Name of each exchange on which registered
Duke Energy Corporation (Duke Energy)
Common Stock, $0.001 par value
DUK
New York Stock Exchange LLC
Duke Energy
5.625% Junior Subordinated Debentures due September 15, 2078
DUKB
New York Stock Exchange LLC
Duke Energy
Depositary Shares, each representing a 1/1,000th
interest in a share of 5.75% Series A Cumulative
Redeemable Perpetual Preferred Stock, par value
$0.001 per share
DUK PR A
New York Stock Exchange LLC
Duke Energy
3.10% Senior Notes due 2028
DUK 28A
New York Stock Exchange LLC
Duke Energy
3.85% Senior Notes due 2034
DUK 34
New York Stock Exchange LLC
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Duke Energy
Yes ☒
No ☐
Duke Energy Florida, LLC (Duke Energy Florida)
Yes ☒
No ☐
Duke Energy Carolinas, LLC (Duke Energy Carolinas)
Yes ☒
No ☐
Duke Energy Ohio, Inc. (Duke Energy Ohio)
Yes ☒
No ☐
Progress Energy, Inc. (Progress Energy)
Yes ☐
No ☒
Duke Energy Indiana, LLC (Duke Energy Indiana)
Yes ☒
No ☐
Duke Energy Progress, LLC (Duke Energy Progress)
Yes ☒
No ☐
Piedmont Natural Gas Company, Inc. (Piedmont)
Yes ☒
No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes ☐No ☒(Response applicable to all registrants.)
Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒No ☐
Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter)
during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒No ☐
Indicate by check mark whether Duke Energy is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of
“large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:
Large Accelerated Filer ☒Accelerated Filer ☐Non-accelerated Filer ☐Smaller Reporting Company ☐Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether each of Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont is a large accelerated filer, accelerated filer, non-accelerated filer, smaller reporting
company, or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:
Large Accelerated Filer ☐Accelerated Filer ☐Non-accelerated Filer ☒Smaller Reporting Company ☐Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under
Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included
in the filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based
compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☒
Indicate by check mark whether each of the registrants is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐No ☒
Estimated aggregate market value of the common equity held by nonaffiliates of Duke Energy at June 30, 2024.
$77,292,284,116
Number of Shares of Common Stock Outstanding at January 31, 2025
Registrant
Description
Shares
Duke Energy
Common stock, $0.001 par value
776,461,008
Duke Energy Carolinas
All of the registrant’s limited liability company member interests are directly owned by Duke Energy.
N/A
Progress Energy
All of the registrant’s common stock is directly owned by Duke Energy.
100
Duke Energy Progress
All of the registrant’s limited liability company member interests are indirectly owned by Duke Energy.
N/A
Duke Energy Florida
All of the registrant’s limited liability company member interests are indirectly owned by Duke Energy.
N/A
Duke Energy Ohio
All of the registrant’s common stock is indirectly owned by Duke Energy.
89,663,086
Duke Energy Indiana
All of the registrant’s limited liability company member interests are owned by a Duke Energy subsidiary that is 80.1% indirectly owned by Duke Energy.
N/A
Piedmont
All of the registrant’s common stock is directly owned by Duke Energy.
100
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Duke Energy definitive proxy statement for the 2025 Annual Meeting of the Shareholders or an amendment to this Annual Report are incorporated by reference into PART III, Items 10, 11 and 13 hereof.
This combined Form 10-K is filed separately by eight registrants: Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont (collectively the Duke Energy Registrants).
Information contained herein relating to any individual registrant is filed by such registrant solely on its own behalf. Each registrant makes no representation as to information relating exclusively to the other registrants.
Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont meet the conditions set forth in General Instructions I(1)(a) and (b) of Form 10-K and are, therefore, filing this Form 10-K
with the reduced disclosure format specified in General Instructions I(2) of Form 10-K.
Auditor Firm ID: 34
Auditor Name: Deloitte & Touche LLP
Auditor Location: Charlotte, NC
Cautionary Note Regarding Forward-Looking Information
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 often be identified by terms and phrases
that include “anticipate,” “believe,” “intend,” “estimate,” “expect,” “continue,”
“should,” “could,” “may,” “plan,” “project,” “predict,” “will,” “potential,”
“forecast,” “target,” “guidance,” “outlook,” or other similar terminology. Various
factors may cause actual results to be materially different than the suggested
outcomes within forward-looking statements; accordingly, there is no
assurance that such results will be realized. For details on the uncertainties
that may cause our actual future results to be materially different than those
expressed in our forward-looking statements, see our Form 10-K for the year
ended December 31, 2024, and Quarterly Reports on Form 10-Q filed with the
SEC and available at the SEC’s website at sec.gov. In light of these risks,
uncertainties and assumptions, the events described in the forward-looking
statements might not occur or might occur to a different extent or at a different
time than described. Forward-looking statements speak only as of the date
they are made. Duke Energy expressly disclaims an obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events, or otherwise.
NON-GAAP FINANCIAL MEASURES
Adjusted Earnings per Share (EPS)
Duke Energy’s 2024 Annual Report references adjusted EPS for the year-
to-date periods ended December 31, 2024, and 2023 of $5.90 and $5.56,
respectively.
The non-GAAP financial measure, adjusted EPS, represents basic EPS
from continuing operations available to Duke Energy Corporation common
stockholders (GAAP reported EPS), adjusted for the per share impact of special
items. As discussed below, special items represent certain charges and
credits, which management believes are not indicative of Duke Energy’s ongoing
performance.
Management believes the presentation of adjusted EPS provides useful
information to investors, as it provides them with an additional relevant
comparison of Duke Energy’s performance across periods. Management uses
this non-GAAP financial measure for planning and forecasting, and for reporting
financial results to the Duke Energy Board of Directors, employees,
stockholders, analysts and investors. Adjusted EPS is also used as a basis for
employee incentive bonuses. The most directly comparable GAAP measure
for adjusted EPS is reported basic EPS available to Duke Energy Corporation
common stockholders.
Special items included in the periods presented include the following
items, which management believes do not reflect ongoing costs:
• Organizational Optimization represents costs associated with strategic repositioning
to a fully regulated utility.
• Regulatory Matters primarily represents net impairment charges related to Duke
Energy Carolinas’ and Duke Energy Progress’ North Carolina and South Carolina rate
case orders and Duke Energy Carolinas’ North Carolina rate case settlement, and
charges related to Duke Energy Indiana post-retirement benefits.
• System Post-Implementation Costs represents the net impact of charges related to
nonrecurring customer billing adjustments as a result of implementation of a new
customer system.
• Preferred Redemption Costs represents charges related to the redemption of
Series B Preferred Stock.
• Noncore Asset Sales and Net Impairments primarily represents charges related to
certain joint venture electric transmission projects and certain renewable natural gas
investments.
• Captive Storm Deductible represents charges related to an insurance deductible for
Hurricane Helene property losses.
Discontinued operations primarily includes impairments on the sale of
the Commercial Renewables business and results from Duke Energy’s
Commercial Renewables Disposal Groups.
Duke Energy’s adjusted EPS may not be comparable to a similarly titled
measure of another company because other companies may not calculate the
measures in the same manner.
The following table presents a reconciliation of reported EPS to adjusted EPS for 2024 and 2023:
Years Ended December 31,
(per share)
2024
2023
Reported EPS
$ 5.71
$3.54
Adjustments to Reported EPS:
Organizational Optimization
—
0.13
Regulatory Matters
0.06
0.08
System Post-Implementation Costs
0.02
—
Preferred Redemption Costs
0.02
—
Noncore Asset Sales and Net Impairments
0.07
—
Captive Storm Deductible
0.02
—
Discontinued Operations
(0.01)
1.81
Adjusted EPS*
$ 5.90
$5.56
*
Total EPS may not foot due to rounding.
Adjusted EPS Guidance
Duke Energy’s 2024 Annual Report references Duke Energy’s forecasted
2024 adjusted earnings guidance and the 2025 adjusted EPS guidance range
of $6.17 to $6.42 per share. In addition, the materials reference the long-term
range of annual growth of 5% to 7% through 2029.
Forecasted adjusted EPS is a non-GAAP financial measure as it
represents basic EPS from continuing operations available to Duke Energy
Corporation common stockholders (GAAP reported EPS), adjusted for the per
share impact of special items (as discussed above under Adjusted EPS). Due to
the forward-looking nature of this non-GAAP financial measure for future
periods, information to reconcile it to the most directly comparable GAAP
financial measure is not available at this time, as management is unable to
project all special items for future periods, such as legal settlements, the impact
of regulatory orders or asset impairments.
PART 1
2
TABLE OF CONTENTS
FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2024
Item
Page
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
GLOSSARY OF TERMS
PART I.
1.
BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
DUKE ENERGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
GENERAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
BUSINESS SEGMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
HUMAN CAPITAL MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
EXECUTIVE OFFICERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
ENVIRONMENTAL MATTERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
DUKE ENERGY CAROLINAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
PROGRESS ENERGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
DUKE ENERGY PROGRESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
DUKE ENERGY FLORIDA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
DUKE ENERGY OHIO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
DUKE ENERGY INDIANA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
PIEDMONT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
1A. RISK FACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
1B. UNRESOLVED STAFF COMMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
1C. CYBERSECURITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
2.
PROPERTIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
3.
LEGAL PROCEEDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31
4.
MINE SAFETY DISCLOSURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32
PART II.
5.
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS
AND ISSUER PURCHASES OF EQUITY SECURITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33
6.
SELECTED FINANCIAL DATA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
34
7.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
34
7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK . . . . . . . . . . . . . .
59
8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA . . . . . . . . . . . . . . . . . . . . . . . . . . .
60
9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
9A. CONTROLS AND PROCEDURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
9B. OTHER INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
PART III.
10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE . . . . . . . . . . . . . . . 217
11. EXECUTIVE COMPENSATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED STOCKHOLDER MATTERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR
INDEPENDENCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
14. PRINCIPAL ACCOUNTING FEES AND SERVICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
PART IV.
15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
EXHIBIT INDEX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E-1
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E-25
FORWARD LOOKING STATEMENTS
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
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 often be
identified by terms and phrases that include “anticipate,” “believe,” “intend,” “estimate,”
“expect,” “continue,” “should,” “could,” “may,” “plan,” “project,” “predict,” “will,” “potential,”
“forecast,” “target,” “guidance,” “outlook” or other similar terminology. Various factors may
cause actual results to be materially different than the suggested outcomes within forward-
looking statements; accordingly, there is no assurance that such results will be realized.
These factors include, but are not limited to:
• The ability to implement our business strategy, including meeting forecasted load
growth demand, grid and fleet modernization objectives, and our carbon emission
reduction goals, while balancing customer reliability and affordability;
• State, federal and foreign legislative and regulatory initiatives, including costs of
compliance with existing and future environmental requirements and/or uncertainty
of applicability or changes to such legislative and regulatory initiatives, including
those related to climate change, as well as rulings that affect cost and investment
recovery or have an impact on rate structures or market prices;
• The extent and timing of costs and liabilities to comply with federal and state laws,
regulations and legal requirements related to coal ash remediation, including
amounts for required closure of certain ash impoundments, are uncertain and
difficult to estimate;
• The ability to timely recover eligible costs, including amounts associated with coal
ash impoundment retirement obligations, asset retirement and construction costs
related to carbon emissions reductions, and costs related to significant weather
events, and to earn an adequate return on investment through rate case proceedings
and the regulatory process;
• The costs of decommissioning nuclear facilities could prove to be more extensive
than amounts estimated and all costs may not be fully recoverable through the
regulatory process;
• The impact of extraordinary external events, such as a global pandemic or military
conflict, and their collateral consequences, including the disruption of global supply
chains or the economic activity in our service territories;
• Costs and effects of legal and administrative proceedings, settlements,
investigations and claims;
• Industrial, commercial and residential decline in service territories or customer
bases resulting from sustained downturns of the economy, storm damage, reduced
customer usage due to cost pressures from inflation, tariffs, or fuel costs, worsening
economic health of our service territories, reductions in customer usage patterns,
or lower than anticipated load growth, particularly if usage of electricity by data
centers is less than currently projected, energy efficiency efforts, natural gas building
and appliance electrification, and use of alternative energy sources, such as self-
generation and distributed generation technologies;
• Federal and state regulations, laws and other efforts designed to promote and
expand the use of energy efficiency measures, natural gas electrification, and
distributed generation technologies, such as private solar and battery storage, in
Duke Energy service territories could result in a reduced number of customers, excess
generation resources as well as stranded costs;
• Advancements in technology, including artificial intelligence;
• Additional competition in electric and natural gas markets and continued industry
consolidation;
• The influence of weather and other natural phenomena on operations, financial
position, and cash flows, including the economic, operational and other effects of
severe storms, hurricanes, droughts, earthquakes and tornadoes, including extreme
weather associated with climate change;
• Changing or conflicting investor, customer and other stakeholder expectations and
demands, particularly regarding environmental, social and governance matters and
costs related thereto;
• The ability to successfully operate electric generating facilities and deliver
electricity to customers including direct or indirect effects to the Company resulting
from an incident that affects the United States electric grid or generating
resources;
• Operational interruptions to our natural gas distribution and transmission
activities;
• The availability of adequate interstate pipeline transportation capacity and natural
gas supply;
• The impact on facilities and business from a terrorist or other attack, war,
vandalism, cybersecurity threats, data security breaches, operational events,
information technology failures or other catastrophic events, such as severe storms,
fires, explosions, pandemic health events or other similar occurrences;
• The inherent risks associated with the operation of nuclear facilities, including
environmental, health, safety, regulatory and financial risks, including the financial
stability of third-party service providers;
• The timing and extent of changes in commodity prices, including any impact from
increased tariffs and interest rates, and the ability to timely recover such costs
through the regulatory process, where appropriate, and their impact on liquidity
positions and the value of underlying assets;
• The results of financing efforts, including the ability to obtain financing on
favorable terms, which can be affected by various factors, including credit ratings,
interest rate fluctuations, compliance with debt covenants and conditions, an
individual utility’s generation portfolio, and general market and economic conditions;
• Credit ratings of the Duke Energy Registrants may be different from what is
expected;
• Declines in the market prices of equity and fixed-income securities and resultant
cash funding requirements for defined benefit pension plans, other post-retirement
benefit plans and nuclear decommissioning trust funds;
• Construction and development risks associated with the completion of the Duke
Energy Registrants’ capital investment projects, including risks related to financing,
timing and receipt of necessary regulatory approvals, obtaining and complying
with terms of permits, meeting construction budgets and schedules and satisfying
operating and environmental performance standards, as well as the ability to recover
costs from customers in a timely manner, or at all;
• Changes in rules for regional transmission organizations, including changes in rate
designs and new and evolving capacity markets, and risks related to obligations
created by the default of other participants;
• The ability to control operation and maintenance costs;
• The level of creditworthiness of counterparties to transactions;
• The ability to obtain adequate insurance at acceptable costs and recover on claims
made;
• Employee workforce factors, including the potential inability to attract and retain
key personnel;
• The ability of subsidiaries to pay dividends or distributions to Duke Energy
Corporation holding company (the Parent);
• The performance of projects undertaken by our businesses and the success of
efforts to invest in and develop new opportunities;
• The effect of accounting and reporting pronouncements issued periodically by
accounting standard-setting bodies and the SEC;
• The impact of United States tax legislation to our financial condition, results of
operations or cash flows and our credit ratings;
• The impacts from potential impairments of goodwill or investment carrying values;
• Asset or business acquisitions and dispositions may not yield the anticipated
benefits; and
• The actions of activist shareholders could disrupt our operations, impact our ability
to execute on our business strategy, or cause fluctuations in the trading price of
our common stock.
Additional risks and uncertainties are identified and discussed in the Duke Energy
Registrants’ reports filed with the SEC and available at the SEC’s website at sec.gov. In light
of these risks, uncertainties and assumptions, the events described in the forward-looking
statements might not occur or might occur to a different extent or at a different time than
described. Forward-looking statements speak only as of the date they are made and the Duke
Energy Registrants expressly disclaim an obligation to publicly update or revise any forward-
looking statements, whether as a result of new information, future events or otherwise.
GLOSSARY OF TERMS
The following terms or acronyms used in this Form 10-K are defined below:
Term or Acronym
Definition
2015 CCR Rule . . . . . . . . . . . . .
A 2015 EPA rule establishing national regulations to
provide a comprehensive set of requirements for the
management and disposal of CCR from coal-fired
power plants
2021 Settlement . . . . . . . . . . . .
Settlement Agreement in 2021 among Duke Energy
Florida, the Florida Office of Public Counsel, the
Florida Industrial Power Users Group, White Springs
Agricultural Chemicals, Inc. d/b/a PSC Phosphate and
NUCOR Steel Florida, Inc.
2024 CCR Rule . . . . . . . . . . . . .
The EPA’s Legacy CCR Surface Impoundments rule
issued in April 2024 under the Resource Conservation
and Recovery Act, which significantly expands the
scope of the 2015 CCR Rule
ACP . . . . . . . . . . . . . . . . . . . . . . . .
Atlantic Coast Pipeline, LLC, a limited liability
company owned by Dominion and Duke Energy
AFS . . . . . . . . . . . . . . . . . . . . . . . .
Available for Sale
AFUDC . . . . . . . . . . . . . . . . . . . . .
Allowance for funds used during construction
AOCI . . . . . . . . . . . . . . . . . . . . . . .
Accumulated Other Comprehensive Income (Loss)
ArcLight . . . . . . . . . . . . . . . . . . . .
ArcLight Capital Partners, LLC
ARO . . . . . . . . . . . . . . . . . . . . . . .
Asset Retirement Obligation
ARM . . . . . . . . . . . . . . . . . . . . . . .
Annual Review Mechanism
ATM . . . . . . . . . . . . . . . . . . . . . . . .
At-the-market
Audit Committee . . . . . . . . . . . .
Audit Committee of the Board of Directors
Bison . . . . . . . . . . . . . . . . . . . . . .
Bison Insurance Company Limited
Board of Directors . . . . . . . . . . .
Duke Energy Board of Directors
Brookfield . . . . . . . . . . . . . . . . . .
Brookfield Renewable Partners L.P.
Brunswick . . . . . . . . . . . . . . . . . .
Brunswick Nuclear Plant
Cardinal . . . . . . . . . . . . . . . . . . .
Cardinal Pipeline Company, LLC
Catawba . . . . . . . . . . . . . . . . . . .
Catawba Nuclear Station
CC . . . . . . . . . . . . . . . . . . . . . . . . .
Combined Cycle
CCR . . . . . . . . . . . . . . . . . . . . . . .
Coal Combustion Residuals
CEP . . . . . . . . . . . . . . . . . . . . . . . .
Capital Expenditure Program
Cinergy . . . . . . . . . . . . . . . . . . . .
Cinergy Corp. (collectively with its subsidiaries)
Citrus County CC . . . . . . . . . . .
Citrus County Combined Cycle Facility
CO2 . . . . . . . . . . . . . . . . . . . . . . . .
Carbon Dioxide
Coal Ash Act . . . . . . . . . . . . . . . .
North Carolina Coal Ash Management Act of 2014
the Company . . . . . . . . . . . . . . .
Duke Energy Corporation and its subsidiaries
Commercial Renewables
Disposal Groups . . . . . . . . . . . .
Commercial Renewables business segment, excluding
the offshore wind contract for Carolina Long Bay,
separated into the utility-scale solar and wind group,
the distributed generation group and the remaining
assets
COR . . . . . . . . . . . . . . . . . . . . . . .
Costs of Removal
COVID-19 . . . . . . . . . . . . . . . . . .
Coronavirus Disease 2019
CPCN . . . . . . . . . . . . . . . . . . . . . .
Certificate of Public Convenience and Necessity
CRC . . . . . . . . . . . . . . . . . . . . . . .
Cinergy Receivables Company LLC
Crystal River Unit 3 . . . . . . . . .
Crystal River Unit 3 Nuclear Plant
CT . . . . . . . . . . . . . . . . . . . . . . . . .
Combustion Turbine
DATC . . . . . . . . . . . . . . . . . . . . . . .
Duke-American Transmission Company, LLC
DECON . . . . . . . . . . . . . . . . . . . . .
A method of decommissioning in which structures,
systems, and components that contain radioactive
contamination are removed from a site and safely
disposed at a commercially operated low-level waste
Term or Acronym
Definition
disposal facility, or decontaminated to a level that
permits the site to be released for unrestricted use
shortly after it ceases operation
DEFR . . . . . . . . . . . . . . . . . . . . . .
Duke Energy Florida Receivables, LLC
Deloitte . . . . . . . . . . . . . . . . . . . .
Deloitte & Touche LLP, and the member firms of
Deloitte Touche Tohmatsu and their respective
affiliates
DEPR . . . . . . . . . . . . . . . . . . . . . .
Duke Energy Progress Receivables, LLC
DERF . . . . . . . . . . . . . . . . . . . . . .
Duke Energy Receivables Finance Company, LLC
DOE . . . . . . . . . . . . . . . . . . . . . . .
U.S. Department of Energy
Dominion . . . . . . . . . . . . . . . . . . .
Dominion Energy, Inc.
Dth . . . . . . . . . . . . . . . . . . . . . . . .
Dekatherms
Duke Energy . . . . . . . . . . . . . . . .
Duke Energy Corporation (collectively with its
subsidiaries)
Duke Energy Carolinas . . . . . .
Duke Energy Carolinas, LLC
Duke Energy Florida . . . . . . . . .
Duke Energy Florida, LLC
Duke Energy Indiana . . . . . . . .
Duke Energy Indiana, LLC
Duke Energy Kentucky . . . . . . .
Duke Energy Kentucky, Inc.
Duke Energy Ohio . . . . . . . . . . .
Duke Energy Ohio, Inc.
Duke Energy Progress . . . . . . .
Duke Energy Progress, LLC
Duke Energy Registrants . . . . .
Duke Energy, Duke Energy Carolinas, Progress Energy,
Duke Energy Progress, Duke Energy Florida, Duke
Energy Ohio, Duke Energy Indiana and Piedmont
East Bend . . . . . . . . . . . . . . . . . .
East Bend Generating Station
EDIT . . . . . . . . . . . . . . . . . . . . . . .
Excess deferred income tax
EE . . . . . . . . . . . . . . . . . . . . . . . . .
Energy efficiency
EPA . . . . . . . . . . . . . . . . . . . . . . . .
U.S. Environmental Protection Agency
EPS . . . . . . . . . . . . . . . . . . . . . . . .
Earnings Per Share
ETR . . . . . . . . . . . . . . . . . . . . . . . .
Effective tax rate
EU&I . . . . . . . . . . . . . . . . . . . . . . .
Electric Utilities and Infrastructure
Exchange Act . . . . . . . . . . . . . . .
Securities Exchange Act of 1934
FERC . . . . . . . . . . . . . . . . . . . . . .
Federal Energy Regulatory Commission
Form S-3 . . . . . . . . . . . . . . . . . . .
Registration statement
FPSC . . . . . . . . . . . . . . . . . . . . . . .
Florida Public Service Commission
FTR . . . . . . . . . . . . . . . . . . . . . . . .
Financial transmission rights
FV-NI . . . . . . . . . . . . . . . . . . . . . .
Fair Value Through Net Income
GAAP . . . . . . . . . . . . . . . . . . . . . .
Generally Accepted Accounting Principles in the
United States
GAAP Reported Earnings . . . . .
Net Income Available to Duke Energy Corporation
common stockholders
GAAP Reported EPS . . . . . . . . .
Basic EPS Available to Duke Energy Corporation
common stockholders
GHG . . . . . . . . . . . . . . . . . . . . . . .
Greenhouse Gas
GIC . . . . . . . . . . . . . . . . . . . . . . . .
GIC Private Limited
GU&I . . . . . . . . . . . . . . . . . . . . . . .
Gas Utilities and Infrastructure
GWh . . . . . . . . . . . . . . . . . . . . . . .
Gigawatt-hour
Hardy Storage . . . . . . . . . . . . . .
Hardy Storage Company, LLC
Harris . . . . . . . . . . . . . . . . . . . . . .
Shearon Harris Nuclear Plant
HB 951 . . . . . . . . . . . . . . . . . . . . .
The Energy Solutions for North Carolina, or House
Bill 951, passed in October 2021
Term or Acronym
Definition
IMPA . . . . . . . . . . . . . . . . . . . . . . .
Indiana Municipal Power Agency
IMR . . . . . . . . . . . . . . . . . . . . . . . .
Integrity Management Rider
IRA . . . . . . . . . . . . . . . . . . . . . . . .
Inflation Reduction Act
IRP . . . . . . . . . . . . . . . . . . . . . . . .
Integrated Resource Plans
IRS . . . . . . . . . . . . . . . . . . . . . . . .
Internal Revenue Service
ISO . . . . . . . . . . . . . . . . . . . . . . . .
Independent System Operator
ITC . . . . . . . . . . . . . . . . . . . . . . . .
Investment Tax Credit
IURC . . . . . . . . . . . . . . . . . . . . . . .
Indiana Utility Regulatory Commission
Investment Trusts . . . . . . . . . . .
Grantor trusts of Duke Energy Progress, Duke Energy
Florida and Duke Energy Indiana
JDA . . . . . . . . . . . . . . . . . . . . . . . .
Joint Dispatch Agreement
KO Transmission . . . . . . . . . . . .
KO Transmission Company
KPSC . . . . . . . . . . . . . . . . . . . . . .
Kentucky Public Service Commission
LLC . . . . . . . . . . . . . . . . . . . . . . . .
Limited Liability Company
McGuire . . . . . . . . . . . . . . . . . . . .
McGuire Nuclear Station
MGP . . . . . . . . . . . . . . . . . . . . . . .
Manufactured gas plant
MISO . . . . . . . . . . . . . . . . . . . . . . .
Midcontinent Independent System Operator, Inc.
MTBE . . . . . . . . . . . . . . . . . . . . . .
Methyl tertiary butyl ether
MW . . . . . . . . . . . . . . . . . . . . . . . .
Megawatt
MWh . . . . . . . . . . . . . . . . . . . . . . .
Megawatt-hour
MYRP . . . . . . . . . . . . . . . . . . . . . .
Multiyear rate plans
NCDEQ . . . . . . . . . . . . . . . . . . . . .
North Carolina Department of Environmental Quality
NCEMC . . . . . . . . . . . . . . . . . . . . .
North Carolina Electric Membership Corporation
NCI . . . . . . . . . . . . . . . . . . . . . . . .
Noncontrolling Interests
NCUC . . . . . . . . . . . . . . . . . . . . . .
North Carolina Utilities Commission
NDTF . . . . . . . . . . . . . . . . . . . . . . .
Nuclear decommissioning trust funds
NMC . . . . . . . . . . . . . . . . . . . . . . .
National Methanol Company
NOL . . . . . . . . . . . . . . . . . . . . . . . .
Net operating loss
NPNS . . . . . . . . . . . . . . . . . . . . . .
Normal purchase/normal sale
NRC . . . . . . . . . . . . . . . . . . . . . . .
U.S. Nuclear Regulatory Commission
NYSE . . . . . . . . . . . . . . . . . . . . . .
New York Stock Exchange
Oconee . . . . . . . . . . . . . . . . . . . . .
Oconee Nuclear Station
OPEB . . . . . . . . . . . . . . . . . . . . . .
Other Post-Retirement Benefit Obligations
the Parent . . . . . . . . . . . . . . . . . .
Duke Energy Corporation holding company
PBR . . . . . . . . . . . . . . . . . . . . . . .
Performance-based regulation
PGA . . . . . . . . . . . . . . . . . . . . . . . .
Purchased Gas Adjustments
PHMSA . . . . . . . . . . . . . . . . . . . . .
Pipeline and Hazardous Materials Safety
Administration
Piedmont . . . . . . . . . . . . . . . . . . .
Piedmont Natural Gas Company, Inc.
Pine Needle . . . . . . . . . . . . . . . . .
Pine Needle LNG Company, LLC
Term or Acronym
Definition
Pioneer . . . . . . . . . . . . . . . . . . . . .
Pioneer Transmission, LLC
PJM . . . . . . . . . . . . . . . . . . . . . . . .
PJM Interconnection, LLC
PMPA . . . . . . . . . . . . . . . . . . . . . .
Piedmont Municipal Power Agency
PISCC . . . . . . . . . . . . . . . . . . . . . .
Post-in-service carrying costs
PPA . . . . . . . . . . . . . . . . . . . . . . . .
Purchase Power Agreement
Progress Energy . . . . . . . . . . . . .
Progress Energy, Inc.
PSCSC . . . . . . . . . . . . . . . . . . . . .
Public Service Commission of South Carolina
PTC . . . . . . . . . . . . . . . . . . . . . . . .
Production Tax Credit
PUCO . . . . . . . . . . . . . . . . . . . . . .
Public Utilities Commission of Ohio
QF . . . . . . . . . . . . . . . . . . . . . . . . .
Qualifying Facility
RCRA . . . . . . . . . . . . . . . . . . . . . .
The Resource Conservation and Recovery Act, a
federal law that governs the disposal of hazardous
and solid waste in the United States.
Relative TSR . . . . . . . . . . . . . . . .
TSR of Duke Energy stock relative to a predefined peer
group
Robinson . . . . . . . . . . . . . . . . . . .
Robinson Nuclear Plant
ROE . . . . . . . . . . . . . . . . . . . . . . .
Return of equity
ROU . . . . . . . . . . . . . . . . . . . . . . .
Right-of-use
RSU . . . . . . . . . . . . . . . . . . . . . . .
Restricted Stock Unit
RTO . . . . . . . . . . . . . . . . . . . . . . . .
Regional Transmission Organization
Sabal Trail . . . . . . . . . . . . . . . . .
Sabal Trail Transmission, LLC
SAFSTOR . . . . . . . . . . . . . . . . . . .
A method of decommissioning in which a nuclear
facility is placed and maintained in a condition that
allows the facility to be safely stored and
subsequently decontaminated to levels that permit
release for unrestricted use
SEC . . . . . . . . . . . . . . . . . . . . . . . .
Securities and Exchange Commission
SPP . . . . . . . . . . . . . . . . . . . . . . . .
Storm Protection Plan
S&P . . . . . . . . . . . . . . . . . . . . . . .
Standard & Poor’s Rating Services
State utility commissions . . . .
NCUC, PSCSC, FPSC, PUCO, IURC, KPSC and TPUC
(Collectively)
Subsidiary Registrants . . . . . .
Duke Energy Carolinas, Progress Energy, Duke Energy
Progress, Duke Energy Florida, Duke Energy Ohio, Duke
Energy Indiana and Piedmont
Sutton . . . . . . . . . . . . . . . . . . . . .
L.V. Sutton Combined Cycle Plant
the Tax Act . . . . . . . . . . . . . . . . .
Tax Cuts and Jobs Act
TPUC . . . . . . . . . . . . . . . . . . . . . .
Tennessee Public Utility Commission
TSR . . . . . . . . . . . . . . . . . . . . . . . .
Total shareholder return
U.S. . . . . . . . . . . . . . . . . . . . . . . . .
United States
VIE . . . . . . . . . . . . . . . . . . . . . . . .
Variable Interest Entity
W.S. Lee CC . . . . . . . . . . . . . . . .
William States Lee Combined Cycle Facility
WVPA . . . . . . . . . . . . . . . . . . . . . .
Wabash Valley Power Association, Inc.
ITEM 1. BUSINESS
DUKE ENERGY
General
Duke Energy was incorporated on May 3, 2005, and is an energy
company headquartered in Charlotte, North Carolina, subject to regulation by
the FERC and other regulatory agencies listed below. Duke Energy operates in the
U.S. primarily through its direct and indirect subsidiaries. Certain Duke
Energy subsidiaries are also Subsidiary Registrants, including Duke Energy
Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke
Energy Ohio, Duke Energy Indiana and Piedmont. Operations in Kentucky are
conducted through Duke Energy Ohio’s wholly owned subsidiary, Duke Energy
Kentucky. References herein to Duke Energy Ohio include Duke Energy Ohio and
its subsidiaries, unless otherwise noted. When discussing Duke Energy’s
consolidated financial information, it necessarily includes the results of its
separate Subsidiary Registrants, which along with Duke Energy, are collectively
referred to as the Duke Energy Registrants.
The Duke Energy Registrants electronically file reports with the SEC,
including Annual Reports on Form 10-K, quarterly reports on Form 10-Q,
current reports on Form 8-K, proxy statements and amendments to such reports.
The SEC maintains an internet site that contains reports, proxy and
information statements and other information regarding issuers that file
electronically with the SEC at sec.gov. Additionally, information about the Duke
Energy Registrants, including reports filed with the SEC, is available through
Duke Energy’s website at duke-energy.com. Such reports are accessible at no
charge and are made available as soon as reasonably practicable after such
material is filed with or furnished to the SEC.
Business Segments
Duke Energy’s segment structure includes two reportable business
segments: Electric Utilities and Infrastructure (EU&I) and Gas Utilities and
Infrastructure (GU&I). The remainder of Duke Energy’s operations is presented
as Other. Commercial Renewables is reported as discontinued operations
and is no longer a reportable segment beginning in the fourth quarter of 2022.
See Note 2 to the Consolidated Financial Statements, “Dispositions,” for
further details. Duke Energy’s chief operating decision-maker routinely reviews
financial information about each of these business segments in deciding
how to allocate resources and evaluate the performance of the business. For
additional information on each of these business segments, including financial
and geographic information, see Note 3 to the Consolidated Financial
Statements, “Business Segments.” The following sections describe the
business and operations of each of Duke Energy’s business segments, as well
as Other.
ELECTRIC UTILITIES AND INFRASTRUCTURE
EU&I conducts operations primarily through the regulated public
utilities of Duke Energy Carolinas, Duke Energy Progress, Duke Energy Florida,
Duke Energy Indiana and Duke Energy Ohio. EU&I provides retail electric service
through the generation, transmission, distribution and sale of electricity to
approximately 8.6 million customers within the Southeast and Midwest regions
of the U.S. The service territory is approximately 90,000 square miles across
six states with a total estimated population of 27 million. The operations
include electricity sold wholesale to municipalities, electric cooperative utilities
and other load-serving entities.
During 2021, Duke Energy executed an agreement providing for an
investment by an affiliate of GIC in Duke Energy Indiana in exchange for a
19.9% minority interest issued by Duke Energy Indiana Holdco, LLC, the holding
company for Duke Energy Indiana. The transaction was completed following
two closings. Additionally, in November 2022, Duke Energy committed to a plan
to sell the Commercial Renewables business segment, excluding the offshore
wind contract for Carolina Long Bay, which was moved to EU&I. Duke Energy
entered into purchase and sale agreements with affiliates of Brookfield for
the sale of the utility-scale solar and wind group in June 2023 and with affiliates
of ArcLight for the distributed generation group in July 2023. Both transactions
closed in October 2023 and the sale of the remaining assets was concluded
in January 2025. See Note 2 to the Consolidated Financial Statements,
“Dispositions,” for additional information.
Duke Energy owns a 50% interest in DATC. DATC owns 100% interest in
DATC Path 15 Transmission LLC, which owns transmission rights in North
America. In January 2025, Duke Energy entered into an agreement to sell its
indirect 50% ownership interest in DATC Path 15 Transmission LLC. In
November 2024, Duke Energy sold its 50% ownership interest in Pioneer. See
Note 13 to the Consolidated Financial Statements, “Investments in
Unconsolidated Affiliates” for further information.
The following map shows the service territory for EU&I as of December 31,
2024.
PART I
7
The electric operations and investments in projects are subject to the rules and regulations of the FERC, the NRC, the NCUC, the PSCSC, the FPSC, the
IURC, the PUCO and the KPSC.
The following table represents the distribution of GWh billed sales by customer class for the year ended December 31, 2024.
Duke
Energy
Carolinas
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Residential
33%
27%
50%
37%
29%
Commercial
33%
22%
36%
39%
26%
Industrial
22%
14%
7%
22%
30%
Total retail sales
88%
63%
93%
98%
85%
Wholesale and other sales
12%
37%
7%
2%
15%
Total sales
100%
100%
100%
100%
100%
The number of retail customers within the EU&I service territory is
expected to increase over time. Weather-normal sales volumes have shown
growth in 2024 compared to 2023 due primarily to strong residential customer
growth and strength in the commercial sector including data center usage.
Industrial sales remained soft due to overall weakness across the class,
including some manufacturing plant closings in certain jurisdictions, impacts
of continued high interest rates, and difficulty hiring qualified labor. The
impact on customers’ usage of electricity from these factors and other potential
economic dynamics continues to be monitored. Over a longer time frame, it is
expected that the continued adoption of more efficient housing and appliances
will have a negative impact on average usage per residential customer;
however, decoupled rates in North Carolina and various rate design mechanisms
in other jurisdictions partially mitigate the impact of the declining usage per
customer on overall profitability. Commercial and industrial sales volumes are
expected to grow over this longer time frame as sales benefit from a robust
economic development portfolio.
Seasonality and the Impact of Weather
Revenues and costs are influenced by seasonal weather patterns. Peak
sales of electricity occur during the summer and winter months, which results
in higher revenue and cash flows during these periods. By contrast, lower
sales of electricity occur during the spring and fall, allowing for scheduled plant
maintenance. Residential and commercial customers are typically more
impacted by weather than industrial customers, although decoupling
mechanisms in certain jurisdictions may mitigate some of the weather
impacts. Estimated weather impacts are based on actual current period
weather compared to normal weather conditions. Normal weather conditions
are defined as the long-term average of actual historical weather conditions.
The estimated impact of weather on earnings is based on the temperature
variances from a normal condition and customers’ historic usage patterns. The
methodology used to estimate the impact of weather does not consider all
variables that may impact customer response to weather conditions such as
humidity in the summer or wind chill in the winter. The precision of this estimate
may also be impacted by applying long-term weather trends to shorter-term
periods. Estimates of weather impacts may be more difficult to determine during
periods of extreme or more volatile weather. An unusually active hurricane
season that impacted the Florida and Carolinas territories was also considered
when quantifying the impacts of weather for 2024. Declines in usage caused
by outage durations related to hurricanes Helene and Milton were estimated and
included as an impact due to weather.
Heating degree days measure the variation in weather based on the
extent the average daily temperature falls below a base temperature. Cooling
degree days measure the variation in weather based on the extent the average
daily temperature rises above the base temperature. Each degree of
temperature below the base temperature counts as one heating degree day
and each degree of temperature above the base temperature counts as one
cooling degree day.
Competition
Retail
EU&I’s businesses operate as the sole supplier of electricity within their
service territories, with the exception of Ohio, which has a competitive electricity
supply market for generation service. EU&I owns and operates facilities
necessary to generate, transmit, distribute and sell electricity. Services are
priced by state commission-approved rates designed to include the costs of
providing these services and a reasonable return on invested capital. This
regulatory policy is intended to provide safe and reliable electricity at fair prices.
In Ohio, EU&I conducts competitive auctions for electricity supply. The
cost of energy purchased through these auctions is recovered from retail
customers. EU&I earns retail margin in Ohio on the transmission and distribution
of electricity, but not on the cost of the underlying energy.
Competition in the regulated electric distribution business is primarily
from the development and deployment of alternative energy sources including
on-site generation from industrial customers and distributed generation,
such as private solar, at residential, commercial and/or industrial customer
sites.
Wholesale
Duke Energy competes with other utilities and merchant generators for
bulk power sales, sales to municipalities and cooperatives and wholesale
transactions under primarily cost-based contracts approved by FERC. The
principal factors in competing for these sales are availability of capacity and
power, reliability of service and price. Prices are influenced primarily by market
conditions and fuel costs.
Increased competition in the wholesale electric utility industry and the
availability of transmission access could affect EU&I’s load forecasts, plans
for power supply and wholesale energy sales and related revenues. Wholesale
energy sales will be impacted by the extent to which additional generation is
available to sell to the wholesale market and the ability of EU&I to attract
new customers and to retain existing customers.
Energy Capacity and Resources
EU&I owns approximately 55,139 MW of generation capacity. For
additional information on owned generation facilities, see Item 2, “Properties.”
Energy and capacity to serve customers are also supplied through
contracts with other generators and purchased on the open market. Factors
that could cause EU&I to purchase power for its customers may include, but are
not limited to, generating plant outages, extreme weather conditions,
generation reliability, demand growth and price. EU&I has interconnections
and arrangements with its neighboring utilities to facilitate planning, emergency
assistance, sale and purchase of capacity and energy and reliability of power
supply.
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8
EU&I’s generation portfolio is a balanced mix of energy resources having
different operating characteristics and fuel sources designed to provide energy
at the lowest cost to meet its obligation to serve retail customers. All options,
including owned generation resources and purchased power opportunities, are
continually evaluated on a real-time basis to select and dispatch the lowest-
cost resources available to meet system load requirements.
Sources of Electricity
EU&I relies principally on natural gas, nuclear fuel and coal for its generation of electricity. The following table lists sources of electricity and fuel costs for
the three years ended December 31, 2024.
Generation by Source
Cost of Delivered Fuel per Net
Kilowatt-hour Generated (Cents)
2024
2023
2022
2024
2023
2022
Natural gas and fuel oil(a)
34.7%
33.3%
34.2%
3.39
3.81
6.35
Nuclear(a)
27.5%
28.4%
26.6%
0.58
0.58
0.58
Coal(a)
14.1%
12.8%
13.5%
4.09
4.07
3.43
All fuels (cost based on weighted average)(a)
76.3%
74.5%
74.3%
2.51
2.63
3.75
Hydroelectric and solar(b)
1.9%
1.8%
1.5%
Total generation
78.2%
76.3%
75.8%
Purchased power and net interchange
21.8%
23.7%
24.2%
Total sources of energy
100.0%
100.0%
100.0%
(a)
Statistics related to all fuels reflect EU&I’s public utility ownership interest in jointly owned generation facilities.
(b)
Generating figures are net of output required to replenish pumped-storage facilities during off-peak periods.
Natural Gas and Fuel Oil
Natural gas and fuel oil supply, transportation and storage for EU&I’s
generation fleet is purchased under standard industry agreements from
various suppliers, including Piedmont. Natural gas supply agreements typically
provide for a percentage of forecasted burns being procured over time, with
varied expiration dates. EU&I believes it has access to an adequate supply of
natural gas and fuel oil for the reasonably foreseeable future.
EU&I has certain dual-fuel generating facilities that can operate
utilizing both natural gas and fuel oil. The cost of EU&I’s natural gas and fuel
oil is fixed price or determined by published market prices as reported in
certain industry publications, plus any transportation and freight costs. Duke
Energy Carolinas, Duke Energy Progress, Duke Energy Florida and Duke Energy
Indiana use derivative instruments to manage a portion of their exposure to
price fluctuations for natural gas. Duke Energy Florida has agreed to not enter
any new financial natural gas hedging contracts through December 2027.
EU&I has firm interstate and intrastate natural gas transportation
agreements and storage agreements in place to support generation needed for
load requirements. EU&I may purchase additional shorter-term natural gas
transportation and utilize natural gas interruptible transportation agreements
to support generation needed for load requirements. The EU&I natural gas
plants are served by various supply zones and multiple pipelines.
Nuclear
The industrial processes for producing nuclear generating fuel generally
involve the mining and milling of uranium ore to produce uranium concentrates
and services to convert, enrich and fabricate fuel assemblies.
EU&I has contracted for uranium materials and services to fuel its
nuclear reactors. Uranium concentrates, conversion services and enrichment
services are primarily met through a diversified portfolio of long-term supply
contracts. The contracts are diversified by supplier, country of origin and
pricing. EU&I staggers its contracting so that its portfolio of long-term contracts
covers the majority of its fuel requirements in the near term and decreasing
portions of its fuel requirements over time thereafter. Near-term requirements
not met by long-term supply contracts have been and are expected to be fulfilled
with spot market purchases. Due to the technical complexities of changing
suppliers of fuel fabrication services, EU&I generally source these services to a
single domestic supplier on a plant-by-plant basis using multiyear contracts.
EU&I has entered into fuel contracts that cover 100% of its uranium
concentrates through at least 2029, 100% of its conversion services through
at least 2034, 100% of its enrichment services through at least 2033, and
100% of its fabrication services requirements for these plants through at least
2027. For future requirements not already covered under long-term contracts,
EU&I believes it will be able to renew contracts as they expire or enter into similar
contractual arrangements with other suppliers of nuclear fuel materials and
services.
Coal
EU&I meets its coal demand through a portfolio of long-term purchase
contracts and short-term spot market purchase agreements. Large amounts of
coal are purchased under long-term contracts with mining operators who
mine both underground and at the surface. EU&I uses spot market purchases
to meet coal requirements not met by long-term contracts. Expiration dates for
its long-term contracts, which may have various price adjustment provisions
and market reopeners, range from 2025 to 2029 for Duke Energy Carolinas and
Duke Energy Progress, 2025 to 2028 for Duke Energy Florida, 2025 to 2027
for Duke Energy Ohio and 2025 to 2030 for Duke Energy Indiana. EU&I expects
to renew these contracts or enter into similar contracts with other suppliers
as existing contracts expire, though prices will fluctuate over time as coal
markets change. EU&I has an adequate supply of coal under contract to meet its
risk management guidelines regarding projected future consumption. Coal
inventory levels may fluctuate as a result of volatility in natural gas prices and
the associated impacts on coal-fired dispatch within the generation fleet.
EU&I continues to actively manage its portfolio and has worked with suppliers
to obtain increased flexibility in its coal contracts.
Coal purchased for the Carolinas is primarily produced from mines in
Central Appalachia, Northern Appalachia and the Illinois Basin. Coal purchased
for Florida is primarily produced from mines in the Illinois Basin. Coal
purchased for Kentucky is primarily produced from mines along the Ohio River
in Illinois, Kentucky, Ohio, West Virginia and Pennsylvania. Coal purchased
for Indiana is primarily produced in Indiana and Illinois. There are adequate
domestic coal reserves to serve EU&I’s coal generation needs through end of life.
The current average sulfur content of coal purchased by EU&I is between
0.5% and 3.5% for Duke Energy Carolinas and Duke Energy Progress, between
1.0% and 3.5% for Duke Energy Florida, between 1.5% and 4.0% for Duke
Energy Ohio and between 1.0% and 4.0% for Duke Energy Indiana. EU&I’s
environmental controls, in combination with the use of sulfur dioxide (SO2)
emission allowances, enable EU&I to satisfy current SO2 emission limitations for
its existing facilities.
PART I
9
Purchased Power
EU&I acquires a portion of its capacity and system requirements through purchase obligations, leases and purchase capacity contracts. EU&I believes it
can obtain adequate purchased power capacity to meet future system load needs. However, during periods of high demand, the price and availability of purchased
power may be significantly affected.
The following table summarizes purchased power for the previous three years:
2024
2023
2022
Purchase obligations and leases (in millions of MWh)(a)
32.1
37.6
41.2
Purchase capacity under contract (in MW)(b)
3,202
3,997
4,028
(a)
Represents approximately 12% of total system requirements for 2024, 15% for 2023 and 16% for 2022.
(b)
These agreements include approximately 182 MW of firm capacity for 2024, and 412 MW of firm capacity for 2023 and 2022 under contract by Duke Energy Florida with QFs.
Inventory
EU&I must maintain an adequate stock of fuel and materials and
supplies in order to ensure continuous operation of generating facilities and
reliable delivery to customers. As of December 31, 2024, the inventory balance
for EU&I was approximately $4.4 billion. For additional information on
inventory, see Note 1 to the Consolidated Financial Statements, “Summary of
Significant Accounting Policies.”
Ash Basin Management
The EPA has issued regulations related to the management of CCR from
power plants, including the 2015 and 2024 CCR Rules. These regulations
classify CCR as nonhazardous waste under RCRA and apply to electric
generating sites with new and existing landfills and new and existing surface
impoundments and establish requirements regarding design and operating
criteria, groundwater monitoring and corrective action, closure requirements
and post-closure care, and recordkeeping, notifications, and internet posting
requirements for the disposal and management of CCR. In addition to the
federal regulations, CCR landfills and surface impoundments (ash basins or
impoundments) will continue to be regulated by existing state laws, regulations
and permits, such as the North Carolina Coal Ash Management Act of 2014
(Coal Ash Act).
EU&I has and will periodically submit to applicable authorities required
site-specific coal ash impoundment remediation or closure plans. Closure
plans must be approved and all associated permits issued before any work can
begin. At all sites requiring CCR closure and groundwater remediation,
closure methods and groundwater corrective action remedies have been studied
and factored into the estimated retirement and management costs.
The 2015 and 2024 EPA CCR Rules and the Coal Ash Act leave the
decision on cost recovery determinations related to closure of coal ash surface
impoundments to the normal ratemaking processes before utility regulatory
commissions. Duke Energy’s electric utilities have included compliance costs
associated with federal and state requirements in their respective rate
proceedings. Additionally, Duke Energy Carolinas’ and Duke Energy Progress’
wholesale contracts were amended to include the recovery of expenditures
related to AROs for the closure of coal ash basins. The amended contracts have
retail disallowance parity or provisions limiting challenges to CCR cost
recovery actions at FERC. For additional information on the ash basins and
recovery, see Item 7, “Other Matters” and Notes 4, 5 and 10 to the Consolidated
Financial Statements, “Regulatory Matters,” “Commitments and Contingencies”
and “Asset Retirement Obligations,” respectively.
Nuclear Matters
Duke Energy owns, wholly or partially, 11 operating nuclear reactors
located at six operating stations. The Crystal River Unit 3 permanently ceased
operation in February 2013. Nuclear insurance includes: nuclear liability
coverage; property damage coverage; nuclear accident decontamination and
premature decommissioning coverage; and accidental outage coverage for
losses in the event of a major accidental outage. Joint owners reimburse Duke
Energy for certain expenses associated with nuclear insurance in accordance
with joint owner agreements. The Price-Anderson Act requires plant owners to
provide for public nuclear liability claims resulting from nuclear incidents to
the maximum total financial protection liability, which is approximately
$16.2 billion. For additional information on nuclear insurance, see Note 5 to
the Consolidated Financial Statements, “Commitments and Contingencies.”
Duke Energy has a significant future financial commitment to dispose of
spent nuclear fuel and decommission and decontaminate each plant safely.
The NCUC and the PSCSC require Duke Energy Carolinas and Duke Energy
Progress to update cost estimates for decommissioning their nuclear plants
every five years. The nuclear decommissioning liabilities are assessed and
updated based on changes in cash flows provided in new studies as well as
annual assessments to evaluate whether any indicators suggest a change in
the estimate of the ARO is necessary.
The following table summarizes the fair value of NDTF investments and the most recent site-specific nuclear decommissioning cost studies. Decommissioning
costs are stated in 2023 or 2024 dollars, depending on the year of the cost study, and include costs to decommission plant components not subject to radioactive
contamination.
NDTF
(in millions)
December 31, 2024
December 31, 2023
Decommissioning Costs
Year of Cost Study
Duke Energy
$11,435
$10,143
$9,031
2023 or 2024
Duke Energy Carolinas(a)
6,468
5,686
4,439
2023
Progress Energy
4,967
4,457
4,592
2024
Duke Energy Progress(b)
4,636
4,075
4,477
2024
Duke Energy Florida(c)
331
382
115
N/A
(a)
Decommissioning costs for Duke Energy Carolinas reflects its ownership interest in jointly owned reactors. Other joint owners are responsible for decommissioning costs related to their interest in the reactors. Duke
Energy Carolinas’ site-specific nuclear decommissioning cost study and a funding study were filed with the NCUC and PSCSC in 2024.
(b)
Duke Energy Progress’ site-specific nuclear decommissioning cost study was filed with the NCUC and PSCSC in February 2025. An updated funding study will be completed and filed with the NCUC and PSCSC in 2025.
(c)
During 2019, Duke Energy Florida reached an agreement to transfer decommissioning work for Crystal River Unit 3 to a third party and decommissioning costs are based on the agreement with this third party rather
than a cost study. Regulatory approval was received from the NRC and the FPSC in April 2020 and August 2020, respectively. Duke Energy Florida provides the FPSC periodic reports on the status and progress of
decommissioning activities.
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The NCUC, PSCSC, FPSC and FERC have allowed EU&I to recover
estimated decommissioning costs through retail and wholesale rates over the
expected remaining service periods of their nuclear stations. EU&I believes the
decommissioning costs being recovered through rates, when coupled with the
existing fund balances and expected fund earnings, will be sufficient to provide
for the cost of future decommissioning. For additional information, see
Note 10 to the Consolidated Financial Statements, “Asset Retirement
Obligations.”
The Nuclear Waste Policy Act of 1982 (as amended) provides the
framework for development by the federal government of interim storage and
permanent disposal facilities for high-level radioactive waste materials. The
government has not yet developed a storage facility or disposal capacity, so
EU&I will continue to store spent fuel on its reactor sites.
Under federal law, the DOE is responsible for the selection and
construction of a facility for the permanent disposal of spent nuclear fuel
and high-level radioactive waste. The DOE terminated the project to license
and develop a geologic repository at Yucca Mountain, Nevada in 2010, and is
currently taking no action to fulfill its responsibilities to dispose of spent
fuel.
Until the DOE begins to accept the spent nuclear fuel, Duke Energy
Carolinas, Duke Energy Progress and Duke Energy Florida will continue to
safely manage their spent nuclear fuel. Under current regulatory guidelines,
Harris has sufficient storage capacity in its spent fuel pools through the
expiration of its renewed operating license. With certain modifications and
approvals by the NRC to expand the on-site dry cask storage facilities, spent
nuclear fuel dry storage facilities will be sufficient to provide storage space of
spent fuel through the expiration of the operating licenses, including any
license renewals, for Brunswick, Catawba, McGuire, Oconee and Robinson.
Crystal River Unit 3 ceased operation in 2013 and was placed in a SAFSTOR
condition in January 2018. As of January 2018, all spent fuel at Crystal River
Unit 3 has been transferred from the spent fuel pool to dry storage at an on-site
independent spent fuel storage installation.
The nuclear power industry faces uncertainties with respect to the cost
and long-term availability of disposal sites for spent nuclear fuel and other
radioactive waste, compliance with changing regulatory requirements, capital
outlays for modifications and new plant construction.
EU&I is subject to the jurisdiction of the NRC for the design, construction
and operation of its nuclear generating facilities. The following table includes
the current year of expiration of nuclear operating licenses for nuclear
stations in operation. In June 2021, Duke Energy Carolinas filed a subsequent
license renewal application for Oconee with the NRC to renew Oconee’s operating
license for an additional 20 years. Duke Energy has announced its intention
to seek 20-year operating license renewals for each of the reactors it operates
in Duke Energy Carolinas and Duke Energy Progress. See Note 4 to the
Consolidated Financial Statements, “Regulatory Matters,” for additional
information.
Unit
Year of Expiration
Duke Energy Carolinas
Catawba Units 1 and 2
2043
McGuire Unit 1
2041
McGuire Unit 2
2043
Oconee Units 1 and 2
2033
Oconee Unit 3
2034
Duke Energy Progress
Brunswick Unit 1
2036
Brunswick Unit 2
2034
Harris
2046
Robinson
2030
The NRC has acknowledged permanent cessation of operation and
permanent removal of fuel from the reactor vessel at Crystal River Unit 3.
Therefore, the license no longer authorizes operation of the reactor. For additional
information on nuclear decommissioning activity, see Note 10 to the
Consolidated Financial Statements, “Asset Retirement Obligations.”
Regulation
State
The state utility commissions approve rates for Duke Energy’s retail
electric service within their respective states. The state utility commissions, to
varying degrees, have authority over the construction and operation of EU&I’s
generating facilities. CPCNs issued by the state utility commissions, as
applicable, authorize EU&I to construct and operate its electric facilities and to
sell electricity to retail and wholesale customers. Prior approval from the relevant
state utility commission is required for the entities within EU&I to issue
securities. The underlying concept of utility ratemaking is to set rates at a level
that allows the utility to collect revenues equal to its cost of providing service plus
earn a reasonable rate of return on its invested capital, including equity.
In addition to rates approved in base rate cases, each of the state utility
commissions allow recovery of certain costs through various cost recovery
clauses to the extent the respective commission determines in periodic hearings
that such costs, including any past over or under-recovered costs, are
prudent.
Fuel, fuel-related costs and certain purchased power costs are eligible
for recovery by EU&I. EU&I uses coal, hydroelectric, natural gas, oil, renewable
generation and nuclear fuel to generate electricity, thereby maintaining a
diverse fuel mix that helps mitigate the impact of cost increases in any one
fuel. Due to the associated regulatory treatment and the method allowed for
recovery, changes in fuel costs from year to year have no material impact on
operating results of EU&I, unless a commission finds a portion of such costs
to have been imprudent. However, delays between the expenditure for fuel costs
and recovery from customers can adversely impact the timing of cash flows
of EU&I.
PART I
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The table below reflects significant electric rate case applications approved and effective in the past three years and applications currently pending
approval.
Regulatory
Body
Revenue
Increase
(Decrease)
(in millions)
Return on
Equity
Equity
Component of
Capital Structure
Effective Date
Approved Rate Cases:
Duke Energy Indiana 2024 Rate Case
IURC
$385
9.75%
53%
March 2025
Duke Energy Florida 2024 Rate Case(a)
FPSC
203
10.3%
53%
January 2025
Duke Energy Carolinas 2024 South Carolina Rate Case
PSCSC
150
9.94%
51.21%
August 2024
Duke Energy Carolinas 2023 North Carolina Rate Case(b)
NCUC
768
10.1%
53%
January 2024
Duke Energy Kentucky 2022 Kentucky Electric Rate Case(c)
KPSC
48
9.75%
52.145%
October 2023
Duke Energy Progress 2022 North Carolina Rate Case(d)
NCUC
494
9.8%
53%
October 2023
Duke Energy Progress 2022 South Carolina Rate Case
PSCSC
36
9.6%
52.43%
April 2023
Duke Energy Ohio 2021 Ohio Electric Rate Case
PUCO
23
9.5%
50.5%
January 2023
Duke Energy Florida 2021 Settlement agreement(e)
FPSC
195
9.85%
53%
January 2022
Pending Rate Cases:
Duke Energy Kentucky 2024 Kentucky Electric Rate Case
KPSC
70
10.85%
52.728%
July 2025
(a)
In Year 2, rates will increase by $59 million. Rate increases for new solar investments were also approved along with the 10.3% ROE midpoint. For more details, see Note 4 to the Consolidated Financial Statements,
“Regulatory Matters.”
(b)
Of the total rate case increase, Year 1, 2 and 3 rates are approximately 57%, 22% and 21%, respectively.
(c)
An ROE of 9.65% for electric riders was approved.
(d)
Of the total rate increase, Year 1, 2 and 3 rates are approximately 49%, 24% and 27%, respectively.
(e)
Based on initial settlement. Year 1, 2 and 3 rates are approximately 34%, 25% and 41%, respectively, with 9.85% as the original ROE midpoint. For more details, see Note 4 to the Consolidated Financial Statements,
“Regulatory Matters.”
Federal
The FERC approves EU&I’s cost-based rates for electric sales to certain
power and transmission wholesale customers. Regulations of FERC and the
state utility commissions govern access to regulated electric and other data by
nonregulated entities and services provided between regulated and
nonregulated energy affiliates. These regulations affect the activities of
nonregulated affiliates with EU&I.
RTOs
PJM and MISO are the ISOs and FERC-approved RTOs for the regions in
which Duke Energy Ohio and Duke Energy Indiana operate. PJM and MISO
operate energy, capacity and other markets, and control the day-to-day
operations of bulk power systems through central dispatch.
Duke Energy Ohio is a member of PJM and Duke Energy Indiana is a
member of MISO. Transmission owners in these RTOs have turned over control
of their transmission facilities and their transmission systems are currently
under the dispatch control of the RTOs. Transmission service is provided on a
regionwide, open-access basis using the transmission facilities of the RTO
members at rates based on the costs of transmission service.
Environmental
EU&I is subject to the jurisdiction of the EPA and state and local
environmental agencies. For a discussion of environmental regulation, see
“Environmental Matters” in this section. See the “Other Matters” section of
Item 7 Management’s Discussion and Analysis for a discussion about potential
Global Climate Change legislation and other EPA regulations under
development and the potential impacts such legislation and regulation could
have on Duke Energy’s operations.
GAS UTILITIES AND INFRASTRUCTURE
GU&I conducts natural gas operations primarily through the regulated
public utilities of Piedmont, Duke Energy Ohio and Duke Energy Kentucky. The
natural gas operations are subject to the rules and regulations of the NCUC,
PSCSC, PUCO, KPSC, TPUC, PHMSA and the FERC. GU&I serves residential,
commercial, industrial and power generation natural gas customers, including
customers served by municipalities who are wholesale customers. GU&I has
over 1.7 million total customers, including approximately 1.2 million customers
located in North Carolina, South Carolina and Tennessee, and an additional
560,000 customers located within southwestern Ohio and northern Kentucky. In
the Carolinas, Ohio and Kentucky, the service areas are comprised of
numerous cities, towns and communities. In Tennessee, the service area is the
metropolitan area of Nashville. The following map shows the service territory
for GU&I as of December 31, 2024.
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The number of residential, commercial and industrial customers within
the GU&I service territory is expected to increase over time. Average usage per
residential customer is expected to remain flat or decline for the foreseeable
future; however, decoupled rates in North Carolina and various rate design
mechanisms in other jurisdictions partially mitigate the impact of the declining
usage per customer on overall profitability.
GU&I also has investments in various pipeline transmission projects,
renewable natural gas projects and natural gas storage facilities.
Natural Gas for Retail Distribution
GU&I is responsible for the distribution of natural gas to retail
customers in its North Carolina, South Carolina, Tennessee, Ohio and Kentucky
service territories. GU&I’s natural gas procurement strategy is to contract
primarily with major and independent producers and marketers for natural gas
supply. It also purchases a diverse portfolio of transportation and storage
service from interstate pipelines. This strategy allows GU&I to assure reliable
natural gas supply and transportation for its firm customers during peak winter
conditions. When firm pipeline services or contracted natural gas supplies
are temporarily not needed due to market demand fluctuations, GU&I may
release these services and supplies in the secondary market under FERC-
approved capacity release provisions and/or make wholesale secondary market
sales. In 2024, firm supply purchase commitment agreements provided for
approximately 100% of the natural gas supply for both Piedmont and Duke
Energy Ohio during the winter months and 100% of forecasted demand was
under contract prior to the winter heating season.
Impact of Weather
GU&I revenues are generally protected from the impact of weather
fluctuations due to the regulatory mechanisms that are available in most
service territories. In North Carolina, margin decoupling provides protection
from both weather and other usage variations like conservation for residential
and small and medium commercial customers. Margin decoupling provides
a set margin per customer independent of actual usage. In South Carolina,
Tennessee and Kentucky, weather normalization adjusts revenues either up or
down depending on how much warmer or colder than normal a given month
has been. Weather normalization adjustments occur from November through
March in South Carolina, from October through April in Tennessee and from
November through April in Kentucky. Duke Energy Ohio collects most of its non-
fuel revenue through a fixed monthly charge that is not impacted by usage
fluctuations that result from weather changes or conservation.
Competition
GU&I’s businesses operate as the sole provider of natural gas service
within their retail service territories. GU&I owns and operates facilities
necessary to transport and distribute natural gas. GU&I earns retail margin on
the transmission and distribution of natural gas and not on the cost of the
underlying commodity. Services are priced by state commission-approved rates
designed to include the costs of providing these services and a reasonable
return on invested capital. This regulatory policy is intended to provide safe and
reliable natural gas service at fair prices.
In residential, commercial and industrial customer markets, natural gas
distribution operations compete with other companies that supply energy,
primarily electric companies, propane and fuel oil dealers, renewable energy
providers and coal companies in relation to sources of energy for electric power
plants, as well as nuclear energy. A significant competitive factor is price.
GU&I’s primary product competition is with electricity for space heating, water
heating and cooking. Increases in the price of natural gas or decreases in
the price of other energy sources could negatively impact competitive position
by decreasing the price benefits of natural gas to the consumer. In the case of
industrial customers, such as manufacturing plants, adverse economic or
market conditions, including higher natural gas costs, could cause these
customers to suspend business operations or to use alternative sources of
energy in favor of energy sources with lower per-unit costs.
Higher natural gas costs or decreases in the price of other energy
sources may allow competition from alternative energy sources for applications
that have traditionally used natural gas, encouraging some customers to
move away from natural gas-fired equipment to equipment fueled by other
energy sources. Competition between natural gas and other forms of energy is
also based on efficiency, performance, reliability, safety and other non-price
factors. Technological improvements in other energy sources and events that
impair the public perception of the non-price attributes of natural gas could
erode GU&I’s competitive advantage. These factors in turn could decrease
the demand for natural gas, impair GU&I’s ability to attract new customers and
cause existing customers to switch to other forms of energy or to bypass
GU&I’s systems in favor of alternative competitive sources. This could result in
slow or no customer growth for GU&I and could cause customers to reduce or
cease using natural gas, thereby reducing GU&I’s ability to make capital
expenditures and otherwise grow its business, adversely affecting its earnings.
Natural Gas Investments
Duke Energy, through its GU&I segment, has a 7.5% equity ownership
interest in Sabal Trail. Sabal Trail is a joint venture that owns the Sabal Trail
Natural Gas Pipeline, which is regulated by FERC and traverses Alabama,
Georgia, and Florida to transport natural gas to Florida. Duke Energy, also
through its GU&I segment, has a 47% equity ownership interest in ACP and
investments in various renewable natural gas joint ventures. Duke Energy
determined that it would no longer invest in ACP, and the construction of the
ACP pipeline, in 2020.
GU&I has a 21.49% equity ownership interest in Cardinal, an intrastate
pipeline located in North Carolina regulated by the NCUC, a 45% equity
ownership in Pine Needle, an interstate liquefied natural gas storage facility
located in North Carolina and a 50% equity ownership interest in Hardy Storage,
an underground interstate natural gas storage facility located in Hardy and
Hampshire counties in West Virginia. Pine Needle and Hardy Storage are
regulated by FERC.
GU&I sold all of KO Transmission’s pipeline facilities and related real
property to Columbia Gas Transmission, LLC in February 2023 for approximately
book value.
See Notes 4, 13 and 18 to the Consolidated Financial Statements,
“Regulatory Matters,” “Investments in Unconsolidated Affiliates” and
“Variable Interest Entities,” respectively, for further information on Duke
Energy’s and GU&I’s natural gas investments.
Inventory
GU&I must maintain adequate natural gas inventory in order to provide
reliable delivery to customers. As of December 31, 2024, the inventory balance
for GU&I was $95 million. For more information on inventory, see Note 1 to
the Consolidated Financial Statements, “Summary of Significant Accounting
Policies.”
Regulation
State
The state utility commissions approve rates for Duke Energy’s retail
natural gas service within their respective states. The state utility commissions,
to varying degrees, have authority over the construction and operation of
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GU&I’s natural gas distribution facilities. CPCNs issued by the state utility
commissions or other government agencies, as applicable, authorize GU&I to
construct and operate its natural gas distribution facilities and to sell natural
gas to retail and wholesale customers. Prior approval from the relevant state
utility commission is required for GU&I to issue securities. The underlying concept
of utility ratemaking is to set rates at a level that allows the utility to collect
revenues equal to its cost of providing service plus a reasonable rate of return
on its invested capital, including equity.
In addition to amounts collected from customers through approved base
rates, each of the state utility commissions allow recovery of certain costs
through various cost recovery clauses to the extent the respective commission
determines in periodic hearings that such costs, including any past over- or
under-recovered costs, are prudent.
Natural gas costs are eligible for recovery by GU&I. Due to the
associated regulatory treatment and the method allowed for recovery, changes
in natural gas costs from year to year have no material impact on operating
results of GU&I, unless a commission finds a portion of such costs to have been
imprudent. However, delays between the expenditure for natural gas and
recovery from customers can adversely impact the timing of cash flows of GU&I.
GU&I also has various regulatory mechanisms in place to track and recover
certain costs associated with capital investments including the IMR in North
Carolina, ARM in Tennessee, and CEP Rider in Ohio.
The following table summarizes certain components underlying significant recently approved and effective base rates in the last three years.
Regulatory
Body
Revenue
Increase
(Decrease)
(in millions)
Return
on
Equity
Equity
Component of
Capital Structure
Effective Date
Approved Rate Cases:
Piedmont 2024 North Carolina Rate Case(a)
NCUC
$88
9.8%
52.30%
November 2024
Duke Energy Ohio 2022 Natural Gas Base Rate Case
PUCO
32
9.6%
52.32%
November 2023
Duke Energy Kentucky 2021 Natural Gas Base Rate Case(b)
KPSC
9
9.375%
51.344%
January 2022
(a)
Year 2 and thereafter will include an additional $10 million in revenues.
(b)
An ROE of 9.3% for natural gas riders was approved.
For more information on rate matters and other regulatory proceedings,
see Note 4 to the Consolidated Financial Statements, “Regulatory Matters.”
Federal
GU&I is subject to various federal regulations, including regulations
that are particular to the natural gas industry. These federal regulations
include but are not limited to the following:
• Regulations of the FERC affect the certification and siting of new
interstate natural gas pipeline projects, the purchase and sale of, the
prices paid for, and the terms and conditions of service for the
interstate transportation and storage of natural gas.
• Regulations of the PHMSA affect the design, construction, operation,
maintenance, integrity, safety and security of natural gas distribution
and transmission systems.
• Regulations of the EPA relate to the environment including proposed
air emissions regulations that would expand to include emissions of
methane.
Regulations of the FERC and the state utility commissions govern
access to regulated natural gas and other data by nonregulated entities and
services provided between regulated and nonregulated energy affiliates. These
regulations affect the activities of nonregulated affiliates with GU&I.
Environmental
GU&I is subject to the jurisdiction of the EPA and state and local
environmental agencies. For a discussion of environmental regulation, see
“Environmental Matters” in this section. See “Other Matters” section of Item 7
Management’s Discussion and Analysis for a discussion about potential
Global Climate Change legislation and other EPA regulations under development
and the potential impacts such legislation and regulation could have on
Duke Energy’s operations.
OTHER
The remainder of Duke Energy’s operations is presented as Other. While
it is not a business segment, Other primarily includes interest expense on
holding company debt, unallocated corporate costs, certain income tax
amounts, amounts related to certain companywide initiatives and contributions
made to the Duke Energy Foundation. Other also includes Bison and an
investment in NMC.
The Duke Energy Foundation is a private foundation funded by Duke
Energy shareholders that makes charitable contributions to selected 501(c)3
nonprofit organizations and governmental entities.
Bison, a wholly owned subsidiary of Duke Energy, is a captive insurance
company with the principal activity of providing Duke Energy subsidiaries with
indemnification for financial losses primarily related to property, workers’
compensation and general liability.
Duke Energy owns a 17.5% equity interest in NMC. The joint venture
company has production facilities in Jubail, Saudi Arabia, where it manufactures
certain petrochemicals and plastics. NMC annually produces approximately
1 million metric tons each of MTBE and methanol and has the capacity to
produce 50,000 metric tons of polyacetal. The main feedstocks to produce these
products are natural gas and butane. Duke Energy records the investment
activity of NMC using the equity method of accounting and retains 25% of NMC’s
board of directors’ representation and voting rights.
Human Capital Management
Governance
Our employees are critical to the success of our company. Our Human
Resources organization is responsible for our human capital management
strategy, which includes recruiting and hiring, onboarding and training,
inclusion, workforce planning, talent and succession planning, performance
management and employee development. Key areas of focus include fostering
a high-performance and inclusive culture built on strong leadership and
highly engaged employees, building a pipeline of skilled workers and ensuring
knowledge transfer as employees retire.
Our Board of Directors provides oversight on certain human capital
management matters, primarily through the Compensation and People
Development Committee, which is responsible for reviewing strategies and
policies related to human capital management, including employee engagement
and talent development.
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Employees
On December 31, 2024, Duke Energy had a total of 26,413 full-time, part-
time and temporary employees, the majority of which were full-time employees.
The total includes 5,109 employees who are represented by labor unions
under various collective bargaining agreements that generally cover wages,
benefits, working practices, and other terms and conditions of employment. Our
workforce consisted of approximately 23.0% women and 20.6% people of
color as of December 31, 2024.
The Company seeks to attract and retain an appropriately qualified
workforce and leverages Duke Energy’s leadership imperatives to foster a
culture focused on customers, innovation, and highly engaged employees. Our
compensation program is market driven and designed to link pay to
performance with the goal of attracting and retaining talented employees,
rewarding individual performance, and encouraging long-term commitment to
our business. Our market competitive pay program includes short-term and
long-term variable pay components that help to align the interests of Duke
Energy to our customers and shareholders. In addition to competitive base pay,
we provide eligible employees with compensation and benefits under a
variety of plans and programs, including health care benefits, retirement
savings, pension, health savings and flexible spending accounts, wellness,
family leaves, employee assistance, as well as other benefits including a
charitable matching donation program. The Company is committed to providing
market competitive and fair compensation and regularly conducts internal
pay reviews, and benchmarking against peer companies to ensure our pay is
competitive.
Duke Energy is committed to continuing to build a workforce that
reflects the communities we serve while strengthening a culture of inclusion
where all employees and customers feel respected and valued. Our goals include
attracting and retaining the talent needed and rewarding performance to
enable us to reach our strategic objectives. In all events all employees are hired
or promoted based on merit. Employee-led councils open to all employees are
also embedded in departments across the Company and focus on driving
engagement, inclusion and belonging deeper into the employee experience.
Leaders and individual contributors also have the opportunity to participate in
voluntary training and facilitated conversations on insightful topics offered
to further our commitment to building and enabling an inclusive work
environment.
The Company also has 10 Employee Resource Groups (ERGs) open to all
employees, with 38 chapters and more than 6,800 employees participating.
These groups focus on employee professional development and networking,
community outreach, cultural awareness, recruiting and retention. They also
serve as a business resource to the Company for advocacy and community
outreach and improving customer service through innovation. ERG-sponsored
forums include networking events, mentoring and workshops on topics such as
time management, personal financial management, stress reduction, career
planning and work-life balance.
Among other efforts, the Company has developed partnerships with
community organizations, community colleges and universities to support our
strategy of building a highly skilled talent pipeline reflective of the communities
we serve.
Operational Excellence
The foundation for our growth and success is our continued focus on
operational excellence, the leading indicator of which is safety. As such, the
safety of our workforce remains our top priority. The Company closely monitors
the total incident case rate (TICR), which is a metric based on strict OSHA
definitions that measures the number of occupational injuries and illnesses
per 100 employees. This objective emphasizes our focus on achieving an event-
free and injury-free workplace. As an indication of our commitment to safety,
we include safety metrics in both the short-term and long-term incentive plans
based on the TICR for employees. Our employees delivered strong safety
results in 2024, consistent with our industry-leading performance levels since
2018.
Information about Our Executive Officers
The following table sets forth the individuals who currently serve as executive officers. Executive officers serve until their successors are duly elected or
appointed.
Name
Age(a)
Current and Recent Positions Held
Lynn J. Good
65
Chair and Chief Executive Officer. Ms. Good has served as Chair and Chief Executive Officer of Duke Energy since April 2024; Chair,
President and Chief Executive Officer of Duke Energy from January 2016 to April 2024; and Vice Chairman, President and Chief
Executive Officer of Duke Energy from July 2013 through December 2015. Prior to that, she served as Executive Vice President and
Chief Financial Officer since 2009. Ms. Good will retire from her roles as Chief Executive Officer and Chair of the Board of Directors,
effective April 1, 2025.
Harry K. Sideris
54
President. Mr. Sideris has served as President since April 2024. Prior to that, he served as Executive Vice President, Customer
Experience, Solutions and Services from October 2019 to April 2024; Senior Vice President and Chief Distribution Officer from
June 2018 to October 2019; State President, Florida from January 2017 to June 2018; Senior Vice President of Environmental Health
and Safety from August 2014 to January 2017; and Vice President of Power Generations for the Company’s Fossil/Hydro Operations in
the western portions of North Carolina and South Carolina from July 2012 to August 2014. Mr. Sideris has been appointed as the
President and Chief Executive Officer and as a member of the Board of Directors, effective April 1, 2025.
Brian D. Savoy
49
Executive Vice President and Chief Financial Officer. Mr. Savoy has served as Executive Vice President and Chief Financial Officer
since September 2022. Prior to that, he served as Executive Vice President, Chief Strategy and Commercial Officer from May 2021
through August 2022; Senior Vice President, Chief Transformation and Administrative Officer from October 2019 through April 2021;
Senior Vice President, Business Transformation and Technology from May 2016 through September 2019; Senior Vice President,
Controller and Chief Accounting Officer from September 2013 to May 2016; Director, Forecasting and Analysis from 2009 to
September 2013; and Vice President and Controller of the Commercial Power segment from 2006 to 2009.
Scott L. Batson
62
Senior Vice President and Chief Power Grid Officer. Mr. Batson has served as Senior Vice President and Chief Power Grid Officer
since March 2024. Prior to that, he served as Senior Vice President and Chief Distribution Officer from November 2019 to
March 2024; Regional Senior Vice President of Customer Delivery in North Carolina and South Carolina from October 2018 to
November 2019; Senior Vice President of Nuclear Operations in South Carolina from September 2016 to October 2018; and various
other roles of increasing responsibility since joining the Corporation in 1985.
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Name
Age(a)
Current and Recent Positions Held
Kodwo Ghartey-Tagoe
61
Executive Vice President, Chief Legal Officer and Corporate Secretary. Mr. Ghartey-Tagoe has served as Executive Vice President,
Chief Legal Officer and Corporate Secretary since May 2020. He was appointed Executive Vice President and Chief Legal Officer in
October 2019 after serving as President, South Carolina since 2017. Mr. Ghartey-Tagoe joined Duke Energy in 2002 and has held
numerous leadership positions in Duke Energy’s Legal Department, including Duke Energy’s Senior Vice President of State and
Federal Regulatory Legal Support.
T. Preston Gillespie
62
Executive Vice President, Chief Generation Officer and Enterprise Operational Excellence. Mr. Gillespie has served as Executive
Vice President, Chief Generation Officer and Enterprise Operational Excellence since January 2023. Prior to that, he served as the
Chief Generation Officer since 2020, and has held various other roles of increasing responsibility since joining Duke Energy in 1986,
including Senior Vice President of Nuclear Operations, Site Vice President and Plant Manager of Oconee Nuclear Station, and Site
Operations Manager of Catawba Nuclear Station, among other leadership roles.
R. Alexander Glenn
59
Executive Vice President and Chief Executive Officer, Duke Energy Florida and Midwest. Mr. Glenn has served as Executive Vice
President and Chief Executive Officer, Duke Energy Florida and Midwest since March 2023. Prior to that, he served as Senior Vice
President and Chief Executive Officer, Duke Energy Florida and Midwest from May 2021 to March 2023; Senior Vice President, State
and Federal Regulatory Legal Support from 2017 to May 2021; and State President of Duke Energy Florida’s operations from 2012 to
2017.
Julia S. Janson
60
Executive Vice President and Chief Executive Officer, Duke Energy Carolinas. Ms. Janson has served as Executive Vice President
and Chief Executive Officer, Duke Energy Carolinas since May 2021. Prior to that, she served as Executive Vice President, External
Affairs and President, Carolinas Region since October 2019 and the position of Executive Vice President, External Affairs and Chief
Legal Officer since November 2018. She originally assumed the position of Executive Vice President, Chief Legal Officer and
Corporate Secretary in December 2012 and then assumed the responsibilities for External Affairs in February 2016.
Cynthia S. Lee
58
Senior Vice President, Chief Accounting Officer and Controller. Ms. Lee has served as Senior Vice President, Chief Accounting
Officer and Controller since November 2024. Prior to that, she served as Vice President, Chief Accounting Officer and Controller from
May 2021 to November 2024; Director of Investor Relations from June 2019 to May 2021; and in various roles within the Corporate
Controller’s organization after joining the Corporation and its affiliates in 2002.
Louis E. Renjel
51
Executive Vice President and Chief Corporate Affairs Officer. Mr. Renjel has served as Executive Vice President and Chief
Corporate Affairs Officer since March 2023. Prior to that, he served as Senior Vice President, External Affairs and Communications
from May 2021 to March 2023; Senior Vice President of Federal Government and Corporate Affairs from October 2019 to May 2021;
and Vice President, Federal Government Affairs and Strategic Policy from March 2017 to October 2019 since joining the Company in
2017. Before joining Duke Energy, Mr. Renjel served as Vice President of Strategic Infrastructure from 2009 to March 2017 for CSX
Corp and as their Director of Environmental and Government Affairs from 2006 to 2008.
Bonnie B. Titone
51
Senior Vice President and Chief Administrative Officer. Ms. Titone has served as Senior Vice President and Chief Administrative
Officer since April 2024. Prior to that, she served as Senior Vice President and Chief Information Officer from March 2020 through
March 2024; and Vice President and Chief Information Officer from June 2019 through February 2020 since joining the Corporation in
June 2019.
Alexander J. “Sasha” Weintraub
54
Senior Vice President and Chief Customer Officer. Mr. Weintraub has served as Senior Vice President and Chief Customer Officer
since April 2024. Prior to that, he served as Senior Vice President and President of the Corporation’s natural gas business from
October 2019 until April 2024; Senior Vice President and Chief Commercial Officer of the Corporation’s natural gas business from
November 2018 until October 2019; Senior Vice President of both Customer and Market Solutions from August 2014 until
November 2019; and various other roles of increasing responsibility since joining the Corporation in 1999.
(a)
The ages of the officers provided are as of January 31, 2025.
There are no family relationships between any of the executive officers, nor any arrangement or understanding between any executive officer and any other
person involved in officer selection.
Environmental Matters
The Duke Energy Registrants are subject to federal, state and local laws
and regulations with regard to air and water quality, hazardous and solid waste
disposal and other environmental matters. Environmental laws and
regulations affecting the Duke Energy Registrants include, but are not limited
to:
• The Clean Air Act, as well as state laws and regulations impacting air
emissions, including State Implementation Plans related to existing
and new national ambient air quality standards for ozone and
particulate matter. Owners and/or operators of air emission sources
are responsible for obtaining permits and for annual compliance and
reporting.
• The Clean Water Act, which requires permits for facilities that
discharge wastewaters into navigable waters.
• The Comprehensive Environmental Response, Compensation and
Liability Act, which can require any individual or entity that currently
owns or in the past owned or operated a disposal site, as well as
transporters or generators of hazardous substances sent to a disposal
site, to share in remediation costs.
• The National Environmental Policy Act, which requires federal
agencies to consider potential environmental impacts in their
permitting and licensing decisions, including siting approvals.
• The 2015 and 2024 CCR Rules, EPA rules establishing national
regulations to provide a comprehensive set of requirements for the
management and disposal of CCR from coal-fired power plants.
• The Coal Ash Act, as amended, which establishes requirements
regarding the use and closure of existing ash basins, the disposal of
ash at active coal plants and the handling of surface water and
groundwater impacts from ash basins in North Carolina.
• The Solid Waste Disposal Act, as amended by RCRA, which creates a
framework for the proper management of hazardous and nonhazardous
solid waste; classifies CCR as nonhazardous waste; and establishes
standards for landfill and surface impoundment placement, design,
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operation and closure, groundwater monitoring, corrective action and
post-closure care.
• The Toxic Substances Control Act, which gives EPA the authority to
require reporting, recordkeeping and testing requirements, and to
place restrictions relating to chemical substances and/or mixtures,
including polychlorinated biphenyls.
For more information on environmental matters, see Notes 5 and 10 to
the Consolidated Financial Statements, “Commitments and Contingencies –
Environmental” and “Asset Retirement Obligations,” respectively, and the “Other
Matters” section of Item 7 Management’s Discussion and Analysis. Except as
otherwise described in these sections, costs to comply with current federal, state
and local provisions regulating the discharge of materials into the
environment or other potential costs related to protecting the environment are
incorporated into the routine cost structure of our various business segments
and are not expected to have a material adverse effect on the competitive
position, consolidated results of operations, cash flows or financial position of
the Duke Energy Registrants.
The “Other Matters” section of Item 7 Management’s Discussion and
Analysis includes more information on certain environmental regulations and a
discussion of Global Climate Change including the potential impact of
current and future legislation related to GHG emissions on the Duke Energy
Registrants’ operations. Recently passed and potential future environmental
statutes and regulations could have a significant impact on the Duke Energy
Registrants’ results of operations, cash flows or financial position. However,
if and when such statutes and regulations become effective, the Duke Energy
Registrants will seek appropriate regulatory recovery of costs to comply within
its regulated operations.
DUKE ENERGY CAROLINAS
Duke Energy Carolinas is a regulated public utility primarily engaged in
the generation, transmission, distribution and sale of electricity in portions of
North Carolina and South Carolina. Duke Energy Carolinas’ service area covers
approximately 24,000 square miles and supplies electric service to
approximately 2.9 million residential, commercial and industrial customers.
For information about Duke Energy Carolinas’ generating facilities, see Item 2,
“Properties.” Duke Energy Carolinas is subject to the regulatory provisions of
the NCUC, PSCSC, NRC and FERC.
Substantially all of Duke Energy Carolinas’ operations are regulated and
qualify for regulatory accounting. Duke Energy Carolinas operates one reportable
business segment, EU&I. For additional information regarding this business
segment, including financial information, see Note 3 to the Consolidated
Financial Statements, “Business Segments.”
PROGRESS ENERGY
Progress Energy is a public utility holding company primarily engaged in
the regulated electric utility business and is subject to regulation by the FERC.
Progress Energy conducts operations through its wholly owned subsidiaries,
Duke Energy Progress and Duke Energy Florida. When discussing Progress
Energy’s financial information, it necessarily includes the results of Duke Energy
Progress and Duke Energy Florida.
Substantially all of Progress Energy’s operations are regulated and
qualify for regulatory accounting. Progress Energy operates one reportable
business segment, EU&I. For additional information regarding this business
segment, including financial information, see Note 3 to the Consolidated
Financial Statements, “Business Segments.”
DUKE ENERGY PROGRESS
Duke Energy Progress is a regulated public utility primarily engaged in
the generation, transmission, distribution and sale of electricity in portions of
North Carolina and South Carolina. Duke Energy Progress’ service area covers
approximately 28,000 square miles and supplies electric service to approximately
1.8 million residential, commercial and industrial customers.
For information about Duke Energy Progress’ generating facilities, see
Item 2, “Properties.” Duke Energy Progress is subject to the regulatory provisions
of the NCUC, PSCSC, NRC and FERC. Substantially all of Duke Energy
Progress’ operations are regulated and qualify for regulatory accounting. Duke
Energy Progress operates one reportable business segment, EU&I. For
additional information regarding this business segment, including financial
information, see Note 3 to the Consolidated Financial Statements, “Business
Segments.”
DUKE ENERGY FLORIDA
Duke Energy Florida is a regulated public utility primarily engaged in the
generation, transmission, distribution and sale of electricity in portions of
Florida. Duke Energy Florida’s service area covers approximately 13,000 square
miles and supplies electric service to approximately 2 million residential,
commercial and industrial customers. For information about Duke Energy
Florida’s generating facilities, see Item 2, “Properties.” Duke Energy Florida is
subject to the regulatory provisions of the FPSC, NRC and FERC.
Substantially all of Duke Energy Florida’s operations are regulated and
qualify for regulatory accounting. Duke Energy Florida operates one reportable
business segment, EU&I. For additional information regarding this business
segment, including financial information, see Note 3 to the Consolidated
Financial Statements, “Business Segments.”
DUKE ENERGY OHIO
Duke Energy Ohio is a regulated public utility primarily engaged in the
transmission and distribution of electricity in portions of Ohio and Kentucky, in
the generation and sale of electricity in portions of Kentucky and the
transportation and sale of natural gas in portions of Ohio and Kentucky. Duke
Energy Ohio also conducts competitive auctions for retail electricity supply in
Ohio whereby recovery of the energy price is from retail customers. Operations
in Kentucky are conducted through Duke Energy Ohio’s wholly owned subsidiary,
Duke Energy Kentucky. References herein to Duke Energy Ohio include Duke
Energy Ohio and its subsidiaries, unless otherwise noted. Duke Energy Ohio is
subject to the regulatory provisions of the PUCO, KPSC, PHMSA and FERC.
Duke Energy Ohio’s service area covers approximately 3,000 square
miles and supplies electric service to approximately 920,000 residential,
commercial and industrial customers and provides transmission and
distribution services for natural gas to approximately 560,000 customers. For
information about Duke Energy Ohio’s generating facilities and natural gas
distribution facilities, see Item 2, “Properties.”
Duke Energy Ohio sold all of KO Transmission’s pipeline facilities and
related real property to Columbia Gas Transmission, LLC in February 2023 for
approximately book value.
Substantially all of Duke Energy Ohio’s operations are regulated and
qualify for regulatory accounting. Duke Energy Ohio has two reportable
segments, EU&I and GU&I. For additional information on these business
segments, including financial information, see Note 3 to the Consolidated
Financial Statements, “Business Segments.”
DUKE ENERGY INDIANA
Duke Energy Indiana is a regulated public utility primarily engaged in
the generation, transmission, distribution and sale of electricity in portions of
Indiana. Duke Energy Indiana’s service area covers approximately 23,000 square
miles and supplies electric service to approximately 920,000 residential,
commercial and industrial customers. For information about Duke Energy
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17
Indiana’s generating facilities, see Item 2, “Properties.” Duke Energy Indiana
is subject to the regulatory provisions of the IURC and FERC.
In 2021, Duke Energy executed an agreement providing for an investment
in Duke Energy Indiana by GIC. The transaction was completed following two
closings. For additional information, see Note 2 to the Consolidated Financial
Statements, “Dispositions.”
Substantially all of Duke Energy Indiana’s operations are regulated and
qualify for regulatory accounting. Duke Energy Indiana operates one reportable
business segment, EU&I. For additional information regarding this business
segment, including financial information, see Note 3 to the Consolidated
Financial Statements, “Business Segments.”
PIEDMONT
Piedmont is a regulated public utility primarily engaged in the
distribution of natural gas to approximately 1.2 million residential, commercial,
industrial and power generation customers in portions of North Carolina,
South Carolina and Tennessee, including customers served by municipalities
who are wholesale customers. For information about Piedmont’s natural gas
distribution facilities, see Item 2, “Properties.” Piedmont is subject to the
regulatory provisions of the NCUC, PSCSC, TPUC, PHMSA and FERC.
Substantially all of Piedmont’s operations are regulated and qualify for
regulatory accounting. Piedmont operates one reportable business segment,
GU&I. For additional information regarding this business segment, including
financial information, see Note 3 to the Consolidated Financial Statements,
“Business Segments.”
ITEM 1A. RISK FACTORS
In addition to other disclosures within this Form 10-K, including
“Management’s Discussion and Analysis of Financial Condition and Results of
Operations – Matters Impacting Future Results” for each registrant in
Item 7, and other documents filed with the SEC from time to time, the following
factors should be considered in evaluating Duke Energy and its subsidiaries.
Such factors could affect actual results of operations and cause results to differ
substantially from those currently expected or sought. Unless otherwise
indicated, risk factors discussed below generally relate to risks associated
with all of the Duke Energy Registrants. Risks identified at the Subsidiary
Registrant level are generally applicable to Duke Energy.
BUSINESS STRATEGY RISKS
Duke Energy’s future results could be adversely affected if it is unable to
implement its business strategy to reliably and affordably serve its customers
while also balancing its grid and fleet modernization objectives and
carbon emissions reduction goals.
Duke Energy’s results of operations depend, in significant part, on the
extent to which it can implement its business strategy and goals successfully.
Duke Energy is working to meet growing and evolving customer energy needs
while balancing customer reliability and affordability, and other priorities
including the need to modernize its fleet and the regulatory construct. Duke
Energy is subject to business, policy, regulatory, technology, economic and
competitive uncertainties and contingencies, many of which are beyond its
control and may make those goals difficult to achieve.
Federal or state policies could be enacted that restrict the availability
of, and increase the costs associated with the use of, fuels or generation
technologies, such as natural gas or nuclear power, that enable Duke Energy to
reduce its carbon emissions. For example, Duke Energy anticipates that its
nuclear stations in North Carolina and South Carolina will continue to qualify
for significant tax incentives in the form of nuclear production tax credits under
the IRA. Nuclear energy is a reliable and clean energy source and nuclear tax
incentives allowed under the IRA, including nuclear production tax credits, are
expected to reduce the cost of the energy transition for our customers. If
such nuclear production tax credits were eliminated or reduced, it could
negatively impact our ability to return the anticipated cost benefits to customers.
Additionally, new EPA rules issued in April 2024 impose stringent GHG
emission reduction standards, revised air toxic limits, and wastewater
discharge limitations that may impact our carbon-reduction targets, and
operational timeline and costs associated with certain new and existing
generation. Supportive policies may be needed to facilitate the siting and cost
recovery of transmission and distribution upgrades needed to accommodate
the build out of large volumes of renewables and energy storage. Further, the
approval of our state regulators will be necessary for the Company to continue to
retire existing carbon emitting assets or make investments in new generating
capacity. The Company may be constrained by the ability to procure resources or
labor needed to build new generation at a reasonable price as well as to
construct projects on time. In addition, new technologies that are not yet
commercially available or are unproven at utility scale will likely be needed,
including carbon capture and sequestration and supporting infrastructure as
well as new resources capable of following electric load over long durations such
as advanced nuclear, hydrogen and long-duration storage. If these
technologies are not developed or are not available at reasonable prices, or if
we invest in early stage technologies that are then supplanted by technological
breakthroughs, Duke Energy’s ability to achieve a net-zero target by 2050 at
a cost-effective price could be at risk.
Meeting the evolving and growing energy needs of our customers will
require continued operation of our existing carbon-free technologies including
nuclear and renewables. The rapid transition to and expansion of certain low-
carbon resources, such as renewables without cost-effective storage, may
challenge our ability to meet customer expectations of reliability and affordability
in a carbon constrained environment, particularly as demand increases. Our
nuclear fleet is central to our ability to meet these objectives and customer
expectations. We are continuing to seek to renew the operating licenses of the
11 reactors we operate at six nuclear stations for an additional 20 years,
extending their operating lives to and beyond midcentury. Failure to receive
approval from the NRC for the relicensing of any of these reactors could affect
our ability to achieve a net-zero target by 2050.
As a consequence, Duke Energy may not be able to fully implement or
realize the anticipated results of its energy transition strategy, which may have
an adverse effect on its financial condition.
REGULATORY, LEGISLATIVE AND LEGAL RISKS
The Duke Energy Registrants’ regulated utility revenues, earnings and
results of operations are dependent on state legislation and regulation that
affect electric generation, electric and natural gas transmission,
distribution and related activities, which may limit their ability to recover
costs.
The Duke Energy Registrants’ regulated electric and natural gas utility
businesses are regulated on a cost-of-service/rate-of-return basis subject to
statutes and regulatory commission rules and procedures of North Carolina,
South Carolina, Florida, Ohio, Tennessee, Indiana and Kentucky. If the Duke
Energy Registrants’ regulated utility earnings exceed the returns established
by the state utility commissions, retail electric and natural gas rates may be
subject to review and possible reduction by the commissions, which may
decrease the Duke Energy Registrants’ earnings. Additionally, if regulatory or
legislative bodies do not allow recovery of costs incurred in providing service, or
do not do so on a timely basis, the Duke Energy Registrants’ results of
operations, financial position or cash flows could be negatively impacted.
Differences in regulation between jurisdictions with concurrent operations, such
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as North Carolina and South Carolina in Duke Energy Carolinas’ and Duke
Energy Progress’ service territory, may also result in failure to recover costs.
If legislative and regulatory structures were to evolve in such a way that
the Duke Energy Registrants’ exclusive rights to serve their regulated customers
were eroded, their earnings could be negatively impacted. Federal and state
regulations, laws, commercialization and reduction of costs and other efforts
designed to promote and expand the use of EE measures and distributed
generation technologies, such as private solar and battery storage, in Duke
Energy service territories could reduce recovery of fixed costs in Duke Energy
service territories or result in customers leaving the electric distribution system
and an increase in customer net energy metering, which allows customers
with private solar to receive bill credits for surplus power up to the full retail
credit amount. Over time, customer adoption of these technologies could result
in Duke Energy not being able to fully recover the costs and investment in
generation.
State regulators have approved various mechanisms to stabilize natural
gas utility margins, including margin decoupling in North Carolina and rate
stabilization in South Carolina. Additionally, certain jurisdictions have
established performance incentive mechanisms and revenue decoupling
mechanisms for EU&I. Performance incentive mechanisms condition some
portion of the respective utility’s earnings on its performance on established
measurable consumer, utility system, or public policy outcomes. Revenue
decoupling mechanisms provide periodic rate adjustments to ensure actual
revenues match allowed revenues for certain customer classes. State regulators
have also approved other margin stabilizing mechanisms that, for example,
allow for recovery of margin losses associated with negotiated transactions
designed to retain large volume customers that could use alternative fuels or
that may otherwise directly access natural gas supply through their own
connection to an interstate pipeline. If regulators decided to discontinue the
Duke Energy Registrants’ use of tariff mechanisms or other mechanisms
intended to stabilize utility margins, it would negatively impact results of
operations, financial position and cash flows. In addition, regulatory authorities
also review whether natural gas costs are prudently incurred and can
disallow the recovery of a portion of natural gas costs that the Duke Energy
Registrants seek to recover from customers, which would adversely impact
earnings.
The rates that the Duke Energy Registrants’ regulated utility businesses are
allowed to charge are established by state utility commissions in rate
case proceedings, which may limit their ability to recover costs and earn
an appropriate return on investment.
The rates that the Duke Energy Registrants’ regulated utility businesses
are allowed to charge significantly influences the results of operations, financial
position and cash flows of the Duke Energy Registrants. The regulation of the
rates that the regulated utility businesses charge customers is determined, in
large part, by state utility commissions in rate case proceedings. Negative
decisions made by these regulators, or by any court on appeal of a rate case
proceeding, have, and in the future could have, a material adverse effect on the
Duke Energy Registrants’ results of operations, financial position or cash
flows and affect the ability of the Duke Energy Registrants to adequately recover
costs on a timely basis, including an appropriate return on the significant
infrastructure investments being made.
Deregulation or restructuring in the electric industry may result in
increased competition and unrecovered costs that could adversely affect
the Duke Energy Registrants’ results of operations, financial position or cash
flows and their utility businesses.
Increased competition resulting from deregulation or restructuring
legislation could have a significant adverse impact on the Duke Energy
Registrants’ results of operations, financial position or cash flows and their
utility businesses. If the retail jurisdictions served by the Duke Energy
Registrants become subject to deregulation, the impairment of assets, loss of
retail customers, lower profit margins or increased costs of capital, and
recovery of stranded costs could have a significant adverse financial impact
on the Duke Energy Registrants. Stranded costs primarily include the generation
assets of the Duke Energy Registrants whose value in a competitive
marketplace may be less than their current book value, as well as above-
market purchased power commitments from QFs from whom the Duke Energy
Registrants are legally obligated to purchase energy at an avoided cost rate
under the Public Utility Regulatory Policies Act of 1978. The Duke Energy
Registrants cannot predict the extent and timing of entry by additional
competitors into the electric markets. The Duke Energy Registrants cannot
predict if or when they will be subject to changes in legislation or regulation,
nor can they predict the impact of these changes on their results of operations,
financial position or cash flows.
The Duke Energy Registrants’ businesses are subject to extensive federal
regulation and a wide variety of laws and governmental policies, including
taxes and environmental regulations, that may change over time in ways
that affect operations and costs.
The Duke Energy Registrants are subject to regulations under a wide
variety of U.S. federal and state regulations and policies, including by FERC,
NRC, EPA and various other federal agencies as well as the North American
Electric Reliability Corporation. Regulation affects almost every aspect of
the Duke Energy Registrants’ businesses, including, among other things, their
ability to: take fundamental business management actions; determine the
terms and rates for services; make acquisitions; issue equity or debt securities;
engage in transactions with other subsidiaries and affiliates; and pay
dividends upstream to the Duke Energy Registrants. Changes to federal
regulations are continuous and ongoing. There can be no assurance that laws,
regulations and policies, including tax incentives and credits, will not be
changed in ways that result in material modifications of business models and
objectives or affect returns on investment by restricting activities and
products, subjecting them to escalating costs, causing delays, or prohibiting
them outright, which could have a material effect on the Duke Energy
Registrants’ results of operations, financial position and cash flows. Such
potential changes that may have adverse consequences could include no longer
allowing tax incentives and credits currently provided for under the IRA,
including the ability to record or sell related tax credits to third parties.
The Duke Energy Registrants are subject to numerous environmental laws
and regulations requiring significant capital expenditures that can increase
the cost of operations, and which may impact or limit business plans, or
cause exposure to environmental liabilities.
The Duke Energy Registrants are subject to numerous environmental
laws and regulations affecting many aspects of their present and future
operations, including CCRs, air emissions, water quality, wastewater discharges,
solid waste and hazardous waste. For example, new EPA rules issued in
April 2024, among other things, impose stringent GHG emissions limitations
on existing coal plants and new natural gas plants and more stringent air toxic
limits on existing coal plants, increase limitations on wastewater discharge,
and impose groundwater monitoring and corrective action requirements on
previously unregulated coal ash sources at regulated facilities (CCR
Management Units) and inactive surface impoundments at retired generating
facilities (Legacy CCR Surface Impoundments). Potential legal challenges to
such rules may not be successful, and adherence to these rules may increase the
cost of compliance, impact generation resource mix and carbon-reduction
targets, and negatively impact customer reliability and affordability due to such
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rules’ imposition of stringent GHG emissions limitations and reliance on
carbon capture technologies that are not yet adequately demonstrated at utility
scale. These and other environmental laws and regulations can result in
increased capital, operating and other costs.
These laws and regulations generally require the Duke Energy Registrants
to obtain and comply with a wide variety of environmental licenses, permits,
inspections and other approvals. Compliance with environmental laws and
regulations can require significant expenditures, including expenditures for
cleanup costs and damages arising from contaminated properties. Failure to
comply with environmental regulations may result in the imposition of fines,
penalties and injunctive measures affecting operating assets, as well as
reputational damage. The steps the Duke Energy Registrants could be required
to take to ensure their facilities are in compliance could be prohibitively
expensive. As a result, the Duke Energy Registrants may be required to shut
down or alter the operation of their facilities, which may cause the Duke Energy
Registrants to incur losses. Further, the Duke Energy Registrants may not be
successful in recovering capital and operating costs incurred to comply with
new environmental regulations through existing regulatory rate structures and
their contracts with customers. Also, the Duke Energy Registrants may not be
able to obtain or maintain from time to time all required environmental regulatory
approvals for their operating assets or development projects. Delays in
obtaining any required environmental regulatory approvals, failure to obtain
and comply with them or changes in environmental laws or regulations to more
stringent compliance levels could, and are likely to, result in additional costs
of operation for existing facilities or development of new facilities being
prevented, delayed or subject to additional costs. The costs to comply with
environmental laws and regulations could have a material effect on the Duke
Energy Registrants’ results of operations, financial position and cash flows.
The EPA has issued or proposed federal regulations, including the new
rules issued in April 2024, governing the management of wastewater, CCR
management units and CO2 emissions. New state legislation in response to such
regulations could impose carbon reduction goals that are more aggressive
than the Company’s plans. These regulations may require the Duke Energy
Registrants to make additional capital expenditures and increase operating and
maintenance costs.
The Duke Energy Registrants’ operations, capital expenditures and financial
results may be affected by regulatory changes related to the impacts of
global climate change.
There is continued concern, and increasing and conflicting activism,
both nationally and internationally, about climate change. The EPA and state
regulators have, and may adopt and implement, additional regulations to restrict
emissions of GHGs to address global climate change, as well as reporting
requirements regarding such emissions and related climate-goal claims.
Certain local and state jurisdictions have also enacted laws to restrict or prevent
new natural gas infrastructure. Increased regulation of GHG emissions and
reporting requirements could impose significant additional costs on the Duke
Energy Registrants’ electric and natural gas operations, their suppliers and
customers and affect demand for energy conservation and renewable
products, which could impact both our electric and natural gas businesses.
Regulatory changes and/or uncertainty of applicability of such legislative and
regulatory initiatives could also result in generation facilities to be retired
earlier than planned to meet our net-zero 2050 goal. Though we would plan to
seek cost recovery for investments related to GHG emissions reductions
through regulatory rate structures, changes in the regulatory climate could
result in the delay in or failure to fully recover such costs and investment in
generation.
OPERATIONAL RISKS
The Duke Energy Registrants’ results of operations may be negatively
affected by overall market, economic and other conditions that are beyond
their control.
Sustained downturns or sluggishness in the economy generally affect
the markets in which the Duke Energy Registrants operate and negatively
influence operations. Declines in demand for electricity or natural gas as a
result of economic downturns in the Duke Energy Registrants’ regulated service
territories will reduce overall sales and lessen cash flows, especially as
industrial customers reduce production and, therefore, consumption of
electricity and the use of natural gas. Although the Duke Energy Registrants’
regulated electric and natural gas businesses are subject to regulated allowable
rates of return and recovery of certain costs, such as fuel and purchased
natural gas costs, under periodic adjustment clauses, overall declines in
electricity or natural gas sold as a result of economic downturn or recession
could reduce revenues and cash flows, thereby diminishing results of operations.
A continuation of adverse economic conditions including economic
downturn or high commodity prices could also negatively impact the financial
stability of certain of our customers and result in their inability to pay for
electric and natural gas services. This could lead to increased bad debt expense
and higher allowance for doubtful account reserves for the Duke Energy
Registrants and result in delayed or unrecovered operating costs and lower
financial results. Additionally, prolonged economic downturns that negatively
impact the Duke Energy Registrants’ results of operations and cash flows could
result in future material impairment charges to write-down the carrying
value of certain assets, including goodwill, to their respective fair values. The
Duke Energy Registrants also monitor the impacts of inflation on the
procurement of goods and services and seek to minimize its effects in future
periods through pricing strategies, productivity improvements, and cost
reductions. Rapidly rising prices as a result of inflation, tariffs, or other factors
may impact the ability of the Company to recover costs timely or execute on
its business strategy including the achievement of growth objectives.
The Duke Energy Registrants sell electricity into the spot market or other
competitive power markets on a contractual basis. With respect to such
transactions, the Duke Energy Registrants are not guaranteed any rate of return
on their capital investments through mandated rates, and revenues and
results of operations are likely to depend, in large part, upon prevailing market
prices. These market prices may fluctuate substantially over relatively short
periods of time and could negatively impact the Company’s ability to accurately
forecast the financial impact or reduce the Duke Energy Registrants’
revenues and margins, thereby diminishing results of operations.
Factors that could impact sales volumes, generation of electricity and
market prices at which the Duke Energy Registrants are able to sell electricity
and natural gas are as follows:
• weather conditions, including extreme winter or summer weather that
could cause significantly lower or higher demand for energy or
natural gas usage for heating or cooling purposes, as applicable,
storm-related customer outages resulting in lower usage, or periods
of low rainfall that decrease the ability to operate facilities in an
economical manner;
• supply of and demand for energy commodities, including potential
usage of electricity by data centers;
• transmission or transportation constraints or inefficiencies;
• availability of purchased power;
• availability of competitively priced alternative energy sources, which
are preferred by some customers over electricity produced from coal,
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nuclear or natural gas plants, and customer usage of energy-efficient
equipment that reduces energy demand;
• natural gas, crude oil and refined products production levels and
prices;
• ability to procure satisfactory levels of inventory, including materials,
supplies, and fuel such as coal, natural gas and uranium; and
• capacity and transmission service into, or out of, the Duke Energy
Registrants’ markets.
Natural disasters or operational accidents may adversely affect the Duke
Energy Registrants’ operating results, financial position or cash flows.
Natural disasters or operational accidents within the Company or
industry (such as wild fires, earthquakes, hurricanes or natural gas
transmission pipeline explosions) could have direct or indirect impacts to the
Duke Energy Registrants or to key contractors and suppliers. Such events can
and in the past, have, negatively impacted sales volume such as in the case
of storm-related customer outages resulting in lower usage, and costs to restore
service and rebuild assets after such events may be, and in the case of
hurricanes Helene and Milton experienced in 2024, have been, material and
did impact the results of operations, financial position or cash flows of the Duke
Energy Registrants, and such events may do so in the future, until complete
and timely cost recovery is approved and occurs under existing relevant
regulatory mechanisms across our jurisdictions. Further, the generation of
electricity and the transportation and storage of natural gas involve inherent
operating risks that may result in accidents involving serious injury or loss of
life, environmental damage or property damage. Such events could impact
the Duke Energy Registrants through civil or criminal legal proceedings or
changes to policies, laws and regulations whose compliance costs have a
significant impact on the Duke Energy Registrants’ results of operations,
financial position and cash flows. In addition, if a serious operational accident
were to occur, existing insurance policies may not cover all of the potential
exposures or the actual amount of loss incurred, including potential litigation
awards. Any losses not covered by insurance, or any increases in the cost of
applicable insurance as a result of such accident, could have a material
adverse effect on the results of operations, financial position, cash flows and
reputation of the Duke Energy Registrants.
The reputation and financial condition of the Duke Energy Registrants could
be negatively impacted due to their obligations to comply with federal and
state regulations, laws, and other legal requirements that govern the
operations, assessments, storage, closure, remediation, disposal and
monitoring relating to CCR, the high costs and new rate impacts associated
with implementing these new CCR-related requirements and the strategies
and methods necessary to implement these requirements in compliance with
these legal obligations.
As a result of electricity produced for decades at coal-fired power
plants, the Duke Energy Registrants manage large amounts of CCR that are
primarily stored in dry storage within landfills or combined with water in surface
impoundments, all in compliance with applicable regulatory requirements. A
CCR-related operational incident could have a material adverse impact on the
reputation and results of operations, financial position and cash flows of the
Duke Energy Registrants.
The 2015 CCR Rule classifies CCR as nonhazardous waste and allows
for beneficial use of CCR with some restrictions. The regulation applies to all
new and existing landfills, new and existing surface impoundments receiving
CCR and existing surface impoundments located at stations generating
electricity (regardless of fuel source), which were no longer receiving CCR but
contained liquids as of the effective date of the rule. The rule establishes
requirements regarding design and operating criteria, groundwater monitoring
and corrective action, closure requirements and post-closure care, and
recordkeeping, notifications, and internet posting requirements to ensure the
safe disposal and management of CCR. In addition to the federal regulations,
CCR landfills and surface impoundments will continue to be regulated by
existing state laws, regulations and permits, as well as additional legal
requirements, including judicial orders.
The 2024 CCR Rule significantly expands the scope of the 2015 CCR
Rule to apply to legacy CCR surface impoundments (inactive impoundments at
retired facilities) and CCR management units (previously unregulated coal
ash sources at regulated facilities). These federal and state laws, regulations
and other legal requirements may require or result in additional expenditures,
including increased operating and maintenance costs, which could affect the
results of operations, financial position and cash flows of the Duke Energy
Registrants. The Duke Energy Registrants will continue to seek full cost recovery
for expenditures through the normal ratemaking process with state and
federal utility commissions, who permit recovery in rates of reasonable and
prudently incurred costs associated with the Duke Energy Registrants’ regulated
operations, and through other wholesale contracts with terms that
contemplate recovery of such costs, although there is no guarantee of full cost
recovery. In addition, the timing for and amount of recovery of such costs
could have a material adverse impact on Duke Energy’s cash flows.
The Duke Energy Registrants have recognized significant AROs related
to these CCR-related requirements. At all sites requiring CCR closure and
groundwater remediation, closure methods and groundwater corrective action
remedies have been studied and factored into the estimated retirement and
management costs. As the closure and CCR management work progresses
and final closure plans and corrective action measures are developed and
approved at each site, the scope and complexity of work and the amount of CCR
material could be greater than estimates and could, therefore, materially
increase compliance expenditures and rate impacts.
The Duke Energy Registrants’ results of operations, financial position and
cash flows may be negatively affected by a lack of growth or slower growth
in the number of customers, or decline in customer demand or number of
customers.
Growth in customer accounts and growth of customer usage each
directly influence demand for electricity and natural gas and the need for
additional power generation and delivery facilities. Customer growth and
customer usage are affected by several factors outside the control of the Duke
Energy Registrants, such as mandated EE measures, demand-side
management goals, advancements in technology that may impact the energy
usage by large commercial customers, such as data centers, distributed
generation resources and economic and demographic conditions, such as
inflation, tariffs, and interest rate volatility, population changes, job and income
growth, housing starts, new business formation and the overall level of
economic activity.
In addition, certain regulatory and legislative bodies have passed
legislation implementing the extension of certain tax credits to be used toward
the costs of residential solar installation or have introduced or are considering
requirements and/or incentives to reduce energy consumption by certain dates
in response to concerns related to climate change. Additionally, technological
advances driven by federal laws mandating new levels of EE in end-use electric
and natural gas devices or other improvements in or applications of
technology could lead to declines in per capita energy consumption.
Advances in distributed generation technologies that produce power,
including fuel cells, microturbines, wind turbines and solar cells, may reduce
the cost of alternative methods of producing power to a level competitive with
central power station electric production utilized by the Duke Energy
Registrants. In addition, the electrification of buildings and appliances
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currently relying on natural gas could reduce the number of customers in our
natural gas distribution business.
Some or all of these factors could result in a lack of growth or decline in
customer demand for electricity or number of customers and may cause the
failure of the Duke Energy Registrants to fully realize anticipated benefits from
significant capital investments and expenditures, which could have a
material adverse effect on their results of operations, financial position and
cash flows.
Furthermore, the Duke Energy Registrants currently have EE riders in
place to recover the cost of EE programs in North Carolina, South Carolina,
Florida, Indiana, and Kentucky. Should the Duke Energy Registrants be required
to invest in conservation measures that result in reduced sales from effective
conservation, regulatory lag in adjusting rates for the impact of these measures
could have a negative financial impact.
The Duke Energy Registrants’ future results of operations may be impacted
by changing or conflicting expectations and demands, particularly
regarding environmental, social and governance concerns.
Duke Energy’s ability to execute its strategy and achieve anticipated
financial outcomes are influenced by the expectations of our customers,
regulators, investors and stakeholders. Those expectations are based in part
on the core fundamentals of reliability and affordability but are also increasingly
focused on our ability to meet rapidly changing demands for new and varied
products, services and offerings. Additionally, the risks of global climate change
continue to shape our customers’ sustainability goals and energy needs as
well as the investment and financing criteria of investors. Failure to meet these
increasing expectations or to adequately address the risks and external
pressures from regulators, customers, investors and other stakeholders may
impact Duke Energy’s reputation and affect its ability to achieve favorable
outcomes in future rate cases and the results of operations for the Duke Energy
Registrants. Furthermore, the increasing use of social media and conflicting
expectations and demands regarding environmental, social, and governance
concerns, may accelerate and increase the potential scope of negative
publicity we might receive and could increase the negative impact on our
reputation, business, results of operations and financial condition.
As it relates to electric generation, a diversified fleet with increasingly
clean generation resources may facilitate more efficient financing and lower
costs. Conversely, jurisdictions utilizing more carbon-intensive generation such
as coal may experience difficulty attracting certain investors and obtaining
the most economical financing terms available. Furthermore, with this
heightened emphasis on environmental, social, and governance concerns, and
climate change in particular, there is an increased risk of litigation, activism,
and legislation from groups both in support of and opposed to various
environmental, social and governance initiatives, which could cause delays
and increase the costs of our energy transition.
The Duke Energy Registrants’ operating results may fluctuate on a seasonal
and quarterly basis and can be negatively affected by changes in weather
conditions and severe weather, including extreme weather conditions and
changes in weather patterns from climate change.
Electric power generation and natural gas distribution are generally
seasonal businesses. In most parts of the U.S., the demand for power peaks
during the warmer summer months, with market prices also typically peaking
at that time. In other areas, demand for power peaks during the winter. Demand
for natural gas peaks during the winter months. Further, changing frequency
or magnitude of extreme weather conditions such as hurricanes, droughts, heat
waves, winter storms and severe weather, including from climate change,
could cause these seasonal fluctuations to be more pronounced. As a result,
the overall operating results of the Duke Energy Registrants’ businesses may
fluctuate substantially on a seasonal and quarterly basis and thus make period-
to-period comparison less relevant.
Sustained severe drought conditions could impact generation by
hydroelectric plants, as well as fossil and nuclear plant operations, as these
facilities use water for cooling purposes and for the operation of environmental
compliance equipment. Furthermore, destruction caused by severe weather
events, such as hurricanes, flooding, tornadoes, severe thunderstorms, snow
and ice storms, droughts, extreme temperatures, and wild fires, including from
climate change, can result in lost operating revenues due to outages,
property damage or total loss, including downed transmission and distribution
lines, personal injury, reputational harm, and additional and unexpected
expenses to mitigate storm damage, including incremental financing costs.
The cost of storm restoration efforts may not be fully recoverable or recoverable
on a timely basis through the regulatory process and may impact the results
of operations, financial position or cash flows of the Duke Energy Registrants.
The Duke Energy Registrants’ sales may decrease if they are unable to
gain adequate, reliable and affordable access to transmission assets.
The Duke Energy Registrants depend on transmission and distribution
facilities owned and operated by utilities and other energy companies to
deliver electricity sold to the wholesale market. In addition, the growth of
renewables and energy storage will put strains on existing transmission assets
and require transmission and distribution upgrades. The FERC’s power
transmission regulations require wholesale electric transmission services to be
offered on an open-access, non-discriminatory basis. If transmission is
disrupted, or if transmission capacity is inadequate, the Duke Energy
Registrants’ ability to sell and deliver products may be hindered.
The different regional power markets have changing regulatory structures,
which could affect growth and performance in these regions. In addition, the
ISOs who oversee the transmission systems in regional power markets have
imposed in the past, and may impose in the future, price limitations and
other mechanisms to address volatility in the power markets. These types of
price limitations and other mechanisms may adversely impact the profitability
of the Duke Energy Registrants’ wholesale power marketing business.
The availability of adequate interstate pipeline transportation capacity and
natural gas supply may decrease.
The Duke Energy Registrants purchase almost all of their natural gas
supply from interstate sources that must be transported to the applicable
service territories. Interstate pipeline companies transport the natural gas to
the Duke Energy Registrants’ systems under firm service agreements that are
designed to meet the requirements of their core markets. A significant
disruption to interstate pipelines capacity or reduction in natural gas supply
due to events including, but not limited to, operational failures or disruptions,
hurricanes, tornadoes, floods, freeze off of natural gas wells, terrorist or
cyberattacks or other acts of war or legislative or regulatory actions or
requirements, including remediation related to integrity inspections or
regulations and laws enacted to address climate change, could reduce the
normal interstate supply of natural gas and thereby reduce earnings. Moreover,
if additional natural gas infrastructure, including, but not limited to,
exploration and drilling rigs and platforms, processing and gathering systems,
offshore pipelines, interstate pipelines and storage, cannot be built at a
pace that meets demand, then growth opportunities could be limited.
Fluctuations in commodity prices or availability may adversely affect
various aspects of the Duke Energy Registrants’ operations as well as their
results of operations, financial position and cash flows.
The Duke Energy Registrants are exposed to the effects of market
fluctuations in the price of natural gas, coal, fuel oil, nuclear fuel, electricity
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and other energy-related commodities as a result of their ownership of energy-
related assets. Fuel costs are recovered primarily through cost recovery
clauses, subject to the approval of state utility commissions. Additionally, the
Duke Energy Registrants are exposed to risk that counterparties will not be able
to fulfill their obligations. Disruption in the delivery of fuel, including
disruptions as a result of, among other things, changing economic conditions,
bankruptcies, transportation delays, weather, labor relations, force majeure
events or environmental regulations affecting any of these fuel suppliers, could
limit the Duke Energy Registrants’ ability to operate their facilities. Should
counterparties fail to perform, the Duke Energy Registrants might be forced to
replace the underlying commitment at prevailing market prices possibly
resulting in losses in addition to the amounts, if any, already paid to the
counterparties.
Certain of the Duke Energy Registrants’ hedge agreements may result in
the receipt of, or posting of, collateral with counterparties, depending on the
daily market-based calculation of financial exposure of the derivative positions.
Fluctuations in commodity prices that lead to the return of collateral received
and/or the posting of collateral with counterparties could negatively impact
liquidity. Downgrades in the Duke Energy Registrants’ credit ratings could
lead to additional collateral posting requirements. The Duke Energy Registrants
continually monitor derivative positions in relation to market price activity.
Cyberattacks and data security breaches could adversely affect the Duke
Energy Registrants’ businesses.
Cybersecurity risks have increased in recent years as a result of the
proliferation of new technologies and the increased sophistication, magnitude
and frequency of cyberattacks and data security breaches. Duke Energy
relies on the continued operation of advanced digital information technology
systems and network infrastructure, which are part of an interconnected regional
grid. Additionally, connectivity to the internet continues to increase through
grid modernization and other operational excellence initiatives. Because of the
critical nature of the infrastructure, increased connectivity to the internet
and technology systems’ inherent vulnerability to disability or failures due to
hacking, viruses, acts of war or terrorism or other types of data security breaches,
the Duke Energy Registrants face a heightened risk of cyberattacks from
foreign or domestic sources and have been subject, and will likely continue to
be subject, to cyberattacks designed to gain unauthorized access to information
and/or information systems or to disrupt utility operations through computer
viruses and phishing attempts either directly or indirectly through its material
vendors or related third parties. In the event of a significant cybersecurity
breach on either the Duke Energy Registrants or with one of our material vendors
or related third parties, the Duke Energy Registrants could (i) have business
operations disrupted, including the disruption of the operation of our natural
gas and electric assets and the power grid, theft of confidential company,
employee, retiree, shareholder, vendor or customer information, and general
business systems and process interruption or compromise, including preventing
the Duke Energy Registrants from servicing customers, collecting revenues or
the recording, processing and/or reporting financial information correctly,
(ii) experience substantial loss of revenues, repair and restoration costs,
penalties and costs for lack of compliance with relevant regulations,
implementation costs for additional security measures to avert future
cyberattacks and other financial loss and (iii) be subject to increased
regulation, litigation and reputational damage. While Duke Energy maintains
insurance relating to cybersecurity events, such insurance does not protect Duke
Energy from such cyberattacks occurring, and while it does provide some
potential mitigation of the financial impacts resulting from such cyberattacks,
it is subject to a number of exclusions and may be insufficient to offset any
losses, costs or damage experienced. Also, the market for cybersecurity insurance
is relatively new and coverage available for cybersecurity events is evolving
as the industry matures.
The Duke Energy Registrants are subject to standards enacted by the
North American Electric Reliability Corporation and enforced by FERC regarding
protection of the physical and cybersecurity of critical infrastructure assets
required for operating North America’s bulk electric system. The Duke Energy
Registrants are also subject to regulations set by the NRC regarding the
protection of digital computer and communication systems and networks
required for the operation of nuclear power plants. The Duke Energy Registrants
that operate designated critical pipelines that transport natural gas are also
subject to security directives issued by the Department of Homeland Security’s
Transportation Security Administration (TSA) requiring such registrants to
implement specific cybersecurity mitigation measures. While the Duke Energy
Registrants believe they are in compliance with, or, in the case of recent TSA
security directives, are in the process of implementing such standards and
regulations, the Duke Energy Registrants have from time to time been, and may
in the future be, found to be in violation of such standards and regulations.
In addition, compliance with or changes in the applicable standards and
regulations may subject the Duke Energy Registrants to higher operating costs
and/or increased capital expenditures as well as substantial fines for
non-compliance.
The Duke Energy Registrants’ operations have been and may be affected by
pandemic health events in ways listed below and in ways the Duke Energy
Registrants cannot predict at this time.
The COVID-19 pandemic and efforts to respond to it resulted in
widespread adverse consequences on the global economy and on the Duke
Energy Registrants’ customers, third-party vendors, and other parties with
whom we do business. If another pandemic or health epidemic or outbreak
occurs and is significantly prolonged, it could impact the Duke Energy
Registrants’ business strategy, results of operations, financial position and
cash flows in the future as a result of delays in rate cases or other legal
proceedings, an inability to obtain labor or equipment necessary for the
construction of large capital projects, an inability to procure satisfactory levels
of fuels or other necessary equipment for the continued production of
electricity and delivery of natural gas, volatility in global equity securities
markets, and the health and availability of our critical personnel and their
ability to perform business functions.
Duke Energy Ohio’s and Duke Energy Indiana’s membership in an RTO
presents risks that could have a material adverse effect on their results of
operations, financial position and cash flows.
The rules governing the various regional power markets may change,
which could affect Duke Energy Ohio’s and Duke Energy Indiana’s costs and/or
revenues. Both Duke Energy Ohio and Duke Energy Indiana have trackers to
recover approved RTO costs, but to the degree Duke Energy Ohio and Duke Energy
Indiana incur significant additional fees and increased costs to participate
in an RTO that are not approved for recovery, their results of operations may be
impacted. Duke Energy Ohio and Duke Energy Indiana may be allocated a
portion of the cost of transmission facilities built by others due to changes in
RTO transmission rate design, while being able to allocate costs of projects built
by Duke Energy Ohio and Duke Energy Indiana to others. Duke Energy Ohio
and Duke Energy Indiana may be required to expand their transmission system
according to decisions made by an RTO rather than their own internal
planning process. In addition, RTOs have been developing rules associated
with the allocation and methodology of assigning costs associated with improved
transmission reliability, reduced transmission congestion and firm
transmission rights that may have a financial impact on the results of
operations, financial position and cash flows of Duke Energy Ohio and Duke
Energy Indiana.
As members of an RTO, Duke Energy Ohio and Duke Energy Indiana are
subject to certain additional risks, including those associated with the
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allocation among RTO members, of losses caused by unreimbursed defaults of
other participants in the RTO markets not covered by collateral requirements
and those associated with complaint cases filed against an RTO that may seek
refunds of revenues previously earned by RTO members.
The Duke Energy Registrants may not recover costs incurred to begin
construction on projects that are canceled.
Duke Energy’s long-term strategy requires the construction of new
projects, either wholly owned or partially owned, which involve a number of
risks, including construction delays, delays in or failure to receive required
regulatory approvals and/or sitting or environmental permits, nonperformance
by equipment and other third-party suppliers, and increases in equipment
and labor costs. To limit the risks of these construction projects, the Duke Energy
Registrants enter into equipment purchase orders and construction contracts
and incur engineering and design service costs in advance of receiving necessary
regulatory approvals and/or siting or environmental permits. If any of these
projects are canceled for any reason, including failure to receive necessary
regulatory approvals and/or siting or environmental permits, significant
cancellation penalties under the equipment purchase orders and construction
contracts could occur. In addition, if any construction work or investments
have been recorded as an asset, an impairment may need to be recorded in the
event the project is canceled.
The Duke Energy Registrants are subject to risks associated with their
ability to obtain adequate insurance at acceptable costs.
The financial condition of some insurance companies, actual or
threatened physical or cyberattacks, and natural disasters, among other
things, could have disruptive effects on insurance markets. The availability of
insurance covering risks that the Duke Energy Registrants and their
respective competitors typically insure against may decrease, and the
insurance that the Duke Energy Registrants are able to obtain may have higher
deductibles, higher premiums, and more restrictive policy terms. Further, the
insurance policies may not cover all of the potential exposures or the actual
amount of loss incurred. Any losses not covered by insurance, or any
increases in the cost of applicable insurance, could adversely affect the
results of operations, financial position or cash flows of the affected Duke
Energy Registrant.
Our business could be negatively affected as a result of actions of activist
shareholders.
While we strive to maintain constructive communications with our
shareholders, activist shareholders may, from time to time, engage in proxy
solicitations or advance shareholder proposals, or otherwise attempt to affect
changes and assert influence on our Board and management. Perceived
uncertainties as to the future direction or governance of the Company may
cause concern to our current or potential regulators, vendors or strategic
partners, or make it more difficult to execute on our strategy or to attract and
retain qualified personnel, which may have a material impact on our business
and operating results.
In addition, actions such as those described above could cause
fluctuations in the trading price of our common stock, based on temporary or
speculative market perceptions or other factors that do not necessarily reflect
the underlying fundamentals and prospects of our business.
NUCLEAR GENERATION RISKS
Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida may
incur substantial costs and liabilities due to their ownership and operation
of nuclear generating facilities.
Ownership interests in and operation of nuclear stations by Duke Energy
Carolinas, Duke Energy Progress and Duke Energy Florida subject them to
various risks. These risks include, among other things: the potential harmful
effects on the environment and human health resulting from the current or past
operation of nuclear facilities and the storage, handling and disposal of
radioactive materials; limitations on the amounts and types of insurance
commercially available to cover losses that might arise in connection with
nuclear operations; uncertainties with respect to the technological and financial
aspects of decommissioning nuclear plants at the end of their licensed lives;
and the threat of a terrorist attack or cyber incident and other potential liabilities
arising out of the ownership or operation of nuclear facilities.
Ownership and operation of nuclear generation facilities requires
compliance with licensing and safety-related requirements imposed by the
NRC. In the event of non-compliance, the NRC may increase regulatory oversight,
impose fines or shut down a unit depending upon its assessment of the
severity of the situation. Revised security and safety requirements promulgated
by the NRC, which could be prompted by, among other things, events within
or outside of the control of Duke Energy Carolinas, Duke Energy Progress and
Duke Energy Florida, such as a serious nuclear incident at a facility owned by a
third party, could necessitate substantial capital and other expenditures, as
well as assessments to cover third-party losses. In addition, if a serious nuclear
incident were to occur, it could have a material adverse effect on the results
of operations, financial position, cash flows and reputation of the Duke Energy
Registrants.
LIQUIDITY, CAPITAL REQUIREMENTS AND COMMON STOCK RISKS
The Duke Energy Registrants rely on access to short-term borrowings and
longer-term debt and equity markets to finance their capital requirements
and support their liquidity needs. Access to those markets can be
adversely affected by a number of conditions, many of which are beyond
the Duke Energy Registrants’ control.
The Duke Energy Registrants’ businesses are significantly financed
through issuances of debt and equity. The maturity and repayment profile of
debt used to finance investments often does not correlate to cash flows from
their assets. Accordingly, as a source of liquidity for capital requirements not
satisfied by the cash flows from their operations and to fund investments
originally financed through debt instruments with disparate maturities, the
Duke Energy Registrants rely on access to short-term money markets as well as
longer-term capital markets. The Subsidiary Registrants also rely on access
to short-term intercompany borrowings. Access to capital markets may also be
critical to finance unexpected material expenditures such as unusually
volatile commodity costs or significant storm restoration activities for severe
weather events. If the Duke Energy Registrants are not able to access debt or
equity at competitive rates or at all, the ability to finance their operations
and implement their strategy and business plan as scheduled could be adversely
affected. An inability to access debt and equity may limit the Duke Energy
Registrants’ ability to pursue improvements or acquisitions that they may
otherwise rely on for future growth.
Market disruptions may increase the cost of borrowing or adversely
affect the ability to access one or more financial markets. Such disruptions
could include: economic downturns, unfavorable capital market conditions,
market prices for natural gas and coal, geopolitical risks, actual or threatened
terrorist attacks, or the overall health of the energy industry. Additionally,
PART I
24
rapidly rising interest rates could impact the ability to affordably finance the
capital plan or increase rates to customers and could have an impact on our
ability to execute on our energy transition. The availability of credit under
Duke Energy’s Master Credit Facility depends upon the ability of the banks
providing commitments under the facility to provide funds when their obligations
to do so arise. Systemic risk of the banking system and the financial markets
could prevent a bank from meeting its obligations under the facility agreement.
Duke Energy maintains a revolving credit facility to provide backup for
its commercial paper program and letters of credit to support variable rate
demand tax-exempt bonds that may be put to the Duke Energy Registrant issuer
at the option of the holder. The facility includes borrowing sublimits for the
Duke Energy Registrants, each of whom is a party to the credit facility, and
financial covenants that limit the amount of debt that can be outstanding as
a percentage of the total capital for the specific entity. Failure to maintain these
covenants at a particular entity could preclude Duke Energy from issuing
commercial paper or the Duke Energy Registrants from issuing letters of credit
or borrowing under the Master Credit Facility.
The Duke Energy Registrants must meet credit quality standards and there
is no assurance they will maintain investment grade credit ratings. If the
Duke Energy Registrants are unable to maintain investment grade credit
ratings, they would be required under credit agreements to provide collateral
in the form of letters of credit or cash, which may materially adversely
affect their liquidity.
Each of the Duke Energy Registrants’ senior long-term debt issuances is
currently rated investment grade by various rating agencies. The Duke Energy
Registrants cannot ensure their senior long-term debt will be rated investment
grade in the future.
If the rating agencies were to rate the Duke Energy Registrants below
investment grade, borrowing costs would increase, perhaps significantly. In
addition, the potential pool of investors and funding sources would likely
decrease. Further, if the short-term debt rating were to fall, access to the
commercial paper market could be significantly limited.
A downgrade below investment grade could also require the posting of
additional collateral in the form of letters of credit or cash under various
credit, commodity and capacity agreements and trigger termination clauses in
some interest rate derivative agreements, which would require cash
payments. All of these events would likely reduce the Duke Energy Registrants’
liquidity and profitability and could have a material effect on their results of
operations, financial position and cash flows.
Non-compliance with debt covenants or conditions could adversely affect
the Duke Energy Registrants’ ability to execute future borrowings.
The Duke Energy Registrants’ debt and credit agreements contain various
financial and other covenants. Failure to meet those covenants beyond
applicable grace periods could result in accelerated due dates and/or
termination of the agreements.
Market performance and other changes may decrease the value of the
NDTF investments of Duke Energy Carolinas, Duke Energy Progress and Duke
Energy Florida, which then could require significant additional funding.
Ownership and operation of nuclear generation facilities also requires
the maintenance of funded trusts that are intended to pay for the
decommissioning costs of the respective nuclear power plants. The performance
of the capital markets affects the values of the assets held in trust to satisfy
these future obligations. Duke Energy Carolinas, Duke Energy Progress and Duke
Energy Florida have significant obligations in this area and hold significant
assets in these trusts. These assets are subject to market fluctuations and will
yield uncertain returns, which may fall below projected rates of return.
Although a number of factors impact funding requirements, a decline in the
market value of the assets may increase the funding requirements of the
obligations for decommissioning nuclear plants. If Duke Energy Carolinas, Duke
Energy Progress and Duke Energy Florida are unable to successfully manage
their NDTF assets or if the cost of decommissioning nuclear generation facilities
exceeds the amount available in decommissioning funds and such costs
cannot be recovered through insurance or regulatory mechanisms, their results
of operations, financial position and cash flows could be negatively affected.
Poor investment performance of the Duke Energy pension plan holdings and
other factors impacting pension plan costs could unfavorably impact the
Duke Energy Registrants’ liquidity and results of operations.
The costs of providing non-contributory defined benefit pension plans
are dependent upon a number of factors, such as the rates of return on plan
assets, discount rates, the level of interest rates used to measure the required
minimum funding levels of the plans, future government regulation and
required or voluntary contributions made to the plans. The Subsidiary Registrants
are allocated their proportionate share of the cost and obligations related to
these plans. Without sustained growth in the pension investments over time to
increase the value of plan assets and, depending upon the other factors
impacting costs as listed above, Duke Energy could be required to fund its
plans with significant amounts of cash. Such cash funding obligations, and
the Subsidiary Registrants’ proportionate share of such cash funding
obligations, could have a material adverse impact on the Duke Energy
Registrants’ results of operations, financial position and cash flows.
Duke Energy is a holding company and depends on the cash flows from its
subsidiaries to meet its financial obligations.
Because Duke Energy is a holding company with no operations or cash
flows of its own, its ability to meet its financial obligations, including making
interest and principal payments on outstanding indebtedness and to pay
dividends on its common and preferred stock, is primarily dependent on the
net income and cash flows of its subsidiaries and the ability of those subsidiaries
to pay upstream dividends or to repay borrowed funds. Prior to funding Duke
Energy, its subsidiaries have regulatory restrictions and financial obligations
that must be satisfied. These subsidiaries are separate legal entities and have
no obligation to provide Duke Energy with funds. In addition, Duke Energy
may provide capital contributions or debt financing to its subsidiaries under
certain circumstances, which would reduce the funds available to meet its
financial obligations, including making interest and principal payments on
outstanding indebtedness and to pay dividends on Duke Energy’s common and
preferred stock.
GENERAL RISKS
The failure of Duke Energy information technology systems, or the failure to
enhance existing information technology systems and implement new
technology, could adversely affect the Duke Energy Registrants’ businesses.
Duke Energy’s operations are dependent upon the proper functioning of
its internal systems, including the information technology systems that support
our underlying business processes. Any significant failure or malfunction of
such information technology systems may result in disruptions of our operations.
In the ordinary course of business, we rely on information technology
systems, including the internet and third-party hosted services, to support a
variety of business processes and activities and to store sensitive data, including
(i) intellectual property, (ii) proprietary business information, (iii) personally
identifiable information of our customers, employees, retirees and shareholders
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25
and (iv) data with respect to invoicing and the collection of payments,
accounting, procurement and supply chain activities. Our information
technology systems are dependent upon global communications and cloud
service providers, as well as their respective vendors, many of whom have at
some point experienced significant system failures and outages in the past and
may experience such failures and outages in the future. These providers’
systems are susceptible to cybersecurity and data breaches, outages from fire,
floods, power loss, telecommunications failures, break-ins and similar
events. Failure to prevent or mitigate data loss from system failures or outages
could materially affect the results of operations, financial position and cash
flows of the Duke Energy Registrants.
In addition to maintaining our current information technology systems,
Duke Energy believes the digital transformation of its business is key to driving
internal efficiencies as well as providing additional capabilities to customers.
Duke Energy’s information technology systems are critical to cost-effective,
reliable daily operations and our ability to effectively serve our customers. We
expect our customers to continue to demand more sophisticated technology-
driven solutions and we must enhance or replace our information technology
systems in response. This involves significant development and implementation
costs to keep pace with changing technologies, including artificial
intelligence, and customer demand. If we fail to successfully implement
critical technology, or if it does not provide the anticipated benefits or meet
customer demands, such failure could materially adversely affect our business
strategy as well as impact the results of operations, financial position and
cash flows of the Duke Energy Registrants.
Potential terrorist activities, or military or other actions, could adversely
affect the Duke Energy Registrants’ businesses.
The continued threat of terrorism and the impact of retaliatory military
and other action by the U.S. and its allies may lead to increased political,
economic and financial market instability and volatility in prices for natural
gas and oil, which may have material adverse effects in ways the Duke Energy
Registrants cannot predict at this time. In addition, future acts of terrorism
and possible reprisals as a consequence of action by the U.S. and its allies could
be directed against companies operating in the U.S. Information technology
systems, transportation systems for our fuel sources including natural gas
pipelines, transmission and distribution and generation facilities such as
nuclear plants could be potential targets of terrorist activities or harmful
activities by individuals or groups that could have a material adverse effect on
Duke Energy Registrants’ businesses. In particular, the Duke Energy
Registrants may experience increased capital and operating costs to implement
increased security for their information technology systems, transmission
and distribution and generation facilities, including nuclear power plants under
the NRC’s design basis threat requirements. These increased costs could
include additional physical plant security and security personnel or additional
capability following a terrorist incident.
Failure to attract and retain an appropriately qualified workforce could
unfavorably impact the Duke Energy Registrants’ results of operations.
Certain events, such as an aging workforce, mismatch of skill set or
complement to future needs, or unavailability of contract resources may lead
to operating challenges and increased costs. The challenges include lack of
resources, loss of knowledge base and the lengthy time required for skill
development. In this case, costs, including costs for contractors to replace
employees, productivity costs and safety costs, may increase. Failure to hire
and adequately train replacement employees, including the transfer of
significant internal historical knowledge and expertise to new employees, or
future availability and cost of contract labor may adversely affect the ability to
manage and operate the business, especially considering the workforce
needs associated with nuclear generation facilities and new skills required to
operate a modernized, technology-enabled power grid. If the Duke Energy
Registrants are unable to successfully attract and retain an appropriately
qualified workforce, their results of operations, financial position and cash flows
could be negatively affected.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 1C. CYBERSECURITY
Risk Management
Ensuring the security of Duke Energy’s assets, information and
teammates is vital for delivering the essential service on which Duke Energy’s
customers and communities depend. In light of the ever-evolving threat
landscape and increasing sophistication of threat actor tactics, techniques
and procedures, steadfast and advanced cybersecurity and security operations
are integral parts of Duke Energy’s enterprise risk management framework.
Duke Energy’s enterprise risk management framework is used across the
enterprise by subject matter experts to identify, assess, monitor and
communicate enterprise level risks to the Chief Risk Officer. Duke Energy’s
technology and cybersecurity risk management program is integrated into the
Company’s overall Enterprise Risk Management program and is composed of
three primary lines of defense: (1) the Cybersecurity Incident Response Team
(CIRT); (2) the Duke Energy Enterprise Security Team (EST); and (3) internal and
external cybersecurity audits.
Duke Energy’s first line of defense is the CIRT under the Office of the
Chief Administrative Officer (CAO). The CIRT reports up to leaders in the Chief
Security and Information Security Office, including the Chief Security and
Information Security Officer (CSISO), Managing Director of Cybersecurity and
Network Defense, and Director of Cybersecurity Operations, whose cybersecurity
backgrounds include many years serving in operational cyber roles, leading
incident response, participating in industry engagement, collaborating with
federal and local cyber programs, and time analyzing security breaches across
the industry. The CIRT oversees an enterprisewide process that identifies,
assesses, responds to and resolves cyber incidents, both internal and those
associated with the Company’s use of third-party service providers, by defining
roles, responsibilities and the process for problem source identification,
mitigation, and eradication triggered by a suspected cyber incident. Duke
Energy manages cybersecurity threats through its 24/7 Duke Energy
Cybersecurity Operations Center (CSOC), which serves as the Company’s
central command center for monitoring and coordinating responses to cyber-
threats. The CSOC engages in daily information sharing within the utilities
industry and with government partners and monitors incoming intelligence and
cyber incident impacts. The CSOC assesses the relevant information by
assigning a CIRT Heat Map score, which results in CIRT activation if a certain
threat level is met. It also results in the assignment of additional roles and
responsibilities to enable the cybersecurity leadership and technical teams to
collectively and regularly review incident information, score the impact,
communicate to leadership, and respond appropriately. Another key component
of Duke Energy’s first line of defense against cybersecurity threats is its
Third-Party Risk Management (TPRM) process, whereby third parties providing
services that meet certain criteria such as storing or transmitting Duke
Energy data, hosting an application, or connecting to the Duke Energy network
are required to undergo a cybersecurity assessment primarily to ascertain
the risk of a third-party’s proposed services to Duke Energy.
Duke Energy’s second line of defense against cybersecurity threats is the
EST, which is led by the CSISO, and actively evaluates, anticipates and tests
Duke Energy’s cybersecurity risk level and preventive and risk mitigation controls
PART I
26
relative to the enterprisewide risk level and controls. The EST is responsible for
infrastructure defense and security controls, performing vulnerability
assessments and third-party information security assessments, employee
awareness and training programs and security incident management, including
oversight of the remediation of cybersecurity incidents. The EST monitors
cyber activity and also reports on the status of the Company’s cybersecurity
performance and any ongoing remediation efforts to the Company’s CAO, Chief
Information Officer (CIO) and CSISO. The CAO and CSISO report these
cybersecurity metrics, which use a vulnerability management scoring system
and closely align with the National Institute of Standards and Technology
Cybersecurity Framework, to the Audit Committee at each regularly scheduled
Audit Committee meeting. The EST also employs tools and oversees and
challenges Duke Energy’s cybersecurity and technology metrics under its
Enterprise Security Risk Register to track, identify and manage risk. To this
end, the EST engages outside expert firms to perform a comprehensive external
penetration test each year, performs system and application penetration
testing several times throughout the year, and conducts annual exercises
simulating the tactics, techniques, and procedures of advanced threat actor
groups to test the Company’s ability to prevent penetration, detect suspicious
activity and respond to these threats in a timely manner. Lessons learned
inform the ongoing improvement of security preventive and mitigating controls
and procedures and the results of such testing and threat actor simulations
are shared with senior management and the Board of Directors. Duke Energy
also has a senior management committee, the Executive Cybersecurity Oversight
Governance Committee (ECOG), which governs enterprise-level cybersecurity
risk tolerance.
The Company’s Executive Cybersecurity Oversight Governance Committee
(ECOG), comprised of the Company’s Chair and Chief Executive Officer (CEO),
President, Executive Vice President (EVP) and Chief Financial Officer, and EVP,
Chief Generation Officer and Enterprise Operational Excellence, receives
monthly updates from the CAO and CSISO and provides senior management
throughout the Company informational technology and operational technology
perspectives, oversight and governance on investments and priorities for
the broader cybersecurity organization, in addition to providing final decision
oversight on recommendations and response to the ever-challenging
cybersecurity threat landscape. The ECOG also is leveraged to supply
information and bring transparency to senior management throughout the
Company on the increasing threat landscape and the actions, response and
road map to combat the threats.
Internal and external cybersecurity audits provide a third line of defense
and independently provide assurance on how effectively the Company, as a
whole, manages cybersecurity risk. Each year, Duke Energy Corporate Audit
Services (CAS) performs various audits of key Duke Energy security systems and
functions, such as third-party risk management programs, to assess whether
appropriate security controls are in place and operating effectively. In addition
to these internal audits, the Company is subject to a variety of external
audits, performed periodically as required by the auditing entity, including
external audits performed by the North American Electric Reliability Corporation
under the Critical Infrastructure Protection framework (NERC CIP),
Transportation & Security Administration Pipeline Security Directive and
Federal Energy Regulatory Commission Dam Security.
Duke Energy is not currently aware of any potential cybersecurity
threats, including as a result of any previous cybersecurity incidents, that
have materially affected or are reasonably likely to materially affect the
Company, including its business strategy, results of operations or financial
condition, however, Duke Energy cannot provide assurance that it will not be
materially affected in the future by cybersecurity risks or any future material
incidents.
Governance
The Audit Committee has primary oversight of management’s efforts to
mitigate cybersecurity and technology risk and respond to cyber incidents. The
Audit Committee receives updates throughout the year from the CAO and
CSISO on cybersecurity and grid security issues, including compliance with
regulations, employee training and drills, at every regularly scheduled Audit
Committee meeting, and engages in discussions throughout the year with
management on the effectiveness of Duke Energy’s overall cybersecurity program
and progress for addressing any identified risks. In 2024, the Audit Committee
received three updates and the full Board of Directors received one update
on cybersecurity. The Audit Committee also receives periodic updates on Duke
Energy’s digital transformation and the operation of, and enhancements to, the
Company’s financial systems and business and operational technical
systems. The reviews presented to the Audit Committee are followed with an
update to the full Board of Directors by the Chair of the Audit Committee.
In addition, the Operations and Nuclear Oversight Committee (ONOC) of
the Board of Directors provides oversight of the nuclear safety and cybersecurity
of Duke Energy’s nuclear power program, which is integrated with the
companywide cyber protocols, and the Chair of the ONOC reports out to the
Board of Directors on such oversight activities. Duke Energy’s nuclear
cybersecurity program and associated cybersecurity plan (CSP) were fully
implemented in 2017 in accordance with NRC regulation 10 CFR 73.54,
“Protection of digital computer and communication systems and networks” and
leverage monitoring, testing, drills, audits, assessments, and NRC inspections
to continue to validate the effectiveness of the program to protect plant
assets from cybersecurity threats.
Moreover, Duke Energy’s processes ensure that the Board of Directors
receive contemporaneous reporting on potentially significant cyber events
including response, legal obligations, and outreach and notification to regulators
and customers when needed, as well as an opportunity to provide guidance
to management as appropriate.
The relevant cybersecurity risk expertise of Duke Energy’s management
who serve on the ECOG and/or senior management who lead the CIRT and EST
is described below.
• The CEO of Duke Energy has over 20 years of experience in the utilities
industry, and has gained cybersecurity experience as CEO of one of
America’s largest utility companies, and through service on the board
of the Edison Electric Institute, the Institute of Nuclear Power
Operations, the World Association of Nuclear Operators, and past
service on the Department of Homeland Security Advisory Council.
• The EVP and Chief Financial Officer of Duke Energy (CFO) previously
served as the Company’s Chief Transformation and Administrative
Officer and led the Company’s business transformation through digital
innovation, new ways of working and process redesign. In this role,
the CFO gained an in-depth understanding of the Company’s
cybersecurity procedures and key threats, and was responsible for the
enterprise business services and technology team, including the
information and technology organization.
• The EVP, Chief Generation Officer and Enterprise Operational
Excellence of Duke Energy has gained cybersecurity experience
through being responsible for the safe, efficient and reliable operation
of Duke Energy’s fleet of nuclear, natural gas, hydro, solar and
coal units.
• The President of Duke Energy has gained cybersecurity experience
through focusing on transmission and the development of long-term
grid strategies and solutions and through a prior role as Chief
Distribution Officer, overseeing the safe, reliable, and efficient
operation of Duke Energy’s electric distribution systems, and through
serving on the board of the Association of Edison Illuminating
Companies.
• The CSISO of Duke Energy has over 25 years of experience building
and leading security teams within multiple industries. The CSISO holds
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27
a Secret Security clearance and is committed to strengthening U.S.
critical infrastructure through active collaboration with federal partners
at the Federal Bureau of Investigation, Department of Energy,
Department of Homeland Security, and state partners including the
national guard, law enforcement and universities.
• The CAO of Duke Energy has over 25 years of experience in delivering
secure information technology solutions across multiple industries,
leading technology delivery for all core business functions. The CAO
holds a Secret Security clearance and has active interactions and
partnership with the Federal Bureau of Investigation, Edison Electric
Institute and State Fusion Centers in the jurisdictions that Duke Energy
serves.
PART I
28
ITEM 2. PROPERTIES
ELECTRIC UTILITIES AND INFRASTRUCTURE
The following table provides information related to the EU&I’s generation
stations as of December 31, 2024. The MW displayed in the table below are
based on winter capacity for Fossil, Nuclear and Hydro generation stations,
and nameplate capacity for Renewable generation stations. Ownership interest
in all facilities is 100% unless otherwise indicated.
Facility
Plant Type
Primary Fuel
Location
Owned MW
Capacity
Duke Energy Carolinas
Oconee
Nuclear
Uranium
SC
2,618
McGuire
Nuclear
Uranium
NC
2,386
Catawba(a)
Nuclear
Uranium
SC
588
Belews Creek
Fossil
Coal/Gas
NC
2,220
Marshall
Fossil
Coal/Gas
NC
2,078
Lincoln CT
Fossil
Gas/Oil
NC
1,909
J.E. Rogers
Fossil
Coal/Gas
NC
1,395
Rockingham CT
Fossil
Gas/Oil
NC
895
Mill Creek CT
Fossil
Gas/Oil
SC
751
Buck CC
Fossil
Gas
NC
718
Dan River CC
Fossil
Gas
NC
718
W.S. Lee CC(b)
Fossil
Gas
SC
706
W.S. Lee CT
Fossil
Gas/Oil
SC
96
Clemson CHP
Fossil
Gas
SC
16
Bad Creek
Hydro
Water
SC
1,640
Jocassee
Hydro
Water
SC
780
Cowans Ford
Hydro
Water
NC
324
Keowee
Hydro
Water
SC
152
Other small facilities (18 plants)
Hydro
Water
NC/SC
584
Distributed generation
Renewable
Solar
NC
174
Battery Storage
Renewable
Storage
NC
25
Total Duke Energy Carolinas
20,773
Duke Energy Progress
Brunswick
Nuclear
Uranium
NC
1,928
Harris
Nuclear
Uranium
NC
1,009
Robinson
Nuclear
Uranium
SC
793
Roxboro
Fossil
Coal
NC
2,462
Smith CC
Fossil
Gas/Oil
NC
1,250
H.F. Lee CC
Fossil
Gas/Oil
NC
1,054
Smith CT
Fossil
Gas/Oil
NC
1,000
Wayne County CT
Fossil
Gas/Oil
NC
975
L.V. Sutton CC
Fossil
Gas/Oil
NC
719
Mayo
Fossil
Coal
NC
713
Asheville CC
Fossil
Gas/Oil
NC
560
Asheville CT
Fossil
Gas/Oil
NC
370
Darlington CT
Fossil
Gas/Oil
SC
264
Weatherspoon CT
Fossil
Gas/Oil
NC
164
L.V. Sutton CT
Fossil
Gas/Oil
NC
97
Blewett CT
Fossil
Oil
NC
68
Walters
Hydro
Water
NC
112
Other small facilities (three plants)
Hydro
Water
NC
116
Distributed generation
Renewable
Solar
NC
146
Battery Storage
Renewable
Storage
NC
45
Total Duke Energy Progress
13,845
Duke Energy Florida
Hines CC
Fossil
Gas/Oil
FL
2,149
Citrus County CC
Fossil
Gas
FL
1,854
Crystal River
Fossil
Coal
FL
1,442
Bartow CC
Fossil
Gas/Oil
FL
1,259
Intercession City CT
Fossil
Gas/Oil
FL
1,146
PART I
29
Facility
Plant Type
Primary Fuel
Location
Owned MW
Capacity
Anclote
Fossil
Gas
FL
1,025
DeBary CT
Fossil
Gas/Oil
FL
661
Osprey CC
Fossil
Gas/Oil
FL
611
Tiger Bay CC
Fossil
Gas/Oil
FL
230
Bayboro CT
Fossil
Oil
FL
193
Bartow CT
Fossil
Gas/Oil
FL
212
Suwannee River CT
Fossil
Gas
FL
194
University of Florida CoGen CT
Fossil
Gas
FL
50
Distributed generation (19 sites)
Renewable
Solar
FL
1,468
Battery Storage
Renewable
Storage
FL
48
Total Duke Energy Florida
12,542
Duke Energy Ohio
East Bend
Fossil
Coal
KY
600
Woodsdale CT
Fossil
Gas/Propane
OH
564
Distributed generation
Renewable
Solar
KY
9
Total Duke Energy Ohio
1,173
Duke Energy Indiana
Gibson(c)
Fossil
Coal
IN
2,845
Cayuga(d)
Fossil
Coal/Oil
IN
1,015
Madison CT
Fossil
Gas
OH
704
Edwardsport
Fossil
Coal/Gas
IN
578
Wheatland CT
Fossil
Gas
IN
520
Vermillion CT(e)
Fossil
Gas
IN
477
Noblesville CC
Fossil
Gas/Oil
IN
310
Henry County CT(f)
Fossil
Gas/Oil
IN
141
Cayuga CT
Fossil
Gas/Oil
IN
110
Purdue CHP
Fossil
Gas
IN
16
Markland
Hydro
Water
IN
54
Distributed generation
Renewable
Solar
IN
21
Battery Storage
Renewable
Storage
IN
15
Total Duke Energy Indiana
6,806
Totals by Type
Owned MW
Capacity
Totals by Plant Type
Nuclear
9,322
Fossil
40,104
Hydro
3,762
Renewable
1,951
Total Electric Utilities
55,139
(a)
Jointly owned with North Carolina Municipal Power Agency Number 1, NCEMC and PMPA. Duke Energy Carolinas’ ownership is 19.25% of the facility.
(b)
Jointly owned with NCEMC. Duke Energy Carolinas’ ownership is 87.27% of the facility.
(c)
Duke Energy Indiana owns and operates Gibson Station Units 1 through 4 and is a joint owner of unit 5 with WVPA and IMPA. Duke Energy Indiana operates unit 5 and owns 50.05%.
(d)
Includes Cayuga Internal Combustion.
(e)
Jointly owned with WVPA. Duke Energy Indiana’s ownership is 62.5% of the facility.
(f)
Includes 50 MW contracted to WVPA.
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30
The following table provides information related to EU&I’s electric transmission and distribution properties as of December 31, 2024.
Duke
Energy
Duke
Energy
Carolinas
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Electric Transmission Lines
Miles of 500 to 525 kilovolt (kV)
1,100
600
300
200
—
—
Miles of 345 kV
1,100
—
—
—
400
700
Miles of 230 kV
8,600
2,700
3,400
1,800
—
700
Miles of 100 to 161 kV
12,700
6,900
2,600
1,100
700
1,400
Miles of 13 to 69 kV
8,200
2,800
—
2,300
600
2,500
Total conductor miles of electric transmission lines
31,700
13,000
6,300
5,400
1,700
5,300
Electric Distribution Lines
Miles of overhead lines
171,700
66,700
44,500
25,100
13,300
22,100
Miles of underground line
114,900
44,500
30,100
23,600
6,600
10,100
Total conductor miles of electric distribution lines
286,600
111,200
74,600
48,700
19,900
32,200
Number of electric transmission and distribution substations
3,000
1,200
500
500
300
500
Substantially all of EU&I’s electric plant in service is mortgaged under indentures relating to Duke Energy Carolinas’, Duke Energy Progress’, Duke Energy
Florida’s, Duke Energy Ohio’s and Duke Energy Indiana’s various series of First Mortgage Bonds.
GAS UTILITIES AND INFRASTRUCTURE
GU&I owns transmission pipelines and distribution mains that are generally underground, located near public streets and highways, or on property owned
by others for which Duke Energy Ohio and Piedmont have obtained the necessary legal rights to place and operate facilities on such property located within the
GU&I service territories. The following table provides information related to GU&I’s natural gas distribution as of December 31, 2024.
Duke
Energy
Duke
Energy
Ohio
Piedmont
Miles of natural gas distribution and transmission pipelines
36,300
7,600
28,700
Miles of natural gas service lines
29,700
6,800
22,900
OTHER
Duke Energy owns approximately 7.2 million square feet and leases approximately 2 million square feet of corporate, regional and district office space
spread throughout its service territories. See Note 11, “Property, Plant and Equipment,” for further information.
ITEM 3. LEGAL PROCEEDINGS
MTBE Litigation
In December 2017, the state of Maryland filed suit in Baltimore City Circuit Court against Duke Energy Merchants and other defendants alleging
contamination of state waters by MTBE leaking from gasoline storage tanks and is seeking an unspecified amount of monetary damages. MTBE is a gasoline
additive intended to increase the oxygen levels in gasoline and make it burn cleaner. The case was removed from Baltimore City Circuit Court to federal District
Court. Initial motions to dismiss filed by the defendants were denied by the court in September 2019, and the matter is now in discovery. In December 2020, the
plaintiff and defendants selected 50 focus sites, none of which have any ties to Duke Energy Merchants. Discovery will be specific to those sites. At this time, Duke
Energy Merchants has not engaged in settlement negotiations with the plaintiff and the plaintiff has not reached a settlement agreement with any defendant.
Duke Energy cannot predict the outcome of this matter.
The Town of Carrboro Litigation
On December 4, 2024, the town of Carrboro, North Carolina, filed a lawsuit against Duke Energy in the North Carolina Superior Court, Orange County,
alleging that Duke Energy and its predecessor companies knew since the late 1960s that fossil-fuel emissions could cause global climate changes and engaged
in a campaign to conceal the dangers of fossil fuel emissions from the public, regulators, legislators, and others, resulting in a delayed transition away from
fossil fuel emissions and worsening climate change. The lawsuit also alleges that Duke Energy misled the public regarding Duke Energy’s support for, and actions
toward, transitioning its fossil fuel portfolio to renewable energy. The damages alleged range from road and stormwater-system impacts to increased electricity
costs and recurring invasions and interferences from extreme weather events. The lawsuit asserts state-law claims for public nuisance, private nuisance, trespass,
negligence, and gross negligence, and is seeking an unspecified amount of monetary damages. The case has been transferred to the North Carolina Business
Court. Duke Energy cannot predict the outcome of this matter.
In addition, from time to time, the Duke Energy Registrants are parties to various legal, environmental or other regulatory proceedings, including in the
ordinary course of business. SEC regulations require disclosure of certain environmental matters when a governmental authority is a party to the proceedings and
such proceedings involve potential monetary sanctions that the Duke Energy Registrants reasonably believe will exceed a specified threshold. Pursuant to the
PART I
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SEC regulations, the Duke Energy Registrants use a threshold of $1 million for such proceedings. See Note 4, “Regulatory Matters,” and Note 5, “Commitments
and Contingencies,” to the Consolidated Financial Statements, which information is incorporated herein by reference, for discussion of certain legal, environmental
and other regulatory proceedings to which the Duke Energy Registrants are a party.
ITEM 4. MINE SAFETY DISCLOSURES
This is not applicable for any of the Duke Energy Registrants.
PART I
32
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
SECURITIES
The common stock of Duke Energy is listed and traded on the NYSE (ticker symbol DUK). As of January 31, 2025, there were 114,684 Duke Energy common
stockholders of record. For information on dividends, see the “Dividend Payments” section of Management’s Discussion and Analysis.
There is no market for the common equity securities of the Subsidiary Registrants, all of which are directly or indirectly owned by Duke Energy. See Note 2,
“Dispositions,” to the Consolidated Financial Statements for information on the investment of a minority interest in Duke Energy Indiana.
Securities Authorized for Issuance Under Equity Compensation Plans
See Item 12 of Part III within this Annual Report for information regarding Securities Authorized for Issuance Under Equity Compensation Plans.
Issuer Purchases of Equity Securities for Fourth Quarter 2024
There were no repurchases of equity securities during the fourth quarter of 2024.
Unregistered Sales of Equity Securities and Use of Proceeds
None.
Stock Performance Graph
The following performance graph compares the cumulative TSR from Duke Energy Corporation common stock, as compared with the Standard & Poor’s 500
Stock Index (S&P 500) and the Philadelphia Utility Index for the past five years. The graph assumes an initial investment of $100 on December 31, 2019, in Duke
Energy common stock, in the S&P 500 and in the Philadelphia Utility Index and that all dividends were reinvested. The stockholder return shown below for the five-
year historical period may not be indicative of future performance.
$250
$200
$150
$100
$50
$0
2019
2024
2023
2022
2021
2020
Duke Energy Corporation
Philadelphia Utility Index
S&P 500
NYSE CEO Certification
Duke Energy has filed the certification of its Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
as exhibits to this Annual Report.
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ITEM 6. SELECTED FINANCIAL DATA
This is not applicable for any of the Duke Energy Registrants.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Management’s Discussion and Analysis includes financial information
prepared in accordance with GAAP in the U.S., as well as certain non-GAAP
financial measures such as adjusted earnings and adjusted EPS discussed
below. Generally, a non-GAAP financial measure is a numerical measure of
financial performance, financial position or cash flows that excludes (or
includes) amounts that are included in (or excluded from) the most directly
comparable measure calculated and presented in accordance with GAAP. The
non-GAAP financial measures should be viewed as a supplement to, and not a
substitute for, financial measures presented in accordance with GAAP. Non-
GAAP measures as presented herein may not be comparable to similarly titled
measures used by other companies.
The following combined Management’s Discussion and Analysis of
Financial Condition and Results of Operations is separately filed by Duke
Energy Corporation and its subsidiaries. Duke Energy Carolinas, LLC, Progress
Energy, Inc., Duke Energy Progress, LLC, Duke Energy Florida, LLC, Duke
Energy Ohio, Inc., Duke Energy Indiana, LLC and Piedmont Natural Gas Company,
Inc. However, none of the registrants make any representation as to
information related solely to Duke Energy or the subsidiary registrants of Duke
Energy other than itself.
Management’s Discussion and Analysis should be read in conjunction
with the Consolidated Financial Statements and Notes for the years ended
December 31, 2024, 2023 and 2022.
See “Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations,” in Duke Energy’s Annual Report on
Form 10-K for the year ended December 31, 2023, filed with the SEC on
February 23, 2024, for a discussion of variance drivers for the year ended
December 31, 2023, as compared to December 31, 2022.
DUKE ENERGY
Duke Energy, an energy company headquartered in Charlotte, North
Carolina, operates in the U.S. primarily through its subsidiaries, Duke Energy
Carolinas, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke
Energy Indiana and Piedmont. When discussing Duke Energy’s consolidated
financial information, it necessarily includes the results of the Subsidiary
Registrants, which along with Duke Energy, are collectively referred to as the
Duke Energy Registrants.
Executive Overview
This is a dynamic and exciting time for our industry and our company in
particular as we move further into the energy transition. While 2024 presented
unprecedented challenges as it relates to a historic storm season, we are
now in the early stages of the approval and planned construction of significant
new generation investments and anticipate growing energy demands in the
coming decades from continued migration into our attractive service territories,
onshoring of domestic industries, electrification, and data centers and other
investments from the expected artificial intelligence revolution. At Duke Energy,
we remain focused on continuing to advance our energy transition,
maintaining reliability and affordability for our customers while providing
cleaner energy and delivering on our commitments to our communities,
employees, investors, and other stakeholders. The fundamentals of our business
remain strong, allowing us to deliver growth in earnings and dividends in a low-
risk, predictable and transparent way.
In 2024, we responded to the most significant hurricane season in our
company’s history. While several historic, back-to-back hurricanes challenged
our operations and required incremental financing costs, we met our
near-term financial commitments and continued to make progress, generating
positive regulatory and strategic outcomes, advancing key actions related to
our energy transition and continuing to provide the safe and reliable service that
our communities depend on. We continue to rebuild the most heavily
damaged infrastructure impacted by storms in our service territories, engage
with our customers and make critical investments to support our ongoing energy
transition and a business portfolio that delivers a reliable and growing
dividend, with 2024 representing the 98th consecutive year Duke Energy paid
a cash dividend on its common stock.
Financial Results
2023
$4,285
$2,735
2024
$4,402
$4,542
Adjusted Earnings (a)
Annual Earnings (in millions)
Net Income Available to Duke Energy Corporation
common stockholders (GAAP)
Net Income Available to Duke Energy Corporation
common stockholders per basic share (GAAP)
Adjusted Earnings Per Share (a)
2023
Annual Earnings Per Share
$5.56
$3.54
2024
$5.71
$5.90
(a)
See Results of Operations below for Duke Energy’s definition of adjusted earnings and adjusted EPS as well as a reconciliation of this non-GAAP financial measure to net income available to Duke Energy and net income
available to Duke Energy per basic share.
Duke Energy’s 2024 Net Income Available to Duke Energy Corporation
(GAAP Reported Earnings) increased primarily due to higher impairments on
the sale of the Commercial Renewables business in the prior year. Additional
drivers primarily include growth from rate increases and riders, improved
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34
weather and higher sales volumes, partially offset by higher interest expense,
depreciation on a growing asset base and storm costs, along with a higher
effective tax rate. See “Results of Operations” below for a detailed discussion
of the consolidated results of operations and a detailed discussion of financial
results for each of Duke Energy’s reportable business segments, as well as
Other.
2024 Areas of Focus and Accomplishments
Hurricane Response and Operational Excellence. The reliable and safe
operation of our power generating facilities, electric distribution system and
natural gas infrastructure in our communities continues to be foundational to
serving our customers, our financial results, and our credibility with
stakeholders. Our workforce and contract partners work hard to prepare for
storm season, through drills, material planning, call center readiness,
contingency planning and customer communications. Additionally, operational
excellence is especially critical to successfully navigate effective storm
response and to efficiently provide the continuity of service our customers
demand, regardless of weather or circumstance.
In 2024, with three consecutive major hurricanes Debby, Helene and
Milton, this preparation was critical as we responded to several unprecedented
and catastrophic weather events across our service territories. The historic
nature of these storms required a new level of coordination and teamwork across
every organization at our company. In August 2024, Hurricane Debby made
landfall in Florida as a Category 1 storm, impacting the Duke Energy Florida
territory as well as the Duke Energy Carolinas and Duke Energy Progress
territories in North Carolina and South Carolina and causing approximately
700,000 customer outages. In late September 2024, Hurricane Helene made
landfall in Florida as a Category 4 storm and subsequently impacted all of Duke
Energy’s service territories as the storm moved inland, with the most severe
damage occurring in Florida and the Carolinas. Approximately 3.5 million
customers were impacted by Hurricane Helene across Duke Energy’s system,
the largest number of companywide outages from a single event on our system
ever reported. Then, in October 2024, Hurricane Milton made landfall in
Florida as a Category 3 storm, causing severe damage across our Florida
service territory as a result of high winds, rain and flooding and resulting in
more than 1 million customer outages.
In such extreme circumstances, our immediate priority is, and always
will be, executing the extensive storm preparation and response work to ensure
the safe, timely, and efficient restoration of service to impacted customers
as quickly as possible. Around-the-clock power restoration efforts continued
following the historic damage inflicted by these storms with lineworkers, tree
trimmers and removal experts, state department of transportation workers and
countless others, working to repair and, in certain areas, completely rebuild,
the critical electricity infrastructure that powers and supports the communities
we serve. Our operations teams worked diligently, restoring power to
approximately 5.5 million customers. We’ve also seen the benefits of ongoing
grid hardening investments, leveraging self-healing technologies and remote
restoration capabilities to automate the rerouting of power, more effectively
deploy resources, and reduce the frequency or duration of outages for many of
our customers during severe weather events.
Preparation, sound execution, and a comprehensive communication
strategy helped us respond quickly and build stakeholder loyalty and support
as we continue the important work of rebuilding our communities, including
power infrastructure in the hardest-hit areas of our service territories. While
these historic storms created incremental financing needs, we are working with
our state commissions to appropriately track and recover storm costs under
approved regulatory frameworks on a timely basis. We also remain focused on
balancing the bill impacts on our customers, including seeking insurance
recovery and the securitization of related costs in certain jurisdictions, as
appropriate. For more information, see “Matters Impacting Future Results,”
“Liquidity and Capital Resources,” and Notes 4 and 7 to the Consolidated
Financial Statements, “Regulatory Matters” and “Debt and Credit Facilities.”
Despite the extreme weather and operational challenges with storm
response, our generation fleet and nuclear sites delivered strong performance
throughout the year and our electric distribution system performed well. In
addition to unprecedented storm response, most of our service territories
experienced above-average temperatures this summer, including the warmest
July on record in Florida, new energy peaks in the Carolinas and weather
alerts from PJM and MISO in the Midwest. In January 2025, due to 65 hours of
freezing or below freezing temperatures, Duke Energy Carolinas and Duke Energy
Progress achieved a new record combined peak usage. We prepared for the
arrival of extreme weather and delivered on our customer commitments,
identifying potential risks, effectively maintaining adequate short-term planning
reserves, leveraging outage scheduling optimization, and controlling planned
and emergent equipment issues. Effective operations and flexibility by our
generation and transmission teams managed these tight margins in an efficient
manner and ensured the integrity of the grid our customers rely upon. We will
continue to practice our forecasting, grid assessment, oversight, and governance
processes as extreme weather challenges operations from time to time,
evaluate lessons learned and enhance our strategy and communications to
effectively serve our customers now and in the future. Our ability to effectively
handle all facets of the 2024 storm response efforts while making ongoing
investments to enhance the reliability and physical security of the grid is a
testament to our team’s extensive preparation and coordination, applying lessons
learned from previous storms, and on-the-ground management throughout
the restoration efforts. Duke Energy has received 20 Emergency Response Awards
since EEI began recognizing storm response in 1998 (including 11 for
assisting other utilities).
The safety and health of our workforce is a core value and we remain an
industry leader in personal safety as measured by the Occupational Safety and
Health Administration’s (OSHA) Total Incident Case Rate (TICR). We closely
tracked 2023’s record-setting safety results with our 2024 TICR coming in below
target and anticipate ranking first among North American combined gas and
electric companies in an annual industry safety survey for the 10th consecutive
year. We expect our gas operations organization to finish in the top 10%
according to a gas industry survey for the fourth year in a row. Following on our
historic success from 2023, we finished 2024 with less than 100 OSHA
recordable injuries. In addition, we achieved significant year-over-year
improvement in environmental performance as measured by internal metrics
and had no significant environmental events.
Constructive Regulatory and Legislative Outcomes. Modernized
regulatory constructs provide benefits, which include improved earnings and
cash flows through more timely recovery of investments, as well as stable pricing
for customers. One of our long-term strategic goals was to achieve modernized
regulatory constructs across all of our jurisdictions. With PBR and MYRP in
North Carolina, MYRP in Florida, and grid investment riders in the Midwest, 2024
marked a significant milestone for utilizing these structures across most of
our service territories.
Overall, 2024 was a very active year as it relates to regulatory filings,
which reflects the important investments and ongoing energy transition across
all of our service territories. We continued to move a variety of regulatory
initiatives forward this year, including the following:
• In January 2024, Duke Energy Carolinas filed a South Carolina rate
case. In May 2024, we reached a constructive comprehensive settlement
with certain parties and in July 2024, the PSCSC issued an order
approving the settlement and revising recovery of certain environmental
compliance costs. New rates were effective August 1, 2024.
• In April 2024, we filed formal requests for new base rates across
several jurisdictions including Duke Energy Florida, Duke Energy
Indiana and Piedmont.
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35
• Duke Energy Florida filed a three-year rate plan to begin in
January 2025. In August 2024, the FPSC approved our
constructive comprehensive settlement with certain parties and
new rates were effective January 1, 2025.
• Duke Energy Indiana filed a general rate case with the IURC
and received a constructive order in January 2025. New rates are
expected to be effective by March 2025.
• Piedmont filed a general rate case with the NCUC and reached
a constructive comprehensive settlement with certain
parties in September 2025. Revised interim rates were effective
November 1, 2024, subject to refund and pending NCUC
approval of the settlement and a final order, which was received
in January 2025.
• Also, in April 2024, Duke Energy Progress issued $177 million of
storm recovery bonds, our first issuance under South Carolina’s 2022
securitization legislation, which provided the necessary framework
for us to lower the bill impacts on our customers related to critical
storm restoration activities. In December 2024, we initiated
securitization filings in North Carolina related to the unprecedented
back-to-back hurricanes of 2024 and are also pursuing timely recovery
of storm costs under existing regulatory mechanisms in Florida.
• In December 2024, Duke Energy Kentucky filed an electric base rate
case and new rates are anticipated to go into effect in July 2025.
In 2024, we also began to sell nuclear PTCs as allowed under the Inflation
Reduction Act. These proceeds are expected to have significant benefits to
customers and lower the cost of the energy transition as the sales proceeds,
net of associated costs, are flowed back to customers through lower rates under
regulatory mechanisms in applicable jurisdictions.
Energy Transition. Faced with anticipated long-term growth not seen for
decades, our industry continues to experience an unprecedented level of change
and 2024 was a dynamic year for our company as we navigated storm
response and continued to execute on our strategic priorities.
Generating Reliable, Affordable and Cleaner Energy
We continue to balance reliability and affordability in light of expected
increases in long-term demand for electricity in our service territories in the
coming decades. While we continue to target a transition out of coal by 2035,
subject to regulatory approvals, our focus remains on meeting the growing and
evolving energy needs of our customers through a long-range, enterprise
strategy that involves modernizing our assets with reliability and affordability
top of mind. Although our path will not be linear as we retire coal and bring
new generation resources online, we have made strong progress to date in
reducing carbon emissions from electricity generation (a 44% reduction from
2005) and have established goals to do more (50% reduction by 2030, 80%
by 2040, and net zero by 2050). We are also working to reduce Scope 2 and
certain Scope 3 emissions, including emissions from upstream purchased power
and fossil fuel purchases, as well as downstream customer use of natural
gas, by 50% by 2035, on the way to net zero by 2050.
Over the next decade, we expect to deploy between approximately
$190 billion and $200 billion of capital into our regulated businesses, driven
by energy transition investments designed to ensure reliable, affordable, and
cleaner energy while meeting expected growth in energy demand in the
coming decades. These investments will maintain reliability and affordability,
drive economic benefits for the communities we serve, deliver cleaner
energy and reduce our customers’ exposure to fuel volatility. We have filed and
refined comprehensive IRPs consistent with this strategy in multiple
jurisdictions, allowing us to make needed investments to increase grid
resiliency and enable coal plant retirements, renewables and energy storage.
As we look beyond 2030, we will need additional tools to continue our
progress. We will actively work to advocate for research and development and
deployment of carbon-free, dispatchable resources. This includes longer-
duration energy storage, advanced nuclear technologies, carbon capture and
zero-carbon fuels.
Carolinas Resource Plan
Our energy transition strategy continues to focus on delivering a path to
cleaner energy in a manner that protects grid reliability and affordability, all
while meeting the energy demands of the growing and economically vibrant
communities that we serve. In January 2024, we filed supplemental modeling
and analysis with the NCUC and PSCSC related to our combined systemwide
Carolinas Resource Plan filed in 2023. These updates were necessary due to
substantially increased load forecasts resulting from continued economic
development successes in the Carolinas occurring since the systemwide
integrated resource plan was prepared. In March 2024, we filed CPCNs for new
natural gas generation facilities in North Carolina and made a similar filing
in South Carolina for a new solar facility. In 2024, these generation facility
filings were approved along with receiving broader approval and direction on the
Carolinas Resource Plan from both the NCUC and PSCSC.
Modernizing the Power Grid and Natural Gas Infrastructure
We are leveraging new technology, digital tools and data analytics
across the business in response to a transforming landscape and our grid
improvement programs continue to be a key component of our growth strategy.
Modernization of the electric grid, including smart meters, storm hardening,
self-healing and targeted undergrounding, helps to ensure the system is better
prepared for severe weather, improves the system’s reliability and flexibility,
and provides better information and services for our customers. We continue to
enhance our customers’ experience with the Self-Optimizing Grid (SOG), our
flagship grid improvement program spanning all of Duke Energy’s regulated
utilities. In 2024, our SOG investments helped to avoid approximately 925,000
customer interruptions across our six-state electric service area, preventing
customers from having more than 8.6 million hours of lost outage time during
major events.
Investments in integrity management of our natural gas infrastructure
continue to be of importance to ensure reliable, safe, and increasingly clean
delivery of natural gas to our customers. In our LDC business, we remain focused
on reducing methane emissions, leveraging our partnerships, emissions
platform, sensors and other technologies to find and fix leaks in near real
time. We also use cross compression to avoid releasing natural gas into the
atmosphere during certain operational activities.
Macroeconomic Environment. Duke Energy has a demonstrated track
record of executing on our business plans while driving efficiencies and
productivity in the business. Despite higher interest rates and navigating the
operational and financial impacts of unprecedented hurricanes across our
service territories, we achieved financial results within our adjusted EPS
guidance and continued our cost-management journey with a focus on driving
productivity, increasing flexibility and prioritizing spend based on risk and
strategic value to our customers and investors. We’ve built a culture of
continuous improvement and continue to identify ways to reduce operating
costs, remaining focused on organization simplification, automation,
outsourcing and continued operational excellence.
Volatile commodity prices led to rapid fuel cost increases in 2022,
impacting the price of electricity in all of our jurisdictions. We actively worked
to manage and maintain prices at lower levels than they otherwise would have
been in light of increased commodity prices, working with our regulators to
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36
extend recovery periods in certain jurisdictions in a way that was manageable
for our customers. We’ve experienced increased stability in these markets
and have now fully recovered these deferred fuel costs, with remaining balances
back in line with our historical average as of December 31, 2024. Additionally,
while interest rates and inflation have moderated to a degree, we continued
to successfully navigate supply chain challenges for major equipment
components for new generation and the grid. For solar panels, we’ve executed
longer supply agreements and we continue to proactively secure equipment in
advance of hurricane season. Our procurement teams also continue to
execute on action plans to enhance planning, augment supply, amend
operations and leverage our scale to continue to mitigate these risks to the
extent possible.
Recent macroeconomic headwinds aside, the level of economic
development success and growth experienced in our service territories is
significantly above what we have experienced over the last two decades. We
successfully worked with our state partners to win 78 economic development
projects in 2024 alone, representing approximately $26 billion in new capital
investment and over 16,000 new jobs within our service territories. These
projects include transformational life sciences, automotive, and semiconductors
facilities as well as data centers. Supporting the increasing generation load
demands expected from projects like these in the coming years is an immense
opportunity for our Company and the communities we proudly serve.
Customer Satisfaction. Duke Energy continues to transform the customer
experience through our use of customer data to better inform operational
priorities and performance levels. This data-driven approach allows us to
identify the investments that are most important to the customer experience.
While customer satisfaction across our industry continues to be impacted by the
macroeconomic environment and the impacts of inflationary pressures
including higher fuel prices and interest rates on customer bills, our work
continues to be recognized by our customers, with strong customer satisfaction
scores in our jurisdictions including Piedmont, which was ranked No. 1 in
customer satisfaction by J.D. Power for residential natural gas service in the
south for the third year in a row.
Duke Energy Objectives – 2025 and Beyond
At Duke Energy, our business strategy centers on meeting growing
energy needs and powering the modern economy, while delivering reliable,
affordable and cleaner energy to our customers and communities. To meet these
goals, we are safely transforming and readying our system by investing in
secure and innovative technologies, modernizing our gas and electric
infrastructure and integrating efficiency and demand management programs.
As we transition our business to meet anticipated increased long-term
demand while delivering more efficient sources of energy, we are focused on
creating sustainable value for our customers and shareholders by leveraging
business transformation to exceed customer expectations, optimizing
investments to drive attractive shareholder returns and providing new product
offerings and solutions that deliver growth and customer value. To achieve
these objectives, we are partnering with stakeholders, championing public
policy that advances innovation and continuing to leverage regulatory models
that support the delivery of reliable energy, timely cost recovery and affordable
customer rates.
Matters Impacting Future Results
The matters discussed herein could materially impact the future
operating results, financial condition and cash flows of the Duke Energy
Registrants and Business Segments.
Regulatory Matters
Coal Ash Costs
In April 2024, the EPA issued the 2024 CCR Rule, which significantly
expands the scope of the 2015 CCR Rule by establishing regulatory
requirements for inactive surface impoundments at retired generating facilities
and previously unregulated coal ash sources at regulated facilities. Duke
Energy is participating in legal challenges to the 2024 CCR Rule. Cost recovery
for future expenditures is anticipated and will be pursued through the normal
ratemaking process with federal and state utility commissions, which permit
recovery of reasonable and prudently incurred costs associated with Duke
Energy’s regulated operations. For more information, see “Other Matters” and
Notes 4 and 10 to the Consolidated Financial Statements, “Regulatory Matters”
and “Asset Retirement Obligations.”
Storm Cost Recovery
From August through October 2024, a series of major storm events
occurred that resulted in significant damage to utility infrastructure within our
service territories and primarily impacted Duke Energy Carolinas’, Duke
Energy Progress’ and Duke Energy Florida’s electric utility operations. Hurricanes
Debby, Helene and Milton caused widespread outages and included
unprecedented damage to certain assets, including the hardest-hit areas on
the western coast of Florida and certain regions in western North Carolina and
upstate South Carolina. Appropriate storm cost recovery mechanisms are in
place to track and recover incremental costs from such events. Funding
restoration activities and, in some cases, the complete rebuild of critical
infrastructure, for a series of sequential events of this magnitude has resulted
in incremental financing needs until cost recovery occurs and may impact
the near-term results of operations, financial position, or cash flows of the
impacted registrants. For more information related to storm cost estimates,
regulatory asset deferrals, and financing activities, see “Liquidity and Capital
Resources” and Notes 4 and 7 to the Consolidated Financial Statements,
“Regulatory Matters” and “Debt and Credit Facilities.”
EPA Regulations of GHG Emissions
In April 2024, the EPA issued final rules under section 111 of the Clean
Air Act (EPA Rule 111) regulating GHG emissions from existing coal-fired and
new natural gas-fired power plants. Duke Energy is analyzing the potential
impacts the rules could have on the Company, which could be material and
may influence the timing, nature, and magnitude of future generation
investments in our service territories. Cost recovery for future expenditures will
be pursued through the normal ratemaking process with federal and state
utility commissions, which permit recovery of reasonable and prudently incurred
costs associated with Duke Energy’s regulated operations. Duke Energy is
participating in legal challenges to the final rules. For more information, see
“Other Matters.”
Supply Chain
The Company continues to monitor the ongoing stability of markets for
key materials and public policy outcomes, including the potential impacts
from possible new tariffs or other actions from the new presidential
administration that could disrupt or impact Duke Energy’s supply chain, future
financial results, capital plan execution or the achievement of its energy
transition.
Goodwill
The Duke Energy Registrants performed their annual goodwill impairment
tests as of August 31, 2024, as described in Note 12 to the Consolidated
PART II
37
Financial Statements, “Goodwill and Intangible Assets.” As of this date, all of
the Duke Energy Registrants’ reporting units’ estimated fair values materially
exceeded the carrying values except for the GU&I reporting unit of Duke Energy
Ohio. While no goodwill impairment charges have been recorded in the
accompanying Consolidated Statements of Operations, the potential for
deteriorating economic conditions impacting GU&I’s future cash flows or equity
valuations of peer companies could impact the estimated fair value of GU&I,
and goodwill impairment charges could be recorded in the future.
Other
Duke Energy continues to monitor general market conditions, including
the potential for interest rate pressures on the Company’s cost of capital,
which may impact Duke Energy’s execution of its capital plan, future financial
results, or the achievement of its energy transition.
Results of Operations
Non-GAAP Measures
Management evaluates financial performance in part based on non-
GAAP financial measures, including adjusted earnings and adjusted EPS.
These items represent income from continuing operations available to Duke
Energy common stockholders in dollar and per share amounts, adjusted for the
dollar and per share impact of special items. As discussed below, special
items include certain charges and credits, which management believes are not
indicative of Duke Energy’s ongoing performance. Management believes the
presentation of adjusted earnings and adjusted EPS provides useful information
to investors, as it provides them with an additional relevant comparison of
Duke Energy’s performance across periods.
Management uses these non-GAAP financial measures for planning and
forecasting, and for reporting financial results to the Board of Directors,
employees, stockholders, analysts and investors. Adjusted EPS is also used as
a basis for employee incentive bonuses. The most directly comparable GAAP
measures for adjusted earnings and adjusted EPS are GAAP Reported Earnings
and EPS Available to Duke Energy Corporation common stockholders (GAAP
Reported EPS), respectively.
Special items included in the periods presented include the following,
which management believes do not reflect ongoing costs:
• Organizational Optimization represents costs associated with
strategic repositioning to a fully regulated utility.
• Regulatory Matters primarily represents net impairment charges
related to Duke Energy Carolinas’ and Duke Energy Progress’ North
Carolina and South Carolina rate case orders and Duke Energy
Carolinas’ North Carolina rate case settlement, and charges related
to Duke Energy Indiana post-retirement benefits.
• System Post-Implementation Costs represents the net impact of
charges related to nonrecurring customer billing adjustments as a
result of implementation of a new customer system.
• Preferred Redemption Costs represents charges related to the
redemption of Series B Preferred Stock.
• Noncore Asset Sales and Net Impairments primarily represents
charges related to certain joint venture electric transmission projects
and certain renewable natural gas investments.
• Captive Storm Deductible represents charges related to an insurance
deductible for Hurricane Helene property losses.
Discontinued operations primarily includes impairments on the sale of
the Commercial Renewables business and results from Duke Energy’s
Commercial Renewables Disposal Groups.
Duke Energy’s adjusted earnings and adjusted EPS may not be
comparable to similarly titled measures of another company because other
companies may not calculate the measures in the same manner.
Reconciliation of GAAP Reported Amounts to Adjusted Amounts
The following table presents a reconciliation of adjusted earnings and adjusted EPS to the most directly comparable GAAP measures.
Years Ended December 31,
2024
2023
(in millions, except per share amounts)
Earnings
EPS
Earnings
EPS
GAAP Reported Earnings/EPS
$4,402
$ 5.71
$2,735
$3.54
Adjustments to Reported:
Organizational Optimization(a)
—
—
95
0.13
Regulatory Matters(b)
43
0.06
64
0.08
System Post-Implementation Costs(c)
16
0.02
—
—
Preferred Redemption Costs(d)
16
0.02
—
—
Noncore Asset Sales and Net Impairments(e)
54
0.07
—
—
Captive Storm Deductible(f)
18
0.02
—
—
Discontinued Operations(g)
(7)
(0.01)
1,391
1.81
Adjusted Earnings/Adjusted EPS
$4,542
$ 5.90
$4,285
$5.56
Note: Total EPS may not foot due to rounding.
(a)
Net of tax benefit of $29 million. $110 million recorded within Operations, maintenance and other and $14 million within Impairment of assets and other charges.
(b)
Net of tax benefits of $15 million and $20 million for the years ended December 31, 2024 and 2023, respectively. $42 million recorded within Impairment of assets and other charges, $29 million recorded within
Operating revenues, $2 million within Operations, maintenance and other, $11 million reduction recorded within Interest Expense, and a $4 million reduction within NCI for the year ended December 31, 2024. $68 million
within Impairment of assets and other charges and $16 million within Operations, maintenance and other for the year ended December 31, 2023.
(c)
Net of tax benefit of $5 million. $17 million recorded within Operating Revenues, $1 million recorded within Operations, maintenance and other, and $3 million recorded within Other income and expenses.
(d)
Recorded within Preferred Redemption Costs.
(e)
Net of $11 million tax benefit. $69 million recorded within Equity in (losses) earnings of unconsolidated affiliates and $4 million recorded within Gains on sales of other assets and other, net.
(f)
Net of $5 million tax benefit. $23 million recorded within Operations, maintenance and other.
(g)
Recorded in Income (Loss) from Discontinued Operations, net of tax, and Net Income (Loss) Attributable to NCI.
PART II
38
Year Ended December 31, 2024, as compared to 2023
GAAP Reported EPS was $5.71 for the year ended December 31, 2024,
compared to $3.54 for the year ended December 31, 2023. In addition to the
drivers below, the increase in GAAP Reported Earnings/EPS was also due to
higher impairments on the sale of the Commercial Renewables business in the
prior year.
As discussed and shown in the table above, management also evaluates
financial performance based on adjusted EPS. Duke Energy’s adjusted EPS
was $5.90 for the year ended December 31, 2024, compared to $5.56 for the
year ended December 31, 2023. The increase in Adjusted Earnings/Adjusted EPS
was primarily due to growth from rate increases and riders, improved
weather and higher sales volumes, partially offset by higher interest expense,
depreciation on a growing asset base and storm costs, along with a higher
effective tax rate.
SEGMENT RESULTS
The remaining information presented in this discussion of results of
operations is on a GAAP basis. Management evaluates segment performance
based on segment income. Segment income is defined as income from
continuing operations net of income attributable to NCI and preferred stock
dividends. Segment income includes intercompany revenues and expenses that
are eliminated in the Consolidated Financial Statements.
Duke Energy’s segment structure includes Electric Utilities and
Infrastructure (EU&I) and Gas Utilities and Infrastructure (GU&I). The
remainder of Duke Energy’s operations is presented as Other. See Note 3 to the
Consolidated Financial Statements, “Business Segments,” for additional
information on Duke Energy’s segment structure.
Electric Utilities and Infrastructure
Years Ended December 31,
(in millions)
2024
2023
Variance
Operating Revenues
$ 28,093
$ 26,921
$1,172
Operating Expenses
Fuel used in electric generation and purchased power
9,285
9,164
121
Operations, maintenance and other
5,185
5,309
(124)
Depreciation and amortization
5,128
4,684
444
Property and other taxes
1,305
1,320
(15)
Impairment of assets and other charges
37
75
(38)
Total operating expenses
20,940
20,552
388
Gains on Sales of Other Assets and Other, net
3
28
(25)
Operating Income
7,156
6,397
759
Other Income and Expenses, net
528
517
11
Interest Expense
2,006
1,850
156
Income Before Income Taxes
5,678
5,064
614
Income Tax Expense
820
742
78
Less: Income Attributable to Noncontrolling Interest
88
99
(11)
Segment Income
$
4,770
$
4,223
$ 547
Duke Energy Carolinas GWh sales
91,096
87,635
3,461
Duke Energy Progress GWh sales
69,017
66,717
2,300
Duke Energy Florida GWh sales
43,846
43,384
462
Duke Energy Ohio GWh sales
23,982
23,307
675
Duke Energy Indiana GWh sales
30,685
30,219
466
Total Electric Utilities and Infrastructure GWh sales
258,626
251,262
7,364
Net proportional MW capacity in operation
55,139
54,404
735
Year Ended December 31, 2024, as compared to 2023
EU&I’s results were driven by higher revenues from rate cases across
multiple jurisdictions, improved weather, and higher weather-normal retail
sales volumes, partially offset by higher depreciation. The following is a detailed
discussion of the variance drivers by line item.
Operating Revenues. The variance was driven primarily by:
• a $684 million increase due to higher pricing from jurisdictional rate
cases primarily at Duke Energy Carolinas, Duke Energy Progress and
Duke Energy Kentucky and the 2021 Settlement at Duke Energy
Florida;
• a $286 million increase in retail sales due to improved weather
compared to prior year, including the impacts of decoupling;
• a $204 million increase in weather-normal retail sales volumes;
• a $120 million increase in fuel revenues primarily due to net higher
fuel cost recovery in the current year;
• a $103 million increase in rider revenues primarily for the SPP at
Duke Energy Florida and the Distribution Capital Investment Rider at
Duke Energy Ohio; and
• a $92 million increase in other revenues for customer programs at
Duke Energy Florida.
Partially offset by:
• a $190 million decrease in storm revenues at Duke Energy Florida;
• a $30 million decrease in wholesale revenues, including fuel,
primarily due to the expiration of a wholesale customer contract at
Duke Energy Indiana;
PART II
39
• a $29 million decrease in retail revenues due to an increase of a
regulatory liability associated with certain employee post-retirement
benefits at Duke Energy Indiana; and
• a $29 million decrease in franchise tax revenue primarily due to
decreased revenues over prior year at Duke Energy Florida.
Operating Expenses. The variance was driven primarily by:
• a $444 million increase in depreciation and amortization primarily
due to lower amortization of the DOE settlement regulatory liability and
higher depreciable base at Duke Energy Florida and higher
depreciable base and higher net amortizations driven by the North
Carolina rate cases at Duke Energy Carolinas and Duke Energy Progress;
and
• a $121 million increase in fuel used in electric generation and
purchased power due to higher recovery of fuel expense at Duke Energy
Carolinas and Duke Energy Progress, partially offset by lower
deferred fuel amortization and lower fuel prices and volumes at Duke
Energy Indiana, Duke Energy Florida and Duke Energy Ohio.
Partially offset by:
• a $124 million decrease in operation, maintenance and other
primarily driven by lower storm amortization at Duke Energy Florida,
partially offset by higher storm costs and service company allocations;
and
• a $38 million decrease in impairment of assets and other charges
primarily related to the prior year North Carolina rate case impacts at
Duke Energy Carolinas and Duke Energy Progress.
Gains on Sales of Other Assets and Other, net. The decrease was
primarily due to the sale of property in the prior year at Duke Energy Carolinas.
Interest Expense. The increase was primarily driven by higher
outstanding debt balances and interest rates.
Income Tax Expense. The increase in tax expense was primarily due to
an increase in pretax income, partially offset by an increase in the amortization
of EDIT and PTCs. The ETRs for the years ended December 31, 2024, and
2023, were 14.4% and 14.7%, respectively.
Gas Utilities and Infrastructure
Years Ended December 31,
(in millions)
2024
2023
Variance
Operating Revenues
$
2,390
$
2,266
$
124
Operating Expenses
Cost of natural gas
565
593
(28)
Operation, maintenance and other
478
455
23
Depreciation and amortization
400
349
51
Property and other taxes
149
129
20
Impairment of assets and other charges
—
(4)
4
Total operating expenses
1,592
1,522
70
Operating Income
798
744
54
Other income and expenses, net
10
106
(96)
Interest Expense
256
217
39
Income Before Income Taxes
552
633
(81)
Income Tax Expense
99
116
(17)
Less: Loss Attributable to Noncontrolling Interest
(1)
(2)
1
Segment Income
$
454
$
519
$
(65)
Piedmont Local Distribution Company (LDC) throughput (Dth)
616,724,667
569,752,712
46,971,955
Duke Energy Midwest LDC throughput (MCF)
77,923,033
79,548,620
(1,625,587)
Year Ended December 31, 2024, as compared to 2023
GU&I’s results were impacted primarily by higher depreciation and
amortization, impairments for investments in SustainRNG projects, higher
interest expense and higher property and other taxes, partially offset by higher
margin growth. The following is a detailed discussion of the variance drivers
by line item.
Operating Revenues. The variance was driven primarily by:
• a $50 million increase due to North Carolina base rate increases;
• a $38 million increase due to higher base rates, primarily from the
Duke Energy Ohio rate case, partially offset by lower rider revenue at
Duke Energy Ohio;
• a $26 million increase due to Tennessee ARM revenue;
• a $21 million increase due to unregulated RNG revenue;
• a $14 million increase due to rate stabilization mechanisms in South
Carolina; and
• a $10 million increase due to customer growth.
Partially offset by:
• a $40 million decrease due to lower natural gas costs passed through
to customers, partially offset by higher rates, higher volumes and
lower secondary marketing sales.
Operating Expenses. The variance was driven primarily by:
• a $51 million increase in depreciation and amortization primarily due
to higher depreciable base and higher depreciation for certain
unregulated RNG projects;
• a $23 million increase in operations, maintenance and other primarily
due to higher operating costs for unregulated RNG projects, higher
pipeline safety and integrity work and higher information technology
project costs; and
• a $20 million increase in property and other taxes due to a higher
base upon which property taxes are levied.
PART II
40
Partially offset by:
• a $28 million decrease in cost of natural gas due to lower natural gas
costs passed through to customers, partially offset by higher rates,
higher volumes and lower secondary marketing.
Other Income and Expenses, net. The decrease was primarily due to
impairments for investments in SustainRNG projects, lower revenue at
SustainRNG and the revision in the prior year related to ACP ARO closure cost.
Interest Expense. The increase was primarily due to higher outstanding
debt balances and interest rates.
Income Tax Expense. The decrease in tax expense was primarily due to
a decrease in pretax income. The ETRs for the years ended December 31, 2024,
and 2023, were 17.9% and 18.3%, respectively.
Other
Years Ended December 31,
(in millions)
2024
2023
Variance
Operating Revenues
$
157
$ 134
$ 23
Operating Expenses
227
249
(22)
Gains on Sales of Other Assets and Other, net
22
24
(2)
Operating Loss
(48)
(91)
43
Other Income and Expenses, net
257
258
(1)
Interest Expense
1,245
1,097
148
Loss Before Income Taxes
(1,036)
(930)
(106)
Income Tax Benefit
(329)
(420)
91
Less: Preferred Dividends
106
106
—
Less: Preferred Redemption Costs
16
—
16
Net Loss
$ (829)
$ (616)
$(213)
Year Ended December 31, 2024, as compared to 2023
Other’s results were impacted by higher interest expense and lower
income tax and franchise tax benefits, partially offset by lower severance costs
in the current year.
Operating Revenues. The increase was driven by favorable premiums
related to captive insurance.
Operating Expenses. The decrease was driven by lower severance costs
and lower franchise tax benefits, partially offset by higher contributions to the
Duke Energy Foundation.
Interest Expense. The variance was primarily due to higher outstanding
long-term debt balances and interest rates.
Income Tax Benefit. The decrease in the tax benefit was primarily due
to the benefits associated with tax efficiency efforts in the prior year, partially
offset by an increase in pretax losses. The ETRs for the years ended December 31,
2024, and 2023, were 31.8% and 45.2%, respectively. The decrease in the
ETR was primarily due to benefits associated with tax efficiency efforts in the
prior year. In 2023, the Company evaluated the deductibility of certain items
spanning periods open under federal statute, including items related to
interest on company-owned life insurance. As a result of this analysis, the
Company recorded a favorable adjustment in the prior year of approximately
$120 million.
Preferred Redemption Costs. The increase was due to the redemption
of the Company’s Series B Preferred Stock.
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX
Years Ended December 31,
(in millions)
2024
2023
Variance
Income (Loss) From Discontinued Operations, net of tax
$10
$(1,455)
$1,465
Year Ended December 31, 2024, as compared to 2023
The variance was primarily driven by higher impairments on the sale of the Commercial Renewables business in the prior year.
SUBSIDIARY REGISTRANTS
Basis of Presentation
The results of operations and variance discussion for the Subsidiary Registrants is presented in a reduced disclosure format in accordance with General
Instruction (I)(2)(a) of Form 10-K.
PART II
41
DUKE ENERGY CAROLINAS
Results of Operations
Years Ended December 31,
(in millions)
2024
2023
Variance
Operating Revenues
$9,718
$8,288
$1,430
Operating Expenses
Fuel used in electric generation and purchased power
3,251
2,524
727
Operation, maintenance and other
1,740
1,774
(34)
Depreciation and amortization
1,768
1,593
175
Property and other taxes
346
320
26
Impairment of assets and other charges
31
44
(13)
Total operating expenses
7,136
6,255
881
Gains on Sales of Other Assets and Other, net
2
26
(24)
Operating Income
2,584
2,059
525
Other Income and Expenses, net
247
238
9
Interest Expense
722
686
36
Income Before Income Taxes
2,109
1,611
498
Income Tax Expense
226
141
85
Net Income
$1,883
$1,470
$ 413
The following table shows the percent changes in GWh sales and average number of customers for Duke Energy Carolinas. The below percentages for retail
customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and
private utilities and power marketers. Amounts are not weather-normalized.
Increase (Decrease) over prior year
2024
Residential sales
4.6 %
Commercial sales
2.1 %
Industrial sales
0.5 %
Wholesale power sales
14.0 %
Joint dispatch sales
(3.2)%
Total sales
3.9 %
Average number of customers
2.2 %
Year Ended December 31, 2024, as compared to 2023
Operating Revenues. The variance was driven primarily by:
• a $692 million increase in fuel revenues due to higher fuel rates and
volumes;
• a $454 million increase due to higher pricing from the North Carolina
and South Carolina rate cases;
• a $151 million increase in retail sales due to improved weather
compared to prior year, including the impacts of decoupling;
• an $80 million increase in weather-normal retail sales volumes; and
• a $26 million increase in wholesale power revenues primarily due to
higher contractual demand and sales.
Operating Expenses. The variance was driven primarily by:
• a $727 million increase in fuel used in electric generation and
purchased power primarily due to the recovery of fuel expense and
higher volumes, partially offset by lower natural gas prices;
• a $175 million increase in depreciation and amortization primarily
due to higher depreciable base and higher net amortizations driven by
the North Carolina rate case; and
• a $26 million increase in property and other taxes primarily due to
higher franchise taxes.
Partially offset by:
• a $34 million decrease in operation, maintenance and other primarily
due to lower outage costs and lower customer charge-offs, partially
offset by higher storm costs; and
• a $13 million decrease in impairment of assets and other charges
primarily related to the prior year North Carolina rate case order and
the current year South Carolina rate case order.
Gains on Sales of Other Assets and Other, net. The decrease was
primarily due to the sale of property in the prior year.
Interest Expense. The increase was primarily due to higher outstanding
debt balances and interest rates.
Income Tax Expense. The increase in tax expense was primarily due to
an increase in pretax income, partially offset by an increase in the amortization
of EDIT.
PART II
42
PROGRESS ENERGY
Results of Operations
Years Ended December 31,
(in millions)
2024
2023
Variance
Operating Revenues
$13,633
$13,544
$ 89
Operating Expenses
Fuel used in electric generation and purchased power
4,755
5,026
(271)
Operation, maintenance and other
2,463
2,636
(173)
Depreciation and amortization
2,393
2,151
242
Property and other taxes
617
644
(27)
Impairment of assets and other charges
6
28
(22)
Total operating expenses
10,234
10,485
(251)
Gains on Sales of Other Assets and Other, net
27
27
—
Operating Income
3,426
3,086
340
Other Income and Expenses, net
235
201
34
Interest Expense
1,064
954
110
Income Before Income Taxes
2,597
2,333
264
Income Tax Expense
426
377
49
Net Income
$ 2,171
$ 1,956
$ 215
Year Ended December 31, 2024, as compared to 2023
Operating Revenues. The variance was driven primarily by:
• a $198 million increase due to higher pricing from the North Carolina
and South Carolina rate cases at Duke Energy Progress and the
2021 Settlement at Duke Energy Florida;
• a $111 million increase in weather-normal retail sales volumes at
Duke Energy Progress;
• a $95 million increase in retail sales due to improved weather
compared to prior year, including the impacts of decoupling, at Duke
Energy Progress and Duke Energy Florida;
• a $92 million increase in higher transmission revenues, higher Clean
Energy Connection subscription revenues and higher residential
fixed bill program revenues at Duke Energy Florida; and
• a $56 million increase in rider revenues primarily due to higher rates
for the SPP, Energy Conservation Cost Recovery and Environmental Cost
Recovery at Duke Energy Florida.
Partially offset by:
• a $223 million decrease in fuel and capacity revenues primarily due
to lower fuel and capacity rates billed to retail customers at Duke Energy
Florida, partially offset by an increase in fuel rates and volumes at
Duke Energy Progress;
• a $190 million decrease in storm revenues at Duke Energy Florida;
and
• a $29 million decrease in franchise tax revenue primarily due to
decreased revenues over prior year at Duke Energy Florida.
Operating Expenses. The variance was driven primarily by:
• a $271 million decrease in fuel used in electric generation and
purchased power primarily due to lower fuel costs driven by lower
natural gas prices and fuel cost recovery, and lower purchased power
costs driven by the expiration of contracts in the current year at
Duke Energy Florida, partially offset by recovery of fuel expenses and
higher volumes at Duke Energy Progress;
• a $173 million decrease in operation, maintenance and other
primarily due to lower storm amortization at Duke Energy Florida;
• a $27 million decrease in property and other taxes primarily due to
lower property taxes and lower franchise and gross receipts tax driven
by lower revenues at Duke Energy Florida; and
• a $22 million decrease in impairment of assets and other charges
due to prior year rate case impacts at Duke Energy Progress.
Partially offset by:
• a $242 million increase in depreciation and amortization due to lower
amortization of the DOE settlement regulatory liability and higher
depreciable base at Duke Energy Florida and higher depreciation rates
driven by the North Carolina rate case and higher depreciable base
at Duke Energy Progress.
Other Income and Expenses, net. The increase was primarily driven by
miscellaneous income and AFUDC equity due to higher AFUDC base compared
to the prior year at Duke Energy Progress.
Interest Expense. The increase was primarily due to higher outstanding
debt balances and interest rates at Duke Energy Progress and Duke Energy
Florida.
Income Tax Expense. The increase in tax expense was primarily due to
an increase in pretax income, partially offset by an increase in PTCs.
PART II
43
DUKE ENERGY PROGRESS
Results of Operations
Years Ended December 31,
(in millions)
2024
2023
Variance
Operating Revenues
$7,017
$6,488
$529
Operating Expenses
Fuel used in electric generation and purchased power
2,409
2,203
206
Operation, maintenance and other
1,388
1,379
9
Depreciation and amortization
1,336
1,266
70
Property and other taxes
177
164
13
Impairment of assets and other charges
6
29
(23)
Total operating expenses
5,316
5,041
275
Gains on Sales of Other Assets and Other, net
2
3
(1)
Operating Income
1,703
1,450
253
Other Income and Expenses, net
143
124
19
Interest Expense
493
427
66
Income Before Income Taxes
1,353
1,147
206
Income Tax Expense
189
149
40
Net Income
$1,164
$ 998
$166
The following table shows the percent changes in GWh sales and average number of customers for Duke Energy Progress. The below percentages for retail
customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and
private utilities and power marketers. Amounts are not weather-normalized.
Increase (Decrease) over prior year
2024
Residential sales
3.9%
Commercial sales
3.5%
Industrial sales
(3.3)%
Wholesale power sales
3.8%
Joint dispatch sales
3.4%
Total sales
3.4%
Average number of customers
2.1%
Year Ended December 31, 2024, as compared to 2023
Operating Revenues. The variance was driven primarily by:
• a $256 million increase in fuel revenues due to higher fuel rates and
volumes;
• a $127 million increase due to higher pricing from the North Carolina
and South Carolina rate cases;
• a $111 million increase in weather-normal retail sales volumes; and
• a $72 million increase in retail sales due to improved weather
compared to prior year, including the impacts of decoupling.
Operating Expenses. The variance was driven primarily by:
• a $206 million increase in fuel used in electric generation and
purchased power primarily due to the recovery of fuel expenses and
higher volumes, partially offset by lower natural gas prices; and
• a $70 million increase in depreciation and amortization primarily due
to higher depreciation rates driven by the North Carolina rate case
and higher depreciable base.
Partially offset by:
• a $23 million decrease in impairment of assets and other charges
primarily due to prior year rate case impacts.
Other Income and Expenses, net. The increase was driven primarily by
miscellaneous income and AFUDC equity due to higher AFUDC base compared
to the prior year.
Interest Expense. The increase was driven primarily by higher
outstanding debt balances and interest rates.
Income Tax Expense. The increase in tax expense was primarily due to
an increase in pretax income.
PART II
44
DUKE ENERGY FLORIDA
Results of Operations
Years Ended December 31,
(in millions)
2024
2023
Variance
Operating Revenues
$6,595
$7,036
$(441)
Operating Expenses
Fuel used in electric generation and purchased power
2,346
2,823
(477)
Operation, maintenance and other
1,055
1,239
(184)
Depreciation and amortization
1,057
885
172
Property and other taxes
440
480
(40)
Impairment of assets and other charges
—
(1)
1
Total operating expenses
4,898
5,426
(528)
Gains on Sales of Other Assets and Other, net
3
2
1
Operating Income
1,700
1,612
88
Other Income and Expenses, net
86
78
8
Interest Expense
457
413
44
Income Before Income Taxes
1,329
1,277
52
Income Tax Expense
268
261
7
Net Income
$1,061
$1,016
$ 45
The following table shows the percent changes in GWh sales and average number of customers for Duke Energy Florida. The below percentages for retail
customer classes represent billed sales only. Wholesale power sales include both billed and unbilled sales. Total sales includes billed and unbilled retail sales
and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.
Increase (Decrease) over prior year
2024
Residential sales
1.3%
Commercial sales
0.8%
Industrial sales
(3.2)%
Wholesale power sales
3.9%
Total sales
1.1%
Average number of customers
2.1%
Year Ended December 31, 2024, as compared to 2023
Operating Revenues. The variance was driven primarily by:
• a $479 million decrease in fuel and capacity revenues primarily due
to lower fuel and capacity rates;
• a $190 million decrease in storm revenues; and
• a $29 million decrease in franchise tax revenue primarily due to
decreased revenues over the prior year.
Partially offset by:
• a $92 million increase in higher transmission revenues, higher Clean
Energy Connection subscription revenues and higher residential
fixed bill program revenues;
• a $71 million increase due to higher pricing from the 2021 Settlement;
• a $56 million increase in rider revenues primarily due to higher rates
for the SPP, Energy Conservation Cost Recovery and Environmental Cost
Recovery; and
• a $23 million increase in retail sales due to improved weather
compared to the prior year.
Operating Expenses. The variance was driven primarily by:
• a $477 million decrease in fuel used in electric generation and
purchased power primarily due lower fuel costs driven by lower natural
gas prices and fuel cost recovery and lower purchased power costs
driven by the expiration of contracts in the current year;
• a $184 million decrease in operation, maintenance and other
primarily due to lower storm amortization; and
• a $40 million decrease in property and other taxes primarily due to
lower franchise and gross receipts tax driven by lower revenues.
Partially offset by:
• a $172 million increase in depreciation and amortization primarily
due to lower amortization of the DOE settlement regulatory liability and
higher depreciable base.
Interest Expense. The increase was primarily driven by lower interest
credits on recovery clauses due to lower deferred balances, higher outstanding
debt balances and interest rates, partially offset by lower intercompany
interest expense.
PART II
45
DUKE ENERGY OHIO
Results of Operations
Years Ended December 31,
(in millions)
2024
2023
Variance
Operating Revenues
Regulated electric
$1,905
$1,868
$ 37
Regulated natural gas
640
639
1
Total operating revenues
2,545
2,507
38
Operating Expenses
Fuel used in electric generation and purchased power
538
608
(70)
Cost of natural gas
142
163
(21)
Operation, maintenance and other
485
478
7
Depreciation and amortization
403
367
36
Property and other taxes
400
364
36
Impairment of assets and other charges
—
3
(3)
Total operating expenses
1,968
1,983
(15)
Gains on Sales of Other Assets and Other, net
1
1
—
Operating Income
578
525
53
Other Income and Expenses, net
19
41
(22)
Interest Expense
192
169
23
Income Before Income Taxes
405
397
8
Income Tax Expense
64
63
1
Net Income
$ 341
$ 334
$ 7
The following table shows the percent changes in GWh sales of electricity, MCF of natural gas delivered and average number of electric and natural gas
customers for Duke Energy Ohio. The below percentages for retail customer classes represent billed sales only. Total sales includes billed and unbilled retail sales
and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.
Electric
Natural Gas
Increase (Decrease) over prior year
2024
2024
Residential sales
4.5%
(6.0)%
Commercial sales
4.1%
(4.0)%
Industrial sales
(3.8)%
20.2%
Wholesale electric power sales
16.6%
n/a
Other natural gas sales
n/a
(1.1)%
Total sales
2.9%
(2.0)%
Average number of customers
1.1%
0.8%
Year Ended December 31, 2024, as compared to 2023
Operating Revenues. The variance was driven primarily by:
• a $62 million increase in retail revenue riders primarily due to the
Distribution Capital Investment Rider, Distribution Storm Rider and
Uncollectible Expense Rider, partially offset by a decrease in the Energy
Efficiency Rider;
• a $42 million increase in revenues related to higher Ohio Valley
Electric Corporation (OVEC) rider collections and OVEC sales into PJM
Interconnection, LLC;
• a $34 million increase due to higher pricing from the Duke Energy
Ohio natural gas rate case, net of decreases in the Ohio CEP rider and
Accelerated Main Replacement Program Rider;
• a $32 million increase due to higher pricing from the Duke Energy
Kentucky electric rate case;
• an $18 million increase in transmission revenue; and
• a $16 million increase due to improved weather compared to prior
year.
Partially offset by:
• a $177 million decrease in fuel-related revenues primarily due to
lower full-service retail sales volumes, as well as decreased natural
gas costs.
Operating Expenses. The variance was driven primarily by:
• a $91 million decrease in fuel expense primarily driven by lower retail
prices for natural gas and purchased power and a decrease in
purchased power volumes.
Partially offset by:
• a $36 million increase in depreciation and amortization primarily
driven by an increase in distribution plant in service and depreciation
rates resulting from the Duke Energy Kentucky electric rate case
implemented in 2023 and CEP deferrals in 2024; and
• a $36 million increase in property and other taxes primarily due to a
higher base upon which property taxes are levied, partially offset by
lower franchise taxes.
PART II
46
Other Income and Expenses, net. The decrease was primarily driven by
lower intercompany interest income.
Interest Expense. The increase was primarily driven by higher
outstanding debt balances and interest rates.
DUKE ENERGY INDIANA
Results of Operations
Years Ended December 31,
(in millions)
2024
2023
Variance
Operating Revenues
$3,040
$3,399
$(359)
Operating Expenses
Fuel used in electric generation and purchased power
964
1,217
(253)
Operation, maintenance and other
671
713
(42)
Depreciation and amortization
676
666
10
Property and other taxes
50
59
(9)
Total operating expenses
2,361
2,655
(294)
Operating Income
679
744
(65)
Other Income and Expenses, net
62
76
(14)
Interest Expense
229
213
16
Income Before Income Taxes
512
607
(95)
Income Tax Expense
71
110
(39)
Net Income
$ 441
$ 497
$ (56)
The following table shows the percent changes in GWh sales and average number of customers for Duke Energy Indiana. The below percentages for retail
customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and
private utilities and power marketers. Amounts are not weather-normalized.
Increase (Decrease) over prior year
2024
Residential sales
4.4%
Commercial sales
4.6%
Industrial sales
(0.2)%
Wholesale power sales
(7.7)%
Total sales
1.5%
Average number of customers
1.7%
Year Ended December 31, 2024, as compared to 2023
Operating Revenues. The variance was driven primarily by:
• a $238 million decrease in retail fuel revenues primarily due to lower
fuel rates;
• a $55 million decrease in wholesale revenues, including fuel,
primarily due to the expiration of wholesale customer contracts;
• a $29 million decrease in retail revenues due to an increase of a
regulatory liability associated with certain employee post-retirement
benefits; and
• a $15 million decrease in revenues primarily due to the provision for
rate refund related to the Load Control Adjustment rider.
Operating Expenses. The variance was driven primarily by:
• a $253 million decrease in fuel used in electric generation and
purchased power primarily due to lower deferred fuel amortization
and lower purchased power expense, partially offset by higher coal and
natural gas costs; and
• a $42 million decrease in operation, maintenance and other primarily
due to lower outage costs and lower customer charge-offs.
Other Income and Expenses, net. The decrease is primarily due to lower
intercompany interest income.
Interest Expense. The increase is primarily due to higher outstanding
debt balances and interest rates.
Income Tax Expense. The decrease in tax expense was primarily due to
a decrease in pretax income and an increase in the amortization of EDIT.
PART II
47
PIEDMONT
Results of Operations
Years Ended December 31,
(in millions)
2024
2023
Variance
Operating Revenues
$1,729
$1,628
$101
Operating Expenses
Cost of natural gas
423
430
(7)
Operation, maintenance and other
359
344
15
Depreciation and amortization
261
237
24
Property and other taxes
55
59
(4)
Impairment of assets and other charges
—
(4)
4
Total operating expenses
1,098
1,066
32
Operating Income
631
562
69
Other Income and Expenses, net
62
66
(4)
Interest Expense
185
165
20
Income Before Income Taxes
508
463
45
Income Tax Expense
95
84
11
Net Income
$ 413
$ 379
$ 34
The following table shows the percent changes in Dth delivered and average number of customers. The percentages for all throughput deliveries represent
billed and unbilled sales. Amounts are not weather-normalized.
Increase (Decrease) over prior year
2024
Residential deliveries
10.1%
Commercial deliveries
6.9%
Industrial deliveries
(0.3)%
Power generation deliveries
10.5%
For resale
(0.6)%
Total throughput deliveries
8.2%
Secondary market volumes
(4.4)%
Average number of customers
1.6%
Year Ended December 31, 2024, as compared to 2023
Operating Revenues. The variance was driven primarily by:
• a $50 million increase due to North Carolina base rate increases;
• a $26 million increase due to Tennessee ARM revenue;
• a $14 million increase due to rate stabilization mechanisms in South
Carolina;
• a $10 million increase due to customer growth; and
• a $9 million increase due to North Carolina IMR.
Partially offset by:
• a $15 million decrease due to secondary marketing sales.
Operating Expenses. The variance was driven primarily by:
• a $24 million increase in depreciation and amortization due to higher
depreciable base; and
• a $15 million increase in operations, maintenance and other primarily
due to higher outside services, information technology project costs
and service company costs.
Partially offset by:
• a $7 million decrease in the cost of natural gas due to lower natural
gas costs passed through to customers, partially offset by higher
volumes, higher rates, and lower secondary marketing.
Interest Expense. The increase was primarily due to higher outstanding
debt balances and interest rates.
Income Tax Expense. The increase in tax expense was primarily due to
an increase in pretax income.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Preparation of financial statements requires the application of
accounting policies, judgments, assumptions and estimates that can
significantly affect the reported results of operations, cash flows or the
amounts of assets and liabilities recognized in the financial statements.
Judgments made include the likelihood of success of particular projects,
possible legal and regulatory challenges, earnings assumptions on pension and
other benefit fund investments and anticipated recovery of costs, especially
through regulated operations.
Management discusses these policies, estimates and assumptions with
senior members of management on a regular basis and provides periodic
updates on management decisions to the Audit Committee. Management
believes the areas described below require significant judgment in the
application of accounting policy or in making estimates and assumptions that
are inherently uncertain and that may change in subsequent periods.
For further information, see Note 1 to the Consolidated Financial
Statements, “Summary of Significant Accounting Policies.”
PART II
48
Regulated Operations Accounting
Substantially all of Duke Energy’s regulated operations meet the criteria
for application of regulated operations accounting treatment. As a result, Duke
Energy is required to record assets and liabilities that would not be recorded
for nonregulated entities. Regulatory assets generally represent incurred costs
that have been deferred because such costs are probable of future recovery
in customer rates. Regulatory liabilities are recorded when it is probable that a
regulator will require Duke Energy to make refunds to customers or reduce
rates to customers for previous collections or deferred revenue for costs that
have yet to be incurred.
Management continually assesses whether recorded regulatory assets
are probable of future recovery by considering factors such as:
• applicable regulatory environment changes;
• historical regulatory treatment for similar costs in Duke Energy’s
jurisdictions;
• litigation of rate orders;
• recent rate orders to other regulated entities;
• levels of actual return on equity compared to approved rates of return
on equity; and
• the status of any pending or potential deregulation legislation.
If future recovery of costs ceases to be probable, asset write-offs would
be recognized in operating income. Additionally, regulatory agencies can provide
flexibility in the manner and timing of the depreciation of property, plant and
equipment, recognition of asset retirement costs and amortization of regulatory
assets, or may disallow recovery of all or a portion of certain assets.
As required by regulated operations accounting rules, significant
judgment can be required to determine if an otherwise recognizable incurred
cost qualifies to be deferred for future recovery as a regulatory asset. Significant
judgment can also be required to determine if revenues previously recognized
are for entity-specific costs that are no longer expected to be incurred or have
not yet been incurred and are therefore a regulatory liability.
For further information, see Note 4 to the Consolidated Financial
Statements, “Regulatory Matters.”
Goodwill Impairment Assessments
Duke Energy performed its annual goodwill impairment tests for all
reporting units as of August 31, 2024. Additionally, Duke Energy monitors all
relevant events and circumstances during the year to determine if an interim
impairment test is required. Such events and circumstances include an
adverse regulatory outcome, declining financial performance and deterioration
of industry or market conditions. As of August 31, 2024, all of the
reporting units’ estimated fair value of equity exceeded the carrying value of
equity. The fair values of the reporting units were calculated using a weighted
combination of the income approach, which estimates fair value based on
discounted cash flows, and the market approach, which estimates fair value
based on market comparables within the utility and energy industries.
Estimated future cash flows under the income approach are based on
Duke Energy’s internal business plan. Significant assumptions used are growth
rates, future rates of return expected to result from ongoing rate regulation
and discount rates. Management determines the appropriate discount rate for
each of its reporting units based on the Weighted Average Cost of Capital
(WACC) for each individual reporting unit. The WACC takes into account both
the after-tax cost of debt and cost of equity. A major component of the cost of
equity is the current risk-free rate on 20-year U.S. Treasury bonds. In the
2024 impairment tests, Duke Energy considered implied WACCs for certain
peer companies in determining the appropriate WACC rates to use in its
analysis. As each reporting unit has a different risk profile based on the nature
of its operations, including factors such as regulation, the WACC for each
reporting unit may differ. Accordingly, the WACCs were adjusted, as appropriate,
to account for company-specific risk premiums. The discount rates used for
calculating the fair values as of August 31, 2024, for each of Duke Energy’s
reporting units ranged from 6.3% to 6.5%. The underlying assumptions and
estimates are made as of a point in time. Subsequent changes, particularly
changes in the discount rates, authorized regulated rates of return or growth
rates inherent in management’s estimates of future cash flows, could result in
future impairment charges.
One of the most significant assumptions utilized in determining the fair
value of reporting units under the market approach is implied market multiples
for certain peer companies. Management selects comparable peers based on
each peer’s primary business mix, operations, and market capitalization
compared to the applicable reporting unit and calculates implied market
multiples based on available projected earnings guidance and peer company
market values as of August 31. The implied market multiples used for calculating
the fair values as of August 31, 2024, for each of Duke Energy’s reporting units
ranged from 9.1 to 11.7.
Duke Energy primarily operates in environments that are rate-regulated.
In such environments, revenue requirements are adjusted periodically by
regulators based on factors including levels of costs, sales volumes and costs
of capital. Accordingly, Duke Energy’s regulated utilities operate to some
degree with a buffer from the direct effects, positive or negative, of significant
swings in market or economic conditions. However, significant changes in
discount rates or implied market multiples over a prolonged period may have a
material impact on the fair value of equity.
Duke Energy has $19.3 billion in Goodwill at both December 31, 2024,
and 2023. For further information, see Note 12 to the Consolidated Financial
Statements, “Goodwill and Intangible Assets.”
Asset Retirement Obligations
AROs are recognized for legal obligations associated with the retirement
of property, plant and equipment at the present value of the projected liability
in the period in which it is incurred, if a reasonable estimate of fair value
can be made. Duke Energy has $10.0 billion and $9.2 billion of AROs as of
December 31, 2024, and 2023, respectively. See Note 10, “Asset Retirement
Obligations,” for further details including a rollforward of related liabilities.
The present value of the initial obligation and subsequent updates are
based on discounted cash flows, which include estimates regarding the amount
and timing of future cash flows, regulatory, legal, and legislative decisions,
selection of discount rates and cost escalation rates, among other factors. These
estimates are subject to change.
Obligations for nuclear decommissioning are based on site-specific cost
studies. Duke Energy Carolinas and Duke Energy Progress assume prompt
dismantlement of the nuclear facilities after operations are ceased. During
2020, Duke Energy Florida, closed an agreement for the accelerated
decommissioning of the Crystal River Unit 3 nuclear power station after
receiving approval from the NRC and FPSC. The retirement obligations for the
decommissioning of Crystal River Unit 3 nuclear power station are measured
based on accelerated decommissioning from 2020 continuing through 2027.
Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida also
assume that spent fuel will be stored on-site until such time that it can be
transferred to a yet-to-be-built DOE facility.
Obligations for closure of ash basins are based upon discounted cash
flows of estimated costs for site-specific plans. In April 2024, the EPA issued
the 2024 CCR Rule, which significantly expands the scope of the 2015 CCR Rule
by establishing regulatory requirements for inactive surface impoundments
at retired generating facilities and previously unregulated coal ash sources at
PART II
49
regulated facilities. AROs recorded on the Duke Energy Registrants’
Consolidated Balance Sheets include the legal obligation for closure of coal
ash basins and the disposal of related ash as a result of these regulations and
agreements.
For further information, see Notes 4, 5 and 10 to the Consolidated
Financial Statements, “Regulatory Matters,” “Commitments and Contingencies”
and “Asset Retirement Obligations.”
Discontinued Operations
Duke Energy calculated an estimated impairment on the disposition of
its Commercial Renewables Disposal Groups as of December 31, 2022. The
impairment was recorded to write-down the carrying amount to fair value, less
cost to sell. The fair value was primarily determined from the income
approach using discounted cash flows, but also considered market information
obtained through the bidding process. Estimated future cash flows under the
income approach were based on Duke Energy’s forecast, which was informed by
existing power purchase agreements with offtakers and forward merchant
curves. Significant assumptions used in the income approach include forward
merchant curves and discount rates. The discount rates considered both the
after-tax cost of debt and cost of equity. Duke Energy monitored the sales of the
Commercial Renewables Disposal Groups and recorded adjustments to the
impairments as warranted by progression in the disposition process and changes
in market information.
The actual losses for the Commercial Renewables Disposal Groups could
differ from the estimated losses recorded as of December 31, 2024, as the
disposition process is finalized, but any differences are not expected to be
material.
For further information, see Note 2 to the Consolidated Financial
Statements, “Dispositions.”
LIQUIDITY AND CAPITAL RESOURCES
Sources and Uses of Cash
Duke Energy relies primarily upon cash flows from operations, debt and
equity issuances and its existing cash and cash equivalents to fund its liquidity
and capital requirements. Duke Energy’s capital requirements arise primarily
from capital and investment expenditures, repaying long-term debt and paying
dividends to shareholders. Additionally, due to its existing tax attributes and
projected tax credits to be generated relating to the IRA, Duke Energy does not
expect to be a significant federal cash taxpayer until around 2030. In 2024,
Duke Energy Carolinas and Duke Energy Progress began recording nuclear PTC
deferred tax assets related to the IRA and began monetizing the PTCs in the
transferability markets established by the IRA beginning in October 2024. Duke
Energy Carolinas and Duke Energy Progress are working with the state utility
commissions on the appropriate regulatory process to pass the net realizable
value back to customers over time. See Note 24 to the Consolidated Financial
Statements, “Income Taxes,” for more information.
From August through October 2024, a series of major storm events
occurred that resulted in significant damage to utility infrastructure within our
service territories and primarily impacted Duke Energy Carolinas’, Duke Energy
Progress’ and Duke Energy Florida’s electric utility operations. As discussed
in Note 4, to the Consolidated Financial Statements, “Regulatory Matters,”
hurricanes Debby, Helene and Milton caused widespread outages and included
unprecedented damage to certain assets, including the hardest-hit areas on
the western coast of Florida and certain regions in western North Carolina and
upstate South Carolina. Funding restoration activities and, in some cases,
the complete rebuild of critical infrastructure, for a series of sequential events
of this magnitude has resulted in incremental financing needs until cost
recovery occurs. See “Matters Impacting Future Results” for further details
and Note 7 to the Consolidated Financial Statements, “Debt and Credit
Facilities,” for information regarding term loans executed in response to these
major storm events.
See Note 2 to the Consolidated Financial Statements, “Dispositions,” for
the timing and use of proceeds from the sale of certain Commercial Renewables
assets to affiliates of Brookfield and ArcLight.
CAPITAL EXPENDITURES
Duke Energy continues to focus on reducing risk and positioning its business for future success and will invest principally in its strongest business sectors.
Duke Energy’s projected capital and investment expenditures, including AFUDC debt and capitalized interest, for the next three fiscal years are included in the
table below.
(in millions)
2025
2026
2027
Electric Generation(a)
$ 4,500
$ 5,900
$ 7,700
Electric Transmission
2,675
2,450
2,575
Electric Distribution
5,375
4,575
4,325
Environmental and Other
775
825
575
Total EU&I
13,325
13,750
15,175
GU&I
1,175
1,100
1,050
Other
350
350
375
Total projected capital and investment expenditures
$14,850
$15,200
$16,600
(a)
Includes nuclear fuel of approximately $2.1 billion in 2025-2027.
Debt
Long-term debt maturities and the interest payable on long-term debt
each represent a significant cash requirement for the Duke Energy Registrants.
See Note 7 to the Consolidated Financial Statements, “Debt and Credit
Facilities,” for information regarding the Duke Energy Registrants’ long-term
debt at December 31, 2024, the weighted average interest rate applicable to
each long-term debt category and a schedule of long-term debt maturities over
the next five years.
As discussed in Note 18 to the Consolidated Financial Statements,
“Variable Interest Entities,” Duke Energy terminated and repaid CRC in
March 2024, Duke Energy Florida terminated and repaid DEFR in April 2024
and Duke Energy Carolinas terminated and repaid DERF in January 2025. As a
result of these repayments, CRC, DEFR and DERF have ceased operations
PART II
50
and no longer acquire the receivables of Duke Energy’s subsidiaries. Duke
Energy Progress continues to evaluate financing opportunities and anticipates
termination and repayment of the borrowing facility of DEPR prior to its
scheduled termination date in April 2025.
Fuel and Purchased Power
Fuel and purchased power includes firm capacity payments that provide
Duke Energy with uninterrupted firm access to electricity transmission capacity
and natural gas transportation contracts, as well as undesignated contracts
and contracts that qualify as NPNS. Duke Energy’s contractual cash obligations
for fuel and purchased power as of December 31, 2024, are as follows:
Payments Due by Period
(in millions)
Total
Less than
1 year
(2025)
2-3 years
(2026 &
2027)
4-5 years
(2028 &
2029)
More than
5 years
(2030 &
beyond)
Fuel and purchased power
$21,695
$5,080
$6,706
$3,062
$6,847
Other Purchase Obligations
Other purchase obligations includes contracts for software, telephone,
data and consulting or advisory services, contractual obligations for Engineering,
Procurement, and Construction agreement costs for new generation plants,
solar facilities, plant refurbishments, maintenance and day-to-day contract
work and commitments to buy certain products. Amount excludes certain open
purchase orders for services that are provided on demand for which the
timing of the purchase cannot be determined. Total cash commitments for
related other purchase obligation expenditures are $13,336 million, with
$13,015 million expected to be paid in the next 12 months.
See Note 6 to the Consolidated Financial Statements, “Leases” for a
schedule of both finance lease and operating lease payments over the next
five years. See Note 10 to the Consolidated Financial Statements, “Asset
Retirement Obligations” for information on nuclear decommissioning trust
funding obligations and the closure of ash impoundments.
Duke Energy performs ongoing assessments of its respective guarantee
obligations to determine whether any liabilities have been incurred as a result
of potential increased nonperformance risk by third parties for which Duke
Energy has issued guarantees. See Note 8 to the Consolidated Financial
Statements, “Guarantees and Indemnifications,” for further details of the
guarantee arrangements. Issuance of these guarantee arrangements is not
required for the majority of Duke Energy’s operations. Thus, if Duke Energy
discontinued issuing these guarantees, there would not be a material impact to
the consolidated results of operations, cash flows or financial position. Other
than the guarantee arrangements discussed in Note 8 and off-balance sheet
debt related to non-consolidated VIEs, Duke Energy does not have any
material off-balance sheet financing entities or structures. For additional
information, see Note 18 to the Consolidated Financial Statements, “Variable
Interest Entities.”
Cash and Liquidity
The Subsidiary Registrants generally maintain minimal cash balances
and use short-term borrowings to meet their working capital needs and other
cash requirements. The Subsidiary Registrants, excluding Progress Energy,
support their short-term borrowing needs through participation with Duke
Energy and certain of its other subsidiaries in a money pool arrangement. The
companies with short-term funds may provide short-term loans to affiliates
participating under this arrangement. See Note 7 to the Consolidated
Financial Statements, “Debt and Credit Facilities,” for additional information
on the money pool arrangement.
Duke Energy and the Subsidiary Registrants, excluding Progress Energy,
may also use short-term debt, including commercial paper and the money
pool, as a bridge to long-term debt financings. The levels of borrowing may vary
significantly over the course of the year due to the timing of long-term debt
financings and the impact of fluctuations in cash flows from operations. From
time to time, Duke Energy’s current liabilities exceed current assets resulting
from the use of short-term debt as a funding source to meet scheduled maturities
of long-term debt, as well as cash needs, which can fluctuate due to the
seasonality of its businesses.
As of December 31, 2024, Duke Energy had approximately $314 million
of cash on hand, $5.8 billion available under its $9 billion Master Credit
Facility. Duke Energy expects to have sufficient liquidity in the form of cash on
hand, cash from operations and available credit capacity to support its
funding needs. Refer to Notes 7 and 20 to the Consolidated Financial Statements,
“Debt and Credit Facilities” and “Stockholders’ Equity,” respectively, for
information regarding Duke Energy’s debt and equity issuances, debt maturities
and available credit facilities including the Master Credit Facility.
Credit Facilities and Registration Statements
See Note 7 to the Consolidated Financial Statements, “Debt and Credit
Facilities,” for further information regarding credit facilities and shelf
registration statements available to Duke Energy and the Duke Energy
Registrants.
Dividend Payments
In 2024, Duke Energy paid quarterly cash dividends for the 98th
consecutive year and expects to continue its policy of paying regular cash
dividends in the future. There is no assurance as to the amount of future
dividends because they depend on future earnings, capital requirements,
financial condition and are subject to the discretion of the Board of Directors.
Duke Energy targets a dividend payout ratio of between 60% and 70%,
based upon adjusted EPS. Duke Energy increased the dividend by approximately
2% annually in both 2024 and 2023, and the Company remains committed to
continued growth of the dividend.
Dividend and Other Funding Restrictions of Duke Energy Subsidiaries
As discussed in Note 4 to the Consolidated Financial Statements,
“Regulatory Matters,” Duke Energy’s public utility operating companies have
restrictions on the amount of funds that can be transferred to Duke Energy
through dividends, advances or loans as a result of conditions imposed by
various regulators in conjunction with merger transactions. Duke Energy
Progress and Duke Energy Florida also have restrictions imposed by their first
mortgage bond indentures and Articles of Incorporation, which in certain
circumstances, limit their ability to make cash dividends or distributions on
common stock. Additionally, certain other Duke Energy subsidiaries have other
restrictions, such as minimum working capital and tangible net worth
PART II
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requirements pursuant to debt and other agreements that limit the amount of
funds that can be transferred to Duke Energy. At December 31, 2024, the
amount of restricted net assets of subsidiaries of Duke Energy that may not be
distributed to Duke Energy in the form of a loan or dividend does not exceed
a material amount of Duke Energy’s net assets. Other than a prohibition from
declaring common stock dividends should dividend payments be deferred on the
Series A Preferred Stock, Duke Energy does not have any legal or other
restrictions on paying common stock dividends to shareholders out of its
consolidated equity accounts. Although these restrictions cap the amount of
funding the various operating subsidiaries can provide to Duke Energy,
management does not believe these restrictions will have a significant impact
on Duke Energy’s ability to access cash to meet its payment of dividends on
common stock and other future funding obligations.
Cash Flows From Operating Activities
Cash flows from operations of EU&I and GU&I are primarily driven by
sales of electricity and natural gas, respectively, and costs of operations.
These cash flows from operations are relatively stable and comprise a
substantial portion of Duke Energy’s operating cash flows. Weather conditions,
working capital and commodity price fluctuations and unanticipated
expenses including unplanned plant outages, storms, legal costs and related
settlements can affect the timing and level of cash flows from operations.
As part of Duke Energy’s continued effort to improve its cash flows from
operations and liquidity, Duke Energy works with vendors to improve terms and
conditions, including the extension of payment terms. To support this effort,
Duke Energy has a voluntary supply chain finance program (the “program”)
under which suppliers, at their sole discretion, may sell their receivables from
Duke Energy to the participating financial institution. The financial institution
administers the program. Duke Energy does not issue any guarantees with
respect to the program and does not participate in negotiations between
suppliers and the financial institution. Duke Energy does not have an economic
interest in the supplier’s decision to participate in the program and receives
no interest, fees or other benefit from the financial institution based on supplier
participation in the program. Suppliers’ decisions on which invoices are sold
do not impact Duke Energy’s payment terms, which are based on commercial
terms negotiated between Duke Energy and the supplier regardless of
program participation. A significant deterioration in the credit quality of Duke
Energy, economic downturn or changes in the financial markets could limit the
financial institutions willingness to participate in the program. Duke Energy
does not believe such risk would have a material impact on our cash flows from
operations or liquidity, as substantially all our payments are made outside
the program.
Duke Energy believes it has sufficient liquidity resources through the
commercial paper markets, and ultimately, the Master Credit Facility, to
support these operations. Cash flows from operations are subject to a number
of other factors, including, but not limited to, regulatory constraints,
economic trends and market volatility (see Item 1A, “Risk Factors,” for
additional information).
Debt and Equity Issuances
Depending on availability based on the issuing entity, the credit rating
of the issuing entity, and market conditions, the Subsidiary Registrants prefer
to issue first mortgage bonds and secured debt, followed by unsecured
debt. This preference is the result of generally higher credit ratings for first
mortgage bonds and secured debt, which typically result in lower interest costs.
Duke Energy Corporation primarily issues unsecured debt.
In 2025, Duke Energy anticipates issuing additional securities of
$12.2 billion through debt capital markets. In certain instances, Duke Energy
may utilize instruments other than senior notes, including equity-content
securities such as subordinated debt or preferred stock. Proceeds will primarily
be for the purpose of funding capital expenditures and debt maturities. See
Note 7 to the Consolidated Financial Statements, “Debt and Credit Facilities,”
for further information regarding significant debt issuances. In addition, in
order to fund incremental growth capital, Duke Energy plans to issue $6.5 billion
of common stock equity from 2025-2029, including $1 billion in 2025,
through the dividend reinvestment and ATM programs. See Note 20 to the
Consolidated Financial Statements, “Stockholders’ Equity” for further details.
Duke Energy’s capitalization is balanced between debt and equity as
shown in the table below.
Projected 2025
Actual 2024
Actual 2023
Equity
38%
38%
39%
Debt
62%
62%
61%
Restrictive Debt Covenants
Duke Energy’s debt and credit agreements contain various financial and
other covenants. Duke Energy’s Master Credit Facility contains a covenant
requiring the debt-to-total capitalization ratio to not exceed 65% for each
borrower, excluding Piedmont, and 70% for Piedmont. Failure to meet those
covenants beyond applicable grace periods could result in accelerated due dates
and/or termination of the agreements or sublimits thereto. The Duke Energy
Registrants were in compliance with all other covenants related to their debt
agreements as of December 31, 2024. In addition, some credit agreements may
allow for acceleration of payments or termination of the agreements due to
nonpayment, or acceleration of other significant indebtedness of the borrower
or some of its subsidiaries. None of the debt or credit agreements contain
material adverse change clauses.
Credit Ratings
Moody’s Investors Service, Inc. and S&P provide credit ratings for
various Duke Energy Registrants. The following table includes Duke Energy and
certain subsidiaries’ credit ratings and ratings outlook as of February 2025.
Moody’s
S&P
Duke Energy Corporation
Stable
Stable
Issuer Credit Rating
Baa2
BBB+
Senior Unsecured Debt
Baa2
BBB
Junior Subordinated Debt/Preferred Stock
Baa3/Ba1
BBB-
Commercial Paper
P-2
A-2
Duke Energy Carolinas
Stable
Stable
Senior Secured Debt
Aa3
A
Senior Unsecured Debt
A2
BBB+
Progress Energy
Stable
Stable
Senior Unsecured Debt
Baa1
BBB
Duke Energy Progress
Stable
Stable
Senior Secured Debt
Aa3
A
Duke Energy Florida
Stable
Stable
Senior Secured Debt
A1
A
Senior Unsecured Debt
A3
BBB+
Duke Energy Ohio
Stable
Stable
Senior Secured Debt
A2
A
Senior Unsecured Debt
Baa1
BBB+
Duke Energy Indiana
Stable
Stable
Senior Secured Debt
Aa3
A
Senior Unsecured Debt
A2
BBB+
Duke Energy Kentucky
Stable
Stable
Senior Unsecured Debt
Baa1
BBB+
Piedmont Natural Gas
Stable
Stable
Senior Unsecured
A3
BBB+
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Credit ratings are intended to provide credit lenders a framework for
comparing the credit quality of securities and are not a recommendation to
buy, sell or hold. The Duke Energy Registrants’ credit ratings are dependent on
the rating agencies’ assessments of their ability to meet their debt principal
and interest obligations when they come due. If, as a result of market
conditions or other factors, the Duke Energy Registrants are unable to maintain
current balance sheet strength, or if earnings and cash flow outlook
materially deteriorates, credit ratings could be negatively impacted.
Cash Flow Information
The following table summarizes Duke Energy’s cash flows for the two most recently completed fiscal years.
Years Ended December 31,
(in millions)
2024
2023
Cash flows provided by (used in):
Operating activities
$ 12,328
$ 9,878
Investing activities
(13,123)
(12,475)
Financing activities
859
2,351
Net increase (decrease) in cash, cash equivalents and restricted cash
64
(246)
Cash, cash equivalents and restricted cash at beginning of period
357
603
Cash, cash equivalents and restricted cash at end of period
$
421
$
357
OPERATING CASH FLOWS
The following table summarizes key components of Duke Energy’s operating cash flows for the two most recently completed fiscal years.
Years Ended December 31,
(in millions)
2024
2023
Variance
Net income
$ 4,614
$ 2,874
$ 1,740
Non-cash adjustments to net income
7,181
7,486
(305)
Contributions to qualified pension plans
(100)
(100)
—
Payments for AROs
(545)
(632)
87
Working capital
1,897
(1,248)
3,145
Other assets and Other liabilities
(719)
1,498
(2,217)
Net cash provided by operating activities
$12,328
$ 9,878
$ 2,450
The variance was driven primarily by:
• a $1,435 million increase in net income, after adjustment for
non-cash items, primarily due to growth from rate increases and
riders, improved weather, higher sales volumes, and net proceeds from
the sales of transferable tax credits, partially offset by higher
interest expense and storm costs, along with a higher effective tax
rate; and
• an $928 million increase in net working capital and changes in other
assets and liabilities amounts, primarily due to higher recovery of
deferred fuel costs and the timing of accruals and payments, partially
offset by higher deferred storm costs.
INVESTING CASH FLOWS
The following table summarizes key components of Duke Energy’s investing cash flows for the two most recently completed fiscal years.
Years Ended December 31,
(in millions)
2024
2023
Variance
Capital, investment and acquisition expenditures, net of return of investment capital
$(12,263)
$(12,622)
$ 359
Debt and equity securities, net
100
63
37
Proceeds from the sales of Commercial Renewables Disposal Groups and other assets, net of cash divested
49
883
(834)
Other investing items
(1,009)
(799)
(210)
Net cash used in investing activities
$(13,123)
$(12,475)
$(648)
The variance relates primarily to the disposal of the Commercial Renewables business, with higher sales proceeds received in the prior year, partially offset
by lower capital expenditures in the current year.
The primary use of cash related to investing activities is typically capital, investment and acquisition expenditures, net of return of investment capital,
detailed by reportable business segment in the following table.
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Years Ended December 31,
(in millions)
2024
2023
Variance
Electric Utilities and Infrastructure
$10,689
$10,135
$ 554
Gas Utilities and Infrastructure
1,313
1,492
(179)
Other
261
995
(734)
Total capital, investment and acquisition expenditures, net of return of investment capital
$12,263
$12,622
$(359)
FINANCING CASH FLOWS
The following table summarizes key components of Duke Energy’s financing cash flows for the two most recently completed fiscal years.
Years Ended December 31,
(in millions)
2024
2023
Variance
Issuances of long-term debt, net
$ 5,599
$ 5,291
$
308
Issuances of common stock
405
8
397
Redemption of preferred stock
(1,000)
—
(1,000)
Notes payable and commercial paper
(927)
142
(1,069)
Dividends paid
(3,213)
(3,244)
31
Contributions from noncontrolling interests
47
278
(231)
Other financing items
(52)
(124)
72
Net cash provided by financing activities
$
859
$ 2,351
$(1,492)
The variance was driven primarily by:
• a $1,069 million decrease in net borrowings from notes payable and
commercial paper;
• a $1,000 million decrease due to the redemption of Series B preferred
stock in the current year; and
• a $231 million decrease in contributions from NCI, primarily due to
the prior year sale of the Commercial Renewables business.
Partially offset by:
• a $397 million increase in proceeds from issuances of common stock
in the current year; and
• a $308 million increase in proceeds from net issuances of long-term
debt, primarily due to timing of issuances and redemptions of long-term
debt.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Risk Management Policies
The Enterprise Risk Management policy framework at Duke Energy
includes strategic, operational, project execution and financial or transaction
related risks. Enterprise Risk Management includes market risk as part of the
financial and transaction related risks in its framework.
Duke Energy is exposed to market risks associated with commodity
prices, interest rates and equity prices. Duke Energy has established
comprehensive risk management policies to monitor and manage these market
risks. Duke Energy’s Chief Executive Officer and Chief Financial Officer are
responsible for the overall approval of market risk management policies and
the delegation of approval and authorization levels. The Finance and Risk
Management Committee of the Board of Directors receives periodic updates
from the Chief Risk Officer and other members of management on market risk
positions, corporate exposures and overall risk management activities. The
Chief Risk Officer is responsible for the overall governance of managing
commodity price risk, including monitoring exposure limits.
The following disclosures about market risk contain forward-looking
statements that involve estimates, projections, goals, forecasts, assumptions,
risks and uncertainties that could cause actual results or outcomes to differ
materially from those expressed in the forward-looking statements. See Item 1A,
“Risk Factors,” and “Cautionary Statement Regarding Forward-Looking
Information” for a discussion of the factors that may impact any such forward-
looking statements made herein.
Commodity Price Risk
Price risk represents the potential risk of loss from adverse changes in
the market price of electricity or other energy commodities. Duke Energy’s
exposure to commodity price risk is influenced by a number of factors, including
the effects of regulation, commodity contract size and length, market
liquidity, market conditions, location and unique or specific contract terms.
Duke Energy is exposed to the impact of market fluctuations in the prices of
electricity, coal, natural gas and other energy-related products marketed and
purchased as a result of its ownership of energy-related assets.
Duke Energy’s exposure to these fluctuations through its regulated utility
operations is limited since these operations are subject to cost-based regulation
and are typically allowed to recover substantially all of these costs through
various cost recovery clauses, including fuel clauses, formula-based contracts,
or other cost-sharing mechanisms. While there may be a delay in timing
between when these costs are incurred and when they are recovered through
rates, changes from year to year generally do not have a material impact on
operating results of these regulated operations.
Duke Energy employs established policies and procedures to manage
risks associated with these market fluctuations, which may include using
various commodity derivatives, such as swaps, futures, forwards and options.
For additional information, see Note 15 to the Consolidated Financial
Statements, “Derivatives and Hedging.”
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Generation Portfolio Risks
For the EU&I segment, the generation portfolio not utilized to serve retail
operations or committed load is subject to commodity price fluctuations.
However, the impact on the Consolidated Statements of Operations is limited
due to mechanisms in these regulated jurisdictions that result in the sharing of
most of the net profits from these activities with retail customers.
Hedging Strategies
Duke Energy monitors risks associated with commodity price changes on
its future operations and, where appropriate, uses various commodity
instruments such as electricity, coal and natural gas hedging contracts and
options to mitigate the effect of such fluctuations on operations. Duke Energy’s
primary use of energy commodity derivatives is to hedge against exposure to
the prices of power, fuel for generation and natural gas for customers.
Duke Energy also manages its exposure to basis risk through the use of
congestion hedge products in RTOs such as financial transmission rights (PJM
and MISO), which result in payments based on differentials in locational
marginal prices. The majority of instruments used to manage Duke Energy’s
commodity price exposure are either not designated as hedges or do not qualify
for hedge accounting. These instruments are referred to as undesignated
contracts. Mark-to-market changes for undesignated contracts entered into by
regulated businesses are reflected as regulatory assets or liabilities on the
Consolidated Balance Sheets.
Duke Energy may also enter into other contracts that qualify for the
NPNS exception. When a contract meets the criteria to qualify as NPNS, Duke
Energy applies such exception. Income recognition and realization related to
NPNS contracts generally coincide with the physical delivery of the
commodity. For contracts qualifying for the NPNS exception, no recognition of
the contract’s fair value in the Consolidated Financial Statements is required
until settlement of the contract as long as the transaction remains probable
of occurring.
Interest Rate Risk
Duke Energy is exposed to risk resulting from changes in interest rates
as a result of its issuance or anticipated issuance of variable and fixed-rate
debt and commercial paper. Duke Energy manages interest rate exposure by
limiting variable-rate exposures to a percentage of total debt and by monitoring
the effects of market changes in interest rates. Duke Energy also enters into
financial derivative instruments, which may include instruments such as, but
not limited to, interest rate swaps, swaptions and U.S. Treasury lock
agreements to manage and mitigate interest rate risk exposure. See Notes 1,
7, 15 and 17 to the Consolidated Financial Statements, “Summary of Significant
Accounting Policies,” “Debt and Credit Facilities,” “Derivatives and Hedging,”
and “Fair Value Measurements.”
Duke Energy had $6.6 billion of unhedged long- and short-term floating
interest rate exposure at December 31, 2024. The impact of a 100-basis point
change in interest rates on pretax income is approximately $70 million at
December 31, 2024. This amount was estimated by considering the impact of
the hypothetical interest rates on variable-rate securities outstanding, adjusted
for interest rate hedges as of December 31, 2024.
Foreign Currency Exchange Risk
Duke Energy is exposed to risk resulting from changes in the foreign
currency exchange rates as a result of its issuances of long-term debt
denominated in a foreign currency. Duke Energy manages foreign currency
exchange risk exposure by entering into cross-currency swaps, a type of financial
derivative instrument, which mitigate foreign currency exchange exposure.
See Notes 7, 15 and 17 to the Consolidated Financial Statements, “Debt and
Credit Facilities,” “Derivatives and Hedging” and “Fair Value Measurements,”
respectively.
Credit Risk
Credit risk represents the loss that the Duke Energy Registrants would
incur if a counterparty fails to perform under its contractual obligations. Where
exposed to credit risk, the Duke Energy Registrants analyze the counterparty’s
financial condition prior to entering into an agreement and monitor exposure on
an ongoing basis. The Duke Energy Registrants establish credit limits where
appropriate in the context of contractual arrangements and monitor such limits.
To reduce credit exposure, the Duke Energy Registrants seek to include
netting provisions with counterparties, which permit the offset of receivables
and payables with such counterparties. The Duke Energy Registrants also
frequently use master agreements with credit support annexes to further
mitigate certain credit exposures. The master agreements provide for a
counterparty to post cash or letters of credit to the exposed party for exposure
in excess of an established threshold. The threshold amount represents a
negotiated unsecured credit limit for each party to the agreement, determined
in accordance with the Duke Energy Registrants’ internal corporate credit
practices and standards. Collateral agreements generally also provide that the
failure to post collateral when required is sufficient cause to terminate
transactions and liquidate all positions.
The Duke Energy Registrants also obtain cash, letters of credit, or surety
bonds from certain counterparties to provide credit support outside of collateral
agreements, where appropriate, based on a financial analysis of the
counterparty and the regulatory or contractual terms and conditions applicable
to each transaction. See Note 15 to the Consolidated Financial Statements,
“Derivatives and Hedging,” for additional information regarding credit risk
related to derivative instruments.
The Duke Energy Registrants’ principal counterparties for its electric
and natural gas businesses are RTOs, distribution companies, municipalities,
electric cooperatives and utilities located throughout the U.S. Exposure to
these entities consists primarily of amounts due to Duke Energy Registrants
for delivered electricity. Additionally, there may be potential risks associated
with remarketing of energy and capacity in the event of default by wholesale
power customers. The Duke Energy Registrants have concentrations of
receivables from certain of such entities that may affect the Duke Energy
Registrants’ credit risk.
The Duke Energy Registrants are also subject to credit risk from
transactions with their suppliers that involve prepayments or milestone
payments in conjunction with outsourcing arrangements, major construction
projects and certain commodity purchases. The Duke Energy Registrants’ credit
exposure to such suppliers may take the form of increased costs or project
delays in the event of nonperformance. The Duke Energy Registrants’ frequently
require guarantees or letters of credit from suppliers to mitigate this credit
risk.
Credit risk associated with the Duke Energy Registrants’ service to
residential, commercial and industrial customers is generally limited to
outstanding accounts receivable. The Duke Energy Registrants mitigate this
credit risk by requiring tariff customers to provide a cash deposit, letter of credit
or surety bond until a satisfactory payment history is established, subject to
the rules and regulations in effect in each retail jurisdiction at which time the
deposit is typically refunded. Charge-offs for retail customers have
historically been insignificant to the operations of the Duke Energy Registrants
and are typically recovered through retail rates. Management continually
monitors customer charge-offs, payment patterns and the impact of current
economic conditions on customers’ ability to pay their outstanding balance to
ensure the adequacy of bad debt reserves.
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The Duke Energy Registrants provide certain non-tariff services,
primarily to large commercial and industrial customers in which incurred
costs, including invested capital, are intended to be recovered from the
individual customer and therefore are not subject to rate recovery in the event
of customer default. Customer creditworthiness is assessed prior to entering
into these transactions. Credit concentration related to these transactions exists
for certain of these customers.
Duke Energy Carolinas has third-party insurance to cover certain losses
related to asbestos-related injuries and damages above an aggregate self-
insured retention. See Note 5 to the Consolidated Financial Statements,
“Commitments and Contingencies” for information on asbestos-related injuries
and damages claims.
The Duke Energy Registrants also have credit risk exposure through
issuance of performance and financial guarantees, letters of credit and surety
bonds on behalf of less than wholly owned entities and third parties. Where
the Duke Energy Registrants have issued these guarantees, it is possible that
they could be required to perform under these guarantee obligations in the event
the obligor under the guarantee fails to perform. Where the Duke Energy
Registrants have issued guarantees related to assets or operations that have
been disposed of via sale, they attempt to secure indemnification from the buyer
against all future performance obligations under the guarantees. See Note 8
to the Consolidated Financial Statements, “Guarantees and Indemnifications,”
for further information on guarantees issued by the Duke Energy Registrants.
Duke Energy is subject to credit risk from transactions with counterparties
to cross-currency swaps related to future interest and principal payments. The
credit exposure to such counterparties may take the form of higher costs to
meet Duke Energy’s future euro-denominated interest and principal payments
in the event of counterparty default. Duke Energy selects highly rated banks as
counterparties and allocates the hedge for each debt issuance across
multiple counterparties. The master agreements with the counterparties
impose collateral requirements on the parties in certain circumstances
indicative of material deterioration in a party’s creditworthiness.
Based on the Duke Energy Registrants’ policies for managing credit risk,
their exposures and their credit and other reserves, the Duke Energy Registrants
do not currently anticipate a materially adverse effect on their consolidated
financial position or results of operations as a result of nonperformance by any
counterparty.
Marketable Securities Price Risk
As described further in Note 16 to the Consolidated Financial Statements,
“Investments in Debt and Equity Securities,” Duke Energy invests in debt and
equity securities as part of various investment portfolios to fund certain
obligations. The vast majority of investments in equity securities are within the
NDTF and assets of the various pension and other post-retirement benefit
plans.
Pension Plan Assets
Duke Energy maintains investments to facilitate funding the costs of
providing non-contributory defined benefit retirement and other post-
retirement benefit plans. These investments are exposed to price fluctuations
in equity markets and changes in interest rates. The equity securities held in
these pension plans are diversified to achieve broad market participation
and reduce the impact of any single investment, sector or geographic region.
Duke Energy has established asset allocation targets for its pension plan
holdings, which take into consideration the investment objectives and the risk
profile with respect to the trust in which the assets are held. See Note 23 to
the Consolidated Financial Statements, “Employee Benefit Plans,” for additional
information regarding investment strategy of pension plan assets.
A significant decline in the value of plan asset holdings could require
Duke Energy to increase funding of its pension plans in future periods, which
could adversely affect cash flows in those periods. Additionally, a decline in the
fair value of plan assets, absent additional cash contributions to the plan,
could increase the amount of pension cost required to be recorded in future
periods, which could adversely affect Duke Energy’s results of operations in
those periods.
Nuclear Decommissioning Trust Funds
As required by the NRC, NCUC, PSCSC and FPSC, subsidiaries of Duke
Energy maintain trust funds to fund the costs of nuclear decommissioning. As
of December 31, 2024, these funds were invested primarily in domestic and
international equity securities, debt securities, cash and cash equivalents and
short-term investments. Per the NRC, Internal Revenue Code, NCUC, PSCSC
and FPSC requirements, these funds may be used only for activities related to
nuclear decommissioning. These investments are exposed to price fluctuations
in equity markets and changes in interest rates. Duke Energy actively
monitors its portfolios by benchmarking the performance of its investments
against certain indices and by maintaining, and periodically reviewing, target
allocation percentages for various asset classes.
Accounting for nuclear decommissioning recognizes that costs are
recovered through retail and wholesale rates; therefore, fluctuations in
investment prices do not materially affect the Consolidated Statements of
Operations, as changes in the fair value of these investments are primarily
deferred as regulatory assets or regulatory liabilities pursuant to Orders by the
NCUC, PSCSC, FPSC and FERC. Earnings or losses of the funds will ultimately
impact the amount of costs recovered through retail and wholesale rates. See
Note 10 to the Consolidated Financial Statements, “Asset Retirement
Obligations,” for additional information regarding nuclear decommissioning
costs. See Note 16 to the Consolidated Financial Statements, “Investments in
Debt and Equity Securities,” for additional information regarding NDTF assets.
OTHER MATTERS
Environmental Regulations
The Duke Energy Registrants are subject to federal, state and local
regulations regarding air and water quality, hazardous and solid waste
disposal, coal ash and other environmental matters. These regulations can be
changed from time to time and result in new obligations of the Duke Energy
Registrants.
The following sections outline various proposed and recently enacted
legislation and regulations that may impact the Duke Energy Registrants.
Refer to Note 4 to the Consolidated Financial Statements, “Regulatory Matters,”
for further information regarding potential plant retirements and regulatory
filings related to the Duke Energy Registrants.
GHG Standards and Guidelines
In April 2024, the EPA issued final rules under section 111 of the Clean
Air Act (EPA Rule 111) regulating GHG emissions from existing coal-fired and
new natural gas-fired power plants, referred to as electric generating units
(EGUs). EPA Rule 111 requires existing coal-fired power plants expected to
operate in 2039 and beyond to reduce GHG emissions by 90% through the use
of carbon capture and sequestration starting in 2032, subject to certain
modifications for coal plants that retire sooner and co-fire natural gas. EPA
Rule 111 also establishes GHG emissions reduction standards for new natural
gas-fired EGUs, subject to carve-outs for smaller peaking units that fill
gaps that cannot be met with renewables or storage. The EPA did not finalize
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emission guidelines for GHG emissions from existing fossil fuel-fired
stationary combustion turbines and signaled, before the 2024 election, that it
intended to address these in a future rulemaking. Duke Energy is analyzing
the potential impacts the rules could have on the Company, which could be
material and may influence the timing, nature, and magnitude of future
generation investments in our service territories. Duke Energy is participating
in legal challenges to EPA Rule 111 as a member of Electric Generators for a
Sensible Transition, a coalition of similarly affected utilities, and as a
member of a utility trade group. The litigation is currently pending in the U.S.
Court of Appeals for the District of Columbia Circuit (the Court). On February 5,
2025, the EPA requested the Court to withhold issuing an opinion and place
the case in a 60-day abeyance to allow time for new EPA leadership to review
the issues and EPA Rule 111 and determine how they wish to proceed. On
February 19, 2025, the Court granted EPA’s request.
Coal Combustion Residuals
In April 2015, EPA published the 2015 CCR Rule to regulate the disposal
of CCR from electric utilities as solid waste. The federal regulation classifies
CCR as nonhazardous waste and allows for beneficial use of CCR with some
restrictions. The regulation applies to all new and existing landfills, new and
existing surface impoundments receiving CCR and existing surface
impoundments located at stations generating electricity (regardless of fuel
source), which were no longer receiving CCR but contained liquids as of the
effective date of the rule. The rule established requirements regarding design
and operating criteria, groundwater monitoring and corrective action,
closure requirements and post-closure care, and recordkeeping, notifications,
and internet posting requirements to ensure the safe disposal and management
of CCR.
In April 2024, the EPA issued the 2024 CCR Rule which significantly
expands the scope of the 2015 CCR Rule by establishing regulatory
requirements for inactive surface impoundments at retired generating facilities
(Legacy CCR Surface Impoundments). The final rule also imposes a subset of
the 2015 CCR Rule’s requirements, including groundwater monitoring, corrective
action (where necessary), and in certain cases, closure, and post-closure
care requirements, on previously unregulated coal ash sources at regulated
facilities (CCR Management Units). CCR Management Units may include surface
impoundments and landfills that closed prior to the effective date of the
2015 CCR Rule, inactive CCR landfills, and other areas where CCR is managed
directly on the land at Duke Energy facilities. Duke Energy, as part of a group
of similarly affected electric utilities, filed a petition to challenge the 2024 CCR
Rule in the U.S. Court of Appeals for the District of Columbia Circuit (the
Court) on August 6, 2024. On February 13, 2025, the EPA requested the Court
to withhold issuing an opinion and place the case in a 120-day abeyance to
allow time for new EPA leadership to review the issues and the 2024 CCR
Rule and determine how they wish to proceed. On that same day, the Court
granted EPA’s motion to hold the case in abeyance pending further order of the
Court.
In addition to the requirements of the federal CCR rules, CCR landfills
and surface impoundments will continue to be regulated by the states. Cost
recovery for future expenditures will be pursued through the normal ratemaking
process with federal and state utility commissions and via wholesale
contracts, which permit recovery of reasonable and prudently incurred costs
associated with Duke Energy’s regulated operations. For more information, see
Notes 4 and 10 to the Consolidated Financial Statements, “Regulatory
Matters” and “Asset Retirement Obligations,” respectively.
Coal Ash Act
AROs recorded on the Duke Energy Carolinas and Duke Energy Progress
Consolidated Balance Sheets at December 31, 2024, and December 31, 2023,
include the legal obligation for closure of coal ash basins and the disposal of
related ash as a result of the Coal Ash Act, the federal CCR rules and other
agreements. The Coal Ash Act includes a variance procedure for compliance
deadlines and other issues surrounding the management of CCR and CCR
surface impoundments and prohibits cost recovery in customer rates for unlawful
discharge of ash impoundment waters occurring after January 1, 2014. The
Coal Ash Act leaves the decision on cost recovery determinations related to
closure of ash impoundments to the normal ratemaking processes before utility
regulatory commissions.
On December 31, 2019, Duke Energy Carolinas and Duke Energy
Progress entered into a settlement agreement with NCDEQ and certain
community groups under which Duke Energy Carolinas and Duke Energy
Progress agreed to excavate six of the nine remaining coal ash basins with ash
moved to on-site lined landfills, including two at Allen, one at Mayo, one at
Roxboro, and two at Rogers. At the three remaining basins at Belews Creek,
Marshall and Roxboro, uncapped basin ash will be excavated and moved to lined
landfills. Those portions of the basins at Belews Creek, Marshall and
Roxboro, which were previously filled with ash and on which permitted
facilities were constructed, will be addressed as required under the 2024 CCR
Rule and state regulations.
The estimated total cost to permanently close all coal ash basins in
North Carolina and South Carolina is estimated to be approximately $8 billion
to $9 billion of which approximately $4.4 billion has been spent through 2024.
The majority of the remaining spend is primarily expected to occur over the
next 10 years. Duke Energy has completed excavation of all coal ash at the
Riverbend, Dan River, Asheville and Sutton plants.
For further information on coal ash basins and recovery, see Notes 4 and
10 to the Consolidated Financial Statements, “Regulatory Matters” and “Asset
Retirement Obligations,” respectively.
Other Environmental Regulations
The Duke Energy Registrants are also subject to various federal, state
and local laws regarding air and water quality, hazardous and solid waste
disposal and other environmental matters. Duke Energy continues to comply
with enacted environmental statutes and regulations even as certain of these
regulations are in various stages of clarification, revision or legal challenge. The
Duke Energy Registrants cannot predict the outcome of these matters.
Global Climate Change and Regulation of GHG Emissions
On January 20, 2025, the new presidential administration signed an
executive order directing the United States to again withdraw from the Paris
Agreement and signed a letter to the United Nations notifying the world body of
the planned withdrawal from the Paris Agreement. The withdrawal from the
Paris Agreement will become official one year after the submission of the letter.
In 2021, the previous presidential administration had recommitted to the
Paris Agreement and announced a target of 50% to 52% reduction in
economywide net GHG emissions from 2005 levels by 2030. The U.S. submittal
to support this Paris target included a goal for 100% carbon-free electricity
by 2035. These actions were supplemented by a number of executive orders and
a number of proposed and final rules from federal regulatory agencies,
including the EPA, that would have imposed additional regulations on CO2 and
methane emissions which could impact Duke Energy. The Duke Energy
Registrants are monitoring these matters and any potential changes in
commitments, regulations or additional executive actions as a result of the
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57
new presidential administration and cannot predict the outcome, however,
there could be a material impact on our energy transition.
EU&I CO2 Emissions Reductions
The Duke Energy Registrants’ direct GHG emissions consist primarily of
CO2 that results primarily from operating a fleet of coal-fired and natural gas-
fired power plants to serve its customers reliably and affordably. Duke
Energy is targeting at least a 50% reduction in carbon emissions from 2005
levels from electric generation by 2030, an 80% reduction by 2040, and net-
zero carbon emissions by 2050. In February 2022, Scope 2 and certain Scope 3
emissions, including emissions from upstream purchased power and fossil
fuel purchases, as well as downstream customer use of natural gas, were added
to our 2050 net-zero goal with an interim goal of reducing these emissions by
50% below 2021 levels by 2035.
The Duke Energy Registrants have taken actions that have resulted in a
reduction of CO2 emissions over time. Between 2005 and 2024, the Duke Energy
Registrants have collectively lowered the CO2 emissions from their electricity
generation by 44%. Timelines and initiatives, as well as implementation of new
technologies, for future GHG emission reductions will vary in each state in
which the Company operates and will involve collaboration with regulators,
customers and other stakeholders. Duke Energy’s goals and actions taken to
reduce CO2 emissions potentially lower the exposure to any future mandatory
CO2 emission reduction requirements, whether as a result of federal
legislation, EPA regulation, state regulation or other as yet unknown emission
reduction requirements.
Actions to reduce CO2 emissions have included the retirement of 58 coal-
fired electric generating units with a combined generating capacity of over
8,000 MW, while investing in renewables and energy storage and state-of-the-
art highly efficient natural gas-fired generation that produces far fewer CO2
emissions per unit of electricity generated than coal. Duke Energy also has made
investments to increase EE offerings and ensure continued operations of its
zero-CO2 emissions hydropower and nuclear plants. These efforts have
diversified our electric generating system and significantly reduced CO2
emissions.
Duke Energy will continue to explore the use of currently available and
commercially demonstrated technology, as well as developing technologies, to
meet customer demand reliably and affordably while reducing CO2 emissions
to achieve its net-zero goal as well as to comply with any future regulations.
These technologies include EE, wind, solar and storage, as well as evolving
technologies like carbon capture, utilization and storage, the use of hydrogen
and other low-carbon fuels, long-duration energy storage and advanced nuclear.
Duke Energy plans to adjust to and incorporate these evolving and innovative
technologies in a way that balances the reliability and affordability of energy
while meeting regulatory requirements and customer demands. Under any
future scenario involving mandatory CO2 limitations, the Duke Energy
Registrants would plan to seek recovery of their compliance costs through
appropriate regulatory mechanisms. Future levels of CO2 emissions by the Duke
Energy Registrants will be influenced by variables that include customer
growth and capacity needs in the jurisdictions in which they operate, public
policy, tax incentives, economic conditions that affect electricity demand,
weather conditions, fuel prices, market prices, availability of resources and
labor, compliance with new or existing regulations, the ability to make
enhancements to transmission and distribution systems to support increased
deployment of renewables and behind-the-meter technologies and the existence
of new technologies that can be deployed to generate the electricity necessary
to meet customer demand.
Currently, the Duke Energy Registrants do not purchase carbon credits
or offsets for use in connection with the Company’s net-zero CO2 emissions
goals. Though they may purchase carbon credits or offsets for such uses in the
future, the amount or cost of which is not expected to be material at this
time.
Generation Portfolio Planning Process
The Duke Energy Registrants annually, biennially or triennially prepare
lengthy, forward-looking IRPs. These detailed, highly technical plans are based
on the Company’s thorough analysis of numerous factors that can impact the
demand for electricity as well as the cost of producing and delivering electricity
that influence long-term generation resource planning decisions. The IRP
process helps to evaluate a range of options, taking into account stakeholder
input as well as forecasts of future electricity demand, fuel prices, transmission
improvements, new generating capacity, integration of renewables, energy
storage, EE and demand response initiatives. The IRP process also helps
evaluate potential environmental and regulatory scenarios to better mitigate
policy and economic risks. The IRPs we file with regulators look out 10 to 20 years
depending on the jurisdiction.
In 2021, the state of North Carolina passed HB 951, which among other
things, directed the NCUC to develop and approve a carbon reduction plan that
would target a 70% reduction in CO2 emissions from Duke Energy Progress’
and Duke Energy Carolinas’ electric generation in the state by 2030 and carbon
neutrality by 2050, considering all resource options and the latest technology.
In December 2022, the NCUC issued an order adopting the first Carbon Plan as
directed by HB 951 with the Carbon Plan to be updated every two years
thereafter.
In August 2023, Duke Energy Carolinas and Duke Energy Progress filed
their 2023 systemwide Carolinas Resource Plan (the Plan) with the NCUC and
PSCSC. The Plan provided a range of generation options, including three core
portfolios, reflecting an “all of the above” approach to powering the energy
needs of our growing region. In the Plan, Duke Energy Carolinas and Duke Energy
Progress recommended one of the three core portfolios presented, Portfolio 3,
as the most prudent path forward to comply with applicable state laws, providing
a reliable and orderly energy transition that was proposed as the most
reasonable and lowest-cost plan for the Carolinas. In November 2023, Duke
Energy Carolinas and Duke Energy Progress provided notice to the NCUC and
PSCSC of a substantially increased load forecast resulting from increased
economic development in the Carolinas occurring since the Plan was prepared.
The companies filed supplemental modeling and analysis with the NCUC and
PSCSC in January 2024, demonstrating the need for additional resources beyond
the initial set of resources identified by the companies in their initial plan.
In July 2024, Duke Energy Carolinas and Duke Energy Progress reached a
broad settlement in the NCUC proceeding with the Public Staff, Walmart, and
the Carolinas Clean Energy Business Association on the Plan, agreeing it is
reasonable to use Portfolio 3 as the reference portfolio for planning purposes.
Among other things, the settlement confirms a set of near-term activities,
including development and procurement activities for solar, battery storage,
onshore wind, and certain natural gas generation assets, as well as certain
limited actions exploring initial development activities related to advanced
nuclear, offshore wind, and to advance the potential for 1,834 MW of pumped
storage hydro at the Bad Creek II facility by 2034. The NCUC conducted
evidentiary hearings in July and August 2024 and issued an order accepting
the settlement and providing further direction in November 2024. The order
continues to emphasize the critical importance of reliability and maintaining
affordability, while taking balanced actions to meet forecasted load growth.
Additionally, the NCUC directed the Company to continue to pursue the merger
of Duke Energy Carolinas and Duke Energy Progress. As a condition of the
NCUC approval of the Duke Energy and Progress Energy merger in 2012, the
NCUC instructed the Company to consider a merger between Duke Energy
Carolinas and Duke Energy Progress. Since that time, the Company has analyzed,
PART II
58
and continues to analyze, the possibility of such a combination, and the
Company anticipates beginning merger-related filings with the NCUC, PSCSC
and FERC in the second half of 2025. The Company is currently targeting a
completion date for the merger of January 1, 2027. There is no assurance
that the Company will be able to obtain the approval of the NCUC or PSCSC, or
other required regulatory approvals, for the potential merger.
The PSCSC held its hearings in September 2024 and in November 2024
issued an order approving the Plan and directed Duke Energy Carolinas and
Duke Energy Progress to work with the South Carolina Office of Regulatory Staff
to provide alternative modeling around EPA Rule 111 compliance in a
subsequent Carolinas Resource Plan filing.
In November 2024, Duke Energy Indiana submitted its updated IRP,
which balances reliability and affordability while meeting customer and
economic development growth.
GU&I CO2 and Methane Emissions Reductions
In addition to CO2 emissions resulting primarily from our operations of
coal-fired and natural gas-fired power plants, the Duke Energy Registrants are
also responsible for certain methane emissions from the distribution of
natural gas to customers. Duke Energy has a goal to achieve net-zero methane
emissions from its natural gas distribution business by 2030. The Duke
Energy Registrants have taken actions that have resulted in methane emission
reductions, including the replacement of cast iron and bare steel pipelines
and associated services with plastic or coated steel, advanced methane leak
detection efforts, reducing time to repair nonhazardous leaks and operational
releases of methane, and investment in renewable natural gas.
Timelines and initiatives, as well as implementation of new technologies,
for future reductions of upstream methane emissions will vary in each state in
which the Company’s natural gas distribution business operates and will
involve collaboration with regulators, customers and other stakeholders. EPA
has issued regulations that would require reduction of methane emissions
upstream of the Duke Energy Registrants’ natural gas distribution business.
The impact of these regulations on natural gas fuel prices is not currently
quantifiable.
Certain local governments, none within the jurisdictions in which the
Duke Energy Registrants operate, have enacted or are considering initiatives to
eliminate natural gas use in new buildings and focus on electrification.
Enactment of similar regulations in the areas in which the Duke Energy
Registrants’ natural gas distribution operates could have a significant impact
on the natural gas distribution business and its operations. At this time,
such impacts are not able to be quantified; however, our net-zero methane
goals for the natural gas distribution business, as well as the actions taken to
reduce these GHG emissions, potentially lowers the exposure to any future
mandatory GHG emission reduction requirements. The Duke Energy Registrants
would plan to seek recovery of their compliance costs with any new regulations
through the regulatory process.
Physical Impacts of Climate Change
The Duke Energy Registrants recognize that scientists associate severe
weather events with increasing levels of GHGs in the atmosphere. It is possible
that these weather events could have a material impact on future results of
operations should they occur more frequently and with greater severity. However,
the uncertain nature of potential changes in extreme weather events (such as
increased frequency, duration and severity), the long period of time over which
any potential changes might take place and the inability to predict potential
changes with any degree of accuracy, make estimating with any certainty any
potential future financial risk to the Duke Energy Registrants’ operations
difficult. Additionally, the Duke Energy Registrants would plan to continue to
seek recovery of storm costs through the appropriate regulatory mechanisms.
For more information on storm securitization and storm cost recovery, see
Note 4 to the Consolidated Financial Statements, “Regulatory Matters.”
The Duke Energy Registrants routinely take steps to assess and
reduce the potential impact of severe weather events on their electric
transmission and distribution systems and natural gas facilities. The steps
include modernizing the electric grid through smart meters, storm hardening,
self-healing systems and targeted undergrounding and applying lessons learned
from previous storms to restoration efforts. The Duke Energy Registrants’
electric generating facilities and natural gas facilities are designed to withstand
extreme weather events without significant damage. The Duke Energy
Registrants maintain inventories of coal, oil and liquified natural gas to
mitigate the effects of any potential short-term disruption in fuel supply so
they can continue to provide customers with an uninterrupted supply of electricity
and/or natural gas.
New Accounting Standards
See Note 1 to the Consolidated Financial Statements, “Summary of
Significant Accounting Policies,” for a discussion of the impact of any new
accounting standards adopted by the Duke Energy Registrants.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
See “Management’s Discussion and Analysis of Results of Operations and Financial Condition – Quantitative and Qualitative Disclosures About Market
Risk.”
PART II
59
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Duke Energy
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ...................
61
CONSOLIDATED STATEMENTS OF OPERATIONS .................................................
63
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ...............................
64
CONSOLIDATED BALANCE SHEETS .................................................................
65
CONSOLIDATED STATEMENTS OF CASH FLOWS .................................................
66
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY .......................................
67
Duke Energy Carolinas
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ...................
68
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME ......
70
CONSOLIDATED BALANCE SHEETS .................................................................
71
CONSOLIDATED STATEMENTS OF CASH FLOWS .................................................
72
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY .......................................
73
Progress Energy
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ...................
74
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME ......
76
CONSOLIDATED BALANCE SHEETS .................................................................
77
CONSOLIDATED STATEMENTS OF CASH FLOWS .................................................
78
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY .......................................
79
Duke Energy Progress
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ...................
80
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME ......
82
CONSOLIDATED BALANCE SHEETS .................................................................
83
CONSOLIDATED STATEMENTS OF CASH FLOWS .................................................
84
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY .......................................
85
Duke Energy Florida
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ...................
86
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME ......
88
CONSOLIDATED BALANCE SHEETS .................................................................
89
CONSOLIDATED STATEMENTS OF CASH FLOWS .................................................
90
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY .......................................
91
Duke Energy Ohio
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ...................
92
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME ......
94
CONSOLIDATED BALANCE SHEETS .................................................................
95
CONSOLIDATED STATEMENTS OF CASH FLOWS .................................................
96
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY .......................................
97
Duke Energy Indiana
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ...................
98
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME ......
100
CONSOLIDATED BALANCE SHEETS .................................................................
101
CONSOLIDATED STATEMENTS OF CASH FLOWS .................................................
102
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY .......................................
103
Piedmont
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ...................
104
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME ......
106
CONSOLIDATED BALANCE SHEETS .................................................................
107
CONSOLIDATED STATEMENTS OF CASH FLOWS .................................................
108
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY .......................................
109
COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ............................
110
NOTE 2 – DISPOSITIONS ...............................................................................
116
NOTE 3 – BUSINESS SEGMENTS ....................................................................
118
NOTE 4 – REGULATORY MATTERS ..................................................................
132
NOTE 5 – COMMITMENTS AND CONTINGENCIES ...............................................
149
NOTE 6 – LEASES .......................................................................................
153
NOTE 7 – DEBT AND CREDIT FACILITIES .........................................................
157
NOTE 8 – GUARANTEES AND INDEMNIFICATIONS ..............................................
163
NOTE 9 – JOINT OWNERSHIP OF GENERATING AND TRANSMISSION FACILITIES ......
163
NOTE 10 – ASSET RETIREMENT OBLIGATIONS ..................................................
164
NOTE 11 – PROPERTY, PLANT AND EQUIPMENT ................................................
166
NOTE 12 – GOODWILL AND INTANGIBLE ASSETS ...............................................
167
NOTE 13 – INVESTMENTS IN UNCONSOLIDATED AFFILIATES ...............................
168
NOTE 14 – RELATED PARTY TRANSACTIONS ....................................................
169
NOTE 15 – DERIVATIVES AND HEDGING ..........................................................
170
NOTE 16 – INVESTMENTS IN DEBT AND EQUITY SECURITIES ..............................
175
NOTE 17 – FAIR VALUE MEASUREMENTS ........................................................
179
NOTE 18 – VARIABLE INTEREST ENTITIES .......................................................
184
NOTE 19 – REVENUE ...................................................................................
188
NOTE 20 – STOCKHOLDERS’ EQUITY ..............................................................
192
NOTE 21 – SEVERANCE ...............................................................................
194
NOTE 22 – STOCK-BASED COMPENSATION ......................................................
194
NOTE 23 – EMPLOYEE BENEFIT PLANS ...........................................................
196
NOTE 24 – INCOME TAXES ............................................................................
208
NOTE 25 – OTHER INCOME AND EXPENSES, NET ..............................................
214
PART II
60
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of
Duke Energy Corporation
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Duke
Energy Corporation and subsidiaries (the “Company”) as of December 31, 2024
and 2023, the related consolidated statements of operations, comprehensive
income, changes in equity, and cash flows, for each of the three years in the
period ended December 31, 2024, and the related notes (collectively referred
to as the “financial statements”). In our opinion, the financial statements
present fairly, in all material respects, the financial position of the Company
as of December 31, 2024 and 2023, and the results of its operations and its cash
flows for each of the three years in the period ended December 31, 2024, in
conformity with accounting principles generally accepted in the United States
of America.
We have also audited, in accordance with the standards of the Public
Company Accounting Oversight Board (United States) (PCAOB), the Company’s
internal control over financial reporting as of December 31, 2024, based on
criteria established in Internal Control – Integrated Framework (2013) issued
by the Committee of Sponsoring Organizations of the Treadway Commission and
our report dated February 27, 2025, expressed an unqualified opinion on the
Company’s internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on the Company’s
financial statements based on our audits. We are a public accounting firm
registered with the PCAOB and are required to be independent with respect to
the Company in accordance with the U.S. federal securities laws and the
applicable rules and regulations of the Securities and Exchange Commission
and the PCAOB.
We conducted our audits in accordance with the standards of the
PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement, whether due to error or fraud. Our audits included
performing procedures to assess the risks of material misstatement of the
financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test
basis, evidence regarding the amounts and disclosures in the financial
statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. We believe that our audits
provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from
the current-period audit of the financial statements that were communicated
or required to be communicated to the audit committee and that (1) relate to
accounts or disclosures that are material to the financial statements and
(2) involved our especially challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter in any way our
opinion on the financial statements, taken as a whole, and we are not, by
communicating the critical audit matters below, providing separate opinions
on the critical audit matters or on the accounts or disclosures to which they
relate.
Regulatory Matters – Impact of Rate Regulation on the Financial
Statements – Refer to Notes 1, 4, and 10 to the financial statements.
Critical Audit Matter Description
The Company is subject to regulation by federal and state utility
regulatory agencies (the “Commissions”), which have jurisdiction with respect
to the rates of the Company’s electric and natural gas distribution companies.
Management has determined it meets the criteria for the application of regulated
operations accounting in preparing its financial statements under accounting
principles generally accepted in the United States of America. Management
judgment can be required to determine if otherwise recognizable incurred costs
qualify to be presented as a regulatory asset and deferred because such
costs are probable of future recovery in customer rates. As discussed in Note 4,
regulatory proceedings in recent years have focused on the recoverability of
storm costs, fuel costs, and asset retirement obligations specific to coal ash.
As a result, assessing the potential outcomes of future regulatory orders requires
management judgment.
We identified the impact of rate regulation related to regulatory assets
as a critical audit matter due to the judgments made by management, including
assumptions regarding the outcome of future decisions by the Commissions
to support its assertions on the likelihood of future recovery for deferred costs.
Given that management’s accounting judgments are based on assumptions
about the outcome of future decisions by the Commissions, auditing these
judgments required specialized knowledge of accounting for rate regulation and
the ratemaking process due to its inherent complexities as it relates to
regulatory assets.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the recovery of regulatory assets
included the following, among others:
• We tested the effectiveness of management’s controls over the
evaluation of the likelihood of the recovery in future rates and the
monitoring and evaluation of regulatory developments that may affect
the likelihood of recovering costs in future rates.
• We evaluated the Company’s disclosures related to the impacts of
rate regulation including the balances recorded and regulatory
developments.
• We read relevant regulatory orders issued by the Commissions and
other publicly available information to assess the likelihood of recovery
in future rates based on precedents of the Commissions’ treatment
of similar costs under similar circumstances. We also evaluated the
external information and compared it to management’s recorded
balances for completeness.
• For regulatory matters in process, we inspected the Company’s and
intervenors’ filings with the Commissions that may impact the
Company’s future rates, for any evidence that might contradict
management’s assertions.
• We evaluated the reasonableness of management’s judgments
regarding the recoverability of regulatory asset balances by performing
the following to inform our understanding of the composition of the
balances:
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61
◦We inquired of management regarding changes in the regulatory
environment (i.e., recently approved orders) and regulatory asset
balances during the year.
◦We evaluated the reasonableness of such changes based on our
knowledge of commission-approved amortization, expected incurred
costs, and recently approved regulatory orders, as applicable.
◦We utilized trend analyses to evaluate the historical consistency of
regulatory asset balances.
◦We compared the recorded regulatory asset balances to an
independently developed expectation of the corresponding balance.
• We performed audit procedures to assess the ongoing regulatory
recoverability of asset retirement obligations specific to coal ash.
• We obtained an analysis from management regarding the estimated
storm costs that they determined were probable of recovery, but not yet
addressed in a regulatory order. This analysis also included letters
from the internal legal counsel asserting that the recovery of these
costs is probable.
• We obtained representation from management asserting that
regulatory assets recorded in the financial statements are probable of
recovery.
• We performed substantive analytical procedures on the recoverability
of deferred fuel costs and test of details procedures on the
recoverability of deferred storm costs.
Asset Retirement Obligations – Coal Ash – Refer to Notes 4 and 10 to the
financial statements.
Critical Audit Matter Description
The Company records asset retirement obligations associated with coal
ash remediation at operating and retired coal burning generation facilities.
These legal obligations are the result of state and federal regulations across the
Company’s jurisdictions. On a quarterly basis, management performs an
assessment for any indicators that would suggest a change in its coal ash
asset retirement obligations may be necessary. Judgment is required to calculate
coal ash remediation obligations, which are determined through site-specific
assumptions, as well as assumptions used in determining the present value of
the obligation.
We identified the revisions in coal ash remediation estimate cash flows
associated with coal ash retirement obligations, resulting from the 2024 Coal
Combustion Residuals (“CCR”) Rule, as a critical audit matter because of the
significant estimates and assumptions made by management in determining
the recorded asset retirement obligation. This required a high degree of auditor
judgment, and for certain assumptions, the need to involve internal specialists
when performing audit procedures related to the revisions in estimates of cash
flows associated with coal ash asset retirement obligations.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the revisions in coal ash remediation
estimate cash flows associated with coal ash asset retirement obligations
included the following, among others:
• We tested the effectiveness of management’s controls over the
evaluation of coal ash asset retirement obligations, including those
over management’s assessment of triggering events, management’s
review of asset retirement obligation remeasurements, and the
evaluation of significant assumptions used in determining the present
value of the obligation.
• We tested the mathematical accuracy of management’s coal ash
asset retirement obligation cash flow calculations.
• With the assistance of professionals within our firm with the
appropriate expertise, we assessed the reasonableness of:
◦Management’s interpretation of the applicability of the 2024 CCR
rule,
◦The significant site-specific assumptions, and
◦The significant assumptions used in determining the present value
of the obligation.
• We evaluated the Company’s disclosures related to the coal ash asset
retirement obligation.
• We obtained representation from management asserting that the
asset retirement obligations recorded in the financial statements
represent management’s best estimate of the obligation as required
under ASC 410, Asset Retirement and Environmental Obligations, and
based upon the requirements of the applicable laws and regulations.
/s/ Deloitte & Touche LLP
Charlotte, North Carolina
February 27, 2025
We have served as the Company’s auditor since 1947.
PART II
62
DUKE ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
Years Ended December 31,
(in millions, except per share amounts)
2024
2023
2022
Operating Revenues
Regulated electric
$27,787
$26,617
$25,759
Regulated natural gas
2,252
2,152
2,724
Nonregulated electric and other
318
291
285
Total operating revenues
30,357
29,060
28,768
Operating Expenses
Fuel used in electric generation and purchased power
9,206
9,086
8,782
Cost of natural gas
565
593
1,276
Operation, maintenance and other
5,389
5,625
5,734
Depreciation and amortization
5,793
5,253
5,086
Property and other taxes
1,466
1,400
1,466
Impairment of assets and other charges
38
85
434
Total operating expenses
22,457
22,042
22,778
Gains on Sales of Other Assets and Other, net
26
52
22
Operating Income
7,926
7,070
6,012
Other Income and Expenses
Equity in (losses) earnings of unconsolidated affiliates
(9)
113
113
Other income and expenses, net
661
598
392
Total other income and expenses
652
711
505
Interest Expense
3,384
3,014
2,439
Income From Continuing Operations Before Income Taxes
5,194
4,767
4,078
Income Tax Expense From Continuing Operations
590
438
300
Income From Continuing Operations
4,604
4,329
3,778
Income (Loss) From Discontinued Operations, net of tax
10
(1,455)
(1,323)
Net Income
4,614
2,874
2,455
Less: Net Income (Loss) Attributable to Noncontrolling Interests
90
33
(95)
Net Income Attributable to Duke Energy Corporation
4,524
2,841
2,550
Less: Preferred Dividends
106
106
106
Less: Preferred Redemption Costs
16
—
—
Net Income Available to Duke Energy Corporation Common Stockholders
$ 4,402
$ 2,735
$ 2,444
Earnings Per Share – Basic and Diluted
Income from continuing operations available to Duke Energy Corporation common stockholders
Basic and Diluted
$
5.70
$
5.35
$
4.74
Income (loss) from discontinued operations attributable to Duke Energy Corporation common stockholders
Basic and Diluted
$
0.01
$ (1.81)
$ (1.57)
Net income available to Duke Energy Corporation common stockholders
Basic and Diluted
$
5.71
$
3.54
$
3.17
Weighted average shares outstanding
Basic and Diluted
772
771
770
See Notes to Consolidated Financial Statements
PART II
63
DUKE ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Years Ended December 31,
(in millions)
2024
2023
2022
Net Income
$4,614
$2,874
$2,455
Other Comprehensive Income (Loss), net of tax(a)
Pension and OPEB adjustments
8
(1)
(19)
Net unrealized gains on cash flow hedges
209
63
285
Reclassification into earnings from cash flow hedges
(5)
27
(38)
Net unrealized gains (losses) on fair value hedges
24
37
(33)
Unrealized (losses) gains on available-for-sale securities
(2)
8
(21)
Other Comprehensive Income, net of tax
234
134
174
Comprehensive Income
4,848
3,008
2,629
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
90
33
(84)
Comprehensive Income Attributable to Duke Energy Corporation
4,758
2,975
2,713
Less: Preferred Dividends
106
106
106
Less: Preferred Redemption Costs
16
—
—
Comprehensive Income Available to Duke Energy Corporation Common Stockholders
$4,636
$2,869
$2,607
(a)
Net of income tax expense of approximately $70 million, $40 million and $52 million for the years ended December 31, 2024, 2023 and 2022, respectively.
See Notes to Consolidated Financial Statements
PART II
64
DUKE ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
December 31,
(in millions)
2024
2023
ASSETS
Current Assets
Cash and cash equivalents
$
314
$
253
Receivables (net of allowance for doubtful accounts of $124 at 2024 and $55 at 2023)
2,232
1,112
Receivables of VIEs (net of allowance for doubtful accounts of $85 at 2024 and $150 at 2023)
1,889
3,019
Receivable from sales of Commercial Renewables Disposal Groups
551
—
Inventory (includes $494 at 2024 and $462 at 2023 related to VIEs)
4,509
4,292
Regulatory assets (includes $120 at 2024 and $110 at 2023 related to VIEs)
2,756
3,648
Assets held for sale
4
14
Other (includes $90 at 2024 and 2023 related to VIEs)
695
431
Total current assets
12,950
12,769
Property, Plant and Equipment
Cost
180,806
171,353
Accumulated depreciation and amortization
(57,503)
(56,038)
Net property, plant and equipment
123,303
115,315
Other Noncurrent Assets
Goodwill
19,303
19,303
Regulatory assets (includes $1,705 at 2024 and $1,642 at 2023 related to VIEs)
14,254
13,618
Nuclear decommissioning trust funds
11,434
10,143
Operating lease right-of-use assets, net
1,148
1,092
Investments in equity method unconsolidated affiliates
353
492
Assets held for sale
89
197
Other
3,509
3,964
Total other noncurrent assets
50,090
48,809
Total Assets
$186,343
$176,893
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (includes $214 at 2024 and $188 at 2023 related to VIEs)
$
5,479
$
4,228
Notes payable and commercial paper
3,584
4,288
Taxes accrued
851
816
Interest accrued
855
745
Current maturities of long-term debt (includes $1,012 at 2024 and $428 at 2023 related to VIEs)
4,349
2,800
Asset retirement obligations
650
596
Regulatory liabilities
1,425
1,369
Liabilities associated with assets held for sale
80
122
Other
2,084
2,319
Total current liabilities
19,357
17,283
Long-Term Debt (includes $1,842 at 2024 and $3,000 at 2023 related to VIEs)
76,340
72,452
Other Noncurrent Liabilities
Deferred income taxes
11,424
10,556
Asset retirement obligations
9,342
8,560
Regulatory liabilities
14,694
14,039
Operating lease liabilities
957
917
Accrued pension and other post-retirement benefit costs
434
485
Investment tax credits
894
864
Liabilities associated with assets held for sale
89
157
Other (includes $27 at 2024 and $35 at 2023 related to VIEs)
1,556
1,393
Total other noncurrent liabilities
39,390
36,971
Commitments and Contingencies
Equity
Preferred stock, Series A, $0.001 par value, 40 million depositary shares authorized and outstanding at 2024 and 2023
973
973
Preferred stock, Series B, $0.001 par value, 1 million shares authorized; 0 and 1 million shares outstanding at 2024 and 2023
—
989
Common stock, $0.001 par value, 2 billion shares authorized; 776 million and 771 million shares outstanding at 2024 and 2023
1
1
Additional paid-in capital
45,494
44,920
Retained earnings
3,431
2,235
Accumulated other comprehensive income (loss)
228
(6)
Total Duke Energy Corporation stockholders’ equity
50,127
49,112
Noncontrolling interests
1,129
1,075
Total equity
51,256
50,187
Total Liabilities and Equity
$186,343
$176,893
See Notes to Consolidated Financial Statements
PART II
65
DUKE ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31,
(in millions)
2024
2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$ 4,614
$ 2,874
$ 2,455
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion (including amortization of nuclear fuel)
6,419
6,084
5,843
Equity in losses (earnings) of unconsolidated affiliates
9
(98)
(114)
Equity component of AFUDC
(233)
(198)
(197)
Losses on sales of Commercial Renewables Disposal Groups
14
1,725
1,748
Gains on sales of other assets
(26)
(52)
(22)
Impairment of assets and other charges
38
85
434
Deferred income taxes
987
3
(200)
Contributions to qualified pension plans
(100)
(100)
(58)
Payments for asset retirement obligations
(545)
(632)
(584)
Provision for rate refunds
(27)
(63)
(130)
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions
(103)
(18)
19
Receivables
(23)
443
(788)
Inventory
(212)
(706)
(476)
Other current assets
885
(267)
(1,498)
Increase (decrease) in
Accounts payable
1,329
(800)
805
Taxes accrued
32
126
10
Other current liabilities
(11)
(26)
(153)
Other assets
(1,170)
914
(1,577)
Other liabilities
451
584
410
Net cash provided by operating activities
12,328
9,878
5,927
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(12,280)
(12,604)
(11,367)
Contributions to equity method investments
(8)
(34)
(58)
Return of investment capital
25
16
6
Purchases of debt and equity securities
(5,703)
(3,761)
(4,243)
Proceeds from sales and maturities of debt and equity securities
5,803
3,824
4,333
Proceeds from the sales of other assets
49
149
83
Proceeds from the sales of Commercial Renewables Disposal Groups, net of cash divested
—
734
—
Other
(1,009)
(799)
(727)
Net cash used in investing activities
(13,123)
(12,475)
(11,973)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the:
Issuance of long-term debt
8,956
10,028
11,874
Issuance of common stock
405
8
9
Redemption of preferred stock
(1,000)
—
—
Payments for the redemption of long-term debt
(3,357)
(4,737)
(4,396)
Proceeds from the issuance of short-term debt with original maturities greater than 90 days
557
610
80
Payments for the redemption of short-term debt with original maturities greater than 90 days
(1,096)
(125)
(287)
Notes payable and commercial paper
(388)
(343)
781
Contributions from noncontrolling interests
47
278
1,377
Dividends paid
(3,213)
(3,244)
(3,179)
Other
(52)
(124)
(130)
Net cash provided by financing activities
859
2,351
6,129
Net increase (decrease) in cash, cash equivalents and restricted cash
64
(246)
83
Cash, cash equivalents and restricted cash at beginning of period
357
603
520
Cash, cash equivalents and restricted cash at end of period
$
421
$
357
$
603
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized
$ 3,284
$ 2,883
$ 2,361
Cash paid for (received from) income taxes, net (includes transferable tax credit sale proceeds of $558, $28 and $0, respectively)
(400)
1
(6)
Significant non-cash transactions:
Accrued capital expenditures
1,909
1,908
1,766
See Notes to Consolidated Financial Statements
PART II
66
DUKE ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Duke Energy Corporation Stockholders’
Accumulated Other Comprehensive
Income (Loss)
(in millions)
Preferred
Stock
Common
Stock
Shares
Common
Stock
Additional
Paid-in
Capital
Retained
Earnings
Net Gains
(Losses) on
Hedges(c)
Net Unrealized
Gains (Losses)
on AFS
Securities
Pension and
OPEB
Adjustments
Total Duke
Energy Corp.
Stockholders’
Equity
NCI
Total
Equity
Balance at December 31, 2021
$1,962
769
$ 1
$44,371
$ 3,265
$(232)
$ (2)
$(69)
$49,296 $ 1,840 $51,136
Net income (loss)(d)
—
—
—
—
2,444
—
—
—
2,444
(95)
2,349
Other comprehensive income (loss)
—
—
—
—
—
203
(21)
(19)
163
11
174
Common stock issuances, including dividend reinvestment and employee
benefits
—
1
—
76
—
—
—
—
76
—
76
Common stock dividends
—
—
—
—
(3,073)
—
—
—
(3,073)
—
(3,073)
Sale of NCI(b)
—
—
—
465
—
—
—
—
465
569
1,034
Purchase of NCI
—
—
—
(51)
—
—
—
—
(51)
31
(20)
Contribution from NCI, net of transaction costs(a)
—
—
—
—
—
—
—
—
—
314
314
Distributions to NCI in subsidiaries
—
—
—
—
—
—
—
—
—
(140)
(140)
Other
—
—
—
1
1
—
—
—
2
1
3
Balance at December 31, 2022
$1,962
770
$ 1
$44,862
$ 2,637
$ (29)
$(23)
$(88)
$49,322 $ 2,531 $51,853
Net income(d)
—
—
—
—
2,735
—
—
—
2,735
33
2,768
Other comprehensive income (loss)
—
—
—
—
—
127
8
(1)
134
—
134
Common stock issuances, including dividend reinvestment and employee
benefits
—
1
—
78
—
—
—
—
78
—
78
Common stock dividends
—
—
—
—
(3,138)
—
—
—
(3,138)
—
(3,138)
Sale of NCI
—
—
—
(13)
—
—
—
—
(13)
10
(3)
Contribution from NCI, net of transaction costs(a)
—
—
—
—
—
—
—
—
—
278
278
Distributions to NCI in subsidiaries
—
—
—
—
—
—
—
—
—
(59)
(59)
Sale of Commercial Renewables Disposal Groups
—
—
—
—
—
—
—
—
—
(1,722)
(1,722)
Other
—
—
—
(7)
1
—
—
—
(6)
4
(2)
Balance at December 31, 2023
$1,962
771
$ 1
$44,920
$ 2,235
$ 98
$(15)
$(89)
$49,112 $ 1,075 $50,187
Net income(d)
—
—
—
—
4,402
—
—
—
4,402
90
4,492
Other comprehensive income (loss)
—
—
—
—
—
228
(2)
8
234
—
234
Common stock issuances, including dividend reinvestment and employee
benefits
—
5
—
574
—
—
—
—
574
—
574
Preferred stock, Series B, redemption
(989)
—
—
—
—
—
—
(989)
—
(989)
Common stock dividends
—
—
—
—
(3,204)
—
—
—
(3,204)
—
(3,204)
Contribution from NCI
—
—
—
—
—
—
—
—
—
47
47
Distributions to NCI in subsidiaries
—
—
—
—
—
—
—
—
—
(32)
(32)
Sale of Commercial Renewables Disposal Groups
—
—
—
—
—
—
—
—
(51)
(51)
Other
—
—
—
(2)
—
—
—
(2)
—
(2)
Balance at December 31, 2024
$ 973
776
$ 1
$45,494
$ 3,431
$ 326
$(17)
$(81)
$50,127 $ 1,129 $51,256
(a)
Relates to tax equity financing activity in the Commercial Renewables Disposal Groups.
(b)
Relates primarily to the sale of a NCI in Duke Energy Indiana. See Note 2 for additional information.
(c)
See Duke Energy Consolidated Statements of Comprehensive Income for detailed activity related to Cash Flow and Fair Value Hedges.
(d)
Net income available to Duke Energy Corporation Common Stockholders reflects preferred dividends and, for 2024, the $16 million preferred redemption costs.
See Notes to Consolidated Financial Statements
PART II
67
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholder and the Board of Directors of
Duke Energy Carolinas, LLC
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Duke
Energy Carolinas, LLC and subsidiaries (the “Company”) as of December 31,
2024 and 2023, the related consolidated statements of operations and
comprehensive income, changes in equity, and cash flows, for each of the
three years in the period ended December 31, 2024, and the related notes
(collectively referred to as the “financial statements”). In our opinion, the
financial statements present fairly, in all material respects, the financial position
of the Company as of December 31, 2024 and 2023, and the results of its
operations and its cash flows for each of the three years in the period ended
December 31, 2024, in conformity with accounting principles generally accepted
in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on the Company’s
financial statements based on our audits. We are a public accounting firm
registered with the Public Company Accounting Oversight Board (United States)
(PCAOB) and are required to be independent with respect to the Company in
accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the
PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement, whether due to error or fraud. The Company is not
required to have, nor were we engaged to perform, an audit of its internal control
over financial reporting. As part of our audits, we are required to obtain an
understanding of internal control over financial reporting but not for the purpose
of expressing an opinion on the effectiveness of the Company’s internal
control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of
material misstatement of the financial statements, whether due to error or
fraud, and performing procedures that respond to those risks. Such procedures
included examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements. Our audits also included evaluating
the accounting principles used and significant estimates made by management,
as well as evaluating the overall presentation of the financial statements. We
believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from
the current-period audit of the financial statements that was communicated
or required to be communicated to the audit committee and that (1) relates to
accounts or disclosures that are material to the financial statements and
(2) involved our especially challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter in any way our
opinion on the financial statements, taken as a whole, and we are not, by
communicating the critical audit matter below, providing a separate opinion
on the critical audit matter or on the accounts or disclosures to which it relates.
Regulatory Matters – Impact of Rate Regulation on the Financial
Statements – Refer to Notes 1, 4, and 10 to the financial statements.
Critical Audit Matter Description
The Company is subject to rate regulation by the North Carolina Utilities
Commission and by the South Carolina Public Service Commission (collectively
the “Commissions”), which have jurisdiction with respect to the electric
rates of the Company. Management has determined it meets the criteria for
the application of regulated operations accounting in preparing its financial
statements under accounting principles generally accepted in the United States
of America. Judgment can be required to determine if otherwise recognizable
incurred costs qualify to be presented as a regulatory asset and deferred because
such costs are probable of future recovery in customer rates. As discussed in
Note 4, regulatory proceedings in recent years have focused on the recoverability
of storm costs, fuel costs, and asset retirement obligations specific to coal
ash. As a result, assessing the potential outcomes of future regulatory orders
requires management judgment.
We identified the impact of rate regulation related to regulatory assets
as a critical audit matter due to the judgments made by management, including
assumptions regarding the outcome of future decisions by the Commissions
to support its assertions on the likelihood of future recovery for deferred costs.
Given that management’s accounting judgments are based on assumptions
about the outcome of future decisions by the Commissions, auditing these
judgments required specialized knowledge of accounting for rate regulation and
the ratemaking process due to its inherent complexities as it relates to
regulatory assets.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the recovery of regulatory assets
included the following, among others:
• We tested the effectiveness of management’s controls over the
evaluation of the likelihood of the recovery in future rates and the
monitoring and evaluation of regulatory developments that may affect
the likelihood of recovering costs in future rates.
• We evaluated the Company’s disclosures related to the impacts of
rate regulation, including the balances recorded and regulatory
developments.
• We read relevant regulatory orders issued by the Commissions and
other publicly available information to assess the likelihood of recovery
in future rates based on precedents of the Commissions’ treatment
of similar costs under similar circumstances. We also evaluated the
external information and compared it to management’s recorded
balances for completeness.
• For regulatory matters in process, we inspected the Company’s and
intervenors’ filings with the Commissions that may impact the
Company’s future rates, for any evidence that might contradict
management’s assertions.
• We evaluated the reasonableness of management’s judgments
regarding the recoverability of regulatory asset balances by performing
the following to inform our understanding of the composition of the
balances:
PART II
68
◦We inquired of management regarding changes in the regulatory
environment (i.e., recently approved orders) and regulatory asset
balances during the year.
◦We evaluated the reasonableness of such changes based on our
knowledge of commission-approved amortization, expected incurred
costs, and recently approved regulatory orders, as applicable.
◦We utilized trend analyses to evaluate the historical consistency of
regulatory asset balances.
◦We compared the recorded regulatory asset balances to an
independently developed expectation of the corresponding balance.
• We performed audit procedures to assess the ongoing regulatory
recoverability of asset retirement obligations specific to coal ash.
• We obtained an analysis from management regarding the estimated
storm costs that they determined were probable of recovery, but not yet
addressed in a regulatory order. This analysis also included letters
from the internal legal counsel asserting that the recovery of these
costs is probable.
• We obtained representation from management asserting that
regulatory assets recorded in the financial statements are probable of
recovery.
• We performed substantive analytical procedures on the recoverability
of deferred fuel costs and test of details procedures on the
recoverability of deferred storm costs.
/s/ Deloitte & Touche LLP
Charlotte, North Carolina
February 27, 2025
We have served as the Company’s auditor since 1947.
PART II
69
DUKE ENERGY CAROLINAS, LLC
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Years Ended December 31,
(in millions)
2024
2023
2022
Operating Revenues
$9,718
$8,288
$7,857
Operating Expenses
Fuel used in electric generation and purchased power
3,251
2,524
2,015
Operation, maintenance and other
1,740
1,774
1,892
Depreciation and amortization
1,768
1,593
1,526
Property and other taxes
346
320
340
Impairment of assets and other charges
31
44
26
Total operating expenses
7,136
6,255
5,799
Gains on Sales of Other Assets and Other, net
2
26
4
Operating Income
2,584
2,059
2,062
Other Income and Expenses, net
247
238
221
Interest Expense
722
686
557
Income Before Income Taxes
2,109
1,611
1,726
Income Tax Expense
226
141
126
Net Income and Comprehensive Income
$1,883
$1,470
$1,600
See Notes to Consolidated Financial Statements
PART II
70
DUKE ENERGY CAROLINAS, LLC
CONSOLIDATED BALANCE SHEETS
December 31,
(in millions)
2024
2023
ASSETS
Current Assets
Cash and cash equivalents
$
6
$
9
Receivables (net of allowance for doubtful accounts of $18 at 2024 and $11 at 2023)
266
265
Receivables of VIEs (net of allowance for doubtful accounts of $51 at 2024 and $45 at 2023)
1,054
991
Receivables from affiliated companies
157
203
Notes receivable from affiliated companies
65
—
Inventory
1,536
1,484
Regulatory assets (includes $12 at 2024 and 2023 related to VIEs)
685
1,564
Other (includes $9 at 2024 and $9 at 2022 related to VIEs)
52
31
Total current assets
3,821
4,547
Property, Plant and Equipment
Cost
58,382
56,670
Accumulated depreciation and amortization
(19,090)
(19,896)
Net property, plant and equipment
39,292
36,774
Other Noncurrent Assets
Regulatory assets (includes $189 at 2024 and $196 at 2023 related to VIEs)
4,199
3,916
Nuclear decommissioning trust funds
6,468
5,686
Operating lease right-of-use assets, net
98
78
Other
1,127
1,109
Total other noncurrent assets
11,892
10,789
Total Assets
$ 55,005
$ 52,110
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable
$ 1,809
$ 1,183
Accounts payable to affiliated companies
241
195
Notes payable to affiliated companies
—
668
Taxes accrued
627
281
Interest accrued
201
179
Current maturities of long-term debt (includes $510 at 2024 and 2023 related to VIEs)
521
19
Asset retirement obligations
247
224
Regulatory liabilities
618
587
Other
541
702
Total current liabilities
4,805
4,038
Long-Term Debt (includes $198 at 2024 and $708 at 2023 related to VIEs)
16,669
15,693
Long-Term Debt Payable to Affiliated Companies
300
300
Other Noncurrent Liabilities
Deferred income taxes
4,052
4,379
Asset retirement obligations
3,743
3,789
Regulatory liabilities
6,592
5,990
Operating lease liabilities
87
75
Accrued pension and other post-retirement benefit costs
24
57
Investment tax credits
317
301
Other (includes $15 at 2024 and $17 at 2023 related to VIEs)
576
581
Total other noncurrent liabilities
15,391
15,172
Commitments and Contingencies
Equity
Member’s equity
17,846
16,913
Accumulated other comprehensive loss
(6)
(6)
Total equity
17,840
16,907
Total Liabilities and Equity
$ 55,005
$ 52,110
See Notes to Consolidated Financial Statements
PART II
71
DUKE ENERGY CAROLINAS, LLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31,
(in millions)
2024
2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$ 1,883
$ 1,470
$ 1,600
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of nuclear fuel)
2,033
1,845
1,787
Equity component of AFUDC
(113)
(91)
(98)
Gains on sales of other assets
(2)
(26)
(4)
Impairment of assets and other charges
31
44
26
Deferred income taxes
(28)
(53)
210
Contributions to qualified pension plans
(26)
(26)
(15)
Payments for asset retirement obligations
(180)
(210)
(200)
Provision for rate refunds
(8)
(39)
(74)
(Increase) decrease in
Receivables
(49)
22
(102)
Receivables from affiliated companies
46
187
(200)
Inventory
(60)
(320)
(138)
Other current assets
928
(495)
(592)
Increase (decrease) in
Accounts payable
476
(447)
377
Accounts payable to affiliated companies
46
(14)
(75)
Taxes accrued
346
64
(46)
Other current liabilities
(68)
63
(91)
Other assets
(556)
703
(760)
Other liabilities
(162)
108
(36)
Net cash provided by operating activities
4,537
2,785
1,569
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(3,966)
(3,733)
(3,304)
Purchases of debt and equity securities
(2,775)
(2,025)
(2,633)
Proceeds from sales and maturities of debt and equity securities
2,775
2,025
2,633
Net proceeds from the sales of other assets
—
30
62
Notes receivable from affiliated companies
(65)
—
—
Other
(358)
(288)
(243)
Net cash used in investing activities
(4,389)
(3,991)
(3,485)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt
1,487
2,780
1,441
Payments for the redemption of long-term debt
(19)
(1,042)
(436)
Notes payable to affiliated companies
(668)
(565)
1,007
Distributions to parent
(950)
—
(50)
Other
(1)
(1)
(1)
Net cash (used in) provided by financing activities
(151)
1,172
1,961
Net (decrease) increase in cash, cash equivalents and restricted cash
(3)
(34)
45
Cash, cash equivalents and restricted cash at beginning of period
19
53
8
Cash, cash equivalents and restricted cash at end of period
$
16
$
19
$
53
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized
$
683
$
528
$
546
Cash (received from) paid for income taxes, net (includes transferable tax credit sale proceeds of $440, $0 and $0, respectively)
(85)
151
(60)
Significant non-cash transactions:
Accrued capital expenditures
802
613
475
See Notes to Consolidated Financial Statements
PART II
72
DUKE ENERGY CAROLINAS, LLC
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Accumulated Other
Comprehensive
Loss
(in millions)
Member’s
Equity
Net Losses on
Cash Flow
Hedges
Total
Equity
Balance at December 31, 2021
$13,897
$ (6)
$13,891
Net income
1,600
—
1,600
Distributions to parent
(50)
—
(50)
Other
1
—
1
Balance at December 31, 2022
$15,448
$ (6)
$15,442
Net income
1,470
—
1,470
Other
(5)
—
(5)
Balance at December 31, 2023
$16,913
$ (6)
$16,907
Net income
1,883
—
1,883
Distributions to parent
(950)
—
(950)
Balance at December 31, 2024
$17,846
$ (6)
$17,840
See Notes to Consolidated Financial Statements
PART II
73
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholder and the Board of
Directors of Progress Energy, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of
Progress Energy, Inc. and subsidiaries (the “Company”) as of December 31,
2024 and 2023, the related consolidated statements of operations and
comprehensive income, changes in equity, and cash flows, for each of the
three years in the period ended December 31, 2024, and the related notes
(collectively referred to as the “financial statements”). In our opinion, the
financial statements present fairly, in all material respects, the financial position
of the Company as of December 31, 2024 and 2023, and the results of its
operations and its cash flows for each of the three years in the period ended
December 31, 2024, in conformity with accounting principles generally accepted
in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on the Company’s
financial statements based on our audits. We are a public accounting firm
registered with the Public Company Accounting Oversight Board (United States)
(PCAOB) and are required to be independent with respect to the Company in
accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the
PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement, whether due to error or fraud. The Company is not
required to have, nor were we engaged to perform, an audit of its internal control
over financial reporting. As part of our audits, we are required to obtain an
understanding of internal control over financial reporting but not for the purpose
of expressing an opinion on the effectiveness of the Company’s internal
control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of
material misstatement of the financial statements, whether due to error or
fraud, and performing procedures that respond to those risks. Such procedures
included examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements. Our audits also included evaluating
the accounting principles used and significant estimates made by management,
as well as evaluating the overall presentation of the financial statements. We
believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from
the current-period audit of the financial statements that were communicated
or required to be communicated to the audit committee and that (1) relate to
accounts or disclosures that are material to the financial statements and
(2) involved our especially challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter in any way our
opinion on the financial statements, taken as a whole, and we are not, by
communicating the critical audit matters below, providing separate opinions
on the critical audit matters or on the accounts or disclosures to which they
relate.
Regulatory Matters – Impact of Rate Regulation on the Financial
Statements – Refer to Notes 1, 4, and 10 to the financial statements.
Critical Audit Matter Description
The Company is subject to rate regulation by the North Carolina Utilities
Commission, South Carolina Public Service Commission and Florida Public
Service Commission (collectively the “Commissions”), which have jurisdiction
with respect to the electric rates of the Company. Management has
determined it meets the criteria for the application of regulated operations
accounting in preparing its financial statements under accounting principles
generally accepted in the United States of America. Judgment can be required to
determine if otherwise recognizable incurred costs qualify to be presented as
a regulatory asset and deferred because such costs are probable of future
recovery in customer rates. As discussed in Note 4, regulatory proceedings in
recent years have focused on the recoverability of storm costs, fuel costs, and
asset retirement obligations specific to coal ash. As a result, assessing the
potential outcomes of future regulatory orders requires management judgment.
We identified the impact of rate regulation related to regulatory assets
as a critical audit matter due to the judgments made by management, including
assumptions regarding the outcome of future decisions by the Commissions
to support its assertions on the likelihood of future recovery for deferred costs.
Given that management’s accounting judgments are based on assumptions
about the outcome of future decisions by the Commissions, auditing these
judgments required specialized knowledge of accounting for rate regulation and
the ratemaking process due to its inherent complexities as it relates to
regulatory assets.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the recovery of regulatory assets
included the following, among others:
• We tested the effectiveness of management’s controls over the
evaluation of the likelihood of the recovery in future rates and the
monitoring and evaluation of regulatory developments that may affect
the likelihood of recovering costs in future rates.
• We evaluated the Company’s disclosures related to the impacts of
rate regulation, including the balances recorded and regulatory
developments.
• We read relevant regulatory orders issued by the Commissions and
other publicly available information to assess the likelihood of recovery
in future rates based on precedents of the Commissions’ treatment
of similar costs under similar circumstances. We evaluated the external
information and compared it to management’s recorded balances
for completeness.
• For regulatory matters in process, we inspected the Company’s and
intervenors’ filings with the Commissions that may impact the
Company’s future rates, for any evidence that might contradict
management’s assertions.
• We evaluated the reasonableness of management’s judgments
regarding the recoverability of regulatory asset balances by performing
the following to inform our understanding of the composition of the
balances:
PART II
74
◦We inquired of management regarding changes in the regulatory
environment (i.e., recently approved orders) and regulatory asset
balances during the year.
◦We evaluated the reasonableness of such changes based on our
knowledge of commission-approved amortization, expected incurred
costs, and recently approved regulatory orders, as applicable.
◦We utilized trend analyses to evaluate the historical consistency of
regulatory asset balances.
◦We compared the recorded regulatory asset balances to an
independently developed expectation of the corresponding balance.
• We performed audit procedures to assess the ongoing regulatory
recoverability of asset retirement obligations specific to coal ash.
• We obtained an analysis from management regarding the estimated
storm costs that they determined were probable of recovery, but not yet
addressed in a regulatory order. This analysis also included letters
from the internal legal counsel asserting that the recovery of these
costs is probable.
• We obtained representation from management asserting that
regulatory assets recorded in the financial statements are probable of
recovery.
• We performed substantive analytical procedures on the recoverability
of deferred fuel costs and test of details procedures on the
recoverability of deferred storm costs.
Asset Retirement Obligations – Coal Ash – Refer to Notes 4 and 10 to the
financial statements.
Critical Audit Matter Description
The Company records asset retirement obligations associated with coal
ash remediation at operating and retired coal burning generation facilities.
These legal obligations are the result of state and federal regulations across the
Company’s jurisdictions. On a quarterly basis, management performs an
assessment for any indicators that would suggest a change in its coal ash
asset retirement obligations may be necessary. Judgment is required to calculate
coal ash remediation obligations, which are determined through site-specific
assumptions, as well as assumptions used in determining the present value of
the obligation.
We identified the revisions in coal ash remediation estimate cash flows
associated with coal ash retirement obligations, resulting from the 2024 Coal
Combustion Residuals (“CCR”) Rule, as a critical audit matter because of the
significant estimates and assumptions made by management in determining
the recorded asset retirement obligation. This required a high degree of auditor
judgment, and for certain assumptions, the need to involve internal specialists
when performing audit procedures related to the revisions in estimates of cash
flows associated with coal ash asset retirement obligations.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the revisions in coal ash remediation
estimate cash flows associated with coal ash asset retirement obligations
included the following, among others:
• We tested the effectiveness of management’s controls over the
evaluation of coal ash asset retirement obligations, including those
over management’s assessment of triggering events, management’s
review of asset retirement obligation remeasurements, and the
evaluation of significant assumptions used in determining the present
value of the obligation.
• We tested the mathematical accuracy of management’s coal ash
asset retirement obligation cash flow calculations.
• With the assistance of professionals within our firm with the
appropriate expertise, we assessed the reasonableness of:
◦Management’s interpretation of the applicability of the 2024 CCR
rule,
◦The significant site-specific assumptions, and
◦The significant assumptions used in determining the present value
of the obligation.
• We evaluated the Company’s disclosures related to the coal ash asset
retirement obligation.
• We obtained representation from management asserting that the
asset retirement obligations recorded in the financial statements
represent management’s best estimate of the obligation as required
under ASC 410, Asset Retirement and Environmental Obligations, and
based upon the requirements of the applicable laws and regulations.
/s/ Deloitte & Touche LLP
Charlotte, North Carolina
February 27, 2025
We have served as the Company’s auditor since 1930.
PART II
75
PROGRESS ENERGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Years Ended December 31,
(in millions)
2024
2023
2022
Operating Revenues
$13,633
$13,544
$13,125
Operating Expenses
Fuel used in electric generation and purchased power
4,755
5,026
5,078
Operation, maintenance and other
2,463
2,636
2,458
Depreciation and amortization
2,393
2,151
2,142
Property and other taxes
617
644
607
Impairment of assets and other charges
6
28
12
Total operating expenses
10,234
10,485
10,297
Gains on Sales of Other Assets and Other, net
27
27
11
Operating Income
3,426
3,086
2,839
Other Income and Expenses, net
235
201
181
Interest Expense
1,064
954
844
Income Before Income Taxes
2,597
2,333
2,176
Income Tax Expense
426
377
348
Net Income
$ 2,171
$ 1,956
$ 1,828
Other Comprehensive Income, net of tax
Pension and OPEB adjustments
—
(2)
5
Net unrealized gain on cash flow hedges
—
—
1
Unrealized gains (losses) on available-for-sale securities
—
3
(6)
Other Comprehensive Income, net of tax
—
1
—
Comprehensive Income
$ 2,171
$ 1,957
$ 1,828
See Notes to Consolidated Financial Statements
PART II
76
PROGRESS ENERGY, INC.
CONSOLIDATED BALANCE SHEETS
December 31,
(in millions)
2024
2023
ASSETS
Current Assets
Cash and cash equivalents
$
73
$
59
Receivables (net of allowance for doubtful accounts of $39 at 2024 and $18 at 2023)
707
225
Receivables of VIEs (net of allowance for doubtful accounts of $34 at 2024 and $56 at 2023)
835
1,365
Receivables from affiliated companies
25
90
Inventory (includes $494 at 2024 and $462 at 2023 related to VIEs)
2,086
1,901
Regulatory assets (includes $108 at 2024 and $98 at 2023 related to VIEs)
1,647
1,661
Other (includes $75 at 2024 and $68 at 2023 related to VIEs)
182
134
Total current assets
5,555
5,435
Property, Plant and Equipment
Cost
72,560
67,644
Accumulated depreciation and amortization
(23,586)
(22,300)
Net property, plant and equipment
48,974
45,344
Other Noncurrent Assets
Goodwill
3,655
3,655
Regulatory assets (includes $1,516 at 2024 and $1,446 at 2023 related to VIEs)
6,618
6,430
Nuclear decommissioning trust funds
4,967
4,457
Operating lease right-of-use assets, net
625
617
Other
1,242
1,156
Total other noncurrent assets
17,107
16,315
Total Assets
$ 71,636
$ 67,094
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (includes $208 at 2024 and $188 at 2023 related to VIEs)
$ 2,170
$ 1,374
Accounts payable to affiliated companies
507
464
Notes payable to affiliated companies
1,077
1,043
Taxes accrued
312
259
Interest accrued
232
224
Current maturities of long-term debt (includes $502 at 2024 and $418 at 2023 related to VIEs)
1,517
661
Asset retirement obligations
231
245
Regulatory liabilities
522
418
Other
792
860
Total current liabilities
7,360
5,548
Long-Term Debt (includes $1,582 at 2024 and $1,910 at 2023 related to VIEs)
22,829
22,948
Long-Term Debt Payable to Affiliated Companies
150
150
Other Noncurrent Liabilities
Deferred income taxes
5,263
5,197
Asset retirement obligations
4,317
3,900
Regulatory liabilities
5,258
5,083
Operating lease liabilities
557
544
Accrued pension and other post-retirement benefit costs
254
266
Investment tax credits
385
371
Other (includes $11 at 2024 and $19 at 2023 related to VIEs)
357
227
Total other noncurrent liabilities
16,391
15,588
Commitments and Contingencies
Equity
Common stock, $0.01 par value, 100 shares authorized and outstanding at 2024 and 2023
—
—
Additional paid-in capital
11,830
11,830
Retained earnings
13,086
11,040
Accumulated other comprehensive loss
(10)
(10)
Total equity
24,906
22,860
Total Liabilities and Equity
$ 71,636
$ 67,094
See Notes to Consolidated Financial Statements
PART II
77
PROGRESS ENERGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31,
(in millions)
2024
2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$ 2,171
$ 1,956
$ 1,828
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion (including amortization of nuclear fuel)
2,761
2,721
2,405
Equity component of AFUDC
(74)
(67)
(68)
Gains on sales of other assets
(27)
(27)
(11)
Impairment of assets and other charges
6
28
12
Deferred income taxes
33
(120)
364
Contributions to qualified pension plans
(23)
(22)
(13)
Payments for asset retirement obligations
(279)
(329)
(291)
Provision for rate refunds
(2)
(24)
(58)
(Increase) decrease in
Receivables
25
21
(322)
Receivables from affiliated companies
65
(68)
117
Inventory
(172)
(322)
(183)
Other current assets
81
287
(937)
Increase (decrease) in
Accounts payable
867
(266)
222
Accounts payable to affiliated companies
43
(248)
206
Taxes accrued
49
124
8
Other current liabilities
164
9
96
Other assets
(723)
357
(1,105)
Other liabilities
94
108
573
Net cash provided by operating activities
5,059
4,118
2,843
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(5,252)
(4,917)
(4,317)
Purchases of debt and equity securities
(2,703)
(1,590)
(1,341)
Proceeds from sales and maturities of debt and equity securities
2,809
1,663
1,417
Other
(463)
(329)
(137)
Net cash used in investing activities
(5,609)
(5,173)
(4,378)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt
1,134
2,555
2,775
Payments for the redemption of long-term debt
(467)
(1,248)
(1,173)
Notes payable to affiliated companies
34
200
465
Dividends to parent
(125)
(500)
(425)
Other
(1)
(1)
(36)
Net cash provided by financing activities
575
1,006
1,606
Net increase (decrease) in cash, cash equivalents and restricted cash
25
(49)
71
Cash, cash equivalents and restricted cash at beginning of period
135
184
113
Cash, cash equivalents and restricted cash at end of period
$
160
$
135
$
184
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized
$ 1,078
$
954
$
854
Cash paid for income taxes, net (includes transferable tax credit sale proceeds of $118, $28 and $0, respectively)
315
310
79
Significant non-cash transactions:
Accrued capital expenditures
745
806
663
See Notes to Consolidated Financial Statements
PART II
78
PROGRESS ENERGY, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Accumulated Other Comprehensive Income (Loss)
(in millions)
Additional
Paid-in
Capital
Retained
Earnings
Net Gains
(Losses) on
Cash Flow
Hedges
Net Unrealized
Gains (Losses)
on Available-for-
Sale Securities
Pension and
OPEB
Adjustments
Total Progress
Energy, Inc.
Stockholder’s
Equity
Noncontrolling
Interests
Total
Equity
Balance at December 31, 2021
$ 9,149
$ 8,007
$ (2)
$ (2)
$ (7)
$17,145
$ 3 $17,148
Net income
—
1,828
—
—
—
1,828
—
1,828
Other comprehensive income (loss)
—
—
1
(6)
5
—
—
—
Distributions to noncontrolling interests
—
—
—
—
—
—
(34)
(34)
Dividends to parent
(175)
(250)
—
—
—
(425)
—
(425)
Equitization of certain notes payable to affiliates
2,907
—
—
—
—
2,907
—
2,907
Purchase of a noncontrolling interest
(51)
—
—
—
—
(51)
31
(20)
Other
2
—
—
—
—
2
—
2
Balance at December 31, 2022
$11,832
$ 9,585
$ (1)
$ (8)
$ (2)
$21,406
$ — $21,406
Net income
—
1,956
—
—
—
1,956
—
1,956
Other comprehensive income (loss)
—
—
—
3
(2)
1
—
1
Dividends to parent
—
(500)
—
—
—
(500)
—
(500)
Other
(2)
(1)
—
—
—
(3)
—
(3)
Balance at December 31, 2023
$11,830
$11,040
$ (1)
$ (5)
$ (4)
$22,860
$ — $22,860
Net income
—
2,171
—
—
—
2,171
—
2,171
Dividends to parent
—
(125)
—
—
—
(125)
—
(125)
Balance at December 31, 2024
$11,830
$13,086
$ (1)
$ (5)
$ (4)
$24,906
$ — $24,906
See Notes to Consolidated Financial Statements
PART II
79
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholder and the Board of Directors
of Duke Energy Progress, LLC
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Duke
Energy Progress, LLC and subsidiaries (the “Company”) as of December 31,
2024 and 2023, the related consolidated statements of operations and
comprehensive income, changes in equity, and cash flows, for each of the
three years in the period ended December 31, 2024, and the related notes
(collectively referred to as the “financial statements”). In our opinion, the
financial statements present fairly, in all material respects, the financial position
of the Company as of December 31, 2024 and 2023, and the results of its
operations and its cash flows for each of the three years in the period ended
December 31, 2024, in conformity with accounting principles generally accepted
in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on the Company’s
financial statements based on our audits. We are a public accounting firm
registered with the Public Company Accounting Oversight Board (United States)
(PCAOB) and are required to be independent with respect to the Company in
accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the
PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement, whether due to error or fraud. The Company is not
required to have, nor were we engaged to perform, an audit of its internal control
over financial reporting. As part of our audits, we are required to obtain an
understanding of internal control over financial reporting but not for the purpose
of expressing an opinion on the effectiveness of the Company’s internal
control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of
material misstatement of the financial statements, whether due to error or
fraud, and performing procedures that respond to those risks. Such procedures
included examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements. Our audits also included evaluating
the accounting principles used and significant estimates made by management,
as well as evaluating the overall presentation of the financial statements. We
believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from
the current-period audit of the financial statements that were communicated
or required to be communicated to the audit committee and that (1) relate to
accounts or disclosures that are material to the financial statements and
(2) involved our especially challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter in any way our
opinion on the financial statements, taken as a whole, and we are not, by
communicating the critical audit matters below, providing separate opinions
on the critical audit matters or on the accounts or disclosures to which they
relate.
Regulatory Matters – Impact of Rate Regulation on the Financial
Statements – Refer to Notes 1, 4, and 10 to the financial statements.
Critical Audit Matter Description
The Company is subject to rate regulation by the North Carolina Utilities
Commission and by the South Carolina Public Service Commission (collectively
the “Commissions”), which have jurisdiction with respect to the electric
rates of the Company. Management has determined it meets the criteria for
the application of regulated operations accounting in preparing its financial
statements under accounting principles generally accepted in the United States
of America. Judgment can be required to determine if otherwise recognizable
incurred costs qualify to be presented as a regulatory asset and deferred because
such costs are probable of future recovery in customer rates. As discussed in
Note 4, regulatory proceedings in recent years have focused on the recoverability
of storm costs, fuel costs and asset retirement obligations specific to coal
ash. As a result, assessing the potential outcomes of future regulatory orders
requires management judgment.
We identified the impact of rate regulation related to regulatory assets
as a critical audit matter due to the judgments made by management, including
assumptions regarding the outcome of future decisions by the Commissions
to support its assertions on the likelihood of future recovery for deferred costs.
Given that management’s accounting judgments are based on assumptions
about the outcome of future decisions by the Commissions, auditing these
judgments required specialized knowledge of accounting for rate regulation and
the ratemaking process due to its inherent complexities as it relates to
regulatory assets.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the recovery of regulatory assets
included the following, among others:
• We tested the effectiveness of management’s controls over the
evaluation of the likelihood of the recovery in future rates and the
monitoring and evaluation of regulatory developments that may affect
the likelihood of recovering costs in future rates.
• We evaluated the Company’s disclosures related to the impacts of
rate regulation, including the balances recorded and regulatory
developments.
• We read relevant regulatory orders issued by the Commissions and
other publicly available information to assess the likelihood of recovery
in future rates based on precedents of the Commissions’ treatment
of similar costs under similar circumstances. We evaluated the external
information and compared it to management’s recorded balances
for completeness.
• For regulatory matters in process, we inspected the Company’s and
intervenors’ filings with the Commissions that may impact the
Company’s future rates, for any evidence that might contradict
management’s assertions.
• We evaluated the reasonableness of management’s judgments
regarding the recoverability of regulatory asset balances by performing
the following to inform our understanding of the composition of the
balances:
PART II
80
◦We inquired of management regarding changes in the regulatory
environment (i.e., recently approved orders) and regulatory asset
balances during the year.
◦We evaluated the reasonableness of such changes based on our
knowledge of commission-approved amortization, expected incurred
costs, and recently approved regulatory orders, as applicable.
◦We utilized trend analyses to evaluate the historical consistency of
regulatory asset balances.
◦We compared the recorded regulatory asset balances to an
independently developed expectation of the corresponding balance.
• We performed audit procedures to assess the ongoing regulatory
recoverability of asset retirement obligations specific to coal ash.
• We obtained an analysis from management regarding the estimated
storm costs that they determined were probable of recovery, but not yet
addressed in a regulatory order. This analysis also included letters
from the internal legal counsel asserting that the recovery of these
costs is probable.
• We obtained representation from management asserting that
regulatory assets recorded in the financial statements are probable of
recovery.
• We performed substantive analytical procedures on the recoverability
of deferred fuel costs and test of details procedures on the
recoverability of deferred storm costs.
Asset Retirement Obligations – Coal Ash – Refer to Notes 4 and 10 to the
financial statements.
Critical Audit Matter Description
The Company records asset retirement obligations associated with coal
ash remediation at operating and retired coal burning generation facilities.
These legal obligations are the result of state and federal regulations across the
Company’s jurisdictions. On a quarterly basis, management performs an
assessment for any indicators that would suggest a change in its coal ash
asset retirement obligations may be necessary. Judgment is required to calculate
coal ash remediation obligations, which are determined through site-specific
assumptions, as well as assumptions used in determining the present value of
the obligation.
We identified the revisions in coal ash remediation estimate cash flows
associated with coal ash retirement obligations, resulting from the 2024 Coal
Combustion Residuals (“CCR”) Rule, as a critical audit matter because of the
significant estimates and assumptions made by management in determining
the recorded asset retirement obligation. This required a high degree of auditor
judgment, and for certain assumptions, the need to involve internal specialists
when performing audit procedures related to the revisions in estimates of cash
flows associated with coal ash asset retirement obligations.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the revisions in coal ash remediation
estimate cash flows associated with coal ash asset retirement obligations
included the following, among others:
• We tested the effectiveness of management’s controls over the
evaluation of coal ash asset retirement obligations, including those
over management’s assessment of triggering events, management’s
review of asset retirement obligation remeasurements, and the
evaluation of significant assumptions used in determining the present
value of the obligation.
• We tested the mathematical accuracy of management’s coal ash
asset retirement obligation cash flow calculations.
• With the assistance of professionals within our firm with the
appropriate expertise, we assessed the reasonableness of:
◦Management’s interpretation of the applicability of the 2024 CCR
rule,
◦The significant site-specific assumptions, and
◦The significant assumptions used in determining the present value
of the obligation.
• We evaluated the Company’s disclosures related to the coal ash asset
retirement obligation.
• We obtained representation from management asserting that the
asset retirement obligations recorded in the financial statements
represent management’s best estimate of the obligation as required
under ASC 410, Asset Retirement and Environmental Obligations, and
based upon the requirements of the applicable laws and regulations.
/s/ Deloitte & Touche LLP
Charlotte, North Carolina
February 27, 2025
We have served as the Company’s auditor since 1930.
PART II
81
DUKE ENERGY PROGRESS, LLC
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Years Ended December 31,
(in millions)
2024
2023
2022
Operating Revenues
$7,017
$6,488
$6,753
Operating Expenses
Fuel used in electric generation and purchased power
2,409
2,203
2,492
Operation, maintenance and other
1,388
1,379
1,475
Depreciation and amortization
1,336
1,266
1,187
Property and other taxes
177
164
190
Impairment of assets and other charges
6
29
7
Total operating expenses
5,316
5,041
5,351
Gains on Sales of Other Assets and Other, net
2
3
4
Operating Income
1,703
1,450
1,406
Other Income and Expenses, net
143
124
114
Interest Expense
493
427
354
Income Before Income Taxes
1,353
1,147
1,166
Income Tax Expense
189
149
158
Net Income and Comprehensive Income
$1,164
$ 998
$1,008
See Notes to Consolidated Financial Statements
PART II
82
DUKE ENERGY PROGRESS, LLC
CONSOLIDATED BALANCE SHEETS
December 31,
(in millions)
2024
2023
ASSETS
Current Assets
Cash and cash equivalents
$
24
$
18
Receivables (net of allowance for doubtful accounts of $10 at 2024 and $8 at 2023)
160
139
Receivables of VIEs (net of allowance for doubtful accounts of $34 at 2024 and $36 at 2023)
835
833
Receivables from affiliated companies
10
16
Inventory
1,341
1,227
Regulatory assets (includes $47 at 2024 and $39 at 2023 related to VIEs)
626
942
Other (includes $40 at 2024 and $31 at 2023 related to VIEs)
104
72
Total current assets
3,100
3,247
Property, Plant and Equipment
Cost
42,060
39,283
Accumulated depreciation and amortization
(15,930)
(15,227)
Net property, plant and equipment
26,130
24,056
Other Noncurrent Assets
Regulatory assets (includes $775 at 2024 and $643 at 2023 related to VIEs)
4,555
4,546
Nuclear decommissioning trust funds
4,636
4,075
Operating lease right-of-use assets, net
348
318
Other
724
682
Total other noncurrent assets
10,263
9,621
Total Assets
$ 39,493
$ 36,924
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable
$
749
$
634
Accounts payable to affiliated companies
306
332
Notes payable to affiliated companies
611
891
Taxes accrued
394
176
Interest accrued
122
114
Current maturities of long-term debt (includes $443 at 2024 and $34 at 2023 related to VIEs)
983
72
Asset retirement obligations
230
244
Regulatory liabilities
348
300
Other
427
481
Total current liabilities
4,170
3,244
Long-Term Debt (includes $809 at 2024 and $1,079 at 2023 related to VIEs)
11,371
11,492
Long-Term Debt Payable to Affiliated Companies
150
150
Other Noncurrent Liabilities
Deferred income taxes
2,344
2,560
Asset retirement obligations
4,104
3,626
Regulatory liabilities
4,570
4,375
Operating lease liabilities
332
293
Accrued pension and other post-retirement benefit costs
141
146
Investment tax credits
144
129
Other (includes $11 at 2024 and $12 at 2023 related to VIEs)
196
102
Total other noncurrent liabilities
11,831
11,231
Commitments and Contingencies
Equity
Member’s Equity
11,971
10,807
Total Liabilities and Equity
$ 39,493
$ 36,924
See Notes to Consolidated Financial Statements
PART II
83
DUKE ENERGY PROGRESS, LLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31,
(in millions)
2024
2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$ 1,164
$
998
$ 1,008
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of nuclear fuel)
1,520
1,460
1,371
Equity component of AFUDC
(61)
(52)
(52)
Impairment of assets and other charges
6
29
7
Deferred income taxes
(224)
(53)
121
Contributions to qualified pension plans
(14)
(13)
(8)
Payments for asset retirement obligations
(197)
(249)
(193)
Provisions for rate refunds
(2)
(24)
(58)
(Increase) decrease in
Receivables
(11)
(10)
(228)
Receivables from affiliated companies
6
9
58
Inventory
(114)
(221)
(85)
Other current assets
375
(252)
(207)
Increase (decrease) in
Accounts payable
63
(26)
20
Accounts payable to affiliated companies
(26)
(176)
198
Taxes accrued
217
99
(86)
Other current liabilities
133
13
13
Other assets
(426)
173
(416)
Other liabilities
81
29
38
Net cash provided by operating activities
2,490
1,734
1,501
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(2,803)
(2,387)
(2,070)
Purchases of debt and equity securities
(2,480)
(1,406)
(1,148)
Proceeds from sales and maturities of debt and equity securities
2,480
1,402
1,138
Other
(172)
(144)
(29)
Net cash used in investing activities
(2,975)
(2,535)
(2,109)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt
855
991
1,477
Payments for the redemption of long-term debt
(72)
(369)
(645)
Notes payable to affiliated companies
(280)
652
67
Distributions to parent
—
(500)
(250)
Other
—
(1)
(1)
Net cash provided by financing activities
503
773
648
Net increase (decrease) in cash, cash equivalents and restricted cash
18
(28)
40
Cash, cash equivalents and restricted cash at beginning of period
51
79
39
Cash, cash equivalents and restricted cash at end of period
$
69
$
51
$
79
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized
$
522
$
447
$
386
Cash paid for income taxes, net (includes transferable tax credit sale proceeds of $71, $0 and $0, respectively)
192
73
157
Significant non-cash transactions:
Accrued capital expenditures
374
313
269
See Notes to Consolidated Financial Statements
PART II
84
DUKE ENERGY PROGRESS, LLC
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(in millions)
Member’s
Equity
Balance at December 31, 2021
$ 9,551
Net income
1,008
Distributions to parent
(250)
Balance at December 31, 2022
$10,309
Net income
998
Distributions to parent
(500)
Balance at December 31, 2023
$10,807
Net income
1,164
Balance at December 31, 2024
$11,971
See Notes to Consolidated Financial Statements
PART II
85
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholder and the Board of Directors
of Duke Energy Florida, LLC
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Duke Energy Florida, LLC and subsidiaries (the “Company”) as of December 31, 2024
and 2023, the related consolidated statements of operations and comprehensive income, changes in equity, and cash flows, for each of the three years in the
period ended December 31, 2024, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present
fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each
of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial
statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and
are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the
Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor
were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal
control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.
Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the
overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or
required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved
our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial
statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the
accounts or disclosures to which it relates.
Regulatory Matters – Impact of Rate Regulation on the Financial Statements – Refer to Notes 1 and 4 to the financial statements.
Critical Audit Matter Description
The Company is subject to rate regulation by the Florida Public Service Commission (the “Commission”), which has jurisdiction with respect to the electric
rates of the Company. Management has determined it meets the criteria for the application of regulated operations accounting in preparing its financial statements
under accounting principles generally accepted in the United States of America. Judgment can be required to determine if otherwise recognizable incurred costs
qualify to be presented as a regulatory asset and deferred because such costs are probable of future recovery in customer rates. As discussed in Note 4, regulatory
proceedings in recent years have focused on the recoverability of storm and fuel costs. As a result, assessing the potential outcomes of future regulatory orders
in Florida requires management judgment.
We identified the impact of rate regulation related to regulatory assets as a critical audit matter due to the judgments made by management, including
assumptions regarding the outcome of future decisions by the Commission to support its assertions on the likelihood of future recovery for deferred costs. Given
that management’s accounting judgments are based on assumptions about the outcome of future decisions by the Commission, auditing these judgments required
specialized knowledge of accounting for rate regulation and the ratemaking process due to its inherent complexities as it relates to regulatory assets.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the recovery of regulatory assets included the following, among others:
• We tested the effectiveness of management’s controls over the evaluation of the likelihood of the recovery in future rates and the monitoring and
evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates.
• We evaluated the Company’s disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.
• We read relevant regulatory orders issued by the Commission and other publicly available information to assess the likelihood of recovery in future rates
based on precedents of the Commission’s treatment of similar costs under similar circumstances. We evaluated the external information and compared
it to management’s recorded balances for completeness.
PART II
86
• For regulatory matters in process, we inspected the Company’s and intervenors’ filings with the Commission, that may impact the Company’s future
rates, for any evidence that might contradict management’s assertions.
• We evaluated the reasonableness of management’s judgments regarding the recoverability of regulatory asset balances by performing the following to
inform our understanding of the composition of the balances:
◦We inquired of management regarding changes in the regulatory environment (i.e., recently approved orders) and regulatory asset balances during the
year.
◦We evaluated the reasonableness of such changes based on our knowledge of commission-approved amortization, expected incurred costs, and
recently approved regulatory orders, as applicable.
◦We utilized trend analyses to evaluate the historical consistency of regulatory asset balances.
◦We compared the recorded regulatory asset balances to an independently developed expectation of the corresponding balance.
• We obtained an analysis from management regarding the estimated storm costs that they determined were probable of recovery, but not yet addressed
in a regulatory order. This analysis also included letters from the internal legal counsel asserting that the recovery of these costs is probable.
• We obtained representation from management asserting that regulatory assets recorded in the financial statements are probable of recovery.
• We performed substantive analytical procedures on the recoverability of deferred fuel costs and test of details procedures on the recoverability of
deferred storm costs.
/s/ Deloitte & Touche LLP
Charlotte, North Carolina
February 27, 2025
We have served as the Company’s auditor since 2001.
PART II
87
DUKE ENERGY FLORIDA, LLC
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Years Ended December 31,
(in millions)
2024
2023
2022
Operating Revenues
$6,595
$7,036
$6,353
Operating Expenses
Fuel used in electric generation and purchased power
2,346
2,823
2,586
Operation, maintenance and other
1,055
1,239
967
Depreciation and amortization
1,057
885
955
Property and other taxes
440
480
421
Impairment of assets and other charges
—
(1)
4
Total operating expenses
4,898
5,426
4,933
Gains on Sales of Other Assets and Other, net
3
2
2
Operating Income
1,700
1,612
1,422
Other Income and Expenses, net
86
78
74
Interest Expense
457
413
362
Income Before Income Taxes
1,329
1,277
1,134
Income Tax Expense
268
261
225
Net Income
$1,061
$1,016
$ 909
Other Comprehensive Income (Loss), net of tax
Unrealized gains (losses) on available-for-sale securities
—
3
(5)
Other Comprehensive Income (Loss), net of tax
—
3
(5)
Comprehensive Income
$1,061
$1,019
$ 904
See Notes to Consolidated Financial Statements
PART II
88
DUKE ENERGY FLORIDA, LLC
CONSOLIDATED BALANCE SHEETS
December 31,
(in millions)
2024
2023
ASSETS
Current Assets
Cash and cash equivalents
$
33
$
24
Receivables (net of allowance for doubtful accounts of $29 at 2024 and $11 at 2023)
544
83
Receivables of VIEs (net of allowance for doubtful accounts of $0 at 2024 and $20 at 2023)
—
532
Receivables from affiliated companies
21
238
Inventory (includes $494 at 2024 and $462 at 2023 related to VIEs)
745
674
Regulatory assets (includes $61 at 2024 and $59 at 2023 related to VIEs)
1,022
720
Other (includes $35 at 2024 and $37 at 2023 related to VIEs)
227
51
Total current assets
2,592
2,322
Property, Plant and Equipment
Cost
30,490
28,353
Accumulated depreciation and amortization
(7,650)
(7,067)
Net property, plant and equipment
22,840
21,286
Other Noncurrent Assets
Regulatory assets (includes $741 at 2024 and $803 at 2023 related to VIEs)
2,064
1,883
Nuclear decommissioning trust funds
331
382
Operating lease right-of-use assets, net
277
299
Other
465
429
Total other noncurrent assets
3,137
2,993
Total Assets
$28,569
$26,601
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (includes $208 at 2024 and $188 at 2023 related to VIEs)
$ 1,418
$
738
Accounts payable to affiliated companies
67
135
Notes payable to affiliated companies
466
152
Taxes accrued
60
185
Interest accrued
86
86
Current maturities of long-term debt (includes $59 at 2024 and $384 at 2023 related to VIEs)
534
589
Asset retirement obligations
1
1
Regulatory liabilities
174
118
Other
342
350
Total current liabilities
3,148
2,354
Long-Term Debt (includes $773 at 2024 and $831 at 2023 related to VIEs)
9,814
9,812
Other Noncurrent Liabilities
Deferred income taxes
3,024
2,733
Asset retirement obligations
213
274
Regulatory liabilities
688
708
Operating lease liabilities
225
251
Accrued pension and other post-retirement benefit costs
92
98
Investment tax credits
241
242
Other
143
86
Total other noncurrent liabilities
4,626
4,392
Commitments and Contingencies
Equity
Member’s equity
10,986
10,048
Accumulated other comprehensive loss
(5)
(5)
Total equity
10,981
10,043
Total Liabilities and Equity
$28,569
$26,601
See Notes to Consolidated Financial Statements
PART II
89
DUKE ENERGY FLORIDA, LLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31,
(in millions)
2024
2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$ 1,061
$ 1,016
$
909
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion
1,239
1,260
1,032
Equity component of AFUDC
(13)
(15)
(16)
Impairment of assets and other charges
—
(1)
4
Deferred income taxes
265
(89)
285
Contributions to qualified pension plans
(9)
(9)
(5)
Payments for asset retirement obligations
(82)
(80)
(98)
(Increase) decrease in
Receivables
37
30
(93)
Receivables from affiliated companies
217
(236)
14
Inventory
(58)
(101)
(98)
Other current assets
(456)
496
(640)
Increase (decrease) in
Accounts payable
803
(241)
202
Accounts payable to affiliated companies
(68)
(42)
(32)
Taxes accrued
(129)
132
2
Other current liabilities
37
3
62
Other assets
(312)
163
(704)
Other liabilities
38
101
18
Net cash provided by operating activities
2,570
2,387
842
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(2,449)
(2,529)
(2,247)
Purchases of debt and equity securities
(223)
(184)
(193)
Proceeds from sales and maturities of debt and equity securities
330
261
279
Other
(292)
(185)
(108)
Net cash used in investing activities
(2,634)
(2,637)
(2,269)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt
279
1,564
1,298
Payments for the redemption of long-term debt
(395)
(879)
(77)
Notes payable to affiliated companies
314
(453)
406
Distributions to parent
(125)
—
(175)
Other
(1)
(1)
(1)
Net cash provided by financing activities
72
231
1,451
Net increase (decrease) in cash, cash equivalents and restricted cash
8
(19)
24
Cash, cash equivalents and restricted cash at beginning of period
67
86
62
Cash, cash equivalents and restricted cash at end of period
$
75
$
67
$
86
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized
$
442
$
394
$
339
Cash paid for (received from) income taxes, net (includes transferable tax credit sale proceeds of $47, $28 and $0, respectively)
270
219
(83)
Significant non-cash transactions:
Accrued capital expenditures
371
493
394
See Notes to Consolidated Financial Statements
PART II
90
DUKE ENERGY FLORIDA, LLC
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Accumulated Other
Comprehensive
Income (Loss)
(in millions)
Member’s
Equity
Net Unrealized
Gains (Losses) on
Available-for-
Sale Securities
Total
Equity
Balance at December 31, 2021
$ 8,298
$ (3)
$ 8,295
Net income
909
—
909
Other comprehensive loss
—
(5)
(5)
Distributions to parent
(175)
—
(175)
Other
(1)
—
(1)
Balance at December 31, 2022
$ 9,031
$ (8)
$ 9,023
Net income
1,016
—
1,016
Other comprehensive income
—
3
3
Other
1
—
1
Balance at December 31, 2023
$10,048
$ (5)
$10,043
Net income
1,061
—
1,061
Distributions to parent
(125)
—
(125)
Other
2
—
2
Balance at December 31, 2024
$10,986
$ (5)
$10,981
See Notes to Consolidated Financial Statements
PART II
91
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholder and the Board of Directors of
Duke Energy Ohio, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Duke
Energy Ohio, Inc. and subsidiaries (the “Company”) as of December 31, 2024
and 2023, the related consolidated statements of operations and comprehensive
income, changes in equity, and cash flows, for each of the three years in the
period ended December 31, 2024, and the related notes (collectively referred to
as the “financial statements”). In our opinion, the financial statements
present fairly, in all material respects, the financial position of the Company
as of December 31, 2024 and 2023, and the results of its operations and its cash
flows for each of the three years in the period ended December 31, 2024, in
conformity with accounting principles generally accepted in the United States
of America.
Basis for Opinion
These financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on the Company’s
financial statements based on our audits. We are a public accounting firm
registered with the Public Company Accounting Oversight Board (United States)
(PCAOB) and are required to be independent with respect to the Company in
accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the
PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement, whether due to error or fraud. The Company is not
required to have, nor were we engaged to perform, an audit of its internal control
over financial reporting. As part of our audits, we are required to obtain an
understanding of internal control over financial reporting but not for the purpose
of expressing an opinion on the effectiveness of the Company’s internal
control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of
material misstatement of the financial statements, whether due to error or
fraud, and performing procedures that respond to those risks. Such procedures
included examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements. Our audits also included evaluating
the accounting principles used and significant estimates made by management,
as well as evaluating the overall presentation of the financial statements. We
believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from
the current-period audit of the financial statements that was communicated
or required to be communicated to the audit committee and that (1) relates to
accounts or disclosures that are material to the financial statements and
(2) involved our especially challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter in any way our
opinion on the financial statements, taken as a whole, and we are not, by
communicating the critical audit matter below, providing a separate opinion
on the critical audit matter or on the accounts or disclosures to which it relates.
Regulatory Matters – Impact of Rate Regulation on the Financial
Statements – Refer to Notes 1 and 4 to the financial statements.
Critical Audit Matter Description
The Company is subject to rate regulation by the Public Utilities
Commission of Ohio and by the Kentucky Public Service Commission
(collectively the “Commissions”), which have jurisdiction with respect to the
electric and gas rates of the Company. Management has determined it meets
the criteria for the application of regulated operations accounting in
preparing its financial statements under accounting principles generally
accepted in the United States of America. Judgment can be required to
determine if otherwise recognizable incurred costs qualify to be presented as a
regulatory asset and deferred because such costs are probable of future
recovery in customer rates.
We identified the impact of rate regulation related to regulatory assets
as a critical audit matter due to the judgments made by management, including
assumptions regarding the outcome of future decisions by the Commissions
to support its assertions on the likelihood of future recovery for deferred costs.
Given that management’s accounting judgments are based on assumptions
about the outcome of future decisions by the Commissions, auditing these
judgments required specialized knowledge of accounting for rate regulation and
the ratemaking process due to its inherent complexities as it relates to
regulatory assets.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the recovery of regulatory assets
included the following, among others:
• We tested the effectiveness of management’s controls over the
evaluation of the likelihood of the recovery in future rates and the
monitoring and evaluation of regulatory developments that may affect
the likelihood of recovering costs in future rates.
• We evaluated the Company’s disclosures related to the impacts of
rate regulation, including the balances recorded and regulatory
developments.
• We read relevant regulatory orders issued by the Commissions and
other publicly available information to assess the likelihood of recovery
in future rates based on precedents of the Commissions’ treatment
of similar costs under similar circumstances. We evaluated the external
information and compared it to management’s recorded balances
for completeness.
• For regulatory matters in process, we inspected the Company’s and
intervenors’ filings with the Commissions that may impact the
Company’s future rates, for any evidence that might contradict
management’s assertions.
• We evaluated the reasonableness of management’s judgments
regarding the recoverability of regulatory asset balances by performing
the following to inform our understanding of the composition of the
balances:
◦We inquired of management regarding changes in the regulatory
environment (i.e., recently approved orders) and regulatory asset
balances during the year.
PART II
92
◦We evaluated the reasonableness of such changes based on our
knowledge of commission-approved amortization, expected incurred
costs, and recently approved regulatory orders, as applicable.
◦We utilized trend analyses to evaluate the historical consistency of
regulatory asset balances.
◦We compared the recorded regulatory asset balances to an
independently developed expectation of the corresponding balance.
• We obtained representation from management asserting that
regulatory assets recorded in the financial statements are probable of
recovery.
/s/ Deloitte & Touche LLP
Charlotte, North Carolina
February 27, 2025
We have served as the Company’s auditor since 2002.
PART II
93
DUKE ENERGY OHIO, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Years Ended December 31,
(in millions)
2024
2023
2022
Operating Revenues
Regulated electric
$1,905
$1,868
$1,798
Regulated natural gas
640
639
716
Total operating revenues
2,545
2,507
2,514
Operating Expenses
Fuel used in electric generation and purchased power
538
608
657
Cost of natural gas
142
163
261
Operation, maintenance and other
485
478
523
Depreciation and amortization
403
367
324
Property and other taxes
400
364
369
Impairment of assets and other charges
—
3
(10)
Total operating expenses
1,968
1,983
2,124
Gains on Sales of Other Assets and Other, net
1
1
1
Operating Income
578
525
391
Other Income and Expenses, net
19
41
19
Interest Expense
192
169
129
Income Before Income Taxes
405
397
281
Income Tax Expense (Benefit)
64
63
(21)
Net Income and Comprehensive Income
$ 341
$ 334
$ 302
See Notes to Consolidated Financial Statements
PART II
94
DUKE ENERGY OHIO, INC.
CONSOLIDATED BALANCE SHEETS
December 31,
(in millions)
2024
2023
ASSETS
Current Assets
Cash and cash equivalents
$
24
$
24
Receivables (net of allowance for doubtful accounts of $43 at 2024 and $9 at 2023)
447
112
Receivables from affiliated companies
11
239
Notes receivable from affiliated companies
28
—
Inventory
183
179
Regulatory assets
88
73
Other
30
134
Total current assets
811
761
Property, Plant and Equipment
Cost
13,918
13,210
Accumulated depreciation and amortization
(3,674)
(3,451)
Net property, plant and equipment
10,244
9,759
Other Noncurrent Assets
Goodwill
920
920
Regulatory assets
705
676
Operating lease right-of-use assets, net
6
16
Other
82
84
Total other noncurrent assets
1,713
1,696
Total Assets
$12,768
$12,216
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable
$
313
$
338
Accounts payable to affiliated companies
52
71
Notes payable to affiliated companies
162
613
Taxes accrued
363
316
Interest accrued
49
35
Current maturities of long-term debt
245
—
Asset retirement obligations
8
6
Regulatory liabilities
34
56
Other
67
65
Total current liabilities
1,293
1,500
Long-Term Debt
3,895
3,493
Long-Term Debt Payable to Affiliated Companies
25
25
Other Noncurrent Liabilities
Deferred income taxes
1,314
1,272
Asset retirement obligations
131
130
Regulatory liabilities
465
497
Operating lease liabilities
6
16
Accrued pension and other post-retirement benefit costs
89
97
Other
91
86
Total other noncurrent liabilities
2,096
2,098
Commitments and Contingencies
Equity
Common stock, $8.50 par value, 120 million shares authorized; 90 million shares outstanding at 2024 and 2023
762
762
Additional paid-in capital
3,118
3,100
Retained earnings
1,579
1,238
Total equity
5,459
5,100
Total Liabilities and Equity
$12,768
$12,216
See Notes to Consolidated Financial Statements
PART II
95
DUKE ENERGY OHIO, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31,
(in millions)
2024
2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$
341
$ 334
$
302
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion
408
371
328
Equity component of AFUDC
(7)
(9)
(7)
Impairment of assets and other charges
—
3
(10)
Deferred income taxes
8
113
(22)
Contributions to qualified pension plans
(5)
(5)
(3)
Payments for asset retirement obligations
(6)
(13)
(12)
Provision for rate refunds
—
—
5
(Increase) decrease in
Receivables
2
(38)
23
Receivables from affiliated companies
57
(40)
(5)
Inventory
(4)
(35)
(28)
Other current assets
78
(23)
(55)
Increase (decrease) in
Accounts payable
(10)
(34)
44
Accounts payable to affiliated companies
(19)
(1)
8
Taxes accrued
47
(1)
42
Other current liabilities
(5)
(54)
(63)
Other assets
45
(24)
(29)
Other liabilities
(25)
(38)
64
Net cash provided by operating activities
905
506
582
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(815)
(939)
(850)
Net proceeds from the sales of other assets
—
75
—
Notes receivable from affiliated companies
(194)
48
(105)
Other
(88)
(67)
(67)
Net cash used in investing activities
(1,097)
(883)
(1,022)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt
644
774
50
Payments for the redemption of long-term debt
—
(500)
—
Notes payable to affiliated companies
(451)
116
395
Other
(1)
(5)
(2)
Net cash provided by financing activities
192
385
443
Net increase in cash and cash equivalents
—
8
3
Cash and cash equivalents at beginning of period
24
16
13
Cash and cash equivalents at end of period
$
24
$ 24
$
16
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized
$
175
$ 158
$
126
Cash (received from) paid for income taxes
(79)
58
(35)
Significant non-cash transactions:
Accrued capital expenditures
99
115
123
See Notes to Consolidated Financial Statements
PART II
96
DUKE ENERGY OHIO, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(in millions)
Common
Stock
Additional
Paid-in
Capital
Retained
Earnings
Total
Equity
Balance at December 31, 2021
$762
$3,100
$ 602
$4,464
Net income
—
—
302
302
Balance at December 31, 2022
$762
$3,100
$ 904
$4,766
Net income
—
—
334
334
Balance at December 31, 2023
$762
$3,100
$1,238
$5,100
Net income
—
—
341
341
Other
—
18
—
18
Balance at December 31, 2024
$762
$3,118
$1,579
$5,459
See Notes to Consolidated Financial Statements
PART II
97
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholder and the Board of Directors of
Duke Energy Indiana, LLC
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Duke
Energy Indiana, LLC and subsidiary (the “Company”) as of December 31, 2024
and 2023, the related consolidated statements of operations and
comprehensive income, changes in equity, and cash flows, for each of the
three years in the period ended December 31, 2024, and the related notes
(collectively referred to as the “financial statements”). In our opinion, the
financial statements present fairly, in all material respects, the financial position
of the Company as of December 31, 2024 and 2023, and the results of its
operations and its cash flows for each of the three years in the period ended
December 31, 2024, in conformity with accounting principles generally accepted
in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on the Company’s
financial statements based on our audits. We are a public accounting firm
registered with the Public Company Accounting Oversight Board (United States)
(PCAOB) and are required to be independent with respect to the Company in
accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the
PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement, whether due to error or fraud. The Company is not
required to have, nor were we engaged to perform, an audit of its internal control
over financial reporting. As part of our audits, we are required to obtain an
understanding of internal control over financial reporting but not for the purpose
of expressing an opinion on the effectiveness of the Company’s internal
control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of
material misstatement of the financial statements, whether due to error or
fraud, and performing procedures that respond to those risks. Such procedures
included examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements. Our audits also included evaluating
the accounting principles used and significant estimates made by management,
as well as evaluating the overall presentation of the financial statements. We
believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from
the current-period audit of the financial statements that were communicated
or required to be communicated to the audit committee and that (1) relate to
accounts or disclosures that are material to the financial statements and
(2) involved our especially challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter in any way our
opinion on the financial statements, taken as a whole, and we are not, by
communicating the critical audit matters below, providing separate opinions
on the critical audit matters or on the accounts or disclosures to which they
relate.
Regulatory Matters – Impact of Rate Regulation on the Financial
Statements – Refer to Notes 1, 4, and 10 to the financial statements.
Critical Audit Matter Description
The Company is subject to rate regulation by the Indiana Utility
Regulatory Commission (the “Commission”), which has jurisdiction with
respect to the electric rates of the Company. Management has determined it
meets the criteria for the application of regulated operations accounting in
preparing its financial statements under accounting principles generally
accepted in the United States of America. Judgment can be required to
determine if otherwise recognizable incurred costs qualify to be presented as a
regulatory asset and deferred because such costs are probable of future
recovery in customer rates. As discussed in Note 4, regulatory proceedings in
recent years in Indiana have focused on asset retirement obligations specific to
coal ash. As a result, assessing the potential outcomes of future regulatory
orders requires management judgment.
We identified the impact of rate regulation related to regulatory assets
as a critical audit matter due to the judgments made by management, including
assumptions regarding the outcome of future decisions by the Commission to
support its assertions on the likelihood of future recovery for deferred costs.
Given that management’s accounting judgments are based on assumptions
about the outcome of future decisions by the Commission, auditing these
judgments required specialized knowledge of accounting for rate regulation
and the ratemaking process due to its inherent complexities as it relates to
regulatory assets.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the recovery of regulatory assets
included the following, among others:
• We tested the effectiveness of management’s controls over the
evaluation of the likelihood of the recovery in future rates and the
monitoring and evaluation of regulatory developments that may affect
the likelihood of recovering costs in future rates.
• We evaluated the Company’s disclosures related to the impacts of
rate regulation, including the balances recorded and regulatory
developments.
• We read relevant regulatory orders issued by the Commission and
other publicly available information to assess the likelihood of recovery
in future rates based on precedents of the Commission’s treatment
of similar costs under similar circumstances. We evaluated the external
information and compared it to management’s recorded balances
for completeness.
• For regulatory matters in process, we inspected the Company’s and
intervenors’ filings with the Commission, that may impact the
Company’s future rates, for any evidence that might contradict
management’s assertions.
• We evaluated the reasonableness of management’s judgments
regarding the recoverability of regulatory asset balances by performing
the following to inform our understanding of the composition of the
balances:
◦We inquired of management regarding changes in the regulatory
environment (i.e., recently approved orders) and regulatory asset
balances during the year.
PART II
98
◦We evaluated the reasonableness of such changes based on our
knowledge of commission-approved amortization, expected incurred
costs, and recently approved regulatory orders, as applicable.
◦We utilized trend analyses to evaluate the historical consistency of
regulatory asset balances.
◦We compared the recorded regulatory asset balances to an
independently developed expectation of the corresponding balance.
• We performed audit procedures to assess the ongoing regulatory
recoverability of asset retirement obligations specific to coal ash.
• We obtained representation from management asserting that
regulatory assets recorded in the financial statements are probable of
recovery.
Asset Retirement Obligations – Coal Ash – Refer to Notes 4 and 10 to the
financial statements.
Critical Audit Matter Description
The Company records asset retirement obligations associated with coal
ash remediation at operating and retired coal burning generation facilities.
These legal obligations are the result of state and federal regulations across the
Company’s jurisdictions. On a quarterly basis, management performs an
assessment for any indicators that would suggest a change in its coal ash
asset retirement obligations may be necessary. Judgment is required to calculate
coal ash remediation obligations, which are determined through site-specific
assumptions, as well as assumptions used in determining the present value of
the obligation.
We identified the revisions in coal ash remediation estimate cash flows
associated with coal ash retirement obligations, resulting from the 2024 Coal
Combustion Residuals (“CCR”) Rule, as a critical audit matter because of the
significant estimates and assumptions made by management in determining
the recorded asset retirement obligation. This required a high degree of auditor
judgment, and for certain assumptions, the need to involve internal specialists
when performing audit procedures related to the revisions in estimates of cash
flows associated with coal ash asset retirement obligations.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the revisions in coal ash remediation
estimate cash flows associated with coal ash asset retirement obligations
included the following, among others:
• We tested the effectiveness of management’s controls over the
evaluation of coal ash asset retirement obligations, including those
over management’s assessment of triggering events, management’s
review of asset retirement obligation remeasurements, and the
evaluation of significant assumptions used in determining the present
value of the obligation.
• We tested the mathematical accuracy of management’s coal ash
asset retirement obligation cash flow calculations.
• With the assistance of professionals within our firm with the
appropriate expertise, we assessed the reasonableness of:
◦Management’s interpretation of the applicability of the 2024 CCR
rule,
◦The significant site-specific assumptions, and
◦The significant assumptions used in determining the present value
of the obligation.
• We evaluated the Company’s disclosures related to the coal ash asset
retirement obligation.
• We obtained representation from management asserting that the
asset retirement obligations recorded in the financial statements
represent management’s best estimate of the obligation as required
under ASC 410, Asset Retirement and Environmental Obligations, and
based upon the requirements of the applicable laws and regulations.
/s/ Deloitte & Touche LLP
Charlotte, North Carolina
February 27, 2025
We have served as the Company’s auditor since 2002.
PART II
99
DUKE ENERGY INDIANA, LLC
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Years Ended December 31,
(in millions)
2024
2023
2022
Operating Revenues
$3,040
$3,399
$3,922
Operating Expenses
Fuel used in electric generation and purchased power
964
1,217
1,819
Operation, maintenance and other
671
713
729
Depreciation and amortization
676
666
645
Property and other taxes
50
59
75
Impairment of assets and other charges
—
—
388
Total operating expenses
2,361
2,655
3,656
Operating Income
679
744
266
Other Income and Expenses, net
62
76
36
Interest Expense
229
213
189
Income Before Income Taxes
512
607
113
Income Tax Expense (Benefit)
71
110
(24)
Net Income
$ 441
$ 497
$ 137
Other Comprehensive Loss, net of tax
Pension and OPEB adjustments
$
(1)
$
—
$
—
Comprehensive Income
$ 440
$ 497
$ 137
See Notes to Consolidated Financial Statements
PART II
100
DUKE ENERGY INDIANA, LLC
CONSOLIDATED BALANCE SHEETS
December 31,
(in millions)
2024
2023
ASSETS
Current Assets
Cash and cash equivalents
$
13
$
8
Receivables (net of allowance for doubtful accounts of $15 at 2024 and $5 at 2023)
423
156
Receivables from affiliated companies
1
197
Inventory
586
582
Regulatory assets
113
102
Other
69
98
Total current assets
1,205
1,143
Property, Plant and Equipment
Cost
19,970
18,900
Accumulated depreciation and amortization
(6,848)
(6,501)
Net property, plant and equipment
13,122
12,399
Other Noncurrent Assets
Regulatory assets
1,040
894
Operating lease right-of-use assets, net
37
50
Other
323
325
Total other noncurrent assets
1,400
1,269
Total Assets
$15,727
$14,811
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable
$
257
$
300
Accounts payable to affiliated companies
57
176
Notes payable to affiliated companies
10
256
Taxes accrued
168
66
Interest accrued
59
54
Current maturities of long-term debt
4
4
Asset retirement obligations
164
120
Regulatory liabilities
183
209
Other
183
184
Total current liabilities
1,085
1,369
Long-Term Debt
4,644
4,348
Long-Term Debt Payable to Affiliated Companies
150
150
Other Noncurrent Liabilities
Deferred income taxes
1,494
1,436
Asset retirement obligations
1,104
689
Regulatory liabilities
1,404
1,459
Operating lease liabilities
33
46
Accrued pension and other post-retirement benefit costs
82
115
Investment tax credits
186
186
Other
19
—
Total other noncurrent liabilities
4,322
3,931
Commitments and Contingencies
Equity
Member’s equity
5,526
5,012
Accumulated other comprehensive income
—
1
Total equity
5,526
5,013
Total Liabilities and Equity
$15,727
$14,811
See Notes to Consolidated Financial Statements
PART II
101
DUKE ENERGY INDIANA, LLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31,
(in millions)
2024
2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$
441
$ 497
$
137
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion
679
669
648
Equity component of AFUDC
(19)
(10)
(13)
Impairment of assets and other charges
—
—
388
Deferred income taxes
(11)
91
(64)
Contributions to qualified pension plans
(8)
(8)
(5)
Payments for asset retirement obligations
(80)
(81)
(82)
Provision for rate refunds
(18)
—
—
(Increase) decrease in
Receivables
27
(40)
(3)
Receivables from affiliated companies
5
(8)
20
Inventory
(4)
(93)
(70)
Other current assets
70
138
(3)
Increase (decrease) in
Accounts payable
(44)
(83)
105
Accounts payable to affiliated companies
(78)
42
(3)
Taxes accrued
102
(26)
34
Other current liabilities
(31)
128
9
Other assets
(33)
(69)
(10)
Other liabilities
25
7
13
Net cash provided by operating activities
1,023
1,154
1,101
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(935)
(961)
(877)
Purchases of debt and equity securities
(133)
(68)
(61)
Proceeds from sales and maturities of debt and equity securities
132
55
48
Notes receivable from affiliated companies
(117)
109
(86)
Other
(46)
(66)
(55)
Net cash used in investing activities
(1,099)
(931)
(1,031)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt
298
495
67
Payments for the redemption of long-term debt
(4)
(303)
(84)
Notes payable to affiliated companies
(246)
(178)
435
Capital contribution from parent
235
—
—
Distributions to parent
(201)
(259)
(462)
Other
(1)
(1)
(1)
Net cash provided by (used in) financing activities
81
(246)
(45)
Net increase (decrease) in cash and cash equivalents
5
(23)
25
Cash and cash equivalents at beginning of period
8
31
6
Cash and cash equivalents at end of period
$
13
$
8
$
31
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized
$
219
$ 202
$
186
Cash (received from) paid for income taxes
(80)
90
35
Significant non-cash transactions:
Accrued capital expenditures
115
114
122
See Notes to Consolidated Financial Statements
PART II
102
DUKE ENERGY INDIANA, LLC
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Accumulated Other
Comprehensive
Income
(in millions)
Member’s
Equity
Pension and OPEB
Adjustments
Total
Equity
Balance at December 31, 2021
$5,015
$—
$5,015
Net income
137
—
137
Distributions to parent
(450)
—
(450)
Other
—
1
1
Balance at December 31, 2022
$4,702
$ 1
$4,703
Net income
497
—
497
Distributions to parent
(187)
—
(187)
Balance at December 31, 2023
$5,012
$ 1
$5,013
Net income
441
—
441
Contributions from parent
235
—
235
Distributions to parent
(160)
—
(160)
Other
(2)
(1)
(3)
Balance at December 31, 2024
$5,526
$—
$5,526
See Notes to Consolidated Financial Statements
PART II
103
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholder and the Board of Directors of
Piedmont Natural Gas Company, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of
Piedmont Natural Gas Company, Inc. and subsidiaries (the “Company”) as of
December 31, 2024 and 2023, the related consolidated statements of operations
and comprehensive income, changes in equity, and cash flows, for each of
the three years in the period ended December 31, 2024, and the related notes
(collectively referred to as the “financial statements”). In our opinion, the
financial statements present fairly, in all material respects, the financial
position of the Company as of December 31, 2024 and 2023 and the results of
its operations and its cash flows for each of the three years in the period
ended December 31, 2024, in conformity with accounting principles generally
accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on the Company’s
financial statements based on our audits. We are a public accounting firm
registered with the Public Company Accounting Oversight Board (United States)
(PCAOB) and are required to be independent with respect to the Company in
accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the
PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement, whether due to error or fraud. The Company is not
required to have, nor were we engaged to perform, an audit of its internal control
over financial reporting. As part of our audits, we are required to obtain an
understanding of internal control over financial reporting but not for the purpose
of expressing an opinion on the effectiveness of the Company’s internal
control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of
material misstatement of the financial statements, whether due to error or
fraud, and performing procedures that respond to those risks. Such procedures
included examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements. Our audits also included evaluating
the accounting principles used and significant estimates made by management,
as well as evaluating the overall presentation of the financial statements. We
believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from
the current-period audit of the financial statements that was communicated
or required to be communicated to the audit committee and that (1) relates to
accounts or disclosures that are material to the financial statements and
(2) involved our especially challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter in any way our
opinion on the financial statements, taken as a whole, and we are not, by
communicating the critical audit matter below, providing a separate opinion
on the critical audit matter or on the accounts or disclosures to which it relates.
Regulatory Matters – Impact of Rate Regulation on the Financial
Statements – Refer to Notes 1 and 4 to the financial statements.
Critical Audit Matter Description
The Company is subject to rate regulation by the North Carolina Utilities
Commission, the Public Service Commission of South Carolina, and the
Tennessee Public Utility Commission (collectively the “Commissions”), which
have jurisdiction with respect to the gas rates of the Company. Management has
determined it meets the criteria for the application of regulated operations
accounting in preparing its financial statements under accounting principles
generally accepted in the United States of America. Judgment can be required to
determine if otherwise recognizable incurred costs qualify to be presented as
a regulatory asset and deferred because such costs are probable of future
recovery in customer rates.
We identified the impact of rate regulation related to regulatory assets
as a critical audit matter due to the judgments made by management, including
assumptions regarding the outcome of future decisions by the Commissions
to support its assertions on the likelihood of future recovery for deferred costs.
Given that management’s accounting judgments are based on assumptions
about the outcome of future decisions by the Commissions, auditing these
judgments required specialized knowledge of accounting for rate regulation and
the ratemaking process due to its inherent complexities as it relates to
regulatory assets.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the recovery of regulatory assets
included the following, among others:
• We tested the effectiveness of management’s controls over the
evaluation of the likelihood of the recovery in future rates and the
monitoring and evaluation of regulatory developments that may affect
the likelihood of recovering costs in future rates.
• We evaluated the Company’s disclosures related to the impacts of
rate regulation, including the balances recorded and regulatory
developments.
• We read relevant regulatory orders issued by the Commissions and
other publicly available information to assess the likelihood of recovery
in future rates based on precedents of the Commissions’ treatment
of similar costs under similar circumstances. We evaluated the external
information and compared it to management’s recorded balances
for completeness.
• For regulatory matters in process, we inspected the Company’s and
intervenors’ filings with the commissions, that may impact the
Company’s future rates, for any evidence that might contradict
management’s assertions.
• We evaluated the reasonableness of management’s judgments
regarding the recoverability of regulatory asset balances by performing
the following to inform our understanding of the composition of the
balances:
◦We inquired of management regarding changes in the regulatory
environment (i.e., recently approved orders) and regulatory asset
balances during the year.
PART II
104
◦We evaluated the reasonableness of such changes based on our
knowledge of commission-approved amortization, expected incurred
costs, and recently approved regulatory orders, as applicable.
◦We utilized trend analyses to evaluate the historical consistency of
regulatory asset balances.
◦We compared the recorded regulatory asset balances to an
independently developed expectation of the corresponding balance.
• We obtained representation from management asserting that
regulatory assets recorded in the financial statements are probable of
recovery.
/s/ Deloitte & Touche LLP
Charlotte, North Carolina
February 27, 2025
We have served as the Company’s auditor since 1951.
PART II
105
PIEDMONT NATURAL GAS COMPANY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Years Ended December 31,
(in millions)
2024
2023
2022
Operating Revenues
Regulated natural gas
$1,702
$1,603
$2,100
Nonregulated natural gas and other
27
25
24
Total operating revenues
1,729
1,628
2,124
Operating Expenses
Cost of natural gas
423
430
1,015
Operation, maintenance and other
359
344
368
Depreciation and amortization
261
237
222
Property and other taxes
55
59
57
Impairment of assets and other charges
—
(4)
18
Total operating expenses
1,098
1,066
1,680
Gains on Sales of Other Assets and Other, net
—
—
4
Operating Income
631
562
448
Other Income and Expenses
Equity in earnings of unconsolidated affiliates
8
9
8
Other income and expenses, net
54
57
46
Total other income and expenses
62
66
54
Interest Expense
185
165
140
Income Before Income Taxes
508
463
362
Income Tax Expense
95
84
39
Net Income and Comprehensive Income
$ 413
$ 379
$ 323
See Notes to Consolidated Financial Statements
PART II
106
PIEDMONT NATURAL GAS COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
December 31,
(in millions)
2024
2023
ASSETS
Current Assets
Cash and cash equivalents
$
2
$
—
Receivables (net of allowance for doubtful accounts of $10 at 2024 and $11 at 2023)
368
311
Receivables from affiliated companies
16
10
Inventory
78
112
Regulatory assets
158
161
Other
11
7
Total current assets
633
601
Property, Plant and Equipment
Cost
12,780
11,908
Accumulated depreciation and amortization
(2,432)
(2,259)
Net property, plant and equipment
10,348
9,649
Other Noncurrent Assets
Goodwill
49
49
Regulatory assets
421
410
Operating lease right-of-use assets, net
4
4
Investments in unconsolidated affiliates
76
78
Other
268
276
Total other noncurrent assets
818
817
Total Assets
$11,799
$11,067
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable
$
237
$
315
Accounts payable to affiliated companies
26
54
Notes payable to affiliated companies
739
538
Taxes accrued
84
89
Interest accrued
45
39
Current maturities of long-term debt
205
40
Regulatory liabilities
68
98
Other
76
77
Total current liabilities
1,480
1,250
Long-Term Debt
3,798
3,628
Other Noncurrent Liabilities
Deferred income taxes
1,018
933
Asset retirement obligations
29
26
Regulatory liabilities
956
988
Operating lease liabilities
7
10
Accrued pension and other post-retirement benefit costs
7
8
Other
150
172
Total other noncurrent liabilities
2,167
2,137
Commitments and Contingencies
Equity
Common stock, no par value: 100 shares authorized and outstanding at 2024 and 2023
1,635
1,635
Retained earnings
2,718
2,416
Total Piedmont Natural Gas Company, Inc. stockholder’s equity
4,353
4,051
Noncontrolling interests
1
1
Total equity
4,354
4,052
Total Liabilities and Equity
$11,799
$11,067
See Notes to Consolidated Financial Statements
PART II
107
PIEDMONT NATURAL GAS COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31,
(in millions)
2024
2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$
413
$
379
$ 323
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
264
239
225
Equity component of AFUDC
(21)
(21)
(11)
Impairment of assets and other charges
—
(4)
18
Deferred income taxes
60
38
5
Equity in earnings of unconsolidated affiliates
(8)
(9)
(8)
Contributions to qualified pension plans
(3)
(3)
(2)
Provision for rate refunds
—
—
(3)
(Increase) decrease in
Receivables
(61)
127
(111)
Receivables from affiliated companies
(6)
1
—
Inventory
34
58
(63)
Other current assets
(9)
(46)
32
Increase (decrease) in
Accounts payable
40
(45)
40
Accounts payable to affiliated companies
(28)
3
11
Taxes accrued
(5)
15
11
Other current liabilities
(13)
27
36
Other assets
(16)
(7)
5
Other liabilities
17
10
(1)
Net cash provided by operating activities
658
762
507
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(1,025)
(1,036)
(862)
Contributions to equity method investments
—
—
(8)
Other
(54)
(54)
(26)
Net cash used in investing activities
(1,079)
(1,090)
(896)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt
373
348
394
Payments for the redemption of long-term debt
(40)
(45)
—
Notes payable to affiliated companies
200
25
(4)
Dividends to parent
(110)
—
—
Other
—
—
(1)
Net cash provided by financing activities
423
328
389
Net increase in cash and cash equivalents
2
—
—
Cash and cash equivalents at beginning of period
—
—
—
Cash and cash equivalents at end of period
$
2
$
—
$ —
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized
$
176
$
162
$ 135
Cash paid for income taxes
48
28
23
Significant non-cash transactions:
Accrued capital expenditures
105
223
207
See Notes to Consolidated Financial Statements
PART II
108
PIEDMONT NATURAL GAS COMPANY, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(in millions)
Common
Stock
Retained
Earnings
Total
Piedmont
Natural Gas
Company, Inc.
Equity
Noncontrolling
Interests
Total
Equity
Balance at December 31, 2021
$1,635
$1,714
$3,349
$ —
$3,349
Net income
—
323
323
—
323
Other
—
—
—
1
1
Balance at December 31, 2022
$1,635
$2,037
$3,672
$
1
$3,673
Net income
—
379
379
—
379
Balance at December 31, 2023
$1,635
$2,416
$4,051
$
1
$4,052
Net income
—
413
413
—
413
Dividends to parent
—
(110)
(110)
—
(110)
Other
—
(1)
(1)
—
(1)
Balance at December 31, 2024
$1,635
$2,718
$4,353
$
1
$4,354
See Notes to Consolidated Financial Statements
PART II
109
Index to Combined Notes To Consolidated Financial Statements
The notes to the consolidated financial statements are a combined presentation. The following table indicates the registrants to which the notes apply.
Applicable Notes
Registrant
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Duke Energy
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Duke Energy Carolinas
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Progress Energy
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Duke Energy Progress
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Duke Energy Florida
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Duke Energy Ohio
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Duke Energy Indiana
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Piedmont
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Tables within the notes may not sum across due to (i) Progress Energy’s consolidation of Duke Energy Progress, Duke Energy Florida and other subsidiaries
that are not registrants and (ii) subsidiaries that are not registrants but included in the consolidated Duke Energy balances.
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NATURE OF OPERATIONS AND BASIS OF CONSOLIDATION
Duke Energy is an energy company headquartered in Charlotte, North
Carolina, subject to regulation by the FERC and other regulatory agencies
listed below. Duke Energy operates in the U.S. primarily through its direct and
indirect subsidiaries. Certain Duke Energy subsidiaries are also subsidiary
registrants, including Duke Energy Carolinas; Progress Energy; Duke Energy
Progress; Duke Energy Florida; Duke Energy Ohio; Duke Energy Indiana and
Piedmont. When discussing Duke Energy’s consolidated financial information, it
necessarily includes the results of its separate Subsidiary Registrants, which
along with Duke Energy, are collectively referred to as the Duke Energy
Registrants.
The information in these combined notes relates to each of the Duke
Energy Registrants as noted in the Index to Combined Notes to Consolidated
Financial Statements. However, none of the Subsidiary Registrants make any
representation as to information related solely to Duke Energy or the Subsidiary
Registrants of Duke Energy other than itself.
These Consolidated Financial Statements include, after eliminating
intercompany transactions and balances, the accounts of the Duke Energy
Registrants and subsidiaries or VIEs where the respective Duke Energy
Registrants have control. See Note 18 for additional information on VIEs. These
Consolidated Financial Statements also reflect the Duke Energy Registrants’
proportionate share of certain jointly owned generation and transmission
facilities. See Note 9 for additional information on joint ownership. Substantially
all of the Subsidiary Registrants’ operations qualify for regulatory accounting.
Duke Energy Carolinas is a regulated public utility primarily engaged in
the generation, transmission, distribution and sale of electricity in portions of
North Carolina and South Carolina. Duke Energy Carolinas is subject to the
regulatory provisions of the NCUC, PSCSC, NRC and FERC.
Progress Energy is a public utility holding company, which conducts
operations through its wholly owned subsidiaries, Duke Energy Progress and
Duke Energy Florida. Progress Energy is subject to regulation by FERC and other
regulatory agencies listed below.
Duke Energy Progress is a regulated public utility primarily engaged in
the generation, transmission, distribution and sale of electricity in portions of
North Carolina and South Carolina. Duke Energy Progress is subject to the
regulatory provisions of the NCUC, PSCSC, NRC and FERC.
Duke Energy Florida is a regulated public utility primarily engaged in the
generation, transmission, distribution and sale of electricity in portions of
Florida. Duke Energy Florida is subject to the regulatory provisions of the FPSC,
NRC and FERC.
Duke Energy Ohio is a regulated public utility primarily engaged in the
transmission and distribution of electricity in portions of Ohio and Kentucky,
the generation and sale of electricity in portions of Kentucky and the
transportation and sale of natural gas in portions of Ohio and Kentucky. Duke
Energy Ohio conducts competitive auctions for retail electricity supply in Ohio
whereby the energy price is recovered from retail customers and recorded in
Operating Revenues on the Consolidated Statements of Operations and
Comprehensive Income. Operations in Kentucky are conducted through its
wholly owned subsidiary, Duke Energy Kentucky. References herein to Duke
Energy Ohio collectively include Duke Energy Ohio and its subsidiaries, unless
otherwise noted. Duke Energy Ohio is subject to the regulatory provisions of the
PUCO, KPSC and FERC.
Duke Energy Indiana is a regulated public utility primarily engaged in
the generation, transmission, distribution and sale of electricity in portions of
Indiana. Duke Energy Indiana is subject to the regulatory provisions of the IURC
and FERC.
Piedmont is a regulated public utility primarily engaged in the
distribution of natural gas in portions of North Carolina, South Carolina and
Tennessee. Piedmont is subject to the regulatory provisions of the NCUC, PSCSC,
TPUC and FERC.
Certain prior year amounts have been reclassified to conform to the
current year presentation.
Other Current Assets and Liabilities
The following table provides a description of amounts included in Other
within Current Assets or Current Liabilities that exceed 5% of total Current
Assets or Current Liabilities on the Duke Energy Registrants’ Consolidated
Balance Sheets at either December 31, 2024, or 2023.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements
For the Years Ended December 31, 2023, 2022 and 2021
110
December 31,
(in millions)
Location
2024
2023
Duke Energy Carolinas
Accrued compensation
Current Liabilities
$234
$224
Duke Energy Florida
Tax receivables
Current Assets
$166
$ 12
Customer deposits/Collateral
liabilities
Current Liabilities
$164
$168
Duke Energy Ohio
Tax receivables
Current Assets
$
4
95
Duke Energy Indiana
Customer advances
Current Liabilities
$100
$ 87
Discontinued Operations
Duke Energy has elected to present cash flows of discontinued
operations combined with cash flows of continuing operations. Unless
otherwise noted, the notes to these consolidated financial statements exclude
amounts related to discontinued operations for all periods presented. For
the years ended December 31, 2024, 2023 and 2022, the Income (Loss) From
Discontinued Operations, net of tax on Duke Energy’s Consolidated Statements
of Operations includes amounts related to NCI. A portion of NCI on Duke
Energy’s Consolidated Balance Sheets relates to discontinued operations for
the periods presented. See Note 2 for discussion of discontinued operations
related to the Commercial Renewables Disposal Groups.
SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates
In preparing financial statements that conform to GAAP, the Duke Energy
Registrants must make estimates and assumptions that affect the reported
amounts of assets and liabilities, the reported amounts of revenues and
expenses and the disclosure of contingent assets and liabilities at the date of
the financial statements. Actual results could differ from those estimates.
Regulatory Accounting
The majority of the Duke Energy Registrants’ operations are subject to
price regulation for the sale of electricity and natural gas by state utility
commissions or FERC. When prices are set on the basis of specific costs of the
regulated operations and an effective franchise is in place such that
sufficient natural gas or electric services can be sold to recover those costs,
the Duke Energy Registrants apply regulatory accounting. Regulatory accounting
changes the timing of the recognition of costs or revenues relative to a
company that does not apply regulatory accounting. As a result, regulatory
assets and regulatory liabilities are recognized on the Consolidated Balance
Sheets. Regulatory assets and liabilities are amortized consistent with the
treatment of the related cost in the ratemaking process. Regulatory assets are
reviewed for recoverability each reporting period. If a regulatory asset is no
longer deemed probable of recovery, the deferred cost is charged to earnings.
See Note 4 for further information.
Regulatory accounting rules also require recognition of a disallowance
(also called “impairment”) loss if it becomes probable that part of the cost of
a plant under construction (or a recently completed plant or an abandoned plant)
will be disallowed for ratemaking purposes and a reasonable estimate of the
amount of the disallowance can be made. For example, if a cost cap is set for a
plant still under construction, the amount of the disallowance is a result of a
judgment as to the ultimate cost of the plant. These disallowances can require
judgments on allowed future rate recovery.
When it becomes probable that regulated generation, transmission or
distribution assets will be abandoned, the cost of the asset is removed from
plant in service. The value that may be retained as a regulatory asset on the
balance sheet for the abandoned property is dependent upon amounts that may
be recovered through regulated rates, including any return. As such, an
impairment charge could be partially or fully offset by the establishment of a
regulatory asset if rate recovery is probable. The impairment charge for a
disallowance of costs for regulated plants under construction, recently completed
or abandoned is based on discounted cash flows.
The Duke Energy Registrants utilize cost-tracking mechanisms,
commonly referred to as fuel adjustment clauses or PGA clauses. These
clauses allow for the recovery of fuel and fuel-related costs, portions of
purchased power, natural gas costs and hedging costs through surcharges on
customer rates. The difference between the costs incurred and the surcharge
revenues is recorded either as an adjustment to Operating Revenues, Operating
Expenses – Fuel used in electric generation or Operating Expenses – Cost of
natural gas on the Consolidated Statements of Operations, with an off-setting
impact on regulatory assets or liabilities.
Cash, Cash Equivalents and Restricted Cash
All highly liquid investments with maturities of three months or less at
the date of acquisition are considered cash equivalents. Duke Energy, Progress
Energy and Duke Energy Florida have restricted cash balances related
primarily to collateral assets, escrow deposits and VIEs. Duke Energy Carolinas
and Duke Energy Progress have restricted cash balances related to VIEs from
storm recovery bonds issued. See Note 18 for additional information. Restricted
cash amounts are included in Other within Current Assets and Other
Noncurrent Assets on the Consolidated Balance Sheets. The following table
presents the components of cash, cash equivalents and restricted cash included
in the Consolidated Balance Sheets.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
111
December 31, 2024
December 31, 2023
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Current Assets
Cash and cash equivalents
$314
$ 6
$ 73
$24
$33
$253
$ 9
$ 59
$18
$24
Other
84
9
76
40
35
76
9
67
31
36
Other Noncurrent Assets
Other
20
1
11
5
7
16
1
9
2
7
Total cash, cash equivalents and restricted cash
$418
$16
$160
$69
$75
$345
$19
$135
$51
$67
Inventory
Inventory related to regulated operations is valued at historical cost.
Inventory is charged to expense or capitalized to property, plant and equipment
when issued, primarily using the average cost method. Excess or obsolete
inventory is written down to the lower of cost or net realizable value. Once
inventory has been written down, it creates a new cost basis for the inventory
that is not subsequently written up. Provisions for inventory write-offs were not
material at December 31, 2024, and 2023, respectively. The components of
inventory are presented in the tables below.
December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Materials and supplies
$3,387
$1,150
$1,649
$1,074
$576
$149
$389
$11
Coal
801
341
241
164
77
23
196
—
Natural gas, oil and other
321
45
196
103
92
11
1
67
Total inventory
$4,509
$1,536
$2,086
$1,341
$745
$183
$586
$78
December 31, 2023
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Materials and supplies
$3,086
$1,075
$1,465
$ 963
$502
$139
$361
$ 12
Coal
842
364
231
154
77
28
219
—
Natural gas, oil and other
364
45
205
110
95
12
2
100
Total inventory
$4,292
$1,484
$1,901
$1,227
$674
$179
$582
$112
Investments in Debt and Equity Securities
The Duke Energy Registrants classify investments in equity securities as
FV-NI and investments in debt securities as AFS. Both categories are recorded
at fair value on the Consolidated Balance Sheets. Realized and unrealized
gains and losses on securities classified as FV-NI are reported through net
income. Unrealized gains and losses for debt securities classified as AFS are
included in AOCI until realized, unless it is determined the carrying value of an
investment has a credit loss. For certain investments of regulated operations,
such as substantially all of the NDTF, realized and unrealized gains and losses
(including any credit losses) on debt securities are recorded as a regulatory
asset or liability. The credit loss portion of debt securities of nonregulated
operations are included in earnings. Investments in debt and equity securities
are classified as either current or noncurrent based on management’s intent
and ability to sell these securities, taking into consideration current market
liquidity. See Note 16 for further information.
Goodwill
Duke Energy, Progress Energy, Duke Energy Ohio and Piedmont perform
annual goodwill impairment tests as of August 31 each year at the reporting
unit level, which is determined to be a business segment or one level below.
Duke Energy, Progress Energy, Duke Energy Ohio and Piedmont update these
tests between annual tests if events or circumstances occur that would more
likely than not reduce the fair value of a reporting unit below its carrying
value. See Note 12 for further information.
Intangible Assets
Intangible assets are included in Other in Other Noncurrent Assets on
the Consolidated Balance Sheets. Generally, intangible assets are amortized
using an amortization method that reflects the pattern in which the economic
benefits of the intangible asset are consumed or on a straight-line basis if that
pattern is not readily determinable. Amortization of intangibles is reflected in
Depreciation and amortization on the Consolidated Statements of Operations.
Intangible assets are subject to impairment testing and if impaired, the
carrying value is accordingly reduced.
RECs are used to measure compliance with renewable energy standards
and are held primarily for consumption. See Note 12 for further information.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
112
Long-Lived Asset Impairments
The Duke Energy Registrants evaluate long-lived assets that are held
and used, excluding goodwill, for impairment when circumstances indicate the
carrying value of those assets may not be recoverable. An impairment exists
when a long-lived asset’s carrying value exceeds the estimated undiscounted
cash flows expected to result from the use and eventual disposition of the asset.
The estimated cash flows may be based on alternative expected outcomes
that are probability weighted. If the carrying value of the long-lived asset is
not recoverable based on these estimated future undiscounted cash flows, the
carrying value of the asset is written down to its then current estimated fair
value and an impairment charge is recognized.
The Duke Energy Registrants assess fair value of long-lived assets that
are held and used using various methods, including recent comparable
third-party sales, internally developed discounted cash flow analysis and
analysis from outside advisors. Triggering events to reassess cash flows may
include, but are not limited to, significant changes in commodity prices, the
condition of an asset or management’s interest in selling the asset.
Property, Plant and Equipment
Property, plant and equipment are stated at the lower of depreciated
historical cost net of any disallowances or fair value, if impaired. The Duke
Energy Registrants capitalize all construction-related direct labor and material
costs, as well as indirect construction costs such as general engineering,
taxes and financing costs. See “Allowance for Funds Used During Construction
and Interest Capitalized” section below for information on capitalized
financing costs. Costs of renewals and betterments that extend the useful life
of property, plant and equipment are also capitalized. The cost of repairs,
replacements and major maintenance projects, which do not extend the useful
life or increase the expected output of the asset, are expensed as incurred.
Depreciation is generally computed over the estimated useful life of the asset
using the composite straight-line method. Depreciation studies are conducted
periodically to update composite rates and are approved by state utility
commissions and/or the FERC when required. The composite weighted average
depreciation rates, excluding nuclear fuel, are included in the table that
follows.
Years Ended December 31,
2024
2023
2022
Duke Energy
3.0%
2.9%
3.0%
Duke Energy Carolinas
3.1%
2.7%
2.7%
Progress Energy
3.3%
3.3%
3.2%
Duke Energy Progress
3.2%
3.1%
3.0%
Duke Energy Florida
3.5%
3.5%
3.5%
Duke Energy Ohio
2.9%
2.8%
2.9%
Duke Energy Indiana
3.6%
3.6%
3.6%
Piedmont
2.2%
2.1%
2.1%
In general, when the Duke Energy Registrants retire regulated property,
plant and equipment, the original cost plus the cost of retirement, less salvage
value and any depreciation already recognized, is charged to accumulated
depreciation. However, when it becomes probable the asset will be retired
substantially in advance of its original expected useful life or is abandoned, the
cost of the asset and the corresponding accumulated depreciation is
recognized as a separate asset. If the asset is still in operation, the net
amount is classified as Facilities to be retired, net on the Consolidated Balance
Sheets. If the asset is no longer operating, the net amount is classified in
Regulatory assets on the Consolidated Balance Sheets if deemed recoverable
(see discussion of long-lived asset impairments above). The carrying value of
the asset is based on historical cost if the Duke Energy Registrants are
allowed to recover the remaining net book value and a return equal to at least
the incremental borrowing rate. If not, an impairment is recognized to the
extent the net book value of the asset exceeds the present value of future
revenues discounted at the incremental borrowing rate.
When the Duke Energy Registrants sell entire regulated operating units,
the original cost and accumulated depreciation and amortization balances are
removed from Property, Plant and Equipment on the Consolidated Balance
Sheets. Any gain or loss is recorded in earnings, unless otherwise required by
the applicable regulatory body. See Note 11 for additional information.
Other Noncurrent Assets
Duke Energy, through a nonregulated subsidiary, was the winner of the
Carolina Long Bay offshore wind auction in May 2022 and recorded an asset of
$150 million related to the contract in Other within Other noncurrent assets
on the Consolidated Balance Sheets as of December 31, 2024 and 2023. The
asset is recorded at historical cost and is subject to impairment testing should
circumstances indicate the carrying value may not be recoverable. In
November 2022, Duke Energy committed to a plan to sell the Commercial
Renewables business segment, excluding the offshore wind contract for Carolina
Long Bay, which was moved to the EU&I segment. See Notes 2 and 3 for
further information.
Leases
Duke Energy determines if an arrangement is a lease at contract
inception based on whether the arrangement involves the use of a physically
distinct identified asset and whether Duke Energy has the right to obtain
substantially all of the economic benefits from the use of the asset throughout
the period as well as the right to direct the use of the asset. As a policy
election, Duke Energy does not evaluate arrangements with initial contract
terms of less than one year as leases.
Operating leases are included in Operating lease ROU assets, net, Other
current liabilities and Operating lease liabilities on the Consolidated Balance
Sheets. Finance leases are included in Property, Plant and Equipment, Current
maturities of long-term debt and Long-Term Debt on the Consolidated
Balance Sheets.
For lessee and lessor arrangements, Duke Energy has elected a policy to
not separate lease and non-lease components for all asset classes. For lessor
arrangements, lease and non-lease components are only combined under one
arrangement and accounted for under the lease accounting framework if the
non-lease components are not the predominant component of the arrangement
and the lease component would be classified as an operating lease.
Nuclear Fuel
Nuclear fuel is classified as Property, Plant and Equipment on the
Consolidated Balance Sheets.
Nuclear fuel in the front-end fuel processing phase is considered work in
progress and not amortized until placed in service. Amortization of nuclear fuel
is included within Fuel used in electric generation and purchased power on
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
113
the Consolidated Statements of Operations. Amortization is recorded using
the units-of-production method.
Allowance for Funds Used During Construction and Interest Capitalized
For regulated operations, the debt and equity costs of financing the
construction of property, plant and equipment are reflected as AFUDC and
capitalized as a component of the cost of property, plant and equipment. AFUDC
equity is reported on the Consolidated Statements of Operations as non-cash
income in Other income and expenses, net. AFUDC debt is reported as a non-cash
offset to Interest Expense. After construction is completed, the Duke Energy
Registrants are permitted to recover these costs through their inclusion in rate
base and the corresponding subsequent depreciation or amortization of
those regulated assets.
AFUDC equity, a permanent difference for income taxes, reduces the ETR
when capitalized and increases the ETR when depreciated or amortized. See
Note 24 for additional information.
Asset Retirement Obligations
AROs are recognized for legal obligations associated with the retirement
of property, plant and equipment. When recording an ARO, the present value of
the projected liability is recognized in the period in which it is incurred, if a
reasonable estimate of fair value can be made. The liability is accreted over
time. For operating plants, the present value of the liability is added to the cost
of the associated asset and depreciated over the remaining life of the asset.
For retired plants, the present value of the liability is recorded as a regulatory
asset unless determined not to be probable of recovery.
The present value of the initial obligation and subsequent updates are
based on discounted cash flows, which include estimates regarding timing of
future cash flows, selection of discount rates and cost escalation rates, among
other factors. These estimates are subject to change. Depreciation expense is
adjusted prospectively for any changes to the carrying amount of the
associated asset. The Duke Energy Registrants receive amounts to fund the
cost of the ARO for regulated operations through a combination of regulated
revenues and earnings on the NDTF. As a result, amounts recovered in regulated
revenues, earnings on the NDTF, accretion expense and depreciation of the
associated asset are netted and deferred as a regulatory asset or liability.
Accounts Payable
Duke Energy has a voluntary supply chain finance program (the
“program”) that allows Duke Energy suppliers, at their sole discretion, to sell
their receivables from Duke Energy to a global financial institution at a rate that
leverages Duke Energy’s credit rating and, which may result in favorable
terms compared to the rate available to the supplier on their own credit rating.
Suppliers participating in the program, determine at their sole discretion
which invoices they will sell to the financial institution. Suppliers’ decisions on
which invoices are sold do not impact Duke Energy’s payment terms, which
are based on commercial terms negotiated between Duke Energy and the supplier
regardless of program participation. The commercial terms negotiated
between Duke Energy and its suppliers are consistent regardless of whether
the supplier elects to participate in the program. Duke Energy does not issue any
guarantees with respect to the program and does not participate in
negotiations between suppliers and the financial institution. Duke Energy does
not have an economic interest in the supplier’s decision to participate in the
program and receives no interest, fees or other benefit from the financial
institution based on supplier participation in the program.
The following table presents the amounts included within Accounts
payable on the Consolidated Balance Sheets sold to the financial institution by
our suppliers and the supplier invoices sold to the financial institution under
the program included within Net cash provided by operating activities on the
Consolidated Statements of Cash Flows as of December 31, 2024, and
December 31, 2023.
For the Years Ended December 31, 2023 and 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Confirmed obligations outstanding at December 31, 2022
$ 87
$ 6
$ 19
$ 8
$ 11
$ 5
$—
$ 57
Invoices confirmed during the period
228
24
58
22
36
7
—
139
Confirmed invoices paid during the period
(265)
(30)
(74)
(30)
(44)
(12)
—
(149)
Confirmed obligations outstanding at December 31, 2023
$ 50
$ —
$ 3
$ —
$ 3
$ —
$—
$ 47
Invoices confirmed during the period
156
—
4
—
4
—
—
152
Confirmed invoices paid during the period
(193)
—
(6)
—
(6)
—
—
(187)
Confirmed obligations outstanding at December 31, 2024
$ 13
$ —
$ 1
$ —
$ 1
$ —
$—
$ 12
Revenue Recognition
Duke Energy recognizes revenue as customers obtain control of promised
goods and services in an amount that reflects consideration expected in
exchange for those goods or services. Generally, the delivery of electricity and
natural gas results in the transfer of control to customers at the time the
commodity is delivered and the amount of revenue recognized is equal to the
amount billed to each customer, including estimated volumes delivered when
billings have not yet occurred. See Note 19 for further information.
Alternative Revenue Programs
Duke Energy accounts for certain types of programs established by the
regulators in the states in which it operates, including decoupling mechanisms,
as alternative revenue programs. Alternative revenue programs are contracts
between an entity and its regulator, not a contract between an entity and a
customer. Revenue arising from alternative revenue programs is presented
as Regulated electric revenues and Regulated natural gas revenues on the
Consolidated Statements of Operations. Revenue from alternative revenue
programs is recognized in the period they are earned (i.e., during the period of
revenue shortfall or excess due to fluctuations in customer usage or when
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
114
specific targets are met resulting in the achievement of performance
incentives or penalties) and a regulatory asset or liability on the Consolidated
Balance Sheets is established, which is subsequently billed or refunded to
customers. Duke Energy recognizes revenue as alternative revenue programs
for programs that have been authorized for rate recovery, are objectively
determinable and probable of recovery, and are expected to be collected within
24 months. See Note 19 for disaggregated revenue information including
revenue from contracts with customers and revenues recognized as alternative
revenue programs.
Derivatives and Hedging
Derivative and non-derivative instruments may be used in connection
with commodity price and interest rate activities, including swaps, futures,
forwards and options. All derivative instruments, except those that qualify for
the NPNS exception, are recorded on the Consolidated Balance Sheets at fair
value. Qualifying derivative instruments may be designated as either cash
flow hedges or fair value hedges. Other derivative instruments (undesignated
contracts) either have not been designated or do not qualify as hedges. The
effective portion of the change in the fair value of cash flow hedges is
recorded in AOCI. The effective portion of the change in the fair value of a fair
value hedge is offset in net income by changes in the hedged item. For activity
subject to regulatory accounting, gains and losses on derivative contracts
are reflected as regulatory assets or liabilities and not as other comprehensive
income or current period income. As a result, changes in fair value of these
derivatives have no immediate earnings impact.
Formal documentation, including transaction type and risk management
strategy, is maintained for all contracts accounted for as a hedge. At inception
and at least every three months thereafter, the hedge contract is assessed to
see if it is highly effective in offsetting changes in cash flows or fair values of
hedged items.
See Note 15 for further information.
Captive Insurance Reserves
Duke Energy has captive insurance subsidiaries that provide coverage,
on an indemnity basis, to the Subsidiary Registrants as well as certain third
parties, on a limited basis, for financial losses, primarily related to property,
workers’ compensation and general liability. Liabilities include provisions for
estimated losses incurred but not reported (IBNR), as well as estimated
provisions for known claims. IBNR reserve estimates are primarily based upon
historical loss experience, industry data and other actuarial assumptions.
Reserve estimates are adjusted in future periods as actual losses differ from
experience.
Duke Energy, through its captive insurance entities, also has reinsurance
coverage with third parties for certain losses above a per occurrence and/or
aggregate retention. Receivables for reinsurance coverage are recognized when
realization is deemed probable.
Preferred Stock
Preferred stock is reviewed to determine the appropriate balance sheet
classification and embedded features, such as call options, are evaluated to
determine if they should be bifurcated and accounted for separately. Costs
directly related to the issuance of preferred stock are recorded as a reduction
of the proceeds received. The liability for the dividend is recognized when
declared. The accumulated dividends on the cumulative preferred stock is
recognized to net income available to Duke Energy Corporation in the EPS
calculation. See Note 20 for further information.
Loss Contingencies and Environmental Liabilities
Contingent losses are recorded when it is probable a loss has occurred
and the loss can be reasonably estimated. When a range of the probable loss
exists and no amount within the range is a better estimate than any other
amount, the minimum amount in the range is recorded. Unless otherwise
required by GAAP, legal fees are expensed as incurred.
Environmental liabilities are recorded on an undiscounted basis when
environmental remediation or other liabilities become probable and can be
reasonably estimated. Environmental expenditures related to past operations
that do not generate current or future revenues are expensed. Environmental
expenditures related to operations that generate current or future revenues
are expensed or capitalized, as appropriate. Certain environmental expenditures
receive regulatory accounting treatment and are recorded as regulatory
assets.
See Notes 4 and 5 for further information.
Severance and Special Termination Benefits
Duke Energy maintains severance plans for the general employee
population under which, in general, the longer a terminated employee worked
prior to termination the greater the amount of severance benefits provided. A
liability for involuntary severance is recorded once an involuntary severance
plan is committed to by management if involuntary severances are probable and
can be reasonably estimated. For involuntary severance benefits incremental
to its ongoing severance plan benefits, the fair value of the obligation is expensed
at the communication date if there are no future service requirements or over
the required future service period. Duke Energy also offers special termination
benefits under voluntary severance programs. Special termination benefits
are recorded immediately upon employee acceptance absent a significant
retention period. Otherwise, the cost is recorded over the remaining service
period. Employee acceptance of voluntary severance benefits is determined by
management based on the facts and circumstances of the benefits being
offered. See Note 21 for further information.
Guarantees
If necessary, liabilities are recognized at the time of issuance or
material modification of a guarantee for the estimated fair value of the
obligation it assumes. Fair value is estimated using a probability weighted
approach. The obligation is reduced over the term of the guarantee or related
contract in a systematic and rational method as risk is reduced. Duke Energy
recognizes a liability for the best estimate of its loss due to the nonperformance
of the guaranteed party. This liability is recognized at the inception of a
guarantee and is updated periodically. See Note 8 for further information.
Income Taxes
Duke Energy and its subsidiaries file a consolidated federal income tax
return and other state and foreign jurisdictional returns. The Subsidiary
Registrants are parties to a tax-sharing agreement with Duke Energy. Income
taxes recorded represent amounts the Subsidiary Registrants would incur as
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
115
separate C-Corporations. Deferred income taxes have been provided for
temporary differences between GAAP and tax bases of assets and liabilities
because the differences create taxable or tax-deductible amounts for future
periods. ITCs associated with regulated operations are deferred and amortized
as a reduction of income tax expense over the estimated useful lives of the
related properties. PTCs associated with regulated operations reduce income
tax expense or are deferred and amortized as a reduction of income tax expense
over a period of time that is agreed upon by the regulatory authorities and
the Subsidiary Registrants.
Accumulated deferred income taxes are valued using the enacted tax
rate expected to apply to taxable income in the periods in which the deferred
tax asset or liability is expected to be settled or realized. In the event of a change
in tax rates, deferred tax assets and liabilities are remeasured as of the
enactment date of the new rate. To the extent that the change in the value of
the deferred tax represents an obligation to customers, the impact of the
remeasurement is deferred to a regulatory liability. Remaining impacts are
recorded in income from continuing operations. Duke Energy’s results of
operations could be impacted if the estimate of the tax effect of reversing
temporary differences is not reflective of actual outcomes, is modified to reflect
new developments or interpretations of the tax law, revised to incorporate
new accounting principles, or changes in the expected timing or manner of a
reversal.
Tax-related interest and penalties are recorded in Interest Expense and
Other income and expenses, net in the Consolidated Statements of Operations.
See Note 24 for further information.
Excise Taxes
Certain excise taxes levied by state or local governments are required to
be paid even if not collected from the customer. These taxes are recognized on
a gross basis. Taxes for which Duke Energy operates merely as a collection
agent for the state and local government are accounted for on a net basis. Excise
taxes accounted for on a gross basis within both Operating Revenues and
Property and other taxes in the Consolidated Statements of Operations were as
follows.
Years Ended December 31,
(in millions)
2024
2023
2022
Duke Energy
$423
$458
$449
Duke Energy Carolinas
31
27
47
Progress Energy
285
322
290
Duke Energy Progress
9
5
25
Duke Energy Florida
276
317
265
Duke Energy Ohio
105
106
104
Duke Energy Indiana
—
1
7
Piedmont
2
2
1
Dividend Restrictions and Unappropriated Retained Earnings
Duke Energy does not have any current legal, regulatory or other
restrictions on paying common stock dividends to shareholders. However, if
Duke Energy were to defer dividend payments on the preferred stock, the
declaration of common stock dividends would be prohibited. See Note 20 for
more information. Additionally, as further described in Note 4, Duke Energy
Carolinas, Duke Energy Progress, Duke Energy Ohio, Duke Energy Indiana and
Piedmont have restrictions on paying dividends or otherwise advancing
funds to Duke Energy due to conditions established by regulators in conjunction
with merger transaction approvals. At December 31, 2024, and 2023, an
insignificant amount of Duke Energy’s consolidated Retained earnings balance
represents undistributed earnings of equity method investments.
New Accounting Standards
Other than implementation of the enhanced disclosure requirements for
reportable business segments as described in Note 3, no new accounting
standards were adopted by any of the Duke Energy Registrants in 2024.
2.
DISPOSITIONS
The following table summarizes the Income (Loss) from Discontinued Operations, net of tax recorded on Duke Energy’s Consolidated Statements of
Operations:
Years Ended December 31,
(in millions)
2024
2023
2022
Commercial Renewables Disposal Groups
$12
$(1,457)
$(1,349)
Other(a)
(2)
2
26
Income (Loss) from Discontinued Operations, net of tax
$10
$(1,455)
$(1,323)
(a)
Amounts primarily represent income tax adjustments for previously sold businesses not related to the Commercial Renewables Disposal Groups.
Sale of Commercial Renewables Segment
In 2023, Duke Energy completed the sale of substantially all the assets
in the Commercial Renewables business segment. Duke Energy closed on the
transaction with Brookfield on October 25, 2023, for proceeds of $1.1 billion,
with approximately half of the proceeds received at closing and the remainder
due 18 months after closing. The balance of the remaining proceeds to be
received of $551 million is included in Receivable from sales of Commercial
Renewables Disposal Groups, as of December 31, 2024, and $531 million is
included in Other, within Other Noncurrent Assets, as of December 31, 2023, on
Duke Energy’s Consolidated Balance Sheets. The sale of the remaining assets
was concluded in January 2025, and net proceeds from these dispositions were
not material.
Assets Held For Sale and Discontinued Operations
The Commercial Renewables Disposal Groups were classified as held for
sale and as discontinued operations in the fourth quarter of 2022. No interest
from corporate level debt was allocated to discontinued operations and no
adjustments were made to the historical activity within the Consolidated
Statements of Comprehensive Income, Consolidated Statements of Cash Flows
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
116
or the Consolidated Statements of Changes in Equity. Unless otherwise noted,
the notes to these consolidated financial statements exclude amounts related to
discontinued operations for all periods presented.
The following table presents the carrying values of the major classes of Assets held for sale and Liabilities associated with assets held for sale included in
Duke Energy’s Consolidated Balance Sheets.
December 31,
(in millions)
2024
2023
Current Assets Held for Sale
Other
$
4
$ 14
Total current assets held for sale
4
14
Noncurrent Assets Held for Sale
Property, Plant and Equipment
Cost
109
247
Accumulated depreciation and amortization
(24)
(57)
Net property, plant and equipment
85
190
Operating lease right-of-use assets, net
4
4
Other
—
3
Total other noncurrent assets held for sale
4
7
Total Assets Held for Sale
$ 93
$211
Current Liabilities Associated with Assets Held for Sale
Accounts payable
$ 19
$
9
Taxes accrued
1
3
Current maturities of long-term debt
43
5
Unrealized losses on commodity hedges
13
68
Other
4
37
Total current liabilities associated with assets held for sale
80
122
Noncurrent Liabilities Associated with Assets Held for Sale
Long-Term debt
—
39
Operating lease liabilities
5
5
Asset retirement obligations
5
8
Unrealized losses on commodity hedges
66
94
Other
13
11
Total other noncurrent liabilities associated with assets held for sale
89
157
Total Liabilities Associated with Assets Held for Sale
$169
$279
As of December 31, 2024, and 2023, the NCI balance was $18 million and $66 million, respectively.
The following table presents the results of the Commercial Renewables Disposal Groups, which are included in Income (Loss) from Discontinued Operations,
net of tax in Duke Energy’s Consolidated Statements of Operations.
Years Ended December 31,
(in millions)
2024
2023
2022
Operating revenues
$ 4
$
330
$
465
Operation, maintenance and other
22
302
337
Depreciation and amortization(a)
—
—
201
Property and other taxes
2
45
36
Other income and expenses, net
—
(8)
2
Interest expense
4
65
10
Loss on disposal
14
1,725
1,748
Loss before income taxes
(38)
(1,815)
(1,865)
Income tax benefit
(50)
(358)
(516)
Income (Loss) from discontinued operations
$ 12
$(1,457)
$(1,349)
Add: Net (income) loss attributable to noncontrolling interest included in discontinued operations
(3)
64
108
Net income (loss) from discontinued operations attributable to Duke Energy Corporation
$ 9
$(1,393)
$(1,241)
(a)
Upon meeting the criteria for assets held for sale, beginning in November 2022 depreciation and amortization expense were ceased.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
117
The Commercial Renewables Disposal Groups’ assets held for sale
amounts presented above reflect pretax impairments recorded against
property, plant and equipment of approximately $123 million and $278 million
as of December 31, 2024, and 2023, respectively. The carrying amounts for
the remaining assets will be updated, if necessary, based on final disposition
amounts.
Duke Energy has elected not to separately disclose discontinued
operations on Duke Energy’s Consolidated Statements of Cash Flows. The
following table summarizes Duke Energy’s cash flows from discontinued
operations related to the Commercial Renewables Disposal Groups.
Years Ended December 31,
(in millions)
2024
2023
2022
Cash flows provided by (used in):
Operating activities
$ 7
$607
$ 213
Investing activities
(13)
122
(802)
Other Sale Related Matters
Duke Energy (Parent) and several Duke Energy renewables project
companies, located in the Electric Reliability Council of Texas (ERCOT) market,
were named in several lawsuits arising out of Texas Storm Uri, which
occurred in February 2021. The legal actions related to all but one of the
project companies in this matter transferred to affiliates of Brookfield in
conjunction with the transaction closing in October 2023. In May 2024, the
remaining claim in the lawsuit was transferred to the buyer in connection with
the sale of a portion of the remaining Commercial Renewables assets. See
Note 5 for more information.
As part of the purchase and sale agreement for the distributed
generation group, Duke Energy has agreed to retain certain guarantees, with
expiration dates between 2029 through 2034, related to tax equity partners’
assets and operations that will be disposed of via sale. Duke Energy has
obtained certain guarantees from the buyers in regard to future performance
obligations to assist in limiting Duke Energy’s exposure under the retained
guarantees. The fair value of the guarantees is immaterial as Duke Energy does
not believe conditions are likely for performance under these guarantees.
Sale of Minority Interest in Duke Energy Indiana Holdco, LLC
On January 28, 2021, Duke Energy executed an agreement providing for
an investment by an affiliate of GIC in Duke Energy Indiana in exchange for a
19.9% minority interest issued by Duke Energy Indiana Holdco, LLC, the
holding company for Duke Energy Indiana. The transaction was completed
following two closings for an aggregate purchase price of approximately
$2.05 billion. The first closing, which occurred on September 8, 2021, resulted
in Duke Energy Indiana Holdco, LLC issuing 11.05% of its membership
interests in exchange for approximately $1.03 billion or 50% of the purchase
price. The difference between the cash consideration received, net of transaction
costs of approximately $27 million, and the carrying value of the NCI was
$545 million and was recorded as an increase to equity. The second closing
was completed in December 2022 and resulted in Duke Energy Indiana Holdco,
LLC issuing an additional 8.85% of its membership interests in exchange for
approximately $1.03 billion. The difference between the cash consideration
received, net of transaction costs of approximately $6 million, and the carrying
value of the NCI was $492 million and was recorded as an increase to equity.
Duke Energy retained indirect control of these assets, and, therefore, no gain or
loss was recognized on the Consolidated Statements of Operations for either
transaction.
3.
BUSINESS SEGMENTS
Reportable segments are determined based on information used by the
chief operating decision-maker in deciding how to allocate resources and
evaluate the performance of the business. The Duke Energy Registrants’ chief
operating decision-maker (CODM) is the Chief Executive Officer. The CODM
evaluates segment performance based on segment income for each of the Duke
Energy Registrants’ reportable business segments in deciding how to
allocate resources and evaluate the performance of the business. Segment
income is defined as income from continuing operations net of income
attributable to NCI and preferred stock dividends. Segment income, as
discussed below, includes intercompany revenues and expenses that are
eliminated on the Consolidated Financial Statements. Certain governance costs
are allocated to each segment. In addition, direct interest expense and
income taxes are included in segment income.
In November 2023, the FASB issued a pronouncement to enhance annual
and interim disclosure requirements for reportable segments, primarily through
enhanced disclosures about significant segment expenses that are regularly
provided to or easily computed from information regularly provided to the
CODM and included within each reported measure of segment profit or loss.
These updated requirements are reflected in this note disclosure.
Products and services are sold between affiliate companies and
reportable segments of Duke Energy at cost. Substantially all assets and
revenues from continuing operations for each of the Duke Energy Registrants
are within the U.S. Segment assets as presented in the tables that follow exclude
all intercompany assets.
Duke Energy
Due to Duke Energy’s commitment in the fourth quarter of 2022 to sell
the Commercial Renewables business segment, Duke Energy’s segment
structure now includes the following two segments: EU&I and GU&I. Prior
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
118
period information has been recast to conform to the current segment
structure. See Note 2 for further information on the Commercial Renewables
Disposal Groups.
The EU&I segment includes Duke Energy’s regulated electric utilities in
the Carolinas, Florida and the Midwest. The regulated electric utilities conduct
operations through the Subsidiary Registrants that are substantially all
regulated and, accordingly, qualify for regulatory accounting treatment. EU&I
also includes Duke Energy’s electric transmission infrastructure investments
and the offshore wind contract for Carolina Long Bay. Refer to Note 2 for
further information.
The GU&I segment includes Piedmont, Duke Energy’s natural gas local
distribution companies in Ohio and Kentucky, and Duke Energy’s natural gas
storage, midstream pipeline, and renewable natural gas investments. GU&I’s
operations are substantially all regulated and, accordingly, qualify for
regulatory accounting treatment.
The remainder of Duke Energy’s operations is presented as Other, which
is primarily comprised of interest expense on holding company debt, unallocated
corporate costs and Duke Energy’s wholly owned captive insurance company,
Bison. Other also includes Duke Energy’s interest in NMC. See Note 13 for
additional information on the investment in NMC.
Business segment information is presented in the following tables.
Year Ended December 31, 2024
(in millions)
Electric
Utilities and
Infrastructure
Gas
Utilities and
Infrastructure
Total
Reportable
Segments
Other
Eliminations
Total
Unaffiliated revenues
$ 28,020
$ 2,299
$ 30,319
$
38
$ —
$ 30,357
Intersegment revenues
73
91
164
119
(283)
—
Total revenues
$ 28,093
$ 2,390
$ 30,483
$ 157
$(283)
$ 30,357
Less:
Fuel used in electric generation and purchased power
$
9,285
$
—
$
9,285
$
—
$ (79)
$
9,206
Cost of natural gas
—
565
565
—
—
565
Operation, maintenance and other
5,185
478
5,663
(79)
(195)
5,389
Depreciation and amortization
5,128
400
5,528
293
(28)
5,793
Property and other taxes
1,305
149
1,454
12
—
1,466
Impairment of assets and other charges
37
—
37
1
—
38
Interest expense
2,006
256
2,262
1,245
(123)
3,384
Income tax expense (benefit)
820
99
919
(329)
—
590
Other Segment Items
Noncontrolling interests(a)
88
(1)
87
—
—
87
Preferred dividends
—
—
—
106
—
106
Preferred redemption costs
—
—
—
16
—
16
Add: Equity in (losses) earnings of unconsolidated affiliates
(11)
(48)
(59)
50
—
(9)
Add: Other(b)
542
58
600
229
(142)
687
Segment income (loss)(c)(d)(e)
$
4,770
$
454
$
5,224
$ (829)
$ —
$
4,395
Discontinued Operations
7
Net income available to Duke Energy Corporation Common Stockholders
$
4,402
Add back: Net income (loss) attributable to noncontrolling interest
90
Add back: Preferred dividends
106
Add back: Preferred redemption costs
16
Net income
$
4,614
Capital investments expenditures and acquisitions
$ 10,689
$ 1,313
$ 12,002
$ 261
$ —
$ 12,263
Segment assets
164,010
18,131
182,141
4,202
—
186,343
(a)
Net income (loss) attributable to NCI related to continuing operations.
(b)
Other for EU&I and GU&I includes Gains on sales of other assets and other, net, and Other income and expenses, net.
(c)
EU&I includes the following in the referenced captions on the Consolidated Statements of Operations:
• $42 million recorded within Impairment of assets and other charges, $2 million within Operations, maintenance and other, and an $11 million reduction within Interest Expense related to South Carolinas rate
case orders for Duke Energy Carolinas and Duke Energy Progress. See Note 4 for further information.
• $29 million recorded as a reduction of Operating revenues and $4 million as a reduction within Noncontrolling interests related to a Duke Energy Indiana regulatory liability associated with certain employee post-
retirement benefits. See Note 4 for further information.
• $17 million recorded as a reduction of Operating revenues related to nonrecurring customer billing adjustments as a result of implementation of a new customer system.
• $15 million recorded within Equity in (losses) earnings of unconsolidated affiliates, primarily related to impairments for certain joint venture electric transmission projects, and $4 million within Gains on sales of
other assets and other, net.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
119
(d)
GU&I includes $1 million recorded with Operation, maintenance and other and $3 million as a charge within Other income and expenses on the Consolidated Statements of Operations related to nonrecurring
customer billing adjustments as a result of implementation of a new customer system. Additionally, GU&I includes $54 million recorded within Equity in (losses) earnings of unconsolidated affiliates on the Consolidated
Statements of Operations related to impairments for certain renewable natural gas investments. See Note 13 for further information.
(e)
Other includes $16 million recorded as Preferred Redemption Costs on the Consolidated Statements of Operations related to the redemption of Series B Preferred Stock. See Note 20 for further information. Additionally,
Other includes $23 million recorded within Operation, maintenance and other on the Consolidated Statements of Operations related to an insurance deductible for Hurricane Helene property losses.
Year Ended December 31, 2023
(in millions)
Electric
Utilities and
Infrastructure
Gas
Utilities and
Infrastructure
Total
Reportable
Segments
Other
Eliminations
Total
Unaffiliated revenues
$ 26,846
$ 2,177
$ 29,023
$
37
$ —
$ 29,060
Intersegment revenues
75
89
164
97
(261)
—
Total revenues
$ 26,921
$ 2,266
$ 29,187
$ 134
$(261)
$ 29,060
Less:
Fuel used in electric generation and purchased power
$
9,164
$
—
$
9,164
$
—
$ (78)
$
9,086
Cost of natural gas
—
593
593
—
—
593
Operation, maintenance and other
5,309
455
5,764
36
(175)
5,625
Depreciation and amortization
4,684
349
5,033
248
(28)
5,253
Property and other taxes
1,320
129
1,449
(49)
—
1,400
Impairment of assets and other charges
75
(4)
71
14
—
85
Interest expense
1,850
217
2,067
1,097
(150)
3,014
Income tax expense (benefit)
742
116
858
(420)
—
438
Other Segment Items
Noncontrolling interests(a)
99
(2)
97
—
—
97
Preferred dividends
—
—
—
106
—
106
Add: Equity in earnings of unconsolidated affiliates
7
40
47
66
—
113
Add: Other(b)
538
66
604
216
(170)
650
Segment income (loss)(c)(d)
$
4,223
$
519
$
4,742
$ (616)
$ —
$
4,126
Discontinued operations
(1,391)
Net income available to Duke Energy Corporation Common Stockholders
$
2,735
Add back: Net income (loss) attributable to noncontrolling interest
33
Add back: Preferred dividends
106
Net income
$
2,874
Capital investments expenditures and acquisitions(e)
$ 10,135
$ 1,492
$ 11,627
$ 995
$ —
$ 12,622
Segment assets(f)
155,449
17,349
172,798
4,095
—
176,893
(a)
Net income (loss) attributable to NCI related to continuing operations.
(b)
Other for EU&I and GU&I includes Gains on sales of other assets and other, net, and Other income and expenses, net.
(c)
EU&I includes $35 million recorded with Impairment of assets and other charges and $8 million within Operations, maintenance and other primarily related to the North Carolina rate case order on Duke Energy
Carolinas’ Consolidated Statements of Operations; it also includes $33 million recorded within Impairment of assets and other charges and $8 million within Operations, maintenance and other primarily related to the
North Carolina rate case order on Duke Energy Progress’ Consolidated Statements of Operations. See Note 4 for additional information.
(d)
Other includes $110 million recorded within Operations, maintenance and other and $14 million within Impairments of assets and other charges primarily related to strategic repositioning as the Company transitions to
a fully regulated utility on the Consolidated Statements of Operations. See Note 21 for additional information.
(e)
Other includes capital investments expenditures and acquisitions related to the Commercial Renewables Disposal Groups.
(f)
Other includes Assets Held for Sale balances related to the Commercial Renewables Disposal Groups. See Note 2 for further information.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
120
Year Ended December 31, 2022
(in millions)
Electric
Utilities and
Infrastructure
Gas
Utilities and
Infrastructure
Total
Reportable
Segments
Other
Eliminations
Total
Unaffiliated revenues
$ 25,990
$ 2,748
$ 28,738
$
30
$ —
$ 28,768
Intersegment revenues
34
92
126
92
(218)
—
Total revenues
$ 26,024
$ 2,840
$ 28,864
$ 122
$(218)
$ 28,768
Less:
Fuel used in electric generation and purchased power
$
8,862
$
—
$
8,862
$
—
$ (80)
$
8,782
Cost of natural gas
—
1,276
1,276
—
—
1,276
Operation, maintenance and other
5,354
532
5,886
(23)
(129)
5,734
Depreciation and amortization
4,550
327
4,877
236
(27)
5,086
Property and other taxes
1,315
138
1,453
13
—
1,466
Impairment of assets and other charges
374
(12)
362
72
—
434
Interest expense
1,565
182
1,747
778
(86)
2,439
Income tax expense (benefit)
536
8
544
(244)
—
300
Other Segment Items
Noncontrolling interests(a)
13
—
13
—
—
13
Preferred dividends
—
—
—
106
—
106
Add: Equity in earnings of unconsolidated affiliates
7
20
27
86
—
113
Add: Other(b)
467
59
526
(7)
(105)
414
Segment income (loss)(c)(d)
$
3,929
$
468
$
4,397
$ (737)
$
(1)
$
3,659
Discontinued operations
(1,215)
Net income available to Duke Energy Corporation Common Stockholders
$
2,444
Add back: Net income (loss) attributable to noncontrolling interest
(95)
Add back: Preferred dividends
106
Net income
$
2,455
Capital investments expenditures and acquisitions(e)
$
8,985
$ 1,295
$ 10,280
$1,139
$ —
$ 11,419
Segment assets(f)
152,104
16,411
168,515
9,571
—
178,086
(a)
Net income (loss) attributable to NCI related to continuing operations.
(b)
Other for EU&I and GU&I includes Gains on sales of other assets and other, net, and Other income and expenses, net.
(c)
EU&I includes $386 million recorded within Impairment of assets and other charges, $46 million as a reduction within Regulated electric revenues and $34 million within Noncontrolling Interests related to the Duke
Energy Indiana court rulings on coal ash on the Consolidated Statements of Operations. See Note 4 for additional information.
(d)
Other includes $72 million recorded within Impairment of assets and other charges, $71 million within Operations, maintenance and other and a $7 million gain within Gains on sales of other assets related to costs
attributable to business transformation, including long-term real estate strategy changes and workforce realignment on the Consolidated Statements of Operations; it also includes $25 million recorded within Operations,
maintenance and other related to litigation on the Consolidated Statements of Operations.
(e)
Other includes capital investments expenditures and acquisitions related to the Commercial Renewables Disposal Groups.
(f)
Other includes Assets Held for Sale balances related to the Commercial Renewables Disposal Groups. See Note 2 for further information.
Major Customers
No Subsidiary Registrant has an individual customer representing more than 10% of its revenues for the year ended December 31, 2024.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
121
Products and Services
The following table summarizes revenues of the reportable segments by type.
(in millions)
Retail
Electric
Wholesale
Electric
Retail
Natural Gas
Other
Total
Revenues
2024
Electric Utilities and Infrastructure
$24,593
$2,219
$
—
$1,281
$28,093
Gas Utilities and Infrastructure
—
—
2,320
70
2,390
Total Reportable Segments
$24,593
$2,219
$2,320
$1,351
$30,483
2023
Electric Utilities and Infrastructure
$23,484
$2,193
$
—
$1,244
$26,921
Gas Utilities and Infrastructure
—
—
2,199
67
2,266
Total Reportable Segments
$23,484
$2,193
$2,199
$1,311
$29,187
2022
Electric Utilities and Infrastructure
$22,036
$2,882
$
—
$1,106
$26,024
Gas Utilities and Infrastructure
—
—
2,535
305
2,840
Total Reportable Segments
$22,036
$2,882
$2,535
$1,411
$28,864
Duke Energy Carolinas
Duke Energy Carolinas has one reportable segment, EU&I.
EU&I generates, distributes and sells electricity in North Carolina and South Carolina. EU&I conducts operations primarily through Duke Energy Carolinas.
The remainder of Duke Energy Carolinas’ operations is presented as Other.
Year Ended December 31, 2024
(in millions)
Electric
Utilities and
Infrastructure
Eliminations/
Other
Total
Total revenues
$ 9,718
$ —
$ 9,718
Less:
Fuel used in electric generation and purchased power
$ 3,251
$ —
$ 3,251
Operation, maintenance and other
1,710
30
1,740
Depreciation and amortization
1,768
—
1,768
Property and other taxes
346
—
346
Impairment of assets and other charges
31
—
31
Interest expense
722
—
722
Income tax expense (benefit)
233
(7)
226
Add: Other segment items(a)
252
(3)
249
Segment income (loss) / Net income
$ 1,909
$ (26)
$ 1,883
Capital expenditures
$ 3,966
$ —
$ 3,966
Segment assets
54,782
223
55,005
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
122
Year Ended December 31, 2023
(in millions)
Electric
Utilities and
Infrastructure
Eliminations/
Other
Total
Total revenues
$ 8,288
$ —
$ 8,288
Less:
Fuel used in electric generation and purchased power
$ 2,524
$ —
$ 2,524
Operation, maintenance and other
1,689
85
1,774
Depreciation and amortization
1,593
—
1,593
Property and other taxes
320
—
320
Impairment of assets and other charges
44
—
44
Interest expense
686
—
686
Income tax expense (benefit)
162
(21)
141
Add: Other segment items(a)
267
(3)
264
Segment income (loss) / Net income
$ 1,537
$ (67)
$ 1,470
Capital expenditures
$ 3,733
$ —
$ 3,733
Segment assets
51,908
202
52,110
Year Ended December 31, 2022
(in millions)
Electric
Utilities and
Infrastructure
Eliminations/
Other
Total
Total revenues
$ 7,857
$ —
$ 7,857
Less:
Fuel used in electric generation and purchased power
$ 2,015
$ —
$ 2,015
Operation, maintenance and other
1,845
47
1,892
Depreciation and amortization
1,526
—
1,526
Property and other taxes
340
—
340
Impairment of assets and other charges
(18)
44
26
Interest expense
557
—
557
Income tax expense (benefit)
148
(22)
126
Add: Other segment items(a)
228
(3)
225
Segment income (loss) / Net income
$ 1,672
$ (72)
$ 1,600
Capital expenditures
$ 3,304
$ —
$ 3,304
Segment assets
49,956
390
50,346
(a)
Other segment items includes Gains on sales of other assets and other, net, and Other income and expenses, net.
Progress Energy
Progress Energy has one reportable segment, EU&I.
EU&I generates, distributes and sells electricity in North Carolina, South Carolina and Florida. EU&I conducts operations primarily through its wholly owned
subsidiaries, Duke Energy Progress and Duke Energy Florida. The remainder of Progress Energy’s operations is presented as Other.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
123
Year Ended December 31, 2024
(in millions)
Electric
Utilities and
Infrastructure
Eliminations/
Other
Total
Total revenues
$13,612
$
21
$13,633
Less:
Fuel used in electric generation and purchased power
$ 4,755
$
—
$ 4,755
Operation, maintenance and other
2,413
50
2,463
Depreciation and amortization
2,393
—
2,393
Property and other taxes
617
—
617
Impairment of assets and other charges
6
—
6
Interest expense
949
115
1,064
Income tax expense (benefit)
465
(39)
426
Add: Other segment items(a)
224
38
262
Segment income (loss) / Net income
$ 2,238
$
(67)
$ 2,171
Capital expenditures
$ 5,252
$
—
$ 5,252
Segment assets
67,951
3,685
71,636
Year Ended December 31, 2023
(in millions)
Electric
Utilities and
Infrastructure
Eliminations/
Other
Total
Total revenues
$13,524
$
20
$13,544
Less:
Fuel used in electric generation and purchased power
$ 5,026
$
—
$ 5,026
Operation, maintenance and other
2,554
82
2,636
Depreciation and amortization
2,151
—
2,151
Property and other taxes
644
—
644
Impairment of assets and other charges
28
—
28
Interest expense
840
114
954
Income tax expense (benefit)
426
(49)
377
Add: Other segment items(a)
210
18
228
Segment income (loss) / Net income
$ 2,065
$ (109)
$ 1,956
Capital expenditures
$ 4,917
$
—
$ 4,917
Segment assets
63,182
3,912
67,094
Year Ended December 31, 2022
(in millions)
Electric
Utilities and
Infrastructure
Eliminations/
Other
Total
Total revenues
$13,106
$
19
$13,125
Less:
Fuel used in electric generation and purchased power
$ 5,078
$
—
$ 5,078
Operation, maintenance and other
2,395
63
2,458
Depreciation and amortization
2,142
—
2,142
Property and other taxes
611
(4)
607
Impairment of assets and other charges
5
7
12
Interest expense
716
128
844
Income tax expense (benefit)
396
(48)
348
Add: Other segment items(a)
205
(13)
192
Segment income (loss) / Net income
$ 1,968
$ (140)
$ 1,828
Capital expenditures
$ 4,317
$
—
$ 4,317
Segment assets
62,183
3,896
66,079
(a)
Other segment items includes Gains on sales of other assets and other, net, and Other income and expenses, net.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
124
Duke Energy Progress
Duke Energy Progress has one reportable segment, EU&I.
EU&I generates, distributes and sells electricity in North Carolina and South Carolina. EU&I conducts operations primarily through Duke Energy Progress.
The remainder of Duke Energy Progress’ operations is presented as Other.
Year Ended December 31, 2024
(in millions)
Electric
Utilities and
Infrastructure
Eliminations/
Other
Total
Total revenues
$ 7,017
$—
$ 7,017
Less:
Fuel used in electric generation and purchased power
$ 2,409
$—
$ 2,409
Operation, maintenance and other
1,370
18
1,388
Depreciation and amortization
1,336
—
1,336
Property and other taxes
177
—
177
Impairment of assets and other charges
6
—
6
Interest expense
492
1
493
Income tax expense (benefit)
194
(5)
189
Add: Other segment items(a)
138
7
145
Segment income (loss) / Net income
$ 1,171
$ (7)
$ 1,164
Capital expenditures
$ 2,803
$—
$ 2,803
Segment assets
39,402
91
39,493
Year Ended December 31, 2023
(in millions)
Electric
Utilities and
Infrastructure
Eliminations/
Other
Total
Total revenues
$ 6,488
$ —
$ 6,488
Less:
Fuel used in electric generation and purchased power
$ 2,203
$ —
$ 2,203
Operation, maintenance and other
1,342
37
1,379
Depreciation and amortization
1,266
—
1,266
Property and other taxes
164
—
164
Impairment of assets and other charges
29
—
29
Interest expense
427
—
427
Income tax expense (benefit)
158
(9)
149
Add: Other segment items(a)
128
(1)
127
Segment income (loss) / Net income
$ 1,027
$ (29)
$
998
Capital expenditures
$ 2,387
$ —
$ 2,387
Segment assets
36,820
104
36,924
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
125
Year Ended December 31, 2022
(in millions)
Electric
Utilities and
Infrastructure
Eliminations/
Other
Total
Total revenues
$ 6,753
$ —
$ 6,753
Less:
Fuel used in electric generation and purchased power
$ 2,492
$ —
$ 2,492
Operation, maintenance and other
1,447
28
1,475
Depreciation and amortization
1,187
—
1,187
Property and other taxes
190
—
190
Impairment of assets and other charges
5
2
7
Interest expense
354
—
354
Income tax expense (benefit)
165
(7)
158
Add: Other segment items(a)
119
(1)
118
Segment income (loss) / Net income
$ 1,032
$ (24)
$ 1,008
Capital expenditures
$ 2,070
$ —
$ 2,070
Segment assets
36,631
121
36,752
(a)
Other segment items includes Gains on sales of other assets and other, net, and Other income and expenses, net.
Duke Energy Florida
Duke Energy Florida has one reportable segment, EU&I.
EU&I generates, distributes and sells electricity in Florida. EU&I conducts operations primarily through Duke Energy Florida. The remainder of Duke Energy
Florida’s operations is presented as Other.
Year Ended December 31, 2024
(in millions)
Electric
Utilities and
Infrastructure
Eliminations/
Other
Total
Total revenues
$ 6,595
$—
$ 6,595
Less:
Fuel used in electric generation and purchased power
$ 2,346
$—
$ 2,346
Operation, maintenance and other
1,043
12
1,055
Depreciation and amortization
1,057
—
1,057
Property and other taxes
440
—
440
Interest expense
457
—
457
Income tax expense (benefit)
271
(3)
268
Add: Other segment items(a)
86
3
89
Segment income (loss) / Net income
$ 1,067
$ (6)
$ 1,061
Capital expenditures
$ 2,449
$—
$ 2,449
Segment assets
28,549
20
28,569
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
126
Year Ended December 31, 2023
(in millions)
Electric
Utilities and
Infrastructure
Eliminations/
Other
Total
Total revenues
$ 7,036
$ —
$ 7,036
Less:
Fuel used in electric generation and purchased power
$ 2,823
$ —
$ 2,823
Operation, maintenance and other
1,212
27
1,239
Depreciation and amortization
885
—
885
Property and other taxes
480
—
480
Impairment of assets and other charges
(1)
—
(1)
Interest expense
413
—
413
Income tax expense (benefit)
268
(7)
261
Add: Other segment items(a)
82
(2)
80
Segment income (loss) / Net income
$ 1,038
$ (22)
$ 1,016
Capital expenditures
$ 2,529
$ —
$ 2,529
Segment assets
26,362
239
26,601
Year Ended December 31, 2022
(in millions)
Electric
Utilities and
Infrastructure
Eliminations/
Other
Total
Total revenues
$ 6,353
$ —
$ 6,353
Less:
Fuel used in electric generation and purchased power
$ 2,586
$ —
$ 2,586
Operation, maintenance and other
948
19
967
Depreciation and amortization
955
—
955
Property and other taxes
421
—
421
Impairment of assets and other charges
—
4
4
Interest expense
362
—
362
Income tax expense (benefit)
231
(6)
225
Add: Other segment items(a)
86
(10)
76
Segment income (loss) / Net income
$
936
$(27)
$
909
Capital expenditures
$ 2,247
$ —
$ 2,247
Segment assets
25,552
2
25,554
(a)
Other segment items includes Gains on sales of other assets and other, net, and Other income and expenses, net.
Duke Energy Ohio
Duke Energy Ohio has two reportable segments, EU&I and GU&I.
EU&I transmits and distributes electricity in portions of Ohio and generates, distributes and sells electricity in portions of Northern Kentucky. GU&I
transports and sells natural gas in portions of Ohio and Northern Kentucky. Both reportable segments conduct operations primarily through Duke Energy Ohio and
its wholly owned subsidiary, Duke Energy Kentucky. The remainder of Duke Energy Ohio’s operations is presented as Other.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
127
Year Ended December 31, 2024
(in millions)
Electric
Utilities and
Infrastructure
Gas
Utilities and
Infrastructure
Total
Reportable
Segments
Eliminations/
Other
Total
Total revenues
$1,905
$ 640
$ 2,545
—
$ 2,545
Less:
Fuel used in electric generation and purchased power
$ 538
$
—
$
538
$—
$
538
Cost of natural gas
—
142
142
—
142
Operation, maintenance and other
366
109
475
10
485
Depreciation and amortization
273
131
404
(1)
403
Property and other taxes
306
94
400
—
400
Interest expense
126
68
194
(2)
192
Income tax expense (benefit)
47
18
65
(1)
64
Add: Other segment items(a)
15
5
20
—
20
Segment income (loss) / Net income
$ 264
$
83
$
347
$ (6)
$
341
Capital expenditures
$ 535
$ 280
$
815
$—
$
815
Segment assets
8,211
4,506
12,717
51
12,768
Year Ended December 31, 2023
(in millions)
Electric
Utilities and
Infrastructure
Gas
Utilities and
Infrastructure
Total
Reportable
Segments
Eliminations/
Other
Total
Total revenues
$1,868
$ 639
$ 2,507
$ —
$ 2,507
Less:
Fuel used in electric generation and purchased power
$ 608
$
—
608
$ —
608
Cost of natural gas
—
163
163
—
163
Operation, maintenance and other
351
118
469
9
478
Depreciation and amortization
257
110
367
—
367
Property and other taxes
294
70
364
—
364
Impairment of assets and other charges
2
—
2
1
3
Interest expense
116
53
169
—
169
Income tax expense (benefit)
42
23
65
(2)
63
Add: Other segment items(a)
29
14
43
(1)
42
Segment income (loss) / Net income
$ 227
$ 116
$
343
$
(9)
$
334
Capital expenditures
$ 520
$ 419
$
939
$ —
$
939
Segment assets
7,978
4,346
12,324
(108)
12,216
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
128
Year Ended December 31, 2022
(in millions)
Electric
Utilities and
Infrastructure
Gas
Utilities and
Infrastructure
Total
Reportable
Segments
Eliminations/
Other
Total
Total revenues
$1,798
$ 716
$ 2,514
$ —
$ 2,514
Less:
Fuel used in electric generation and purchased power
$ 657
$
—
$
657
$ —
$
657
Cost of natural gas
—
261
261
—
261
Operation, maintenance and other
345
170
515
8
523
Depreciation and amortization
221
103
324
—
324
Property and other taxes
288
81
369
—
369
Impairment of assets and other charges
1
(12)
(11)
1
(10)
Interest expense
86
43
129
—
129
Income tax expense (benefit)
24
(43)
(19)
(2)
(21)
Add: Other segment items(a)
13
8
21
(1)
20
Segment income (loss) / Net income
$ 189
$ 121
$
310
$
(8)
$
302
Capital expenditures
$ 488
$ 362
$
850
$ —
$
850
Segment assets
7,504
4,164
11,668
(162)
11,506
(a)
Other segment items for EU&I and GU&I includes Gains on sales of other assets and other, net, and Other income and expenses, net.
Duke Energy Indiana
Duke Energy Indiana has one reportable segment, EU&I.
EU&I generates, distributes and sells electricity in Indiana. EU&I conducts operations primarily through Duke Energy Indiana. The remainder of Duke Energy
Indiana’s operations is presented as Other.
Year Ended December 31, 2024
(in millions)
Electric
Utilities and
Infrastructure
Eliminations/
Other
Total
Total revenues
$ 3,040
$—
$ 3,040
Less:
Fuel used in electric generation and purchased power
$
964
$—
$
964
Operation, maintenance and other
666
5
671
Depreciation and amortization
676
—
676
Property and other taxes
50
—
50
Interest expense
228
1
229
Income tax expense (benefit)
72
(1)
71
Add: Other segment items(a)
62
—
62
Segment income (loss) / Net income
$
446
$ (5)
$
441
Capital expenditures
$
935
$—
$
935
Segment assets
15,726
1
15,727
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
129
Year Ended December 31, 2023
(in millions)
Electric
Utilities and
Infrastructure
Eliminations/
Other
Total
Total revenues
$ 3,399
$ —
$ 3,399
Less:
Fuel used in electric generation and purchased power
$ 1,217
$ —
$ 1,217
Operation, maintenance and other
695
18
713
Depreciation and amortization
666
—
666
Property and other taxes
59
—
59
Impairment of assets and other charges
(1)
1
—
Interest expense
213
—
213
Income tax expense (benefit)
115
(5)
110
Add: Other segment items(a)
77
(1)
76
Segment income (loss) / Net income
$
512
$ (15)
$
497
Capital expenditures
$
961
$ —
$
961
Segment assets
14,966
(155)
14,811
Year Ended December 31, 2022
(in millions)
Electric
Utilities and
Infrastructure
Eliminations/
Other
Total
Total revenues
$ 3,922
$ —
$ 3,922
Less:
Fuel used in electric generation and purchased power
$ 1,819
$ —
$ 1,819
Operation, maintenance and other
719
10
729
Depreciation and amortization
645
—
645
Property and other taxes
75
—
75
Impairment of assets and other charges
387
1
388
Interest expense
189
—
189
Income tax expense (benefit)
(20)
(4)
(24)
Add: Other segment items(a)
38
(2)
36
Segment income (loss) / Net income
$
146
$
(9)
$
137
Capital expenditures
$
877
$ —
$
877
Segment assets
14,864
(210)
14,654
(a)
Other segment items includes Gains on sales of other assets and other, net, and Other income and expenses, net.
Piedmont
Piedmont has one reportable segment, GU&I.
GU&I distributes and sells natural gas in North Carolina, South Carolina and Tennessee. GU&I conducts operations primarily through Piedmont. The
remainder of Piedmont’s operations is presented as Other.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
130
Year Ended December 31, 2024
(in millions)
Gas
Utilities and
Infrastructure
Eliminations/
Other
Total
Total revenues
$ 1,729
$—
$ 1,729
Less:
Cost of natural gas
$
423
$—
$
423
Operation, maintenance and other
355
4
359
Depreciation and amortization
261
—
261
Property and other taxes
55
—
55
Interest expense
185
—
185
Income tax expense (benefit)
94
1
95
Other Segment Items
Add: Equity in earnings of unconsolidated affiliates
—
8
8
Add: Other(a)
54
—
54
Segment income (loss) / Net income
$
410
$ 3
$
413
Capital expenditures
$ 1,025
$—
$ 1,025
Segment assets
11,707
92
11,799
Year Ended December 31, 2023
(in millions)
Gas
Utilities and
Infrastructure
Eliminations/
Other
Total
Total revenues
$ 1,628
$—
$ 1,628
Less:
Cost of natural gas
$
430
$—
$
430
Operation, maintenance and other
336
8
344
Depreciation and amortization
237
—
237
Property and other taxes
59
—
59
Impairment of assets and other charges
(4)
—
(4)
Interest expense
165
—
165
Income tax expense (benefit)
84
—
84
Other Segment Items
Add: Equity in earnings of unconsolidated affiliates
—
9
9
Add: Other(a)
59
(2)
57
Segment income (loss) / Net income
$
380
$ (1)
$
379
Capital expenditures
$ 1,036
$—
$ 1,036
Segment assets
10,978
89
11,067
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
131
Year Ended December 31, 2022
(in millions)
Gas
Utilities and
Infrastructure
Eliminations/
Other
Total
Total revenues
$ 2,124
$ —
$ 2,124
Less:
Cost of natural gas
$ 1,015
$ —
$ 1,015
Operation, maintenance and other
360
8
368
Depreciation and amortization
222
—
222
Property and other taxes
57
—
57
Impairment of assets and other charges
—
18
18
Interest expense
140
—
140
Income tax expense (benefit)
43
(4)
39
Other Segment Items
Add: Equity in earnings of unconsolidated affiliates
—
8
8
Add: Other(a)
47
3
50
Segment income (loss) / Net income
$
334
$(11)
$
323
Capital expenditures
$
862
$ —
$
862
Segment assets
10,243
92
10,335
(a)
Other includes Gains on sales of other assets and other, net, and Other income and expenses, net.
4.
REGULATORY MATTERS
REGULATORY ASSETS AND LIABILITIES
The Duke Energy Registrants record regulatory assets and liabilities that result from the ratemaking process. See Note 1 for further information.
The following tables present the regulatory assets and liabilities recorded on the Consolidated Balance Sheets of Duke Energy and Progress Energy. See
separate tables below for balances by individual registrant.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
132
Duke Energy
Progress Energy
December 31,
December 31,
(in millions)
2024
2023
2024
2023
Regulatory Assets
AROs – coal ash
$ 3,384
$ 3,214
$1,335
$1,230
Accrued pension and OPEB
2,524
2,389
828
757
Storm cost deferrals
1,951
407
1,238
298
Storm cost securitized balance, net
1,023
890
822
682
AROs – nuclear and other
952
1,179
905
1,127
Nuclear asset securitized balance, net
771
830
771
830
Debt fair value adjustment
719
774
—
—
COR regulatory asset
646
371
571
337
Deferred fuel and purchased power
588
2,486
282
1,173
Hedge costs deferrals
352
749
126
323
PISCC and deferred operating expenses
331
357
37
42
Retired generation facilities
281
275
202
220
Customer connect project
257
260
116
125
Grid Deferral
255
210
54
51
Incremental COVID-19 expenses
231
237
89
80
Vacation accrual
228
228
43
43
Deferred asset – Lee and Harris COLA
215
252
10
15
Advanced metering infrastructure (AMI)
204
243
70
92
Demand side management (DSM) / Energy efficiency (EE)
199
201
199
191
CEP deferral
195
193
—
—
NCEMPA deferrals
179
172
179
172
Decoupling
162
115
32
15
Nuclear deferral
134
131
53
42
Deferred pipeline integrity costs
129
133
—
—
COR settlement
110
115
29
30
Coal plant securitization
102
8
39
8
Derivatives – natural gas supply contracts
94
147
—
—
Deferred coal ash handling system costs
77
86
17
21
Qualifying facility contract buyouts
62
68
62
68
Tennessee ARM Deferral
33
20
—
—
Network Integration Transmission Services deferral
31
31
—
—
Transmission expansion obligation
31
30
—
—
East Bend deferrals
24
28
—
—
Propane caverns
24
26
—
—
Other
512
411
156
119
Total regulatory assets
17,010
17,266
8,265
8,091
Less: Current portion
2,756
3,648
1,647
1,661
Total noncurrent regulatory assets
$14,254
$13,618
$6,618
$6,430
Regulatory Liabilities
COR regulatory liability
$ 5,436
$ 5,497
$2,984
$2,805
Net regulatory liability related to income taxes
5,397
5,901
1,884
2,008
AROs – nuclear and other
2,289
1,673
—
—
Deferred Nuclear PTC
676
—
95
—
Hedge cost deferrals
583
443
281
208
Renewable energy credits
241
237
139
138
Accrued pension and OPEB
232
266
12
—
Deferred fuel and purchased power
223
137
94
14
DSM / EE
58
89
—
—
DOE Settlement
—
32
—
32
Other
984
1,133
291
296
Total regulatory liabilities
16,119
15,408
5,780
5,501
Less: Current portion
1,425
1,369
522
418
Total noncurrent regulatory liabilities
$14,694
$14,039
$5,258
$5,083
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
133
Descriptions of regulatory assets and liabilities summarized in the
tables above and below follow. See tables below for recovery and amortization
periods at the separate registrants.
AROs – coal ash. Represents deferred depreciation and accretion
related to the legal obligation to close ash basins. The costs are deferred until
recovery treatment has been determined. See Notes 1 and 10 for additional
information.
AROs – nuclear and other. Represents regulatory assets or liabilities,
including deferred depreciation and accretion, related to legal obligations
associated with the future retirement of property, plant and equipment, excluding
amounts related to coal ash. The AROs relate primarily to decommissioning
nuclear power facilities. The amounts also include certain deferred gains and
losses on NDTF investments. See Notes 1 and 10 for additional information.
Deferred fuel and purchased power. Represents certain energy-related
costs that are recoverable or refundable as approved by the applicable
regulatory body.
Accrued pension and OPEB. Accrued pension and OPEB represent
regulatory assets and liabilities related to each of the Duke Energy Registrants’
respective shares of unrecognized actuarial gains and losses and
unrecognized prior service cost and credit attributable to Duke Energy’s
pension plans and OPEB plans. The regulatory asset or liability is amortized
with the recognition of actuarial gains and losses and prior service cost and
credit to net periodic benefit costs for pension and OPEB plans. The accrued
pension and OPEB regulatory assets are expected to be recovered primarily
over the average remaining service periods or life expectancies of employees
covered by the benefit plans. See Note 23 for additional detail.
Storm cost securitized balance, net. Represents the North Carolina
portion of storm restoration expenditures related to Hurricane Florence,
Hurricane Michael, Hurricane Dorian and Winter Storm Diego (2018 and 2019
events). The South Carolina portion of storm restoration expenditures are related
to 2014 Ice Storms Pax and Ulysses, Hurricane Matthew, Hurricane Florence,
Hurricane Michael, Hurricane Dorian, and Winter Storms Izzy and Jasper.
Nuclear asset securitized balance, net. Represents the balance
associated with Crystal River Unit 3 retirement approved for recovery by the
FPSC on September 15, 2015, and the upfront financing costs securitized in
2016 with issuance of the associated bonds. The regulatory asset balance is net
of the AFUDC equity portion.
Debt fair value adjustment. Purchase accounting adjustments recorded
at the Duke Energy (Parent) level to state the carrying value of debt at fair
value in connection with the Duke Energy mergers with Progress Energy in 2012
and Piedmont in 2016. Amount is amortized over the life of the related debt.
Hedge costs deferrals. Amounts relate to realized and unrealized gains
and losses on derivatives recorded as a regulatory asset or liability, respectively,
until the contracts are settled.
Storm cost deferrals. Represents deferred incremental costs incurred
related to major weather-related events.
COR regulatory asset. Represents the excess of spend over funds
received from customers to cover the future removal of property, plant and
equipment from retired or abandoned sites as property is retired, net of certain
deferred gains on NDTF investments.
PISCC and deferred operating expenses. Represents deferred
depreciation and operating expenses as well as carrying costs on the portion of
capital expenditures placed in service but not yet reflected in retail rates as
plant in service.
Retired generation facilities. Represents amounts to be recovered for
facilities that have been retired and are probable of recovery.
Deferred asset – Lee and Harris COLA. Represents deferred costs
incurred for the canceled Lee and Harris nuclear projects.
Customer connect project. Represents incremental operating expenses
and carrying costs on deferred amounts related to the deployment of the new
customer information system.
AMI. Represents deferred costs related to the installation of AMI meters
and remaining net book value of non-AMI meters to be replaced at Duke Energy
Carolinas, net book value of existing meters at Duke Energy Florida, Duke
Energy Progress and Duke Energy Ohio and future recovery of net book value of
electromechanical meters that have been replaced with AMI meters at Duke
Energy Indiana.
Incremental COVID-19 expenses. Represents incremental costs related
to ensuring continuity and quality of service in a safe manner during the
COVID-19 pandemic.
Vacation accrual. Represents vacation entitlement, which is generally
recovered in the following year.
Grid deferral. Represents deferred incremental operation and
maintenance expense, depreciation and property taxes associated with grid
improvement plans.
DSM/EE. Deferred costs related to various DSM and EE programs
recoverable or refundable as approved by the applicable regulatory body.
CEP deferral. Represents deferred depreciation, PISCC and deferred
property tax for Duke Energy Ohio Gas capital assets for the CEP.
NCEMPA deferrals. Represents retail allocated cost deferrals and returns
associated with the additional ownership interest in assets acquired from
NCEMPA in 2015.
Derivatives – natural gas supply contracts. Represents costs for
certain long-dated, fixed quantity forward natural gas supply contracts, which
are recoverable through PGA clauses.
Deferred pipeline integrity costs. Represents pipeline integrity
management costs in compliance with federal regulations.
Nuclear deferral. Includes amounts related to nuclear plant outage and
refueling costs, which are deferred and recovered over the nuclear fuel cycle.
COR settlement. Represents approved COR settlements that are being
amortized over the average remaining lives, at the time of approval, of the
associated assets.
Decoupling. Relates primarily to margin and revenue decoupling.
Deferred coal ash handling system costs. Represents deferred
depreciation and returns associated with capital assets related to converting
the ash handling system from wet to dry.
Qualifying facility contract buyouts. Represents termination payments
for regulatory recovery through the capacity clause.
Network Integration Transmission Services deferral. Represents a
deferral of costs and return related transmission costs.
Transmission expansion obligation. Represents transmission expansion
obligations related to Duke Energy Ohio’s withdrawal from MISO.
East Bend deferrals. Represents amounts to be recovered for deferred
costs and depreciation related to the East Bend station.
Propane Caverns. Represents amounts for costs related to propane
inventory, the net book value of remaining assets and decommissioning costs
at Duke Energy Ohio.
Tennessee ARM Deferral. Represents amounts to be recovered for
uncollected revenue for 2022 and deferred depreciation and carrying costs on
the portion of capital expenditures placed in service but not yet reflected in
rates.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
134
Coal Plant Securitization. Represents the North Carolina portion of
incremental depreciation and net book value of certain coal-fired plants to be
recovered in a future securitization.
Net regulatory liability related to income taxes. Amounts for all
registrants include regulatory liabilities related primarily to impacts from the
Tax Act. See Note 24 for additional information. Amounts have no immediate
impact on rate base as regulatory assets are offset by deferred tax liabilities.
COR regulatory liability. Represents funds received from customers to
cover the future removal of property, plant and equipment from retired or
abandoned sites as property is retired. Also includes certain deferred gains on
NDTF investments.
DOE Settlement. Represents litigation settlement funds received
resulting from the DOE’s failure to accept spent nuclear fuel and other
radioactive waste from the Crystal River Unit 3 during 2014-2018 as required
under the Nuclear Waste Policy Act.
Deferred Nuclear PTC. Represents the net realizable value of nuclear
PTCs that will be passed back to customers over time.
Renewable Energy Credits. Represents certificates for the environmental
benefits of renewable energy that will be returned to customers in a future
period.
RESTRICTIONS ON THE ABILITY OF CERTAIN SUBSIDIARIES TO MAKE
DIVIDENDS, ADVANCES AND LOANS TO DUKE ENERGY
As a condition to the approval of merger transactions, the NCUC, PSCSC,
PUCO, KPSC and IURC imposed conditions on the ability of Duke Energy
Carolinas, Duke Energy Progress, Duke Energy Ohio, Duke Energy Kentucky, Duke
Energy Indiana and Piedmont to transfer funds to Duke Energy through loans
or advances, as well as restricted amounts available to pay dividends to Duke
Energy. Certain subsidiaries may transfer funds to the Parent by obtaining
approval of the respective state regulatory commissions. These conditions
imposed restrictions on the ability of the public utility subsidiaries to pay cash
dividends as discussed below.
Duke Energy Progress and Duke Energy Florida also have restrictions
imposed by their first mortgage bond indentures, which in certain
circumstances, limit their ability to make cash dividends or distributions on
common stock. Amounts restricted as a result of these provisions were not
material at December 31, 2024.
Additionally, certain other subsidiaries of Duke Energy have restrictions
on their ability to dividend, loan or advance funds to Duke Energy due to specific
legal or regulatory restrictions, including, but not limited to, minimum
working capital and tangible net worth requirements.
The restrictions discussed below were not a material amount of Duke
Energy’s and Progress Energy’s net assets at December 31, 2024.
Duke Energy Carolinas
Duke Energy Carolinas must limit cumulative distributions subsequent
to mergers to (i) the amount of retained earnings on the day prior to the closing
of the mergers, plus (ii) any future earnings recorded.
Duke Energy Progress
Duke Energy Progress must limit cumulative distributions subsequent to
the mergers between Duke Energy and Progress Energy and Duke Energy and
Piedmont to (i) the amount of retained earnings on the day prior to the closing
of the respective mergers, plus (ii) any future earnings recorded.
Duke Energy Ohio
Duke Energy Ohio will not declare and pay dividends out of capital or
unearned surplus without the prior authorization of the PUCO. Duke Energy
Ohio received FERC and PUCO approval to pay dividends from its equity accounts
that are reflective of the amount that it would have in its retained earnings
account had push-down accounting for the Cinergy merger not been applied to
Duke Energy Ohio’s balance sheet. The conditions include a commitment
from Duke Energy Ohio that equity, adjusted to remove the impacts of push-
down accounting, will not fall below 30% of total capital.
Duke Energy Kentucky is required to pay dividends solely out of retained
earnings and to maintain a minimum of 35% equity in its capital structure.
Duke Energy Indiana
Duke Energy Indiana must limit cumulative distributions subsequent to
the merger between Duke Energy and Cinergy to (i) the amount of retained
earnings on the day prior to the closing of the merger, plus (ii) any future
earnings recorded. In addition, Duke Energy Indiana will not declare and pay
dividends out of capital or unearned surplus without prior authorization of the
IURC.
Piedmont
Piedmont must limit cumulative distributions subsequent to the
acquisition of Piedmont by Duke Energy to (i) the amount of retained earnings
on the day prior to the closing of the merger, plus (ii) any future earnings
recorded.
RATE-RELATED INFORMATION
The NCUC, PSCSC, FPSC, IURC, PUCO, TPUC and KPSC approve rates for
retail electric and natural gas services within their states. The FERC approves
rates for electric sales to wholesale customers served under cost-based
rates (excluding Ohio and Indiana), as well as sales of transmission service.
For open regulatory matters, unless otherwise noted, the Subsidiary Registrants
and Duke Energy Kentucky cannot predict the outcome or ultimate resolution
of their respective matters.
As discussed further below, the Subsidiary Registrants were impacted
by significant storms in 2024:
• In August 2024, Hurricane Debby made landfall in Florida as a
Category 1 storm, impacting primarily the Duke Energy Florida territory
as well as the Duke Energy Carolinas and Duke Energy Progress
territories in North Carolina and South Carolina. Approximately 700,000
customers were impacted across Duke Energy’s system.
• In September 2024, Hurricane Helene made landfall in Florida as a
Category 4 storm and subsequently impacted all of Duke Energy’s
service territories as the storm moved inland, with the most severe
damage occurring in the Duke Energy Florida territory and the Duke
Energy Carolinas and Duke Energy Progress territories in North Carolina
and South Carolina. Approximately 3.5 million customers were
impacted across Duke Energy’s system.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
135
• In October 2024, Hurricane Milton made landfall in Florida as a
Category 3 storm, impacting more than 1 million customers in the
Duke Energy Florida territory.
Each Subsidiary Registrant is responsible for the restoration of service
within its respective service territory and the recovery of related storm costs,
including financing costs and, as applicable, the replenishment of storm-
related reserves. The Subsidiary Registrants are pursuing all available
avenues to recover storm-related costs, including insurance recovery and the
securitization for certain costs, where applicable. Total estimated costs for storm
restoration and rebuilding of infrastructure, including capital expenditures,
for hurricanes Debby, Helene and Milton, net of expected insurance recoveries,
are estimated to be approximately $2.8 billion, of which approximately
$2.6 billion had been incurred as of December 31, 2024, with $0.2 billion
estimated to be incurred for rebuilding in 2025. The following shows the total
cost estimates for the registrants that were primarily impacted:
(in millions)
Cost Estimate(a)
Duke Energy Carolinas
$1,150
Duke Energy Progress
450
Duke Energy Florida
1,150
(a)
These estimates could change as the rebuilding of infrastructure is finalized. Duke Energy Florida was
the only jurisdiction materially impacted by Hurricane Milton.
Duke Energy Carolinas and Duke Energy Progress
Hurricanes Ian, Debby and Helene
In 2022, Hurricane Ian inflicted severe damage to the Duke Energy
Carolinas and Duke Energy Progress territories in North Carolina and South
Carolina. Total operation and maintenance expenses incurred for restoration
efforts were approximately $95 million, with an additional $8 million in capital
investments. Approximately $87 million of the operation and maintenance
expenses were deferred in Regulatory assets within Other Noncurrent Assets on
the Consolidated Balance Sheets as of December 31, 2023 ($32 million and
$55 million for Duke Energy Carolinas and Duke Energy Progress, respectively).
As of December 31, 2024, $34 million for Duke Energy Carolinas and
$47 million for Duke Energy Progress were deferred in Regulatory assets within
Other Noncurrent Assets on the Consolidated Balance Sheets.
In 2024, Hurricanes Debby and Helene significantly impacted the Duke
Energy Carolinas and Duke Energy Progress territories in North Carolina and
South Carolina. As of December 31, 2024, total operation and maintenance
expenses incurred for restoration and rebuilding of infrastructure, were
approximately $860 million ($612 million and $248 million for Duke Energy
Carolinas and Duke Energy Progress, respectively), with an additional
$548 million in capital investments ($402 million and $146 million for Duke
Energy Carolinas and Duke Energy Progress, respectively). Approximately
$802 million of the operation and maintenance expenses are deferred in
Regulatory assets within Other Noncurrent Assets on the Consolidated Balance
Sheets as of December 31, 2024 ($583 million and $219 million for Duke
Energy Carolinas and Duke Energy Progress, respectively). These amounts are
net of expected insurance recoveries and could change going forward as the
rebuilding of infrastructure is finalized.
Duke Energy Carolinas and Duke Energy Progress have regulatory tools
to recover storm costs including deferral and securitization. In December 2024,
Duke Energy Carolinas and Duke Energy Progress filed their joint petition for
review and approval of storm recovery costs (Phase 1) with the NCUC to securitize
the North Carolina-retail allocable share of storm costs associated with
Hurricanes Helene, Debby and Ian, as well as Hurricane Zeta and Winter Storm
Izzy, and the establishment of storm reserves for $200 million at Duke
Energy Carolinas and $100 million at Duke Energy Progress. On February 3,
2025, Duke Energy Carolinas and Duke Energy Progress filed their joint petition
for financing orders (Phase 2). In February 2025, Duke Energy Carolinas and
Duke Energy Progress reached a settlement agreement with the North Carolina
Public Staff and other intervening parties that resolves all issues between
the parties in the Phase 1 proceeding and removes the establishment of storm
reserves from the securitization proceeding. Further, the settlement outlines
agreement on certain issues in the Phase 2 proceeding. The evidentiary hearing
was held on February 13, 2025. Orders from the NCUC are expected by
April 2025 in the Phase 1 proceeding and by June 2025 in the Phase 2
proceeding. Subject to NCUC approvals, Duke Energy Carolinas and Duke
Energy Progress expect to securitize the North Carolina-retail allocable share
of storm costs by the end of 2025.
On February 17, 2025, Duke Energy Carolinas and Duke Energy Progress
filed with the PSCSC notice of intent to file a Joint Petition for Financing Orders
no earlier than 30 days from the date of the notice, seeking authority to
recover the South Carolina-retail allocable share of storm costs associated
with Hurricane Helene through securitization. Such petition is contingent upon
the resolution of South Carolina legislative provisions relevant to storm
recovery financing.
Nuclear Station Subsequent License Renewal
On June 7, 2021, Duke Energy Carolinas filed a subsequent license
renewal (SLR) application for the Oconee Nuclear Station (ONS) with the U.S.
Nuclear Regulatory Commission (NRC) to renew ONS’s operating license for an
additional 20 years. The SLR would extend operations of the facility from 60
to 80 years. The current licenses for units 1 and 2 expire in 2033 and the license
for unit 3 expires in 2034.
In December 2022, the NRC issued the Safety Evaluation Report (SER)
for the safety portion of the SLR application. The NRC determined Duke Energy
Carolinas met the requirements of the applicable regulations and identified
actions that have been taken or will be taken to manage the effects of aging and
address time-limited analyses. In February 2023, the Advisory Committee on
Reactor Safeguards issued a report to the NRC on the safety aspects of the
Oconee SLR application, which concluded that the established programs
and commitments made by Duke Energy Carolinas to manage age-related
degradation provide confidence that Oconee can be operated in accordance
with its current licensing basis for the subsequent period of extended operation
without undue risk to the health and safety of the public and the SLR
application for Oconee should be approved.
In December 2022, the NRC published a notice in the Federal Register
that the NRC would conduct a limited scoping process to gather additional
information necessary to prepare an environmental impact statement (EIS) to
evaluate the environmental impacts at Oconee during the SLR period. The NRC
received comments from the Sierra Club and Beyond Nuclear (Petitioners)
and the EPA identifying 18 potential impacts that should be considered by the
NRC in the EIS, including climate change and flooding, environmental
justice, severe accidents and external events. In February 2024, the NRC
issued the Oconee site-specific draft EIS. In April 2024, the Petitioners filed a
Hearing Request, which proposed three contentions and in June 2024, the Atomic
Safety and Licensing Board (ASLB) convened a pre-hearing conference. On
January 17, 2025, the ASLB issued a decision on contention admissibility
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
136
denying the Petitioners’ hearing request. In January 2025, the NRC issued the
final EIS and on February 17, 2025, the EPA issued a Notice of Availability for the
final EIS. A decision on the SLR for ONS is anticipated from the NRC in the
first half of 2025.
Duke Energy Carolinas and Duke Energy Progress intend to seek renewal
of operating licenses and 20-year license extensions for all of their nuclear
stations.
Duke Energy Carolinas
Regulatory Assets and Liabilities
The following tables present the regulatory assets and liabilities recorded on Duke Energy Carolinas’ Consolidated Balance Sheets.
December 31,
Earns/Pays
a Return
Recovery/Refund
Period Ends
(in millions)
2024
2023
Regulatory Assets(a)
AROs – coal ash
$1,481
$1,559
(g)
(b)
Storm cost deferrals
691
97
Yes
(b)
Accrued pension and OPEB
668
671
(h)
Deferred fuel and purchased power
298
1,293
(e)
2026
Deferred asset – Lee COLA
205
237
(b)
Hedge costs deferrals
202
405
(b)
Storm cost securitized balance, net
201
208
Yes
2041
Grid Deferral(c)
201
159
Yes
(b)
Incremental COVID-19 expenses
137
152
Yes
(b)
AMI(c)
114
125
Yes
(b)
Vacation accrual
86
87
2025
Nuclear deferral
81
89
2026
COR settlement(c)
81
85
Yes
(b)
Coal plant securitization
63
—
Yes
(b)
Deferred coal ash handling system costs(c)
60
65
Yes
(b)
Customer connect project(c)
54
58
Yes
(b)
Retired generation facilities(c)
54
26
Yes
(b)
PISCC and deferred operating expenses
42
48
Yes
(b)
Decoupling
24
—
Yes
(b)
Other
141
116
(b)
Total regulatory assets
4,884
5,480
Less: Current portion
685
1,564
Total noncurrent regulatory assets
$4,199
$3,916
Regulatory Liabilities(a)
AROs – nuclear and other
$2,289
1,673
(b)
Net regulatory liability related to income taxes(d)
1,951
$2,200
Yes
(b)
COR regulatory liability(c)
1,479
1,641
Yes
(f)
Deferred Nuclear PTC
581
—
Yes
2030
Hedge cost deferrals
199
158
(b)
Deferred fuel and purchased power
108
85
(e)
2026
Renewable energy credits
102
99
Yes
(b)
DSM / EE(c)
53
87
Yes
(i)
Accrued pension and OPEB
35
106
(h)
Other
413
528
(b)
Total regulatory liabilities
7,210
6,577
Less: Current portion
618
587
Total noncurrent regulatory liabilities
$6,592
$5,990
(a)
Regulatory assets and liabilities are excluded from rate base unless otherwise noted.
(b)
The expected recovery or refund period varies or has not been determined.
(c)
Included in rate base.
(d)
Includes regulatory liabilities related to the change in the federal tax rate as a result of the Tax Act and the change in the North Carolina tax rate. Portions are included in rate base.
(e)
Pays interest on over-recovered costs in North Carolina. Includes certain purchased power costs in North Carolina and South Carolina and costs of distributed energy in South Carolina. The asset balance principally
relates to North Carolina costs while the liability balance relates to South Carolina.
(f)
Recovered over the life of the associated assets.
(g)
Earns a debt and equity return on coal ash expenditures for North Carolina and South Carolina retail customers as permitted by various regulatory orders.
(h)
Recovered primarily over the average remaining service periods or life expectancies of employees covered by the benefit plans. See Note 23 for additional detail.
(i)
Includes incentives on DSM/EE investments and is recovered or refunded through an annual rider mechanism.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
137
2023 North Carolina Rate Case
In January 2023, Duke Energy Carolinas filed a PBR application with the
NCUC to request an increase in base rate retail revenues. The PBR application
included an MYRP to recover projected capital investments during the three-
year MYRP period. In addition to the MYRP, the PBR application included an
Earnings Sharing Mechanism, Residential Decoupling Mechanism and
Performance Incentive Mechanisms (PIMS) as required by HB 951.
In August 2023, Duke Energy Carolinas filed with the NCUC a partial
settlement with the Public Staff in connection with its PBR application. The
partial settlement included, among other things, agreement on a substantial
portion of the North Carolina retail rate base for the historic base case of
approximately $19.5 billion and all of the capital projects and related costs to
be included in the three-year MYRP, including $4.6 billion (North Carolina
retail allocation) projected to go in service over the MYRP period. Additionally,
the partial settlement included agreement, with certain adjustments, on
depreciation rates, the recovery of grid improvement plan costs and PIMs,
Tracking Metrics and the Residential Decoupling Mechanism under the PBR
application. On August 28, 2023, Duke Energy Carolinas filed with the NCUC a
second partial settlement with the Public Staff resolving additional issues,
including the future treatment of nuclear production tax credits related to the
IRA, through a stand-alone rider that would provide the benefits to customers.
This stand-alone rider was effective in rates beginning January 1, 2025.
On December 15, 2023, the NCUC issued an order approving Duke
Energy Carolinas’ PBR application, as modified by the partial settlements and
the order, including an overall retail revenue increase of $436 million in
Year 1, $174 million in Year 2 and $158 million in Year 3, for a combined total
of $768 million. The order established an ROE of 10.1% based upon an
equity ratio of 53% and approved, with certain adjustments, depreciation
rates and the recovery of grid improvement plan costs and certain deferred
COVID-related costs. Additionally, the Residential Decoupling Mechanism and
PIMs were approved as requested under the PBR application and revised by the
partial settlements. As a result of the partial settlements and the order, Duke
Energy Carolinas recognized pretax charges of $29 million within Impairment of
assets and other charges, and $8 million within Operations, maintenance
and other, for the year ended December 31, 2023, on the Consolidated
Statements of Operations. Duke Energy Carolinas implemented interim rates
on September 1, 2023. New revised Year 1 rates and the residential decoupling
were implemented on January 15, 2024.
In February 2024, a number of parties filed Notices of Appeal of the
December 15, 2023 NCUC order. Notices of Appeal were filed by the Carolina
Industrial Group for Fair Utility Rates (CIGFUR) III, a collection of various electric
membership corporations (collectively, the EMCs), and the North Carolina
Attorney General’s Office (the AGO). CIGFUR III and the EMCs appealed the
interclass subsidy reduction percentage and the Transmission Cost Allocation
stipulation. In addition, CIGFUR III appealed the NCUC’s elimination of the
equal percentage fuel cost allocation methodology. The AGO appealed several
issues including the authorized ROE and certain rate design and accounting
matters. On March 1, 2024, Carolina Utility Customers Association, Inc.
appealed several issues, including the authorized ROE and certain rate design
and accounting matters. In July 2024, the Supreme Court of North Carolina
consolidated the appeal with the parallel appeal of the NCUC’s order regarding
the Duke Energy Progress PBR application. Briefing is complete and oral
argument occurred on February 13, 2025. Duke Energy Carolinas anticipates a
decision to be issued no later than the fourth quarter of 2025.
2024 South Carolina Rate Case
In January 2024, Duke Energy Carolinas filed a rate case with the PSCSC
to request an increase in base rate retail revenues. In May 2024, Duke Energy
Carolinas and the Office of Regulatory Staff, as well as other consumer,
environmental, and industrial intervening parties, filed an Agreement and
Stipulation of Settlement resolving all issues in the base rate proceeding. The
major components of the settlement include a $240 million annual customer
rate increase, prior to a reduction from the accelerated return to customers of
federal unprotected Property, Plant and Equipment related EDIT of $84 million
annually over the first two years. The stipulation includes an ROE of 9.94%
with an equity ratio of 51.21% and resolves recovery of the Company’s continued
investments in the grid, its new corporate headquarters and environmental
compliance costs. The PSCSC held a hearing in May 2024, to consider evidence
supporting the stipulation. On July 3, 2024, the PSCSC issued its final order
approving an increase in base rates and approving nearly all components of the
Agreement and Stipulation of Settlement. The order revised recovery of
certain environmental compliance costs, the only provision of the settlement
agreement not fully approved by the PSCSC. As a result, Duke Energy Carolinas
recognized pretax charges of $33 million within Impairment of assets and
other charges, $2 million within Operations, maintenance and other, partially
offset by an $11 million reduction in Interest expense, for the year ended
December 31, 2024, on the Consolidated Statements of Operations. Based
upon the order, after accelerating the EDIT giveback to customers, the net rate
increase is $150 million annually for the first two years. Revised customer
rates were effective August 1, 2024, and are based upon a South Carolina retail
rate base of $7.4 billion.
Marshall Combustion Turbines CPCN
In March 2024, Duke Energy Carolinas filed with the NCUC an
application to construct and operate two hydrogen-capable advanced-class
simple-cycle CTs at the site of the existing Marshall Steam Station. The two new
CTs – totaling approximately 850 MW – will enable the retirement of Marshall
coal units 1 and 2 and provide incremental capacity to support system capacity
needs and expanded flexibility to support integration of renewables. Pending
regulatory approvals, construction is planned to start in 2026, and the CTs are
targeted to be placed into service by the end of 2028. As part of the
application, Duke Energy Carolinas noted that Construction Work in Progress
for the proposed facility will accrue AFUDC and will not be in rate base, resulting
in no impact on Duke Energy Carolinas’ North Carolina retail revenue
requirement during the construction period. The 2029 North Carolina retail
revenue requirement for the proposed facility is estimated to be $104 million,
representing an approximate average retail rate increase of 2.2% across all
classes. The expert witness hearing concluded in August 2024. On
December 2, 2024, the NCUC issued its order granting the CPCN authorizing
the construction of the two CTs. Additionally, on December 19, 2024, the NCDEQ
issued final air permits for the CTs.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
138
Duke Energy Progress
Regulatory Assets and Liabilities
The following tables present the regulatory assets and liabilities recorded on Duke Energy Progress’ Consolidated Balance Sheets.
December 31,
Earns/Pays
a Return
Recovery/Refund
Period Ends
(in millions)
2024
2023
Regulatory Assets(a)
AROs – coal ash
$1,322
$1,218
(g)
(b)
AROs – nuclear and other
900
1,110
(c)
Storm cost securitized balance, net
822
682
Yes
(b)
Accrued pension and OPEB
439
408
(j)
Deferred fuel and purchased power
277
579
(e)
2026
Storm cost deferrals
276
228
Yes
(b)
DSM/EE(d)
188
182
Yes
(h)
NCEMPA deferrals(d)
179
172
(f)
2042
Retired generation facilities(d)
108
126
Yes
(b)
Incremental COVID-19 expenses
89
80
(b)
Hedge costs deferrals
85
260
(b)
AMI(d)
54
68
Yes
(b)
Grid Deferral(d)
54
51
Yes
(b)
Nuclear deferral
53
42
2026
Customer connect project(d)
45
49
Yes
(b)
Vacation accrual
43
43
2025
Coal plant securitization
39
8
Yes
(b)
PISCC and deferred operating expenses
37
42
Yes
2054
Decoupling
32
15
Yes
(b)
COR settlement(d)
29
30
Yes
(b)
Deferred coal ash handling system costs(d)
17
21
Yes
(b)
Deferred asset – Harris COLA
10
15
(b)
Other
83
59
(b)
Total regulatory assets
5,181
5,488
Less: Current portion
626
942
Total noncurrent regulatory assets
$4,555
$4,546
Regulatory Liabilities(a)
COR regulatory liability
$2,984
2,805
(i)
Net regulatory liability related to income taxes(k)
1,320
$1,420
Yes
(b)
Hedge cost deferrals
151
87
(b)
Renewable energy credits
139
138
Yes
(b)
Deferred Nuclear PTC
95
—
Yes
(b)
Accrued pension and OPEB
12
—
(j)
Deferred fuel and purchased power
10
14
(e)
2026
Other
207
211
(b)
Total regulatory liabilities
4,918
4,675
Less: Current portion
348
300
Total noncurrent regulatory liabilities
$4,570
$4,375
(a)
Regulatory assets and liabilities are excluded from rate base unless otherwise noted.
(b)
The expected recovery or refund period varies or has not been determined.
(c)
Recovery period for costs related to nuclear facilities runs through the decommissioning period of each unit.
(d)
Included in rate base.
(e)
Pays interest on over-recovered costs in North Carolina. Includes certain purchased power costs in North Carolina and South Carolina and costs of distributed energy in South Carolina. The asset balance principally
relates to North Carolina costs while the liability balance relates to South Carolina.
(f)
South Carolina retail allocated costs are earning a return.
(g)
Earns a debt and equity return on coal ash expenditures for North Carolina and South Carolina retail customers as permitted by various regulatory orders.
(h)
Includes incentives on DSM/EE investments and is recovered through an annual rider mechanism.
(i)
Recovered over the life of the associated assets.
(j)
Recovered primarily over the average remaining service periods or life expectancies of employees covered by the benefit plans. See Note 23 for additional detail.
(k)
Includes regulatory liabilities related to the change in the federal tax rate as a result of the Tax Act and the change in the North Carolina tax rate. Portions are included in rate base.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
139
2022 North Carolina Rate Case
In October 2022, Duke Energy Progress filed a PBR application with the
NCUC to request an increase in base rate retail revenues. The rate request
before the NCUC included an MYRP to recover projected capital investments
during the three-year MYRP period. In addition to the MYRP, the PBR Application
included an Earnings Sharing Mechanism, Residential Decoupling Mechanism
and PIMS as required by HB 951.
In April 2023, Duke Energy Progress filed with the NCUC a partial
settlement with Public Staff, which included agreement on many aspects of
Duke Energy Progress’ three-year MYRP proposal. In May 2023, CIGFUR II joined
this partial settlement and Public Staff and CIGFUR II filed a separate
settlement reaching agreement on PIMs, Tracking Metrics and the Residential
Decoupling Mechanism under the PBR application.
On August 18, 2023, the NCUC issued an order approving Duke Energy
Progress’ PBR application, as modified by the partial settlements and the
order, including an overall retail revenue increase of $233 million in Year 1,
$126 million in Year 2 and $135 million in Year 3, for a combined total of
$494 million. Key aspects of the order include the approval of North Carolina
retail rate base for the historic base case of approximately $12.2 billion and
capital projects and related costs to be included in the three-year MYRP,
including $3.5 billion (North Carolina retail allocation) projected to go in service
over the MYRP period. The order established an ROE of 9.8% based upon an
equity ratio of 53% equity and approved, with certain adjustments, depreciation
rates and the recovery of grid improvement plan costs and certain deferred
COVID-related costs. Additionally, the Residential Decoupling Mechanism and
PIMs were approved as requested under the PBR Application and revised by the
partial settlements. As a result of the order, Duke Energy Progress recognized
pretax charges of $28 million within Impairment of assets and other charges,
which primarily related to certain COVID-19 deferred costs, and $8 million
within Operations, maintenance and other, for the year ended December 31,
2023, on the Consolidated Statements of Operations. Duke Energy Progress
implemented interim rates on June 1, 2023, and implemented revised Year 1
rates and the residential decoupling on October 1, 2023.
In October 2023, CIGFUR II and Haywood Electric Membership Corporation
each filed a Notice of Appeal of the August 18, 2023 NCUC order. Both parties
were appealing certain matters that do not impact the overall revenue
requirement in the rate case. Specifically, they appealed the interclass subsidy
reduction percentage, and CIGFUR II also appealed the Customer Assistance
Program and the equal percentage fuel cost allocation methodology. On
November 6, 2023, the AGO filed a Notice of Cross Appeal of the NCUC’s
determination regarding the exclusion of electric vehicle revenue from the
residential decoupling mechanism. On November 9, 2023, Duke Energy Progress,
the Public Staff, CIGFUR II, and a number of other parties reached a
settlement pursuant to which CIGFUR II agreed not to pursue its appeal of the
Customer Assistance Program. In July 2024, the Supreme Court of North
Carolina consolidated the appeal with the parallel appeal of the NCUC’s order
regarding the Duke Energy Carolinas PBR application. Briefing is complete and
oral arguments occurred on February 13, 2025. Duke Energy Progress
anticipates a decision to be issued no later than the fourth quarter of 2025.
2023 South Carolina Storm Securitization
On May 31, 2023, Duke Energy Progress filed a petition with the PSCSC
requesting authorization for the financing of Duke Energy Progress’ storm
recovery costs through securitization due to storm recovery activities required
as a result of the following storms: Pax, Ulysses, Matthew, Florence, Michael,
Dorian, Izzy and Jasper. On September 8, 2023, Duke Energy Progress filed a
comprehensive settlement agreement with all parties on all cost recovery
issues raised in the storm securitization proceeding.
The evidentiary hearing occurred in September 2023. On September 20,
2023, the PSCSC approved the comprehensive settlement agreement and on
October 13, 2023, the PSCSC issued its financing order. The storm recovery
bonds of $177 million were issued by Duke Energy Progress in April 2024 and
storm recovery charges were effective May 1, 2024. See Notes 7 and 18 for
more information.
2022 South Carolina Rate Case
On September 1, 2022, Duke Energy Progress filed an application with
the PSCSC to request an increase in base rate retail revenues. On January 12,
2023, Duke Energy Progress and the ORS, as well as other consumer,
environmental, and industrial intervening parties, filed a comprehensive
Agreement and Stipulation of Settlement resolving all issues in the base rate
proceeding. The major components of the stipulation include an ROE of 9.6%
based upon an equity ratio of 52.43% along with the establishment of a
storm reserve to help offset the costs of major storms. The stipulation provided
for a $52 million annual customer rate increase prior to the reduction from
the accelerated return to customers of federal unprotected Property, Plant and
Equipment related EDIT; after extending the remaining EDIT giveback to
customers to 33 months, the net annual retail rate increase is approximately
$36 million. It also allowed continuation of deferral treatment of coal ash basin
closure costs and supports an amortization period for remaining coal ash
closure costs in this rate case of seven years. Duke Energy Progress agreed not
to seek recovery of approximately $50 million of deferred coal ash expenditures
related to retired sites in this rate case (South Carolina retail allocation). The
2021 Depreciation Study was accepted as proposed in this case, as adjusted
for certain recommendations from ORS and includes accelerated retirement
dates for certain coal units as originally proposed. The PSCSC held a hearing
in January 2023 and a final written order was issued on March 8, 2023. New
rates went into effect April 1, 2023.
Person County Combined Cycle CPCNs
In March 2024, Duke Energy Progress filed with the NCUC its application
to construct and operate a 1,360-MW hydrogen-capable, advanced-class CC
generating facility in Person County at the site of the existing Roxboro Plant.
Subject to negotiation of final contractual terms, the new Roxboro CC will be
co-owned with the North Carolina Electric Membership Corporation (NCEMC),
with Duke Energy Progress owning approximately 1,135 MW and NCEMC
owning the remaining 225 MW. Pending regulatory approvals, construction is
planned to start in 2026, with the CC targeted to be placed in service by the end
of 2028. The CC will allow for the retirement of Roxboro’s coal-fired units 1
and 4. As part of the application, Duke Energy Progress noted that the recovery
of Construction Work in Progress during the construction period for the
proposed facility may be pursued in a future rate case. The 2029 North Carolina
retail revenue requirement for the proposed facility is estimated to be
$98 million, representing an approximate average retail rate increase of 2.6%
across all classes. The expert witness hearing concluded in August 2024. On
December 6, 2024, the NCUC issued its order granting the CPCN authorizing the
construction of the CC. Additionally, on December 19, 2024, the NCDEQ
issued a final air permit for the CC.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
140
On February 7, 2025, Duke Energy Progress filed with the NCUC its
application to construct and operate a second 1,360-MW hydrogen-capable,
advanced-class CC unit in Person County at the Roxboro Plant. NCEMC has also
notified Duke Energy Progress of NCEMC’s intent to co-own approximately
225 MW of the second CC and Duke Energy Progress and NCEMC plan to begin
negotiations on the contractual arrangement in the second quarter of 2025.
Pending regulatory approvals, construction of the second CC is planned to start
in 2026 with the unit targeted to be placed in service by the end of 2029. As
part of the application, Duke Energy Progress noted that the recovery of
Construction Work in Progress during the construction period for the proposed
facility may be pursued in a future rate case. The 2030 North Carolina retail
revenue requirement for the proposed facility is estimated to be $113 million,
representing an approximate average retail rate increase of 2.6% across all
classes. The air permit issued by the NCDEQ on December 19, 2024, also
pertains to the second CC.
Duke Energy Florida
Regulatory Assets and Liabilities
The following tables present the regulatory assets and liabilities recorded on Duke Energy Florida’s Consolidated Balance Sheets.
December 31,
Earns/Pays
a Return
Recovery/Refund
Period Ends
(in millions)
2024
2023
Regulatory Assets(a)
Storm cost deferrals(c)
$ 962
70
(e)
(b)
Nuclear asset securitized balance, net
771
830
2036
COR regulatory asset
571
337
(d)
(b)
Accrued pension and OPEB(c)
389
349
Yes
(f)
Retired generation facilities(c)
94
94
Yes
2044
Customer connect project(c)
71
76
Yes
2037
Qualifying facility contract buyouts(c)
62
68
Yes
2034
Hedge costs deferrals(c)
41
63
Yes
2038
AMI(c)
16
24
Yes
2032
AROs – coal ash
13
$
12
(b)
AROs – nuclear and other
5
17
(b)
Deferred fuel and purchased power
5
594
(e)
2025
Other
86
69
(d)
(b)
Total regulatory assets
3,086
2,603
Less: Current portion
1,022
720
Total noncurrent regulatory assets
$2,064
$1,883
Regulatory Liabilities(a)
Net regulatory liability related to income taxes(c)
$ 564
$ 588
(b)
Hedge cost deferrals(c)
130
121
Yes
(b)
DOE Settlement
—
32
Deferred fuel and purchased power(c)
84
—
(e)
2025
Other
84
85
(d)
(b)
Total regulatory liabilities
862
826
Less: Current portion
174
118
Total noncurrent regulatory liabilities
$ 688
$ 708
(a)
Regulatory assets and liabilities are excluded from rate base unless otherwise noted.
(b)
The expected recovery or refund period varies or has not been determined.
(c)
Included in rate base.
(d)
Certain costs earn/pay a return.
(e)
Earns commercial paper rate.
(f)
Recovered primarily over the average remaining service periods or life expectancies of employees covered by the benefit plans. See Note 23 for additional detail.
2021 Settlement Agreement
In January 2021, Duke Energy Florida filed the 2021 Settlement with the
FPSC. The parties to the 2021 Settlement include Duke Energy Florida, the
Office of Public Counsel (OPC), the Florida Industrial Power Users Group, White
Springs Agricultural Chemicals, Inc. d/b/a PCS Phosphate and NUCOR Steel
Florida, Inc. (collectively, the “Parties”).
Pursuant to the 2021 Settlement, the Parties agreed to a base rate stay-
out provision that expires year-end 2024; however, Duke Energy Florida is
allowed an increase to its base rates of an incremental $67 million in 2022,
$49 million in 2023 and $79 million in 2024, subject to adjustment in the event
of tax reform during the years 2021, 2022 and 2023. The Parties also agreed
to an ROE band of 8.85% to 10.85% with a midpoint of 9.85% based upon an
equity ratio of 53%. The ROE band can be increased by 25 basis points if
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
141
the average 30-year U.S. Treasury rate increases 50 basis points or more over
a six-month period in which case the midpoint ROE would rise from 9.85% to
10.10%. On July 25, 2022, this provision was triggered. Duke Energy Florida
filed a petition with the FPSC in August 2022, to increase the ROE effective
August 2022 with a base rate increase effective January 1, 2023. The FPSC
approved this request on October 4, 2022. The 2021 Settlement Agreement
also provided that Duke Energy Florida would be able to retain $173 million of
the expected DOE award from its lawsuit to recover spent nuclear fuel to
mitigate customer rates over the term of the 2021 Settlement. In return, Duke
Energy Florida was permitted to recognize the $173 million into earnings through
the approved settlement period. Duke Energy Florida settled the DOE lawsuit
and received payment of approximately $180 million on June 15, 2022, of which
the retail portion was approximately $154 million. The 2021 Settlement
authorized Duke Energy Florida to collect the difference between $173 million
and the $154 million retail portion of the amount received through the capacity
cost recovery clause. As of December 31, 2024, Duke Energy Florida has
recognized $173 million (pretax) into earnings, including $32 million and
$141 million recognized during the year ended December 31, 2024, and 2023,
respectively.
The 2021 Settlement also contained a provision to recover or flow back
the effects of tax law changes. As a result of the IRA enacted in August 2022,
Duke Energy Florida is eligible for PTCs associated with solar facilities placed in
service beginning in January 2022. Duke Energy Florida filed a petition with
the FPSC in October 2022, to reduce base rates effective January 1, 2023, by
$56 million to flow back the expected 2023 PTCs and to flow back the expected
2022 PTCs via an adjustment to the capacity cost recovery clause. On
December 14, 2022, the FPSC issued an order approving Duke Energy Florida’s
petition. See Note 24 for additional information on the IRA.
In addition to these terms, the 2021 Settlement contained provisions
related to the accelerated depreciation of Crystal River Units 4-5, the approval
of approximately $1 billion in future investments in new cost-effective solar
power, the implementation of a new Electric Vehicle Charging Station Program
and the deferral and recovery of costs in connection with the implementation
of Duke Energy Florida’s Vision Florida program, which explores various emerging
non-carbon emitting generation technology, distributed technologies and
resiliency projects, among other things. The 2021 Settlement also resolved
remaining unrecovered storm costs for Hurricane Michael and Hurricane Dorian.
The FPSC approved the 2021 Settlement on May 4, 2021, issuing an
order on June 4, 2021. Revised customer rates became effective January 1,
2022, with subsequent base rate increases effective January 1, 2023, and
January 1, 2024.
Clean Energy Connection
In July 2020, Duke Energy Florida petitioned the FPSC for approval of a
voluntary solar program consisting of 10 new solar generating facilities with
combined capacity of 749 MW. The FPSC approved the program in January 2021,
allowing participants to support cost-effective solar development in Florida
by paying a subscription fee based on per kilowatt subscriptions and receiving
a credit on their bill based on the actual generation associated with their
portion of the solar portfolio. The 10 new solar generation facilities were
completed and all of the remaining sites were in-service by the end of 2024 at
a cost of approximately $1.1 billion. These investments are included in base
rates, offset by the revenue from the subscription fees, with credits included in
the fuel cost recovery clause.
In February 2021, the League of United Latin American Citizens (LULAC)
filed a notice of appeal of the FPSC’s order approving the Clean Energy
Connection to the Supreme Court of Florida. The Supreme Court of Florida heard
oral arguments in the appeal in February 2022. On May 27, 2022, the
Supreme Court of Florida issued an order remanding the case back to the FPSC
so that the FPSC can amend its order to better address some of the arguments
raised by LULAC. In September 2022, the FPSC issued a revised order and
submitted it to the Supreme Court of Florida. The Supreme Court of Florida
requested that the parties file supplemental briefs regarding the revised order,
which were filed in February 2023. LULAC has filed a request for Oral
Argument on the issues discussed in the supplemental briefs, but the court
has yet to rule on that request. The FPSC approval order remains in effect
pending the outcome of the appeal.
Storm Protection Plan
At least every three years, Duke Energy Florida must file a Storm
Protection Plan (SPP) with the FPSC. Each plan covers a 10-year period and
includes investments in transmission and distribution meant to strengthen
infrastructure, reduce outage times associated with extreme weather events,
reduce restoration costs and improve overall service reliability. In April 2022,
Duke Energy Florida filed an SPP for approval with the FPSC for the 2023-2032
time frame. The plan reflected approximately $7 billion of capital investment
in transmission and distribution. The evidentiary hearing began in August 2022.
In October 2022, the FPSC approved Duke Energy Florida’s plan with one
modification to remove the transmission loop radially fed program, representing
a reduction of approximately $80 million over the 10-year period starting in
2025. In December 2022, the OPC filed a notice of appeal of this order to the
Florida Supreme Court and briefs were filed by the OPC and Duke Energy Florida
during 2023. On November 14, 2024, the Florida Supreme Court issued an
order upholding the FPSC’s approval of Duke Energy Florida’s plan.
On January 15, 2025, Duke Energy Florida filed an SPP for approval with
the FPSC for the 2026-2035 time frame reflecting approximately $7 billion of
capital investment in transmission and distribution. The FPSC must approve,
with modification, or deny the plan no later than 180 days after filing. A
hearing has been scheduled to begin May 20, 2025.
Hurricanes Ian and Idalia
In September 2022, much of Duke Energy Florida’s service territory was
impacted by Hurricane Ian, which caused significant damage resulting in
more than 1.1 million outages. After depleting any existing storm reserves,
which were approximately $107 million before Hurricane Ian, Duke Energy Florida
is permitted to petition the FPSC for recovery of additional incremental
operation and maintenance costs resulting from the storm and to replenish the
retail customer storm reserve to approximately $132 million. Duke Energy
Florida filed its petition for cost recovery of various storms, including Hurricane
Ian, and replenishment of the storm reserve in January 2023, seeking
recovery of $442 million, for recovery over 12 months beginning with the first
billing cycle in April 2023. In March 2023, the FPSC approved this request for
interim recovery, subject to refund, and ordered Duke Energy Florida to file
documentation of the total actual storm costs, once known. Duke Energy Florida
filed documentation evidencing its total actual storm costs of $431 million in
September 2023. The FPSC approved the prudence of these costs in May 2024.
In August 2023, Hurricane Idalia made landfall on Florida’s gulf coast,
causing damage and impacting more than 200,000 customers across Duke
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
142
Energy Florida’s service territory. In October 2023, Duke Energy Florida
requested to combine the $92 million retail portion of the deferred estimated
Hurricane Idalia costs with $74 million of costs projected to be collected after
December 31, 2023, under the existing approved storm cost recovery and
storm surcharge. This $74 million of costs relates primarily to the approved
ongoing replenishment of the storm reserves. In December 2023, the FPSC
approved recovery of the total $166 million over 12 months beginning with its
first billing cycle in January 2024, replacing the previously approved storm
cost recovery and storm surcharge, and ordered Duke Energy Florida to file
documentation of the total actual Idalia related storm costs, once known.
Revised rates were effective January 1, 2024. Duke Energy Florida filed
documentation evidencing its total Idalia actual storm costs of $98 million in
September 2024.
2024 Florida Rate Case
In April 2024, Duke Energy Florida filed a formal request for new base
rates with the FPSC. Duke Energy Florida proposed a three-year rate plan that
would begin in January 2025, once its current base rate settlement agreement
concludes at the end of 2024. Duke Energy Florida proposed multiyear rate
increases that use the projected 12-month periods ending December 31, 2025,
2026, and 2027 as the test years, with adjusted rates to be effective with the
first billing period of January 2025, 2026, and 2027, respectively.
In July 2024, Duke Energy Florida filed a settlement agreement with the
FPSC. The parties to the settlement include Duke Energy Florida, the Office of
Public Counsel and other intervening parties. Pursuant to the settlement, the
parties agreed to a base rate stay-out provision that expires year-end 2027;
however, Duke Energy Florida is allowed an increase to its base rates in 2025
and 2026, as well as utilization of certain tax benefits in lieu of a revenue
increase in 2027. Additionally, revenue increases related to solar investments
will be recovered via the Solar Base Rate Adjustment mechanism. The parties
also agreed to an ROE band of 9.3% to 11.3% with a midpoint of 10.3% and
an equity ratio of 53%. The agreement provides for $203 million and $59 million
in base rate increases in 2025 and 2026, respectively, as well as increases
associated with investments in 12 new solar facilities as they come on line. In
August 2024, the FPSC approved the settlement agreement without
modification and a final order was issued on November 12, 2024. New rates
were effective January 1, 2025.
Hurricanes Debby, Helene and Milton
In August 2024, Hurricane Debby made landfall in Florida as a
Category 1 storm, and in September 2024, Hurricane Helene made landfall in
Florida as a Category 4 storm, which caused significant damage. In
October 2024, Hurricane Milton made landfall in Florida as a Category 3 storm,
impacting roughly half of the customers Duke Energy Florida serves in the
state. Duke Energy Florida has certain existing storm reserve regulatory liability
amounts, which will be applied to recovery of the 2024 storm costs. After
depleting any existing storm reserves, which were approximately $63 million
as of July 31, 2024, before hurricanes Debby, Helene and Milton, Duke Energy
Florida is permitted to petition the FPSC for recovery of additional incremental
operation and maintenance costs resulting from the storm and to replenish
the retail customer storm reserve to approximately $132 million. Duke Energy
Florida filed its petition for cost recovery for all three storms, including
replenishment of the storm reserve, on December 27, 2024, seeking recovery of
approximately $1.1 billion, for recovery over 12 months beginning with the
first billing cycle in March 2025. Approximately $936 million of the operation
and maintenance expenses are deferred in Regulatory assets within Current
assets as of December 31, 2024. Approximately $69 million of capital
related to these storms will be sought for recovery in future base rate case
filings. On February 4, 2025, the FPSC voted to approve Duke Energy Florida’s
request for recovery of these storm costs as filed.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
143
Duke Energy Ohio
Regulatory Assets and Liabilities
The following tables present the regulatory assets and liabilities recorded on Duke Energy Ohio’s Consolidated Balance Sheets.
December 31,
Earns/Pays
a Return
Recovery/Refund
Period Ends
(in millions)
2024
2023
Regulatory Assets(a)
CEP deferral
$195
$193
Yes
(b)
Accrued pension and OPEB
131
123
(d)
COR regulatory asset
75
34
(b)
Customer connect project
44
49
(b)
Network Integration Transmission Services deferral
31
31
Yes
(b)
Transmission expansion obligation
31
30
(b)
Decoupling
29
25
(b)
Deferred pipeline integrity costs
28
30
Yes
(b)
East Bend deferrals(c)
24
28
Yes
(b)
Propane caverns
24
26
(b)
PISCC and deferred operating expenses(c)
15
15
Yes
2083
AROs – coal ash
14
17
Yes
(b)
Deferred fuel and purchased gas costs
8
20
2025
AMI
8
13
(b)
Storm cost deferrals
5
12
2025
Other
131
103
(b)
Total regulatory assets
793
749
Less: Current portion
88
73
Total noncurrent regulatory assets
$705
$676
Regulatory Liabilities(a)
Net regulatory liability related to income taxes
$432
$466
(b)
Accrued pension and OPEB
14
17
(d)
Deferred fuel and purchased gas costs
—
15
2025
Other
53
55
(b)
Total regulatory liabilities
499
553
Less: Current portion
34
56
Total noncurrent regulatory liabilities
$465
$497
(a)
Regulatory assets and liabilities are excluded from rate base unless otherwise noted.
(b)
The expected recovery or refund period varies or has not been determined.
(c)
Included in rate base.
(d)
Recovered primarily over the average remaining service periods or life expectancies of employees covered by the benefit plans. See Note 23 for additional detail.
Duke Energy Ohio Electric Base Rate Case
In October 2021, Duke Energy Ohio filed an electric distribution base
rate case application with the PUCO. In September 2022, Duke Energy Ohio
filed a Stipulation and Recommendation with the PUCO, which included an
increase in overall electric distribution base rates of approximately $23 million
with an equity ratio of 50.5% and an ROE of 9.5%. The stipulation was
among all but one party to the proceeding. The PUCO issued an order on
December 14, 2022, approving the Stipulation without material modification
and new rates went into effect on January 3, 2023. The Ohio Consumers’ Counsel
(OCC) filed an application for rehearing in January 2023, arguing the
Stipulation was unreasonable, discriminatory and denied OCC due process. In
March 2024, the PUCO denied OCC’s rehearing application. The deadline for
OCC to seek an appeal has expired and the matter is now closed.
Energy Efficiency Cost Recovery
In response to changes in Ohio law that eliminated Ohio’s energy
efficiency mandates, the PUCO issued an order on February 26, 2020, directing
utilities to wind down their demand-side management programs by
September 30, 2020, and to terminate the programs by December 31, 2020. In
March 2020, Duke Energy Ohio filed an application for rehearing seeking
clarification on the final true up and reconciliation process after 2020. Effective
January 1, 2021, Duke Energy Ohio suspended its energy efficiency programs.
In August 2023, the PUCO issued its decision approving the Company’s request
for recovery and final true up of energy efficiency program costs, lost
distribution revenues and performance incentives from calendar years 2018
through 2020, resulting in $14 million of Regulated electric revenue on the
Consolidated Statements of Operations for the year ended December 31, 2023,
and resolving all outstanding issues in these proceedings. Revised rates
were effective September 1, 2023.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
144
Duke Energy Ohio Natural Gas Base Rate Case
In June 2022, Duke Energy Ohio filed a natural gas base rate case
application with the PUCO. The drivers for this case are capital invested since
Duke Energy Ohio’s last natural gas base rate case in 2012. Duke Energy
Ohio also sought to adjust the caps on its CEP Rider. In April 2023, Duke Energy
Ohio filed a stipulation with all parties to the case except the OCC. In the
stipulation, the parties agreed to approximately $32 million in revenue increases
with an equity ratio of 52.32% and an ROE of 9.6%, and adjustments to the
CEP Rider caps. The stipulation was opposed by the OCC at an evidentiary
hearing that concluded in May 2023. On November 1, 2023, PUCO issued an
order approving the stipulation as filed and new rates went into effect
November 1, 2023. In December 2023, the OCC filed an application for rehearing
and the PUCO granted OCC’s application for rehearing for further consideration
of issues raised. As a result of a Supreme Court of Ohio decision regarding
procedural issues related to applications for rehearing, PUCO denied OCC’s
rehearing request. In October 2024, the OCC filed its Notice of Appeal with the
Ohio Supreme Court. OCC’s initial brief was filed January 27, 2025.
Duke Energy Ohio Electric Security Plan
In April 2024, Duke Energy Ohio filed with the PUCO a request for an
Electric Security Plan (ESP). The ESP application proposes a three-year term
from June 1, 2025, through May 31, 2028, and includes continuation of
market-based customer rates through competitive procurement processes for
generation and continuation and expansion of existing rider mechanisms. Duke
Energy Ohio is proposing a new rider mechanism relating to electric
distribution infrastructure modernization programs, which may be enabled by
and partially funded through federal or state funding opportunities, future
battery storage projects, and two proposed electric vehicle programs. Additional
proposed new rider mechanisms are related to solar for all investments for low-
income and disadvantaged communities, low-income senior citizen bill
assistance, and energy efficiency and demand-side management programs.
In November 2024, Duke Energy Ohio filed a stipulation with majority of
the intervenors signed as either signatory or non-opposing parties. The
stipulation includes the continuation of market-based customer rates through
competitive procurement auctions and the continuation of all existing riders.
It further establishes new caps for certain riders. Duke Energy Ohio has also
agreed to withdraw its proposals for an infrastructure modernization rider,
battery storage projects and electric vehicle programs. The stipulation includes
a residential EE program with provisions for low-income customers. The
evidentiary hearing concluded January 23, 2025. A briefing schedule has been
ordered with final reply briefs due March 14, 2025.
MGP Cost Recovery
In an order issued in 2013, the PUCO approved Duke Energy Ohio’s
deferral and recovery of costs related to environmental remediation at two
sites (East End and West End) that housed former MGP operations. Duke Energy
Ohio made annual applications with the PUCO to recover its incremental
remediation costs consistent with the PUCO’s directive in Duke Energy Ohio’s
2012 natural gas base rate case.
A Stipulation and Recommendation was filed jointly by Duke Energy
Ohio, the Staff, the Office of the Ohio Consumers’ Counsel and the Ohio Energy
Group in August 2021, which was approved without modification by the
PUCO in April 2022. The Stipulation and Recommendation resolved all open
issues regarding MGP remediation costs incurred between 2013 and 2019,
Duke Energy Ohio’s request for additional deferral authority beyond 2019 and
the pending issues related to the Tax Act described below as it related to Duke
Energy Ohio’s natural gas operations. As a result of the approval of the
Stipulation and Recommendation, Duke Energy Ohio recognized pretax charges
of approximately $15 million to Operating revenues, regulated natural gas
and $58 million to Operation, maintenance and other and a tax benefit of
$72 million to Income Tax (Benefit) Expense in the Consolidated Statements of
Operations for the year ended December 31, 2022. The Stipulation and
Recommendation further acknowledged Duke Energy Ohio’s ability to file a
request for additional deferral authority in the future related to environmental
remediation of any MGP impacts in the Ohio River, if necessary, subject to
specific conditions. In June 2022, the PUCO granted rehearing requests for
further consideration of Interstate Gas Supply, Inc. (IGS) and The Retail Energy
Supply Association (RESA). As a result of a Supreme Court of Ohio decision
regarding procedural issues related to applications for rehearing, PUCO denied
these rehearing requests. On October 28, 2024, RESA and IGS filed an appeal
with the Supreme Court of Ohio. On January 10, 2025, RESA and IGS withdrew
their appeal and the Supreme Court of Ohio dismissed the appeal on
January 14, 2025. This matter is now resolved.
Tax Act – Ohio
In December 2018, Duke Energy Ohio filed an application to change its
base rate tariffs and establish a rider to implement the benefits of the Tax Act
for natural gas customers. The rider would flow through to customers the
benefit of the reduction in the statutory federal tax rate from 35% to 21% since
January 1, 2018, all future benefits of the lower tax rates and a full refund of
deferred income taxes collected at the higher tax rates in prior years. Deferred
income taxes subject to normalization rules would be refunded consistent
with federal law and deferred income taxes not subject to normalization rules
would be refunded over a 10-year period. An evidentiary hearing occurred in
August 2019. The Stipulation and Recommendation filed in August 2021,
and approved on April 20, 2022, disclosed in the MGP Cost Recovery matter
above, resolved the outstanding issues in this proceeding by providing customers
a one-time bill credit for the reduction in the statutory federal tax rate from
35% to 21% since January 1, 2018, through June 1, 2022, and reducing base
rates going forward. Deferred income taxes not subject to normalization rules
were written off. Deferred income taxes subject to normalization rules are
refunded consistent with federal law through a rider. The commission granted
the rehearing requests of IGS and RESA for further consideration. As a result
of a Supreme Court of Ohio decision regarding procedural issues related to
applications for rehearing, PUCO denied these rehearing requests. On
October 28, 2024, RESA and IGS filed an appeal with the Supreme Court of
Ohio. On January 10, 2025, RESA and IGS withdrew their appeal and the Supreme
Court of Ohio dismissed the appeal on January 14, 2025. This matter is now
resolved.
Duke Energy Kentucky 2022 Electric Base Rate Case
In December 2022, Duke Energy Kentucky filed a base rate case with the
KPSC driven by capital investments to strengthen the electricity generation
and delivery systems along with adjusted depreciation rates for the East Bend
and Woodsdale CT generation stations. Duke Energy Kentucky also requested
approval for new programs and tariff updates, including a voluntary community-
based renewable subscription program and two electric vehicle charging
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DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
145
programs. The KPSC issued an order on October 12, 2023, including a
$48 million increase in base revenues, an ROE of 9.75% for electric base rates
and 9.65% for electric riders and an equity ratio of 52.145%. New rates went
into effect October 13, 2023. The Company’s request to align the depreciation
rates of East Bend with a 2035 retirement date was denied and the KPSC
ordered depreciation rates with a 2041 retirement date for the unit. The KPSC
did approve the request to align the depreciation rates of Woodsdale CT with a
2040 retirement date and denied the voluntary community-based renewable
subscription program and the two electric vehicle charging programs.
In November 2023, Duke Energy Kentucky filed for rehearing requesting
certain matters be reconsidered by the KPSC and the KPSC granted in part and
denied in part the Company’s request for rehearing. On July 1, 2024, the
KPSC issued its final order on rehearing, ruling in Duke Energy Kentucky’s
favor on nearly all issues. However, the KPSC ordered Duke Energy Kentucky to
refund alleged over collections since the KPSC’s October 12, 2023, order. On
July 10, 2024, the KPSC issued an order correcting the base fuel rate used to
calculate new base rates in its July 1, 2024, order and its calculation of Duke
Energy Kentucky’s Street Lighting Rate. New rates were implemented in
August 2024.
On December 14, 2023, Duke Energy Kentucky filed an appeal with the
Franklin County Circuit Court on certain matters for which the KPSC denied
rehearing, specifically as it relates to including decommissioning costs in
depreciation rates for East Bend and Woodsdale. Duke Energy Kentucky and
Appellee briefs were filed in 2024.
Duke Energy Kentucky 2024 Electric Base Rate Case
On December 2, 2024, Duke Energy Kentucky filed a base rate case with
the KPSC requesting an annualized increase in electric base rates of
approximately $70 million and an ROE of 10.85% with an equity ratio of
52.728%. This is an overall increase of approximately 14.7%. The request for
the rate increase is driven by capital investments to strengthen the electricity
generation and delivery systems. New rates are anticipated to go into effect
around July 2, 2025. An evidentiary hearing is scheduled to begin on May 21,
2025.
Duke Energy Indiana
Regulatory Assets and Liabilities
The following tables present the regulatory assets and liabilities recorded on Duke Energy Indiana’s Consolidated Balance Sheets.
December 31,
Earns/Pays
a Return
Recovery/Refund
Period Ends
(in millions)
2024
2023
Regulatory Assets(a)
AROs – coal ash
$ 554
$ 408
Yes
(b)
PISCC and deferred operating expenses(c)
237
241
Yes
(b)
Accrued pension and OPEB
212
208
(e)
Retired generation facilities(c)
25
29
Yes
2030
Hedge costs deferrals
23
19
(b)
Customer connect project
19
19
(b)
Storm cost deferrals
17
11
(b)
AMI
12
13
2031
Other
54
48
(b)
Total regulatory assets
1,153
996
Less: Current portion
113
102
Total noncurrent regulatory assets
$1,040
$ 894
Regulatory Liabilities(a)
Net regulatory liability related to income taxes
$ 725
$ 794
(b)
COR regulatory liability
434
496
(d)
Accrued pension and OPEB
139
109
(e)
Hedge cost deferrals
103
77
(b)
Deferred fuel and purchased power
21
23
2025
Other
165
169
(b)
Total regulatory liabilities
1,587
1,668
Less: Current portion
183
209
Total noncurrent regulatory liabilities
$1,404
$1,459
(a)
Regulatory assets and liabilities are excluded from rate base unless otherwise noted.
(b)
The expected recovery or refund period varies or has not been determined.
(c)
Included in rate base.
(d)
Refunded over the life of the associated assets.
(e)
Recovered primarily over the average remaining service periods or life expectancies of employees covered by the benefit plans. See Note 23 for additional detail.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
146
2019 Indiana Rate Case
In July 2019, Duke Energy Indiana filed a general rate case with the
IURC for a rate increase for retail customers. On June 29, 2020, the IURC
issued an order in the rate case approving a revenue increase of $146 million
before certain adjustments and ratemaking refinements. The order approved
Duke Energy Indiana’s requested forecasted rate base of $10.2 billion as of
December 31, 2020, including the Edwardsport Integrated Gasification
Combined Cycle (IGCC) Plant. The IURC reduced Duke Energy Indiana’s request
by slightly more than $200 million, when accounting for the utility receipts
tax and other adjustments. Step one rates were estimated to be approximately
75% of the total rate increase and became effective on July 30, 2020. Step
two rates estimated to be the remaining 25% of the total rate increase were
approved on July 28, 2021, and implemented in August 2021.
Several groups appealed the IURC order to the Indiana Court of Appeals.
The Indiana Court of Appeals affirmed the IURC decision on May 13, 2021.
However, upon appeal by the Indiana Office of Utility Consumer Counselor
(OUCC) and the Duke Industrial Group in March 2022, the Indiana Supreme
Court found that the IURC erred in allowing Duke Energy Indiana to recover coal
ash costs incurred before the IURC’s rate case order in June 2020. The
Indiana Supreme Court found that allowing Duke Energy Indiana to recover
coal ash costs incurred between rate cases that exceeded the amount built into
base rates violated the prohibition against retroactive ratemaking. The
IURC’s order was remanded to the IURC for additional proceedings consistent
with the Indiana Supreme Court’s opinion. As a result of the court’s opinion, Duke
Energy Indiana recognized pretax charges of approximately $211 million to
Impairment of assets and other charges and $46 million to Operating revenues
in the Consolidated Statements of Operations for the year ended December 31,
2022. Duke Energy Indiana filed a request for rehearing with the Supreme Court
in April 2022, which the court denied. In February 2023, Duke Energy Indiana
filed a settlement agreement reached with the OUCC and Duke Industrial Group,
which includes an agreed amount of approximately $70 million of refunds to
be paid to customers. The IURC approved this settlement agreement in its
entirety on April 12, 2023. In June 2023, Duke Energy Indiana commenced
refunding the approximate $70 million to customers in accordance with the
settlement agreement, which was completed in May 2024.
Indiana Coal Ash Recovery
In Duke Energy Indiana’s 2019 rate case, the IURC also opened a
subdocket for post-2018 coal ash related expenditures. Duke Energy Indiana
filed testimony in April 2020, in the coal ash subdocket requesting recovery for
the post-2018 coal ash basin closure costs for plans that have been
approved by the Indiana Department of Environmental Management (IDEM) as
well as continuing deferral, with carrying costs, on the balance. On
November 3, 2021, the IURC issued an order allowing recovery for post-2018
coal ash basin closure costs for the plans that have been approved by IDEM, as
well as continuing deferral, with carrying costs, on the balance. The OUCC
and the Duke Industrial Group appealed. The Indiana Court of Appeals issued
its opinion on February 21, 2023, reversing the IURC’s order to the extent that it
allowed Duke Energy Indiana to recover federally mandated costs incurred
prior to the IURC’s November 3, 2021, order. In addition, the court found that
any costs incurred pre-petition to determine federally mandated compliance
options were not specifically authorized by the statute and should also be
disallowed. As a result of the Indiana Court of Appeals’ opinion, Duke Energy
Indiana recognized a pretax charge of approximately $175 million to
Impairment of assets and other charges for the year ended December 31,
2022.
In the second quarter of 2023, Duke Energy Indiana filed its proposal to
remove from rates certain costs incurred prior to the IURC’s November 3, 2021,
order date. On September 20, 2023, the commission approved the Company’s
proposal to remove the costs from its rates and assessed simple interest of the
refunds of 4.71%, beginning from when the costs were initially recovered
from customers. Duke Energy Indiana included a request to recover the pre-
order costs denied by the Indiana Court of Appeals and certain future coal ash
closure costs as part of depreciation costs in the 2024 Indiana Rate Case.
On August 30, 2023, Duke Energy Indiana filed a new petition under the
amended version of the federal mandate statute for additional post-2018 coal
ash closure costs for the remaining basins not included in the Indiana coal
ash recovery case from 2020. An evidentiary hearing was held in January 2024.
On May 8, 2024, the IURC issued a CPCN and approved these coal ash
related compliance projects as federally mandated compliance projects. In
June 2024, the Citizens Action Coalition of Indiana (CAC) filed a motion to
appeal the IURC order granting the coal ash CPCN proceeding and approving the
coal ash related compliance projects. Briefing was completed January 24,
2025.
TDSIC 2.0
In November 2021, Duke Energy Indiana filed for approval of the
Transmission, Distribution, Storage Improvement Charge 2.0 investment plan
for 2023-2028 (TDSIC 2.0). On June 15, 2022, the IURC approved, without
modification, TDSIC 2.0, which includes approximately $2 billion in transmission
and distribution investments selected to improve customer reliability, harden
and improve resiliency of the grid, enable expansion of renewable and distributed
energy projects and encourage economic development. In July 2022, the
OUCC filed a notice of appeal to the Indiana Court of Appeals in Duke Energy
Indiana’s TDSIC 2.0 proceeding. The Indiana Court of Appeals issued its opinion
on March 9, 2023, affirming the IURC’s order in its entirety. The Duke
Industrial Group filed a petition to transfer to the Indiana Supreme Court. On
December 19, 2024, the Indiana Supreme Court affirmed the Indiana Court of
Appeals decision, concluding there was substantial evidence that the IURC’s
conclusion was reasonable and the TDSIC 2.0 plan met the statutory
requirements. On January 21, 2025, the Duke Industrial Group filed a motion
for rehearing.
2024 Indiana Rate Case
In April 2024, Duke Energy Indiana filed an application with the IURC for
a rate increase of $492 million, representing an overall average bill increase of
approximately 16.2%, which, if approved, would be added to retail customer
bills in two steps, approximately 11.7% in 2025 and approximately 4.5% in
2026. Duke Energy Indiana requested an ROE of 10.5% with an equity ratio
of 53%. The rate increase is driven by $1.6 billion in investments made since
the last general rate case filed in 2019 in order to reliably serve customers,
improve resiliency of the system, and advance environmental sustainability.
An evidentiary hearing was completed in September 2024, with briefing
continued until October 31, 2024.
In connection with this rate case, a $29 million increase in a regulatory
liability associated with certain employee post-retirement benefits was recorded
in December 2024. An order for the rate case was issued by the IURC on
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
147
January 29, 2025, and revised February 3, 2025, which authorized an ROE of
9.75%, an equity ratio of 53% and an annual revenue increase of $296 million.
Based on review of these orders, Duke Energy Indiana identified an
inconsistency in the calculation of operating revenues before the effect of
trackers. On February 7, 2025, Duke Energy Indiana made a compliance filing
in accordance with the IURC’s findings in its order and addressing the identified
inconsistencies. The compliance filing also clarified the annual revenue
increase was approximately $385 million. Additionally, on February 18, 2025,
one industrial customer submitted a filing requesting the IURC to clarify its
revenue allocation in these proceedings. On February 25, 2025, the IURC
approved Duke Energy Indiana’s compliance filing subject to refund, pending
the outcome of the petition for rehearing. New rates, subject to refund, were
implemented February 27, 2025.
Cayuga Combined Cycle CPCN
On February 13, 2025, Duke Energy Indiana filed for a CPCN seeking
approval to construct two 1x1 CC natural gas-fired units with a combined
winter rating of 1,476 MW. The Cayuga CC Project is proposed to be constructed
on the same site as the retiring Cayuga coal-fired steam units with a winter
rating of 1,005 MW. The Cayuga CC Project will result in an incremental 471 MW
for the Duke Energy Indiana system and will allow Duke Energy Indiana to
avoid expected maintenance and environmental compliance costs needed for
the coal units to continue operating. The estimated cost of the Cayuga CC project
is $2.97 billion, plus AFUDC and project reserves. Duke Energy Indiana has
proposed recovery of certain costs of the facility during construction, including
AFUDC, through construction work in progress ratemaking through a
proposed generation cost adjustment tracker mechanism and estimates an
average retail rate impact of approximately 5.4% during construction. Duke
Energy Indiana expects CC 1 to be placed in service in 2029 and CC 2 to be
placed in service in 2030. An evidentiary hearing is expected in June 2025.
Piedmont
Regulatory Assets and Liabilities
The following tables present the regulatory assets and liabilities recorded on Piedmont’s Consolidated Balance Sheets.
December 31,
Earns/Pays
a Return
Recovery/Refund
Period Ends
(in millions)
2024
2023
Regulatory Assets(a)
Accrued pension and OPEB(c)
144
129
(g)
Deferred pipeline integrity costs(c)
101
103
2034
Derivatives – natural gas supply contracts(f)
94
147
Decoupling
77
75
(e)
(b)
Tennessee ARM Deferral
33
20
(e)
(b)
AROs – nuclear and other
29
$
26
(d)
Customer connect project(c)
24
9
2030
Vacation accrual
14
13
2025
Pipeline Integrity Management – Transmission/Distribution
14
—
(b)
Other
49
49
(e)
(b)
Total regulatory assets
579
571
Less: Current portion
158
161
Total noncurrent regulatory assets
$ 421
$ 410
Regulatory Liabilities(a)
COR regulatory liability(c)
$ 539
555
(d)
Net regulatory liability related to income taxes
405
$ 433
(b)
Other
80
98
(e)
(b)
Total regulatory liabilities
1,024
1,086
Less: Current portion
68
98
Total noncurrent regulatory liabilities
$ 956
$ 988
(a)
Regulatory assets and liabilities are excluded from rate base unless otherwise noted.
(b)
The expected recovery or refund period varies or has not been determined.
(c)
Included in rate base.
(d)
Recovery over the life of the associated assets.
(e)
Certain costs earn/pay a return.
(f)
Balance will fluctuate with changes in the market. Current contracts extend into 2031.
(g)
Recovered primarily over the average remaining service periods or life expectancies of employees covered by the benefit plans. See Note 23 for additional detail.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
148
2024 North Carolina Rate Case
In April 2024, Piedmont filed an application with the NCUC for a rate
increase for retail customers. In September 2024, Piedmont, the Public Staff
and other intervening parties filed an Agreement and Stipulation of Settlement
with the NCUC resolving all issues in the general rate case. The major
components of the settlement include an overall average effective increase in
net annual retail revenues of $88 million in the first year and $10 million of
additional revenue after the first year. The settlement includes an ROE of
9.8% with an equity ratio of 52.3% and the addition of a rider mechanism for
recovery of pipeline integrity management operations and maintenance
expenses. The settlement was subject to the review and approval of the NCUC.
The evidentiary hearing concluded in September 2024, and Piedmont
implemented revised rates November 1, 2024. The NCUC issued its order
approving the settlement as filed on January 7, 2025.
OTHER REGULATORY MATTERS
Potential Coal Plant Retirements
The Subsidiary Registrants periodically file IRPs with their state
regulatory commissions. The IRPs provide a view of forecasted energy needs
over a long term (10 to 20 years) and resources proposed to meet those needs.
The IRPs also include planning assumptions around future retirement dates of
aging coal-fired generating facilities.
Duke Energy Carolinas and Duke Energy Progress received an NCUC
order on the 2022 Carbon Plan that concluded the projected retirement dates
for their coal-fired generating facilities were reasonable for planning purposes
and further directed that appropriate steps be taken to optimally retire the
coal fleet according to such schedule. In August 2023, Duke Energy Carolinas
and Duke Energy Progress filed their 2023 systemwide Carolinas Resource Plan
with the NCUC and PSCSC, with a supplemental filing in January 2024 that
demonstrated a need for additional resources beyond the set of resources
identified by the companies in their initial plan. The NCUC and PSCSC issued
orders in 2024 generally approving the resource plan. See the “Other Matters”
section of Item 7 Management’s Discussion and Analysis for further details
on resource plans.
Duke Energy continues to evaluate the retirement date assumptions for
all coal-fired generating facilities as changes in energy usage and/or growth
and availability of replacement generation could result in different retirement
dates of units than their current estimated useful lives. Except as previously
discussed related to Duke Energy Kentucky’s East Bend plant, rate cases recently
filed or approved across all jurisdictions included proposed depreciation
rates that approximate earlier retirement dates as outlined in recent IRPs.
Duke Energy plans to seek regulatory recovery for amounts that would not be
otherwise recovered when any of these assets are retired.
5.
COMMITMENTS AND CONTINGENCIES
INSURANCE
General Insurance
The Duke Energy Registrants have insurance and reinsurance coverage
either directly or through indemnification from Duke Energy’s captive insurance
company, Bison, and its affiliates, consistent with companies engaged in
similar commercial operations with similar type properties. The Duke Energy
Registrants’ coverage includes (i) commercial general liability coverage for
liabilities arising to third parties for bodily injury and property damage;
(ii) workers’ compensation; (iii) automobile liability coverage; and (iv) property
coverage for all real and personal property damage. Real and personal
property damage coverage excludes electric transmission and distribution
lines, but includes damages arising from boiler and machinery breakdowns,
earthquakes, flood damage and extra expense, but not outage or replacement
power coverage. All coverage is subject to certain deductibles or retentions,
sublimits, exclusions, terms and conditions common for companies with
similar types of operations. The Duke Energy Registrants self-insure their
electric transmission and distribution lines against loss due to storm damage
and other natural disasters. As discussed further in Note 4, Duke Energy
Florida maintains a storm damage reserve and has a regulatory mechanism to
recover the cost of named storms on an expedited basis.
The cost of the Duke Energy Registrants’ coverage can fluctuate from
year to year reflecting claims history and conditions of the insurance and
reinsurance markets. In the event of a loss, terms and amounts of insurance
and reinsurance available might not be adequate to cover claims and other
expenses incurred. Uninsured losses and other expenses, to the extent not
recovered by other sources, could have a material effect on the Duke Energy
Registrants’ results of operations, cash flows or financial position. Each
company is responsible to the extent losses may be excluded or exceed limits
of the coverage available.
Nuclear Insurance
Duke Energy Carolinas owns and operates McGuire and Oconee and
operates and has a partial ownership interest in Catawba. McGuire and
Catawba each have two reactors. Oconee has three reactors. The other joint
owners of Catawba reimburse Duke Energy Carolinas for certain expenses
associated with nuclear insurance per the Catawba joint owner agreements.
Duke Energy Progress owns and operates Robinson, Brunswick and
Harris. Robinson and Harris each have one reactor. Brunswick has two
reactors.
Duke Energy Florida owns Crystal River Unit 3, which permanently
ceased operation in 2013 and achieved a SAFSTOR condition in July 2019. On
October 1, 2020, Crystal River Unit 3 changed decommissioning strategies from
SAFSTOR to DECON.
In the event of a loss, terms and amounts of insurance available might
not be adequate to cover property damage and other expenses incurred.
Uninsured losses and other expenses, to the extent not recovered by other
sources, could have a material effect on Duke Energy Carolinas’, Duke Energy
Progress’ and Duke Energy Florida’s results of operations, cash flows or financial
position. Each company is responsible to the extent losses may be excluded
or exceed limits of the coverage available.
Nuclear Liability Coverage
The Price-Anderson Act requires owners of nuclear reactors to provide for
public nuclear liability protection per nuclear incident up to a maximum total
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
149
financial protection liability. The maximum total financial protection liability,
which is approximately $16.2 billion, is subject to change every five years for
inflation and for the number of licensed reactors. Total nuclear liability
coverage consists of a combination of private primary nuclear liability insurance
coverage and a mandatory industry risk-sharing program to provide for
excess nuclear liability coverage above the maximum reasonably available
private primary coverage. The U.S. Congress could impose revenue-raising
measures on the nuclear industry to pay claims.
Primary Liability Insurance
Duke Energy Carolinas and Duke Energy Progress have purchased the
maximum reasonably available private primary nuclear liability insurance as
required by law, which is $500 million per station. Duke Energy Florida has
purchased $100 million primary nuclear liability insurance for Crystal River
in compliance with the law.
Excess Liability Program
This program provides $15.8 billion of coverage per incident through the
Price-Anderson Act’s mandatory industrywide excess secondary financial
protection program of risk pooling. This amount is the product of potential
cumulative retrospective premium assessments of $166 million times the
current 95 licensed commercial nuclear reactors in the U.S. Under this program,
operating unit licensees could be assessed retrospective premiums to
compensate for public nuclear liability damages in the event of a nuclear
incident at any licensed facility in the U.S. Retrospective premiums may be
assessed at a rate not to exceed $24.7 million per year per licensed reactor for
each incident. The assessment may be subject to state premium taxes.
Nuclear Property and Accidental Outage Coverage
Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida
are members of Nuclear Electric Insurance Limited (NEIL), an industry mutual
insurance company, which provides property damage, nuclear accident
decontamination and premature decommissioning insurance for each station
for losses resulting from damage to its nuclear plants, either due to accidents or
acts of terrorism. Additionally, NEIL provides accidental outage coverage for
losses in the event of a major accidental outage at an insured nuclear station.
Pursuant to regulations of the NRC, each company’s property damage
insurance policies provide that all proceeds from such insurance be applied,
first, to place the plant in a safe and stable condition after a qualifying accident
and second, to decontaminate the plant before any proceeds can be used for
decommissioning, plant repair or restoration.
Losses resulting from acts of terrorism are covered as common
occurrences, such that if terrorist acts occur against one or more commercial
nuclear power plants insured by NEIL within a 12-month period, they would be
treated as one event and the owners of the plants where the act occurred
would share one full limit of liability. The full limit of liability is currently
$3.2 billion. NEIL sublimits the total aggregate for all of their policies for non-
nuclear terrorist events to approximately $1.8 billion.
Each nuclear facility has accident property damage, nuclear accident
decontamination and premature decommissioning liability insurance from
NEIL with limits of $1.5 billion, except for Crystal River Unit 3. Crystal River Unit
3’s limit is $50 million and is on an actual cash value basis. All nuclear
facilities except for Catawba and Crystal River Unit 3 also share an additional
$1.25 billion nuclear accident insurance limit above their dedicated
underlying limit. This shared additional excess limit is not subject to
reinstatement in the event of a loss. Catawba has a dedicated $1.25 billion of
additional nuclear accident insurance limit above its dedicated underlying
limit. Catawba and Oconee also have an additional $750 million of non-
nuclear accident property damage limit. All coverages are subject to sublimits
and significant deductibles.
NEIL’s Accidental Outage policy provides some coverage, similar to
business interruption, for losses in the event of a major accident property
damage outage of a nuclear unit. Coverage is provided on a weekly limit basis
after a significant waiting period deductible and at 100% of the applicable
weekly limits for 52 weeks and 80% of the applicable weekly limits for up to the
next 110 weeks. Coverage is provided until these applicable weekly periods
are met, where the accidental outage policy limit will not exceed $490 million
for each nuclear plant. NEIL sublimits the accidental outage recovery up to the
first 104 weeks of coverage not to exceed $291 million from non-nuclear
accidental property damage. Coverage amounts decrease in the event more
than one unit at a station is out of service due to a common accident. All
coverages are subject to sublimits and significant deductibles.
Potential Retroactive Premium Assessments
In the event of NEIL losses, NEIL’s board of directors may assess member
companies’ retroactive premiums of amounts up to 10 times their annual
premiums for up to six years after a loss. NEIL has never exercised this
assessment. The maximum aggregate current year policies’ annual retrospective
premium obligations for Duke Energy Carolinas, Duke Energy Progress and
Duke Energy Florida are $162 million, $99 million and $1 million, respectively.
Duke Energy Carolinas’ maximum assessment amount includes 100% of
potential obligations to NEIL for jointly owned reactors. Duke Energy Carolinas
would seek reimbursement from the joint owners for their portion of these
assessment amounts.
ENVIRONMENTAL
The Duke Energy Registrants are subject to federal, state and local
regulations regarding air and water quality, hazardous and solid waste
disposal, coal ash and other environmental matters. These regulations can be
changed from time to time, imposing new obligations on the Duke Energy
Registrants. The following environmental matters impact all of the Duke Energy
Registrants.
Remediation Activities
In addition to AROs recorded as a result of various environmental
regulations, discussed in Note 10, the Duke Energy Registrants are responsible
for environmental remediation at various sites. These include certain
properties that are part of ongoing operations and sites formerly owned or
used by Duke Energy entities. These sites are in various stages of investigation,
remediation and monitoring. Managed in conjunction with relevant federal,
state and local agencies, remediation activities vary based upon site conditions
and location, remediation requirements, complexity and sharing of
responsibility. If remediation activities involve joint and several liability
provisions, strict liability, or cost recovery or contribution actions, the Duke
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
150
Energy Registrants could potentially be held responsible for environmental
impacts caused by other potentially responsible parties and may also benefit
from insurance policies or contractual indemnities that cover some or all cleanup
costs. Liabilities are recorded when losses become probable and are
reasonably estimable. The total costs that may be incurred cannot be estimated
because the extent of environmental impact, allocation among potentially
responsible parties, remediation alternatives and/or regulatory decisions have
not yet been determined at all sites. Additional costs associated with
remediation activities are likely to be incurred in the future and could be
significant. Costs are typically expensed as Operation, maintenance and other
in the Consolidated Statements of Operations unless regulatory recovery of
the costs is deemed probable.
The following table contains information regarding reserves for probable
and estimable costs related to the various environmental sites. These reserves
are recorded in Accounts Payable within Other Current Liabilities and Other
within Other Noncurrent Liabilities on the Consolidated Balance Sheets.
(in millions)
December 31, 2024
December 31, 2023
Reserves for Environmental
Remediation
Duke Energy
$73
$88
Duke Energy Carolinas
24
23
Progress Energy
19
19
Duke Energy Progress
9
9
Duke Energy Florida
10
10
Duke Energy Ohio
21
36
Duke Energy Indiana
2
2
Piedmont
7
7
Additional losses in excess of recorded reserves that could be incurred
for the stages of investigation, remediation and monitoring for environmental
sites that have been evaluated at this time are not material.
LITIGATION
For open litigation, unless otherwise noted, Duke Energy and the
Subsidiary Registrants cannot predict the outcome or ultimate resolution of
their respective matters.
Duke Energy
Texas Storm Uri Tort Litigation
Duke Energy (Parent), several Duke Energy renewables project
companies, and others in the ERCOT market were named in multiple lawsuits
arising out of Texas Storm Uri, which occurred in February 2021. These lawsuits
sought recovery for property damage, personal injury and wrongful death
allegedly caused by the power outages that plaintiffs claim were the collective
failure of generators including entities owned by Duke Energy at the time,
transmission and distribution operators (TDUs), retail energy providers, and all
others, including ERCOT. The cases were consolidated into a Texas state
court multidistrict litigation (MDL) proceeding for discovery and pre-trial
motions. Five MDL cases were designated as lead cases in which motions to
dismiss were filed and all other cases were stayed.
In the cases against the generators, the plaintiffs dismissed the claims
against Duke Energy (Parent). In October 2023, in conjunction with the closing
of the sale of the utility-scale solar and wind group, all but one of the project
company lawsuits transferred to Brookfield. In May 2024, the remaining project
company claim in the lawsuit was transferred to the buyer in connection with
the sale of a portion of the remaining Commercial Renewables assets. With the
transfer of the remaining project company lawsuits now complete, the matter
is closed as it relates to the Duke Energy Registrants. See Note 2 for more
information related to the sale of the Commercial Renewables Disposal Groups.
Mooresville Coal Ash Class Action Litigation
On December 20, 2024, 15 plaintiffs filed a lawsuit in Iredell County,
North Carolina, against Duke Energy (Parent), Duke Energy Carolinas and Duke
Energy Progress (collectively “Duke Energy”) on behalf of a putative class
alleging past and ongoing environmental contamination in the Mooresville area
of North Carolina. The lawsuit alleges that Duke Energy disposed of and sold
coal ash as structural fill resulting in the contamination of soil, groundwater
and Lake Norman. Plaintiffs claim that Duke Energy failed to properly
remediate the contamination and continues to pollute, and they assert that the
contamination has negatively impacted property values and led to elevated
cancer rates and other health issues. The complaint asserts claims for
negligence, nuisance, violations of the North Carolina Unfair and Deceptive
Trade Practices Act, strict liability for ultra-hazardous activities and trespass.
Plaintiffs are seeking unspecified compensatory and punitive damages,
injunctive relief to stop further contamination, remediation of contaminated
areas and attorneys’ fees and costs. The Company is evaluating the complaint
and will respond by the court’s deadline in March 2025.
Duke Energy Carolinas
NTE Carolinas II, LLC Litigation
In November 2017, Duke Energy Carolinas entered into a standard FERC
large generator interconnection agreement (LGIA) with NTE Carolinas II, LLC
(NTE), a company that proposed to build a combined-cycle natural gas plant in
Rockingham County, North Carolina. In September 2019, Duke Energy
Carolinas filed a lawsuit in Mecklenburg County Superior Court against NTE for
breach of contract, alleging that NTE’s failure to pay benchmark payments
for Duke Energy Carolinas’ transmission system upgrades required under the
interconnection agreement constituted a termination of the interconnection
agreement. Duke Energy Carolinas sought a monetary judgment against NTE
because NTE failed to make multiple milestone payments. The lawsuit was
moved to federal court in North Carolina. NTE filed a motion to dismiss Duke
Energy Carolinas’ complaint and brought counterclaims alleging anti-
competitive conduct and violations of state and federal statutes. Duke Energy
Carolinas filed a motion to dismiss NTE’s counterclaims. Both NTE’s and
Duke Energy Carolinas’ motions to dismiss were subsequently denied by the
court.
On May 21, 2020, in response to a NTE petition challenging Duke Energy
Carolinas’ termination of the LGIA, FERC issued a ruling that 1) it has exclusive
jurisdiction to determine whether a transmission provider may terminate an
LGIA; 2) FERC approval is required to terminate a conforming LGIA if objected
to by the interconnection customer; and 3) Duke Energy may not announce the
termination of a conforming LGIA unless FERC has approved the termination.
FERC’s Office of Enforcement also initiated an investigation of Duke Energy
Carolinas into matters pertaining to the LGIA. In April 2023, Duke Energy
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
151
Carolinas received notice from the FERC Office of Enforcement that they have
closed their non-public investigation with no further action recommended.
Following completion of discovery, Duke Energy Carolinas filed a motion
for summary judgment seeking a ruling in its favor as to some of its affirmative
claims against NTE and to all of NTE’s counterclaims. On June 24, 2022, the
court issued an order partially granting Duke Energy Carolinas’ motion by
dismissing NTE’s counterclaims that Duke Energy Carolinas engaged in anti-
competitive behavior in violation of state and federal statutes. In October 2022,
the parties executed a settlement agreement with respect to the remaining
breach of contract claims in the litigation and a Stipulation of Dismissal was
filed with the court.
In November 2022, NTE filed its Notice of Appeal to the U.S. Court of
Appeals for the Fourth Circuit as to the district court’s summary judgment
ruling in Duke Energy Carolinas’ favor on NTE’s antitrust and unfair competition
claims. Briefing on NTE’s appeal was completed in June 2023 and oral
argument took place in May 2024. On August 5, 2024, the U.S. Court of Appeals
for the Fourth Circuit reversed the district court’s grant of summary judgment
and remanded the case back to the district court for further proceedings. In
August 2024, Duke Energy Carolinas filed a petition for rehearing, which was
denied on November 26, 2024. On February 21, 2025, Duke Energy Carolinas
filed a petition seeking review by the United States Supreme Court.
Asbestos-related Injuries and Damages Claims
Duke Energy Carolinas has experienced numerous claims for
indemnification and medical cost reimbursement related to asbestos exposure.
These claims relate to damages for bodily injuries alleged to have arisen
from exposure to or use of asbestos in connection with construction and
maintenance activities conducted on its electric generation plants prior to 1985.
Duke Energy Carolinas has recognized asbestos-related reserves of
$396 million and $423 million at December 31, 2024, and 2023, respectively.
These reserves are classified in Other within Other Noncurrent Liabilities and
Other within Current Liabilities on the Consolidated Balance Sheets. These
reserves are based upon Duke Energy Carolinas’ best estimate for current and
future asbestos claims through 2044 and are recorded on an undiscounted
basis. In light of the uncertainties inherent in a longer-term forecast,
management does not believe they can reasonably estimate the indemnity and
medical costs that might be incurred after 2044 related to such potential
claims. It is possible Duke Energy Carolinas may incur asbestos liabilities in
excess of the recorded reserves.
Duke Energy Carolinas has third-party insurance to cover certain losses
related to asbestos-related injuries and damages above an aggregate self-
insured retention. Receivables for insurance recoveries were $539 million and
$572 million at December 31, 2024, and 2023, respectively. These amounts are
classified in Other within Other Noncurrent Assets and Receivables within
Current Assets on the Consolidated Balance Sheets. Any future payments up to
the policy limit will be reimbursed by the third-party insurance carrier. Duke
Energy Carolinas is not aware of any uncertainties regarding the legal sufficiency
of insurance claims. Duke Energy Carolinas believes the insurance recovery
asset is probable of recovery as the insurance carrier continues to have a strong
financial strength rating.
The reserve for credit losses for insurance receivables for the asbestos-
related injuries and damages is $9 million as of December 31, 2024, and
December 31, 2023, for both Duke Energy and Duke Energy Carolinas. The
insurance receivable is evaluated based on the risk of default and the historical
losses, current conditions and expected conditions around collectability.
Management evaluates the risk of default annually based on payment history,
credit rating and changes in the risk of default from credit agencies.
Duke Energy Indiana
Coal Ash Insurance Coverage Litigation
In June 2022, Duke Energy Indiana filed a civil action in Indiana
Superior Court against various insurance companies seeking declaratory relief
with respect to insurance coverage for CCR-related expenses and liabilities
covered by third-party liability insurance policies. The insurance policies cover
the 1969-1972 and 1984-1985 periods and provide third-party liability
insurance for claims and suits alleging property damage, bodily injury and
personal injury (or a combination thereof). A trial date has not yet been set.
In June 2023, Duke Energy Indiana and Associated Electric and Gas
Insurance Services (AEGIS) reached a confidential settlement, the results of
which were not material to Duke Energy, and as a result, AEGIS was dismissed
from the litigation in July 2023. Duke Energy Indiana has also reached
confidential settlements with other various insurance companies, the results
of which were not material. In June 2024, Duke Energy Indiana filed an amended
complaint adding several additional insurance companies as defendants to
the litigation. The litigation is currently stayed until February 28, 2025, while
Duke Energy continues to negotiate with the remaining insurance company
defendants.
Other Litigation and Legal Proceedings
The Duke Energy Registrants are involved in other legal, tax and
regulatory proceedings arising in the ordinary course of business, some of
which involve significant amounts. The Duke Energy Registrants believe the
final disposition of these proceedings will not have a material effect on their
results of operations, cash flows or financial position. Reserves are classified on
the Consolidated Balance Sheets in Other within Other Noncurrent Liabilities
and Other within Current Liabilities.
OTHER COMMITMENTS AND CONTINGENCIES
General
As part of their normal business, the Duke Energy Registrants are party
to various financial guarantees, performance guarantees and other contractual
commitments to extend guarantees of credit and other assistance to various
subsidiaries, investees and other third parties. These guarantees involve
elements of performance and credit risk, which are not fully recognized on the
Consolidated Balance Sheets and have uncapped maximum potential
payments. However, the Duke Energy Registrants do not believe these
guarantees will have a material effect on their results of operations, cash
flows or financial position. See Notes 2 and 8 for more information.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
152
Purchase Obligations
Purchased Power
Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio and Duke
Energy Indiana have ongoing purchased power contracts with other utilities,
wholesale marketers, co-generators and qualified facilities. These purchased
power contracts generally provide for capacity and energy payments. In addition,
Duke Energy Progress and Duke Energy Florida have various contracts to
secure transmission rights.
The following table presents executory purchased power contracts with terms exceeding one year, excluding contracts classified as leases.
Minimum Purchase Amount at December 31, 2024
(in millions)
Contract
Expiration
2025
2026
2027
2028
2029
Thereafter
Total
Duke Energy Progress(a)
2028-2042
$22
$18
$19
$18
$ 3
$31
$111
Duke Energy Indiana(b)
2026
33
12
—
—
—
—
45
(a)
Contracts represent between 18% and 100% of net plant output.
(b)
Share of net plant output varies.
Gas Supply and Capacity Contracts
Duke Energy Ohio and Piedmont routinely enter into long-term natural
gas supply commodity and capacity commitments and other agreements that
commit future cash flows to acquire services needed in their businesses. These
commitments include pipeline and storage capacity contracts and natural
gas supply contracts to provide service to customers. Costs arising from the
natural gas supply commodity and capacity commitments, while significant, are
pass-through costs to customers and are generally fully recoverable through
specific fuel rate components operating in conjunction with PGA procedures,
and subject to periodic prudence reviews in North Carolina and South
Carolina and the Performance Incentive Plan in Tennessee. In the Midwest,
these costs are recovered via the Gas Cost Recovery Rate in Ohio or the Gas Cost
Adjustment Clause in Kentucky. The time periods for fixed payments under
pipeline and storage capacity contracts are up to 18 years. The time periods
for fixed payments under natural gas supply contracts is up to three years. The
time periods for the natural gas supply purchase commitments is up to
six years.
Certain storage and pipeline capacity contracts require the payment of
demand charges that are based on rates approved by the FERC in order to
maintain rights to access the natural gas storage or pipeline capacity on a firm
basis during the contract term. The demand charges that are incurred in
each period are recognized in the Consolidated Statements of Operations and
Comprehensive Income as part of natural gas purchases and are included in
Cost of natural gas.
The following table presents future unconditional purchase obligations under natural gas supply and capacity contracts as of December 31, 2024.
(in millions)
2025
2026
2027
2028
2029 Thereafter
Total
Duke Energy Ohio
$104
$ 75
$ 71
$ 69
$ 65
$554
$ 938
Piedmont
369
366
322
241
233
695
2,226
6.
LEASES
As part of its operations, Duke Energy leases certain aircraft, space on
communication towers, industrial equipment, fleet vehicles, fuel transportation
(barges and railcars), land and office space under various terms and
expiration dates. Additionally, Duke Energy Carolinas, Duke Energy Progress
and Duke Energy Indiana have finance leases related to firm natural gas pipeline
transportation capacity. Duke Energy Progress and Duke Energy Florida have
entered into certain PPAs, which are classified as finance and operating leases.
Duke Energy has certain lease agreements, which include variable lease
payments that are based on the usage of an asset. These variable lease
payments are not included in the measurement of the ROU assets or operating
lease liabilities on the Consolidated Financial Statements.
Certain Duke Energy lease agreements include options for renewal and
early termination. The intent to renew a lease varies depending on the lease
type and asset. Renewal options that are reasonably certain to be exercised are
included in the lease measurements. The decision to terminate a lease early
is dependent on various economic factors. No termination options have been
included in any of the lease measurements.
In December 2019, Duke Energy Carolinas entered into a sale-leaseback
arrangement to construct and occupy an office tower. The lease agreement
was evaluated as a sale-leaseback of real estate but did not qualify for sale-
leaseback accounting. As a result, the transaction is accounted for as a
financing. Duke Energy Carolinas recorded the real estate on the Consolidated
Balance Sheets within Property, Plant and Equipment as if it is the legal
owner and recognizes depreciation expense over the estimated useful life. In
addition, the failed sale-leaseback obligation is reported within Long-Term Debt
on the Consolidated Balance Sheets with the monthly lease payments split
between interest expense and debt principal.
Piedmont has certain agreements for the construction and transportation
of natural gas pipelines to supply Duke Energy Carolinas’ natural gas plant
needs. Piedmont accounts for these pipeline lateral contracts as sales-type
leases since the present value of the sum of the lease payments equals the fair
value of the assets. These pipeline lateral assets owned by Piedmont had a
current net investment basis of $2 million as of December 31, 2024, and 2023,
and a long-term net investment basis of $197 million and $199 million as of
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
153
December 31, 2024, and 2023, respectively. These assets are classified in
Other, within Current Assets and Other Noncurrent Assets, respectively, on
Piedmont’s Consolidated Balance Sheets. Duke Energy Carolinas accounts for
the contracts as finance leases. The activity for these contracts is eliminated
in consolidation at Duke Energy.
The following tables present the components of lease expense.
Year Ended December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Operating lease expense(a)
$275
$ 66
$173
$ 82
$ 91
$12
$23
$ 2
Short-term lease expense(a)
7
—
3
1
2
—
1
—
Variable lease expense(a)
33
2
29
19
10
—
1
1
Finance lease expense
Amortization of leased assets(b)
113
7
46
38
8
—
—
—
Interest on lease liabilities(c)
41
31
44
41
3
—
1
—
Total finance lease expense
154
38
90
79
11
—
1
—
Total lease expense
$469
$106
$295
$181
$114
$12
$26
$ 3
Year Ended December 31, 2023
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Operating lease expense(a)
$236
$41
$157
$ 80
$ 77
$11
$17
$ 2
Short-term lease expense(a)
5
—
2
1
1
—
1
—
Variable lease expense(a)
27
2
22
11
11
—
—
1
Finance lease expense
Amortization of leased assets(b)
160
7
57
35
22
—
—
—
Interest on lease liabilities(c)
46
31
45
43
2
—
1
—
Total finance lease expense
206
38
102
78
24
—
1
—
Total lease expense
$474
$81
$283
$170
$113
$11
$19
$ 3
(a)
Included in Operations, maintenance and other, except for expense related to barges and railcars which is included in Fuel used in electric generation and purchased power on the Consolidated Statements of Operations.
(b)
Included in Depreciation and amortization on the Consolidated Statements of Operations.
(c)
Included in Interest Expense on the Consolidated Statements of Operations.
The following table presents operating lease maturities and a reconciliation of the undiscounted cash flows to operating lease liabilities.
December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
2025
$ 256
$ 24
$ 121
$ 55
$ 66
$ 1
$ 7
$ 5
2026
241
21
124
59
65
1
7
1
2027
191
14
97
60
37
1
5
1
2028
153
11
82
59
23
1
3
1
2029
120
10
74
52
22
1
3
—
Thereafter
458
53
307
156
151
4
24
—
Total operating lease payments
1,419
133
805
441
364
9
49
8
Less: Present value discount
(254)
(26)
(151)
(67)
(84)
(2)
(10)
—
Total operating lease liabilities(a)
$1,165
$107
$ 654
$374
$280
$ 7
$ 39
$ 8
(a)
Certain operating lease payments include renewal options that are reasonably certain to be exercised.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
154
The following table presents finance lease maturities and a reconciliation of the undiscounted cash flows to finance lease liabilities.
December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Indiana
2025
$ 86
$ 38
$ 91
$ 80
$ 11
$ 1
2026
87
38
92
81
11
1
2027
82
38
89
81
8
1
2028
79
38
87
81
6
1
2029
79
38
88
81
7
1
Thereafter
489
351
444
393
51
21
Total finance lease payments
902
541
891
797
94
26
Less: Amounts representing interest
(332)
(271)
(310)
(282)
(28)
(16)
Total finance lease liabilities
$ 570
$ 270
$ 581
$ 515
$ 66
$ 10
The following tables contain additional information related to leases.
December 31, 2024
(in millions)
Classification
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Assets
Operating
Operating lease ROU assets, net
$1,148
$ 98
$ 625
$348
$277
$ 6
$37
$ 4
Finance
Net property, plant and equipment
645
252
620
512
108
—
6
—
Total lease assets
$1,793
$350
$1,245
$860
$385
$ 6
$43
$ 4
Liabilities
Current
Operating
Other current liabilities
$ 208
$ 20
$
97
$ 42
$ 55
$ 1
$ 6
$ 1
Finance
Current maturities of long-term debt
46
8
48
41
7
—
—
—
Noncurrent
Operating
Operating lease liabilities
957
87
557
332
225
6
33
7
Finance
Long-Term Debt
524
262
533
474
59
—
10
—
Total lease liabilities
$1,735
$377
$1,235
$889
$346
$ 7
$49
$ 8
December 31, 2023
(in millions)
Classification
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Assets
Operating
Operating lease ROU assets, net
$1,092
$ 78
$ 617
$318
$299
$16
$50
$ 4
Finance
Net property, plant and equipment
687
268
615
552
63
—
6
—
Total lease assets
$1,779
$346
$1,232
$870
$362
$16
$56
$ 4
Liabilities
Current
Operating
Other current liabilities
$ 188
$ 15
$
94
$ 45
$ 49
$ 1
$ 6
$—
Finance
Current maturities of long-term debt
115
8
46
38
8
—
—
—
Noncurrent
Operating
Operating lease liabilities
917
75
544
293
251
16
46
10
Finance
Long-Term Debt
524
269
525
514
11
—
9
—
Total lease liabilities
$1,744
$367
$1,209
$890
$319
$17
$61
$10
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
155
Year Ended December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Cash paid for amounts included in the measurement of lease liabilities(a)
Operating cash flows from operating leases
$250
$24
$122
$57
$65
$ 1
$ 8
$ 1
Operating cash flows from finance leases
41
31
44
41
3
—
1
—
Financing cash flows from finance leases
113
7
46
38
8
—
—
—
Lease assets obtained in exchange for new lease liabilities (non-cash)
Operating
$322
$50
$ 43
$ 3
$40
$—
$ 7
$ 3
Finance
81
1
55
—
55
—
1
—
Year Ended December 31, 2023
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Cash paid for amounts included in the measurement of lease liabilities(a)
Operating cash flows from operating leases
$228
$18
$123
$64
$59
$ 2
$ 7
$—
Operating cash flows from finance leases
46
31
45
43
2
—
1
—
Financing cash flows from finance leases
160
7
57
35
22
—
—
—
Lease assets obtained in exchange for new lease liabilities (non-cash)
Operating
$286
$14
$ 92
$ 1
$91
$ 2
$ 6
$ 2
Finance
36
—
—
—
—
—
—
—
(a)
No amounts were classified as investing cash flows from operating leases.
December 31, 2024
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Weighted average remaining lease term (years)
Operating leases
8
9
9
8
11
11
11
4
Finance leases
11
15
11
10
15
—
20
—
Weighted average discount rate(a)
Operating leases
4.3%
4.3%
4.0%
3.9%
4.2%
4.1%
4.0%
3.9%
Finance leases
8.4%
11.5%
8.9%
9.2%
5.9%
—%
11.7%
—%
December 31, 2023
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Weighted average remaining lease term (years)
Operating leases
9
10
10
9
11
13
13
4
Finance leases
11
16
11
11
18
—
22
3
Weighted average discount rate(a)
Operating leases
3.1%
4.0%
3.8%
3.6%
4.0%
4.2%
3.9%
2.4%
Finance leases
8.5%
11.5%
9.1%
9.2%
7.6%
—%
11.9%
5.4%
(a)
The discount rate is calculated using the rate implicit in a lease if it is readily determinable. Generally, the rate used by the lessor is not provided to Duke Energy and in these cases the incremental borrowing rate is
used. Duke Energy will typically use its fully collateralized incremental borrowing rate as of the commencement date to calculate and record the lease. The incremental borrowing rate is influenced by the lessee’s credit
rating and lease term and as such may differ for individual leases, embedded leases or portfolios of leased assets.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
156
7.
DEBT AND CREDIT FACILITIES
Summary of Debt and Related Terms
The following tables summarize outstanding debt.
December 31, 2024
(in millions)
Weighted
Average
Interest Rate
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Unsecured debt, maturing 2025-2082
4.53%
$34,283
$ 1,605
$ 2,085
$
185
$
250
$1,380
$ 390
$4,030
Secured debt, maturing 2025-2052
3.75%
3,672
1,463
2,147
1,269
879
—
—
—
First mortgage bonds, maturing 2025-2074(a)
4.24%
39,842
13,955
19,223
9,974
9,247
2,722
3,937
—
Finance leases, maturing 2027-2054
570
270
581
515
66
—
10
—
Tax-exempt bonds, maturing 2027-2046(b)
3.85%
1,331
—
500
500
—
77
352
—
Notes payable and commercial paper(c)
4.67%
4,213
—
—
—
—
—
—
—
Money pool/intercompany borrowings
—
300
1,227
761
467
189
160
739
Fair value hedge carrying value adjustment
(82)
—
—
—
—
—
—
—
Unamortized debt discount and premium, net(d)
845
(20)
(44)
(24)
(19)
(23)
(16)
(8)
Unamortized debt issuance costs(e)
(401)
(83)
(146)
(65)
(76)
(18)
(25)
(19)
Total debt
4.37%
$84,273
$17,490
$25,573
$13,115
$10,814
$4,327
$4,808
$4,742
Short-term notes payable and commercial paper
(3,584)
—
—
—
—
—
—
—
Short-term money pool/intercompany borrowings
—
—
(1,077)
(611)
(466)
(162)
(10)
(739)
Current maturities of long-term debt(f)
(4,349)
(521)
(1,517)
(983)
(534)
(245)
(4)
(205)
Total long-term debt(f)
$76,340
$16,969
$22,979
$11,521
$ 9,814
$3,920
$4,794
$3,798
(a)
Substantially all electric utility property is mortgaged under mortgage bond indentures.
(b)
Substantially all tax-exempt bonds are secured by first mortgage bonds, letters of credit or the Master Credit Facility.
(c)
Includes $625 million classified as Long-Term Debt on the Consolidated Balance Sheets due to the existence of long-term credit facilities that backstop these commercial paper balances, along with Duke Energy’s ability
and intent to refinance these balances on a long-term basis. The weighted average days to maturity for Duke Energy’s commercial paper program was 13 days.
(d)
Duke Energy includes $925 million and $56 million in purchase accounting adjustments related to Progress Energy and Piedmont, respectively.
(e)
Duke Energy includes $23 million in purchase accounting adjustments primarily related to the merger with Progress Energy.
(f)
Refer to Note 18 for additional information on amounts from consolidated VIEs.
December 31, 2023
(in millions)
Weighted
Average
Interest Rate
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Unsecured debt, maturing 2024-2082
4.36%
$30,435
$ 1,150
$ 1,800
$
—
$
150
$1,155
$ 393
$3,695
Secured debt, maturing 2024-2052
4.23%
4,202
1,441
2,379
1,121
1,258
—
—
—
First mortgage bonds, maturing 2025-2073(a)
4.18%
37,443
12,955
18,550
9,475
9,075
2,300
3,638
—
Finance leases, maturing 2024-2051(b)
639
277
571
552
19
—
9
—
Tax-exempt bonds, maturing 2027-2046(c)
3.89%
1,331
—
500
500
—
77
352
—
Notes payable and commercial paper(d)
5.58%
4,925
—
—
—
—
—
—
—
Money pool/intercompany borrowings
—
968
1,193
1,041
152
638
407
538
Fair value hedge carrying value adjustment
32
—
—
—
—
—
—
—
Unamortized debt discount and premium, net(e)
916
(29)
(46)
(24)
(20)
(24)
(16)
(8)
Unamortized debt issuance costs(f)
(383)
(82)
(145)
(60)
(81)
(15)
(25)
(19)
Total debt
4.35%
$79,540
$16,680
$24,802
$12,605
$10,553
$4,131
$4,758
$4,206
Short-term notes payable and commercial paper
(4,288)
—
—
—
—
—
—
—
Short-term money pool/intercompany borrowings
—
(668)
(1,043)
(891)
(152)
(613)
(256)
(538)
Current maturities of long-term debt(g)
(2,800)
(19)
(661)
(72)
(589)
—
(4)
(40)
Total long-term debt(g)
$72,452
$15,993
$23,098
$11,642
$ 9,812
$3,518
$4,498
$3,628
(a)
Substantially all electric utility property is mortgaged under mortgage bond indentures.
(b)
Duke Energy includes $63 million of finance lease purchase accounting adjustments related to Duke Energy Florida related to PPAs that are not accounted for as finance leases in their respective financial statements
because of grandfathering provisions in GAAP.
(c)
Substantially all tax-exempt bonds are secured by first mortgage bonds, letters of credit or the Master Credit Facility.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
157
(d)
Includes $625 million that was classified as Long-Term Debt on the Consolidated Balance Sheets due to the existence of long-term credit facilities that backstop these commercial paper balances, along with Duke
Energy’s ability and intent to refinance these balances on a long-term basis. The weighted average days to maturity for Duke Energy’s commercial paper programs was 23 days.
(e)
Duke Energy includes $992 million and $69 million in purchase accounting adjustments related to Progress Energy and Piedmont, respectively.
(f)
Duke Energy includes $25 million in purchase accounting adjustments primarily related to the merger with Progress Energy.
(g)
Refer to Note 18 for additional information on amounts from consolidated VIEs.
Current Maturities of Long-Term Debt
The following table shows the significant components of Current maturities of Long-Term Debt on the Consolidated Balance Sheets. The Duke Energy
Registrants currently anticipate satisfying these obligations with cash on hand and proceeds from additional borrowings.
(in millions)
Maturity Date
Interest Rate
December 31, 2024
Unsecured Debt
Duke Energy (Parent)
April 2025
3.364%
$ 420
Duke Energy (Parent)
April 2025
3.950%
250
Duke Energy Ohio
June 2025
6.900%
150
Duke Energy (Parent)
September 2025
0.900%
650
Piedmont
September 2025
3.600%
150
Duke Energy Florida(a)
October 2025
5.303%
100
Duke Energy Ohio(b)
October 2025
3.230%
95
Duke Energy (Parent)
December 2025
5.000%
500
Secured Debt
Duke Energy Carolinas(a)
January 2025
5.378%
305
Duke Energy Carolinas(a)
January 2025
5.423%
195
Duke Energy Progress(a)
April 2025
5.456%
240
Duke Energy Progress(a)
April 2025
5.467%
160
First Mortgage Bonds
Duke Energy Florida(a)(c)
October 2073
4.910%
200
Duke Energy Florida(a)(c)
April 2074
4.910%
173
Duke Energy Progress
August 2025
3.250%
500
Other(d)
261
Current maturities of long-term debt
$4,349
(a)
Debt has a floating interest rate. The $500 million in Duke Energy Carolinas borrowings due January 2025 were repaid in conjunction with the termination of the DERF accounts receivable securitization facility in
January 2025.
(b)
Current maturity relates to Duke Energy Kentucky.
(c)
These first mortgage bonds are classified as Current maturities of long-term debt on the Consolidated Balance Sheets based on terms of the indentures, which could require repayment in less than 12 months if
exercised by the bondholders.
(d)
Includes finance lease obligations, amortizing debt, tax-exempt bonds with mandatory put options and small bullet maturities.
Maturities and Call Options
The following table shows the annual maturities of long-term debt for the next five years and thereafter. Amounts presented exclude short-term notes
payable, commercial paper and money pool borrowings and debt issuance costs for the Subsidiary Registrants.
December 31, 2024
(in millions)
Duke
Energy(a)
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
2025
$ 4,349
$
521
$ 1,525
$
984
$
541
$ 245
$
4
$ 205
2026
4,925
1,078
539
470
69
45
4
40
2027
3,082
26
807
89
718
77
27
300
2028
3,937
976
1,411
593
819
40
7
—
2029
4,971
778
1,618
847
771
530
155
660
Thereafter
58,976
14,214
18,786
9,610
7,525
3,270
4,643
2,825
Total long-term debt, including current maturities
$80,240
$17,593
$24,686
$12,593
$10,443
$4,207
$4,840
$4,030
(a)
Excludes $1,004 million in purchase accounting adjustments related to the Progress Energy merger and the Piedmont acquisition.
The Duke Energy Registrants have the ability under certain debt facilities to call and repay the obligation prior to its scheduled maturity. Therefore, the
actual timing of future cash repayments could be materially different than as presented above.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
158
Short-Term Obligations Classified as Long-Term Debt
Tax-exempt bonds that may be put to the Duke Energy Registrants at the option of the holder and certain commercial paper issuances and money pool
borrowings are classified as Long-Term Debt on the Consolidated Balance Sheets. These tax-exempt bonds, commercial paper issuances and money pool
borrowings, which are short-term obligations by nature, are classified as long-term due to Duke Energy’s intent and ability to utilize such borrowings as long-term
financing. As Duke Energy’s Master Credit Facility and other bilateral letter of credit agreements have non-cancelable terms in excess of one year as of the
balance sheet date, Duke Energy has the ability to refinance these short-term obligations on a long-term basis. The following tables show short-term obligations
classified as long-term debt.
Balance at December 31, 2024 and 2023
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Duke
Energy
Progress
Duke
Energy
Ohio
Duke
Energy
Indiana
Tax-exempt bonds
$312
$ —
$ —
$27
$285
Commercial paper(a)
625
300
150
25
150
Total
$937
$300
$150
$52
$435
(a)
Progress Energy amounts are equal to Duke Energy Progress amounts.
Summary of Significant Debt Issuances
In January 2025, Duke Energy Carolinas issued $1.1 billion of first mortgage bonds. The issuance consisted of a $400 million, five-year tranche at 4.85%
and a $700 million, 10-year tranche at 5.25%. The net proceeds were used to pay off the $500 million DERF accounts receivable securitization facility maturing
in January 2025, to pay off short-term debt and for general company purposes.
The following tables summarize significant debt issuances (in millions).
Year Ended December 31, 2024
Issuance Date
Maturity
Date
Interest
Rate
Duke
Energy
Duke
Energy
(Parent)
Duke
Energy
Carolinas
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Unsecured Debt
January 2024(a)
January 2027
4.850%
$ 600
$ 600
$
—
$ —
$ —
$ —
$ —
$ —
January 2024(a)
January 2029
4.850%
650
650
—
—
—
—
—
—
April 2024(e)
April 2031
5.648%
815
815
—
—
—
—
—
—
June 2024(d)
June 2034
5.450%
750
750
—
—
—
—
—
—
June 2024(d)
June 2054
5.800%
750
750
—
—
—
—
—
—
June 2024(h)
July 2031
5.900%
80
—
—
—
—
80
—
—
June 2024(h)
July 2034
6.000%
95
—
—
—
—
95
—
—
June 2024(h)
July 2039
6.170%
50
—
—
—
—
50
—
—
August 2024(d)
February 2035
5.100%
375
—
—
—
—
—
—
375
August 2024(i)
September 2054
6.450%
1,000
1,000
—
—
—
—
—
—
Secured Debt
April 2024(f)
March 2044
5.404%
177
—
—
177
—
—
—
—
First Mortgage Bonds
January 2024(b)
January 2034
4.850%
$ 575
$
—
$ 575
$ —
—
$ —
$ —
$ —
January 2024(b)
January 2054
5.400%
425
—
425
—
—
—
—
—
March 2024(b)
March 2034
5.250%
300
—
—
—
—
—
300
—
March 2024(c)
March 2034
5.100%
500
—
—
500
—
—
—
—
March 2024(d)
March 2054
5.550%
425
—
—
—
—
425
—
—
April 2024(g)
April 2074
4.910%
173
—
—
—
173
—
—
—
Total issuances
$7,740
$4,565
$1,000
$677
$173
$650
$300
$375
(a)
Proceeds were used to repay the remaining $1 billion outstanding on Duke Energy (Parent)’s variable rate Term Loan Facility due March 2024, pay down a portion of short-term debt and for general corporate purposes.
Duke Energy (Parent)’s Term Loan Facility was terminated in March 2024 in conjunction with the payoff of remaining borrowings.
(b)
Proceeds were used to pay down a portion of short-term debt and for general company purposes.
(c)
Proceeds were used to fund eligible green energy projects, pay down a portion of short-term debt and for general company purposes.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
159
(d)
Proceeds were used to pay down a portion of short-term debt and for general corporate purposes.
(e)
In April 2024, Duke Energy issued 750 million euros aggregate principal amount of 3.75% senior notes due April 2031. Duke Energy’s obligations under its euro-denominated fixed-rate notes were effectively converted to
fixed-rate U.S. dollars at issuance through cross-currency swaps, mitigating foreign currency exchange risk associated with the interest and principal payments. The $815 million equivalent in U.S. dollars were used to
repay a portion of a $1 billion debt maturity due April 2024, pay down short-term debt and for general corporate purposes. See Note 15 for additional information.
(f)
Proceeds were used to finance the South Carolina portion of restoration expenditures related to the following storms: Pax, Ulysses, Matthew, Florence, Michael, Dorian, Izzy and Jasper. See Notes 4 and 18 for more
information.
(g)
Debt has a floating interest rate. Proceeds were used to pay down a portion of the DEFR accounts receivable securitization facility due in April 2024, and for general company purposes. See Note 18 for more information.
(h)
Debt issued by Duke Energy Kentucky with proceeds used to pay down a portion of short-term debt and for general corporate purposes.
(i)
Duke Energy issued $1 billion of fixed-to-fixed reset rate junior subordinated debentures (the debentures) with proceeds used to redeem Duke Energy’s outstanding Series B Preferred Stock and for general corporate
purposes. The debentures will bear interest at 6.45% until September 1, 2034, and thereafter the interest rate will reset every five years to the five-year U.S. Treasury rate plus a spread of 2.588%. The debentures have
early redemption options and are callable on or after June 2034 for 100% of the principal plus accrued interest. See Note 20 for additional information.
Year Ended December 31, 2023
Issuance Date
Maturity
Date
Interest
Rate
Duke
Energy
Duke
Energy
(Parent)
Duke
Energy
Carolinas
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Unsecured Debt
April 2023(a)
April 2026
4.125%
$1,725
$1,725
$
—
$
—
$
—
$ —
$ —
$ —
June 2023(b)
June 2033
5.400%
350
—
—
—
—
—
—
350
September 2023(c)
September 2033
5.750%
600
600
—
—
—
—
—
—
September 2023(c)
September 2053
6.100%
750
750
—
—
—
—
—
—
First Mortgage Bonds
January 2023(d)
January 2033
4.950%
900
—
900
—
—
—
—
—
January 2023(d)
January 2053
5.350%
900
—
900
—
—
—
—
—
March 2023(e)
March 2033
5.250%
500
—
—
500
—
—
—
—
March 2023(e)
March 2053
5.350%
500
—
—
500
—
—
—
—
March 2023(f)
April 2033
5.250%
375
—
—
—
—
375
—
—
March 2023(f)
April 2053
5.650%
375
—
—
—
—
375
—
—
March 2023(g)
April 2053
5.400%
500
—
—
—
—
—
500
—
June 2023(h)
January 2033
4.950%
350
—
350
—
—
—
—
—
June 2023(h)
January 2054
5.400%
500
—
500
—
—
—
—
—
September 2023(h)
October 2073
4.910%
200
—
—
—
200
—
—
—
November 2023(i)
November 2033
5.875%
600
—
—
—
600
—
—
—
November 2023(i)
November 2053
6.200%
700
—
—
—
700
—
—
—
Total issuances
$9,825
$3,075
$2,650
$1,000
$1,500
$750
$500
$350
(a)
See “Duke Energy (Parent) Convertible Senior Notes” below for additional information.
(b)
Debt issued to repay $45 million of maturities due October 2023, to pay down a portion of short-term debt and for general corporate purposes.
(c)
Debt issued to repay $400 million of maturities due October 2023, to pay down a portion of short-term debt and for general corporate purposes.
(d)
Debt issued to repay $1 billion of maturities due March 2023, to pay down a portion of short-term debt and for general company purposes.
(e)
Debt issued to repay $300 million of maturities due September 2023, to pay down a portion of short-term debt and for general company purposes.
(f)
Debt issued to repay $300 million of maturities due September 2023, to pay down a portion of the $100 million Duke Energy Ohio Term Loan due October 2023, to repay a portion of short-term debt and for general
corporate purposes.
(g)
Debt issued to repay the $300 million Duke Energy Indiana Term Loan due October 2023, to pay down a portion of short-term debt and for general company purposes.
(h)
Debt has a floating interest rate and was issued to pay down a portion of short-term debt and for general company purposes.
(i)
Debt issued to repay the $800 million Duke Energy Florida Term Loan due April 2024, to pay down a portion of short-term debt and for general company purposes.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
160
Duke Energy (Parent) Convertible Senior Notes
In April 2023, Duke Energy (Parent) completed the sale of $1.7 billion
4.125% Convertible Senior Notes due April 2026 (convertible notes). The
convertible notes are senior unsecured obligations of Duke Energy, and will
mature on April 15, 2026, unless earlier converted or repurchased in accordance
with their terms. The convertible notes bear interest at a fixed rate of 4.125%
per year, payable semiannually in arrears on April 15 and October 15 of each
year, beginning on October 15, 2023. Proceeds were used to repay a portion
of outstanding commercial paper and for general corporate purposes.
Prior to the close of business on the business day immediately preceding
January 15, 2026, the convertible notes will be convertible at the option of the
holders when the following conditions are met:
• during any calendar quarter commencing after the calendar quarter
ending on June 30, 2023, (and only during such calendar quarter) if the
last reported sale price of Duke Energy common stock for at least 20
trading days (whether or not consecutive) during a period of 30
consecutive trading days ending on, and including, the last trading
day of the immediately preceding calendar quarter is greater than or
equal to 130% of the conversion price on each applicable trading
day;
• during the five consecutive business day period after any 10
consecutive trading day period (the measurement period) in which the
trading price, as defined, per $1,000 principal amount of notes for
each trading day of the measurement period was less than 98% of the
product of the last reported sale price of Duke Energy common stock
and the conversion rate on each such trading day; or
• upon the occurrence of specified corporate events described in the
indenture agreement.
On or after January 15, 2026, until the close of business on the second
scheduled trading day immediately preceding the maturity date, holders of the
convertible notes may convert all or any portion of their convertible notes at
their option at any time at the conversion rate then in effect, irrespective of these
conditions. Duke Energy will settle conversions of the convertible notes by
paying cash up to the aggregate principal amount of the convertible notes to
be converted and paying or delivering, as the case may be, cash, shares of Duke
Energy’s common stock, $0.001 par value per share, or a combination of cash
and shares of its common stock, at its election, in respect of the remainder, if
any, of its conversion obligation in excess of the aggregate principal amount of
the convertible notes being converted.
The conversion rate for the convertible notes is initially 8.4131 shares of
Duke Energy’s common stock per $1,000 principal amount of convertible notes.
The initial conversion price of the convertible notes represents a premium of
approximately 25% over the last reported sale price of Duke Energy’s common
stock on the NYSE on April 3, 2023. The conversion rate and the corresponding
conversion price will not be adjusted for any accrued and unpaid interest but will
be subject to adjustment in some instances, such as stock splits or share
combinations, certain distributions to common stockholders, or tender offers
at off-market rates. The changes in the conversion rates are intended to make
convertible note holders whole for changes in the fair value of Duke Energy
common stock resulting from such events. Duke Energy may not redeem the
convertible notes prior to the maturity date.
Duke Energy issued the convertible notes pursuant to an indenture,
dated as of April 6, 2023, by and between Duke Energy and The Bank of New
York Mellon Trust Company, N.A., as trustee. The terms of the convertible notes
include customary fundamental change provisions that require repayment of
the notes with interest upon certain events, such as a stockholder approved plan
of liquidation or if Duke Energy’s common stock ceases to be listed on the
NYSE.
AVAILABLE CREDIT FACILITIES
Master Credit Facility
In March 2024, Duke Energy extended the termination date of its
existing $9 billion Master Credit Facility to March 2029. The Duke Energy
Registrants, excluding Progress Energy, have borrowing capacity under the
Master Credit Facility up to a specified sublimit for each borrower. Duke Energy
has the unilateral ability at any time to increase or decrease the borrowing
sublimits of each borrower, subject to a maximum sublimit for each borrower.
The amount available under the Master Credit Facility has been reduced to
backstop issuances of commercial paper, certain letters of credit and variable-
rate demand tax-exempt bonds that may be put to the Duke Energy Registrants
at the option of the holder. An amendment in conjunction with the issuance
of the Convertible Senior Notes due April 2026 clarifies that payments due as a
result of a conversion of a convertible note would not constitute an event of
default.
The table below includes borrowing sublimits and available capacity under these credit facilities.
December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
(Parent)
Duke
Energy
Carolinas
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Facility size(a)
$ 9,000
$2,275
$1,400
$1,500
$ 875
$1,050
$ 950
$ 950
Reduction to backstop issuances
Commercial paper(b)
(3,143)
(608)
(300)
(736)
(448)
(182)
(160)
(709)
Outstanding letters of credit
(18)
(6)
(4)
(1)
(7)
—
—
—
Tax-exempt bonds
(81)
—
—
—
—
—
(81)
—
Available capacity
$ 5,758
$1,661
$1,096
$ 763
$ 420
$ 868
$ 709
$ 241
(a)
Represents the sublimit of each borrower.
(b)
Duke Energy issued $625 million of commercial paper and loaned the proceeds through the money pool to Duke Energy Carolinas, Duke Energy Progress, Duke Energy Ohio and Duke Energy Indiana. The balances are
classified as Long-Term Debt Payable to Affiliated Companies in the Consolidated Balance Sheets.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
161
Duke Energy (Parent) Term Loan Facility
Duke Energy (Parent) had a $1 billion revolving credit facility, which was
terminated in March 2022 (Three-Year Revolving Credit Facility). In March 2022,
Duke Energy (Parent) entered into a Term Loan Credit Facility (facility) with
commitments totaling $1.4 billion maturing March 2024. Borrowings under the
facility were used to repay amounts drawn under the Three-Year Revolving
Credit Facility prior to its termination and for general corporate purposes,
including repayment of a portion of Duke Energy’s outstanding commercial
paper. In December 2022, Duke Energy (Parent) repaid $400 million of the facility.
In January 2024, Duke Energy (Parent) repaid the remaining $1 billion
outstanding on the facility, which was classified as Current maturities of
long-term debt on Duke Energy’s Consolidated Balance Sheets as of
December 31, 2023.
In March 2024, Duke Energy (Parent) entered into a 364-day term loan
facility with commitments totaling $700 million. In April 2024, $500 million
was drawn under the facility with borrowings used for general corporate
purposes. During the second quarter of 2024, Duke Energy (Parent) terminated
the facility and repaid the $500 million in outstanding borrowings.
Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida
Term Loan Facilities
In November 2024, Duke Energy Carolinas, Duke Energy Progress and
Duke Energy Florida entered into term loan facilities intended to meet
incremental financing needs resulting from expenditures for the restoration of
service and rebuilding of infrastructure related to hurricanes Debby, Helene
and Milton as described in Note 4. Duke Energy Carolinas and Duke Energy
Progress entered into two-year term loan facilities with commitments totaling
$700 million and $250 million, respectively. Duke Energy Florida entered
into a 364-day term loan facility with commitments totaling $800 million.
Amounts may be drawn for six months from the Duke Energy Carolinas and Duke
Energy Progress term loan facilities and for four months from the Duke
Energy Florida term loan facility. Borrowings from the term loan facilities can
be prepaid at any time and may be used to fund system restoration expenses and
for general corporate purposes. Additionally, the Duke Energy Carolinas, Duke
Energy Progress and Duke Energy Florida term loan facilities may be increased
by $300 million, $150 million and $400 million, respectively.
Through December 2024, $455 million and $185 million were drawn
under the term loan facilities for Duke Energy Carolinas and Duke Energy
Progress, respectively, which were both classified as Long-Term Debt on the
Consolidated Balance Sheets as of December 31, 2024. Through December 2024,
$100 million was drawn under the term loan facility for Duke Energy Florida,
which was classified as Current maturities of long-term debt on the Consolidated
Balance Sheets as of December 31, 2024. Additionally, in January and
February 2025, an additional $145 million, $65 million, and $700 million were
drawn under the term loan facilities for Duke Energy Carolinas, Duke Energy
Progress and Duke Energy Florida, respectively.
Other Debt Matters
In September 2022, Duke Energy filed a Form S-3 with the SEC. Under
this Form S-3, which is uncapped, the Duke Energy Registrants, excluding
Progress Energy, may issue debt and other securities, including preferred stock,
in the future at amounts, prices and with terms to be determined at the time
of future offerings. The registration statement was filed to replace a similar prior
filing upon expiration of its three-year term and also allows for the issuance of
common and preferred stock by Duke Energy.
Also in September 2022, to replace another similar prior filing, Duke
Energy filed an effective Form S-3 with the SEC to sell up to $4 billion of
variable denomination floating-rate demand notes, called PremierNotes. The
Form S-3 states that no more than $2 billion of the notes will be outstanding at
any particular time. The notes are offered on a continuous basis and bear
interest at a floating rate per annum determined by the Duke Energy
PremierNotes Committee, or its designee, on a weekly basis. The interest rate
payable on notes held by an investor may vary based on the principal amount of
the investment. The notes have no stated maturity date, are non-transferable
and may be redeemed in whole or in part by Duke Energy or at the investor’s
option at any time. The balance as of December 31, 2024, and 2023, was
$1,070 million and $985 million, respectively. The notes are short-term debt
obligations of Duke Energy and are reflected as Notes payable and commercial
paper on Duke Energy’s Consolidated Balance Sheets.
Money Pool and Intercompany Credit Agreements
The Subsidiary Registrants, excluding Progress Energy, are eligible to
receive support for their short-term borrowing needs through participation with
Duke Energy and certain of its subsidiaries in a money pool arrangement.
Under this arrangement, those companies with short-term funds may provide
short-term loans to affiliates participating in this arrangement. The money pool
is structured such that the Subsidiary Registrants, excluding Progress
Energy, separately manage their cash needs and working capital requirements.
Accordingly, there is no net settlement of receivables and payables between
money pool participants. Duke Energy (Parent) may loan funds to its participating
subsidiaries, but may not borrow funds through the money pool. Accordingly,
as the money pool activity is between Duke Energy and its subsidiaries, all
money pool balances are eliminated within Duke Energy’s Consolidated
Balance Sheets.
Money pool receivable balances are reflected within Notes receivable
from affiliated companies on the Subsidiary Registrants’ Consolidated
Balance Sheets. Money pool payable balances are reflected within either Notes
payable to affiliated companies or Long-Term Debt Payable to Affiliated
Companies on the Subsidiary Registrants’ Consolidated Balance Sheets.
In March 2022, Progress Energy closed a revolving credit agreement
with Duke Energy (Parent), which allowed up to $2.5 billion intercompany
borrowings.
Restrictive Debt Covenants
The Duke Energy Registrants’ debt and credit agreements contain
various financial and other covenants. Duke Energy’s Master Credit Facility
contains a covenant requiring the debt-to-total capitalization ratio not to exceed
65% for each borrower, excluding Piedmont, and 70% for Piedmont. Failure
to meet those covenants beyond applicable grace periods could result in
accelerated due dates and/or termination of the agreements. As of December 31,
2024, each of the Duke Energy Registrants were in compliance with all
covenants related to their debt agreements. In addition, some credit agreements
may allow for acceleration of payments or termination of the agreements due
to nonpayment, or acceleration of other significant indebtedness of the borrower
or some of its subsidiaries. None of the debt or credit agreements contain
material adverse change clauses.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
162
Other Loans
As of December 31, 2024, and 2023, Duke Energy had loans outstanding
of $903 million, including $32 million at Duke Energy Progress, and $873 million,
including $32 million at Duke Energy Progress, respectively, against the cash
surrender value of life insurance policies it owns on the lives of its executives.
The amounts outstanding were carried as a reduction of the related cash
surrender value that is included in Other within Other Noncurrent Assets on the
Consolidated Balance Sheets.
8.
GUARANTEES AND INDEMNIFICATIONS
Duke Energy has various financial and performance guarantees and
indemnifications with non-consolidated entities, which are issued in the
normal course of business. As discussed below, these contracts include
performance guarantees, standby letters of credit, debt guarantees and
indemnifications and include guarantees and indemnifications related to
Commercial Renewables Disposal Groups as described in Note 2. Duke Energy
enters into these arrangements to facilitate commercial transactions with
third parties by enhancing the value of the transaction to the third party. At
December 31, 2024, Duke Energy does not believe conditions are likely for
significant performance under these guarantees. To the extent liabilities are
incurred as a result of the activities covered by the guarantees, such
liabilities are included on the accompanying Consolidated Balance Sheets.
On January 2, 2007, Duke Energy completed the spin-off of its previously
wholly owned natural gas businesses to shareholders. Guarantees issued by
Duke Energy or its affiliates, or assigned to Duke Energy prior to the spin-off,
remained with Duke Energy subsequent to the spin-off. Guarantees issued by
Spectra Energy Capital, LLC (Spectra Capital) or its affiliates prior to the spin-
off remained with Spectra Capital subsequent to the spin-off, except for
guarantees that were later assigned to Duke Energy. Duke Energy has
indemnified Spectra Capital against any losses incurred under certain of the
guarantee obligations that remain with Spectra Capital. At December 31, 2024,
the maximum potential amount of future payments associated with these
guarantees were $25 million, the majority of which expire by 2028.
In addition to the Spectra Capital guarantee above, Duke Energy has
issued performance guarantees to customers and other third parties that
guarantee the payment and performance of other parties, including certain non-
wholly owned entities, as well as guarantees of debt of certain non-
consolidated entities. If such entities were to default on payments or
performance, Duke Energy would be required under the guarantees to make
payments on the obligations of these entities. The maximum potential amount
of future payments required under these guarantees that have capped
maximums as of December 31, 2024, was $26 million of which all expire
between 2025 and 2030. Additionally, certain guarantees that expire in 2025
have uncapped maximum potential payments; however, Duke Energy does not
believe these guarantees will have a material effect on its results of
operations, cash flows or financial position.
Duke Energy uses bank-issued standby letters of credit to secure the
performance of wholly owned and non-wholly owned entities to a third party or
customer. Under these arrangements, Duke Energy has payment obligations
to the issuing bank that are triggered by a draw by the third party or customer
due to the failure of the wholly owned or non-wholly owned entity to perform
according to the terms of its underlying contract. At December 31, 2024, Duke
Energy had issued a total of $339 million in letters of credit, which expire
between 2025 and 2027. There are no unused amounts under these letters of
credit.
Duke Energy recognized $2 million as of both December 31, 2024, and
2023, in Other within Other Noncurrent Liabilities on the Consolidated Balance
Sheets, for the guarantees discussed above. As current estimates change,
additional losses related to guarantees and indemnifications to third parties,
which could be material, may be recorded by the Duke Energy Registrants in the
future.
9.
JOINT OWNERSHIP OF GENERATING AND TRANSMISSION FACILITIES
The Duke Energy Registrants maintain ownership interests in certain
jointly owned generating and transmission facilities and are entitled to a
share of the generating capacity and output of each unit equal to their
respective ownership interests. The Duke Energy Registrants pay their ownership
share of additional construction costs, fuel inventory purchases and
operating expenses. The Duke Energy Registrants’ share of revenues and
operating costs of the jointly owned facilities is included within the
corresponding line in the Consolidated Statements of Operations. Each
participant in the jointly owned facilities must provide its own financing.
The following table presents the Duke Energy Registrants’ interest of jointly owned plant or facilities and amounts included on the Consolidated Balance
Sheets. All facilities are operated by the Duke Energy Registrants and are included in the EU&I segment.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
163
December 31, 2024
(in millions except for ownership interest)
Ownership
Interest
Property, Plant
and Equipment
Accumulated
Depreciation
Construction
Work in
Progress
Duke Energy Carolinas
Catawba (units 1 and 2)(a)
19.25%
$1,047
$ 594
$ 30
W.S. Lee CC(b)
87.27%
654
118
6
Duke Energy Indiana
Gibson (unit 5)(c)
50.05%
400
266
5
Vermillion(d)
62.50%
184
124
—
Transmission and local facilities(c)
Various
7,771
1,654
222
(a)
Jointly owned with North Carolina Municipal Power Agency Number 1, NCEMC and PMPA.
(b)
Jointly owned with NCEMC.
(c)
Jointly owned with WVPA and IMPA.
(d)
Jointly owned with WVPA.
10.
ASSET RETIREMENT OBLIGATIONS
Duke Energy records an ARO when it has a legal obligation to incur
retirement costs associated with the retirement of a long-lived asset and the
obligation can be reasonably estimated. Certain assets of the Duke Energy
Registrants have an indeterminate life, such as transmission and distribution
facilities, and thus the fair value of the retirement obligation is not reasonably
estimable. A liability for these AROs will be recorded when a fair value is
determinable.
The Duke Energy Registrants’ regulated operations accrue costs of
removal for property that does not have an associated legal retirement
obligation based on regulatory orders from state commissions. These costs of
removal are recorded as a regulatory liability in accordance with regulatory
accounting treatment. The amount spent may be higher than the amount
accrued and result in a net asset. See Note 4 for the estimated cost of removal
without an associated legal retirement obligation, which are included in
Regulatory assets or Regulatory liabilities, as appropriate, on the Consolidated
Balance Sheets.
The following table presents the AROs recorded on the Consolidated Balance Sheets.
December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Decommissioning of nuclear power facilities
$4,493
$2,050
$2,425
$2,318
$107
$ —
$
—
$—
Closure of ash impoundments
5,173
1,867
1,993
1,975
18
72
1,241
—
Other
326
73
130
41
89
67
27
29
Total asset retirement obligation
$9,992
$3,990
$4,548
$4,334
$214
$139
$1,268
$29
Less: Current portion
650
247
231
230
1
8
164
—
Total noncurrent asset retirement obligation
$9,342
$3,743
$4,317
$4,104
$213
$131
$1,104
$29
Nuclear Decommissioning Liability
AROs related to nuclear decommissioning are based on site-specific
cost studies. The NCUC and the PSCSC require Duke Energy Carolinas and
Duke Energy Progress to update cost estimates for decommissioning their
nuclear plants every five years. The nuclear decommissioning liabilities are
assessed and updated based on changes in cash flows provided in new studies
as well as annual assessments to evaluate whether any indicators suggest a
change in the estimate of the ARO is necessary.
The following table summarizes information about the most recent site-
specific nuclear decommissioning cost studies. Decommissioning costs are
stated in 2023 or 2024 dollars, depending on the year of the cost study, and
include costs to decommission plant components not subject to radioactive
contamination.
(in millions)
Decommissioning
Costs Year of Cost Study
Duke Energy
$9,031
2023 or 2024
Duke Energy Carolinas(a)
4,439
2023
Progress Energy
4,592
2024
Duke Energy Progress(b)
4,477
2024
Duke Energy Florida(c)
115
N/A
(a)
Decommissioning costs for Duke Energy Carolinas reflect its ownership interest in jointly owned
reactors. Other joint owners are responsible for decommissioning costs related to their interest in the
reactors. Duke Energy Carolinas’ site-specific nuclear decommissioning cost study and a funding study
were filed with the NCUC and PSCSC in 2024.
(b)
Duke Energy Progress’ site-specific nuclear decommissioning cost study was filed with the NCUC and
PSCSC in February 2025. An updated funding study will be completed and filed with the NCUC and PSCSC
in 2025.
(c)
During 2019, Duke Energy Florida reached an agreement to transfer decommissioning work for Crystal
River Unit 3 to a third party and decommissioning costs are based on the agreement with this third party
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
164
rather than a cost study. Regulatory approval was received from the NRC and the FPSC in April 2020
and August 2020, respectively. Duke Energy Florida provides the FPSC periodic reports on the status and
progress of decommissioning activities.
Nuclear Decommissioning Trust Funds
Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida
each maintain NDTFs that are intended to pay for the decommissioning costs
of their respective nuclear power plants. The NDTF investments are managed
and invested in accordance with applicable requirements of various
regulatory bodies including the NRC, FERC, NCUC, PSCSC, FPSC and the IRS.
Use of the NDTF investments is restricted to nuclear decommissioning
activities including license termination, spent fuel and site restoration. The
license termination and spent fuel obligations relate to contaminated
decommissioning and are recorded as AROs. The site restoration obligation
relates to non-contaminated decommissioning and is recorded to cost of removal
within Regulatory liabilities on the Consolidated Balance Sheets.
The following table presents the fair value of NDTF assets legally
restricted for purposes of settling AROs associated with nuclear
decommissioning. Duke Energy Florida entered into an agreement with a third
party to decommission Crystal River Unit 3 and was granted an exemption
from the NRC, which allows for use of the NDTF for all aspects of nuclear
decommissioning. The entire balance of Duke Energy Florida’s NDTF may be
applied toward license termination, spent fuel and site restoration costs incurred
to decommission Crystal River Unit 3 and is excluded from the table below.
See Note 17 for additional information related to the fair value of the Duke
Energy Registrants’ NDTFs.
December 31,
(in millions)
2024
2023
Duke Energy
$10,044
$8,851
Duke Energy Carolinas
5,687
5,002
Progress Energy
4,357
3,849
Duke Energy Progress
4,357
3,849
Nuclear Operating Licenses
As described in Note 4, Duke Energy Carolinas and Duke Energy Progress
intend to seek renewal of operating licenses and 20-year license extensions for
all of their nuclear stations. The following table includes the current
expiration of nuclear operating licenses.
Unit
Year of Expiration
Duke Energy Carolinas
Catawba Units 1 and 2
2043
McGuire Unit 1
2041
McGuire Unit 2
2043
Oconee Units 1 and 2
2033
Oconee Unit 3
2034
Unit
Year of Expiration
Duke Energy Progress
Brunswick Unit 1
2036
Brunswick Unit 2
2034
Harris
2046
Robinson
2030
The NRC has acknowledged permanent cessation of operation and
permanent removal of fuel from the reactor vessel at Crystal River Unit 3.
Therefore, the license no longer authorizes operation of the reactor. During 2019,
Duke Energy Florida entered into an agreement for the accelerated
decommissioning of Crystal River Unit 3. Regulatory approval was received
from the NRC and the FPSC in April 2020 and August 2020, respectively.
Closure of Ash Impoundments
The Duke Energy Registrants are subject to state and federal regulations
covering the closure of coal ash impoundments, including federal CCR rules
and the Coal Ash Act, and other agreements. In April 2024, the EPA issued the
2024 CCR Rule, which significantly expands the scope of the 2015 CCR Rule
by establishing regulatory requirements for inactive surface impoundments at
retired generating facilities and previously unregulated coal ash sources at
regulated facilities. AROs recorded on the Duke Energy Registrants’ Consolidated
Balance Sheets include the legal obligation for closure of coal ash basins
and the disposal of related ash as a result of these regulations and agreements.
The ARO amount recorded on the Consolidated Balance Sheets is based
upon estimated closure costs for impacted ash impoundments. The amount
recorded represents the discounted cash flows for estimated closure costs
based upon specific closure plans. Actual costs to be incurred will be dependent
upon factors that vary from site to site. The most significant factors are the
method and time frame of closure at the individual sites. Closure methods
considered include removing the water from ash basins, consolidating material
as necessary and capping the ash with a synthetic barrier. The ultimate
method and timetable for closure will be in compliance with standards set by
federal and state regulations and other agreements. The ARO amount will be
adjusted as additional information is gained through the closure and post-
closure process, including acceptance and approval of compliance approaches,
which may change management assumptions, and may result in a material
change to the balance. See the ARO Liability Rollforward section below for
information on revisions made to the coal ash liability during 2024 and 2023.
Asset retirement costs associated with the AROs for operating plants
and retired plants are included in Net property, plant and equipment and
Regulatory assets, respectively, on the Consolidated Balance Sheets. See Note
4 for additional information on Regulatory assets related to AROs and Note
5 for additional information on commitments and contingencies.
Cost recovery for future expenditures will be pursued through the normal
ratemaking process with federal and state utility commissions, which permit
recovery of reasonable and prudently incurred costs associated with Duke
Energy’s regulated operations. See Note 4 for additional information on recovery
of coal ash costs.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
165
ARO Liability Rollforward
The following tables present changes in the liability associated with AROs.
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Balance at December 31, 2022
$12,728
$ 5,382
$ 6,181
$ 5,823
$358
$154
$ 951
$26
Accretion expense(a)
523
254
237
225
12
7
33
1
Liabilities settled(b)
(758)
(256)
(379)
(292)
(87)
(15)
(108)
—
Liabilities incurred in the current year
29
3
21
6
15
1
4
—
Revisions in estimates of cash flows(c)
(3,366)
(1,370)
(1,915)
(1,892)
(23)
(11)
(71)
(1)
Balance at December 31, 2023
9,156
4,013
4,145
3,870
275
136
809
26
Accretion expense(a)
434
183
199
190
9
7
49
2
Liabilities settled(b)
(634)
(212)
(321)
(232)
(89)
(7)
(94)
—
Liabilities incurred in the current year
20
8
12
—
12
—
—
—
Revisions in estimates of cash flows(c)
1,016
(2)
513
506
7
3
504
1
Balance at December 31, 2024
$ 9,992
$ 3,990
$ 4,548
$ 4,334
$214
$139
$1,268
$29
(a)
Substantially all accretion expense has been deferred in accordance with regulatory accounting treatment.
(b)
Amounts primarily relate to ash impoundment closures and nuclear decommissioning.
(c)
The amounts recorded represent the discounted cash flows for estimated closure costs as evaluated on a site-by-site basis. The decreases in 2023 primarily relate to lower discounted cash flows for decommissioning
the nuclear power facilities due to changes in estimates and economic assumptions including discount rates, cost escalation rates and cash flow timing, as well as lower unit costs associated with ash basin closure, routine
maintenance and beneficiation activities, as well as reduction in monitoring wells needed. The increases in 2024 primarily relate to additional scope requirements to regulate the disposal of CCR in landfills and
surface impoundments as a result of the 2024 CCR Rule, including an increase in groundwater monitoring wells.
11.
PROPERTY, PLANT AND EQUIPMENT
The following tables summarize the property, plant and equipment for Duke Energy and its subsidiary registrants.
December 31, 2024
(in millions)
Average
Remaining
Useful Life
(Years)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Land
$
2,569
$
617
$ 1,134
$
535
$
599
$
258
$
144
$
391
Plant – Regulated
Electric generation, distribution and transmission
37
137,836
49,547
62,351
35,633
26,718
7,634
18,304
—
Natural gas transmission and distribution
58
15,333
—
—
—
—
4,255
—
11,078
Other buildings and improvements
41
2,982
1,256
698
391
307
418
372
238
Nuclear fuel
3,518
2,003
1,515
1,515
—
—
—
—
Equipment
13
3,863
997
1,252
753
499
542
490
170
Construction in process
7,850
2,735
3,657
1,884
1,773
385
406
405
Other
10
6,855
1,227
1,953
1,349
594
426
254
498
Total property, plant and equipment(a)
180,806
58,382
72,560
42,060
30,490
13,918
19,970
12,780
Total accumulated depreciation – regulated(b)(c)
(55,535)
(19,090)
(23,586)
(15,930)
(7,650)
(3,674)
(6,848)
(2,432)
Total accumulated depreciation – other(d)
(1,968)
—
—
—
—
—
—
—
Total net property, plant and equipment
$123,303
$ 39,292
$ 48,974
$ 26,130
$22,840
$10,244
$13,122
$10,348
(a)
Includes finance leases of $670 million, $336 million, $620 million, $512 million, $108 million and $10 million at Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida and
Duke Energy Indiana, respectively, primarily within Plant — Regulated. The Progress Energy and Duke Energy Progress amounts are net of $159 million of accumulated amortization of finance leases.
(b)
Includes $1,824 million, $1,010 million, $814 million and $814 million of accumulated amortization of nuclear fuel at Duke Energy, Duke Energy Carolinas, Progress Energy and Duke Energy Progress, respectively.
(c)
Includes accumulated amortization of finance leases of $84 million and $4 million at Duke Energy Carolinas and Duke Energy Indiana, respectively.
(d)
Includes accumulated amortization of finance leases of $25 million at Duke Energy.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
166
December 31, 2023
(in millions)
Average
Remaining
Useful Life
(Years)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
Land
$
2,345 $
581 $ 1,012 $
502 $
510 $
242 $
133
$
352
Plant – Regulated
Electric generation, distribution and transmission
40
129,985
48,107
57,436
33,171
24,265
7,243
17,199
—
Natural gas transmission and distribution
57
14,130
—
—
—
—
3,993
—
10,137
Other buildings and improvements
42
2,887
1,213
677
377
300
421
355
221
Nuclear fuel
3,303
1,866
1,437
1,437
—
—
—
—
Equipment
14
3,409
870
1,104
654
450
474
442
143
Construction in process
8,372
2,578
3,941
1,661
2,280
427
427
690
Other
12
6,922
1,455
2,037
1,481
548
410
344
365
Total property, plant and equipment(a)
171,353
56,670
67,644
39,283
28,353
13,210
18,900
11,908
Total accumulated depreciation – regulated(b)(c)
(54,323)
(19,896)
(22,300)
(15,227)
(7,067)
(3,451)
(6,501)
(2,259)
Total accumulated depreciation – other(d)
(1,715)
—
—
—
—
—
—
—
Total net property, plant and equipment
$115,315 $ 36,774 $ 45,344 $ 24,056 $21,286 $ 9,759 $12,399
$ 9,649
(a)
Includes finance leases of $697 million, $335 million, $615 million, $552 million, $63 million, and $10 million at Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida and
Duke Energy Indiana, respectively, primarily within Plant — Regulated. The Progress Energy, Duke Energy Progress and Duke Energy Florida amounts are net of $292 million, $119 million and $173 million, respectively,
of accumulated amortization of finance leases.
(b)
Includes $1,793 million, $991 million, $802 million and $802 million of accumulated amortization of nuclear fuel at Duke Energy, Duke Energy Carolinas, Progress Energy and Duke Energy Progress, respectively.
(c)
Includes accumulated amortization of finance leases of $3 million, $67 million, and $4 million at Duke Energy, Duke Energy Carolinas and Duke Energy Indiana, respectively.
(d)
Includes accumulated amortization of finance leases of $7 million at Duke Energy.
The following table presents capitalized interest, which includes the debt component of AFUDC.
Years Ended December 31,
(in millions)
2024
2023
2022
Duke Energy
$201
$201
$118
Duke Energy Carolinas
61
62
50
Progress Energy
57
41
26
Duke Energy Progress
52
35
19
Duke Energy Florida
5
6
7
Duke Energy Ohio
14
16
14
Duke Energy Indiana
13
21
3
Piedmont
8
8
4
12.
GOODWILL AND INTANGIBLE ASSETS
GOODWILL
Duke Energy
Duke Energy’s Goodwill balance of $19.3 billion is allocated $17.4 billion
to EU&I and $1.9 billion to GU&I on Duke Energy’s Consolidated Balance Sheets
at December 31, 2024, and 2023. There are no accumulated impairment
charges.
Duke Energy Ohio
Duke Energy Ohio’s Goodwill balance of $920 million, allocated
$596 million to EU&I and $324 million to GU&I, is presented net of accumulated
impairment charges of $216 million on the Consolidated Balance Sheets at
December 31, 2024, and 2023.
Progress Energy
Progress Energy’s Goodwill is included in the EU&I segment and there
are no accumulated impairment charges.
Piedmont
Piedmont’s Goodwill is included in the GU&I segment and there are no
accumulated impairment charges.
Goodwill Impairment Testing
Duke Energy, Progress Energy, Duke Energy Ohio and Piedmont are
required to perform an annual goodwill impairment test as of the same date
each year and, accordingly, perform their annual impairment testing of goodwill
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
167
as of August 31. Duke Energy, Progress Energy, Duke Energy Ohio and
Piedmont update their test between annual tests if events or circumstances
occur that would more likely than not reduce the fair value of a reporting unit
below its carrying value. As the fair value for Duke Energy, Progress Energy, Duke
Energy Ohio and Piedmont exceeded their respective carrying values at the
date of the annual impairment analysis, no goodwill impairment charges were
recorded in 2024.
INTANGIBLE ASSETS
The following tables show the carrying amount and accumulated amortization of intangible assets included in Other within Other Noncurrent Assets on the
Consolidated Balance Sheets of the Duke Energy Registrants at December 31, 2024, and 2023.
December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Emission allowances
$
8
$ —
$
5
$
2
$ 3
$—
$ 2
$—
Renewable energy certificates
241
103
136
136
—
2
—
—
Other
47
—
5
1
4
—
—
22
Total gross carrying amounts
296
103
146
139
7
2
2
22
Accumulated amortization – other
(19)
—
(3)
—
(3)
—
—
(9)
Total intangible assets, net
$277
$103
$143
$139
$ 4
$ 2
$ 2
$13
December 31, 2023
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Emission allowances
$
8
$—
$
5
$
2
$ 3
$—
$ 2
$—
Renewable energy certificates
232
97
133
133
—
2
—
—
Other
56
—
5
1
3
—
—
22
Total gross carrying amounts
296
97
143
136
6
2
2
22
Accumulated amortization – other
(14)
—
(3)
—
(3)
—
—
(6)
Total intangible assets, net
$282
$97
$140
$136
$ 3
$ 2
$ 2
$16
Amortization Expense
Amortization expense amounts for other intangible assets are immaterial for the years ended December 31, 2024, 2023 and 2022, and are expected to be
immaterial for the next five years as of December 31, 2024.
13.
INVESTMENTS IN UNCONSOLIDATED AFFILIATES
EQUITY METHOD INVESTMENTS
Investments in affiliates that are not controlled by Duke Energy, but over which it has significant influence, are accounted for using the equity method.
The following table presents Duke Energy’s investments in unconsolidated affiliates accounted for under the equity method, as well as the respective equity
in earnings (losses), by segment, for periods presented in this filing.
Years Ended December 31,
2024
2023
2022
(in millions)
Investments
Equity in (losses) earnings
Investments
Equity in earnings
Equity in earnings
Electric Utilities and Infrastructure
$ 28
$(11)
$ 97
$
7
$
7
Gas Utilities and Infrastructure
186
(48)
259
40
21
Other
139
50
136
66
85
Total
$353
$ (9)
$492
$113
$113
During the years ended December 31, 2024, 2023 and 2022, Duke
Energy received distributions from equity investments of $66 million,
$50 million and $111 million, respectively, which are included in Other assets
within Cash Flows from Operating Activities on the Consolidated Statements of
Cash Flows. During the years ended December 31, 2024, 2023 and 2022,
Duke Energy received distributions from equity investments of $25 million,
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
168
$16 million and $6 million, respectively, which are included in Return of
investment capital within Cash Flows from Investing Activities on the
Consolidated Statements of Cash Flows.
During the years ended December 31, 2024, 2023 and 2022, Piedmont
received distributions from equity investments of $9 million, $9 million and
$31 million, respectively, which are included in Other assets within Cash Flows
from Operating Activities. During the years ended December 31, 2024, and
2023, Piedmont received distributions from equity investments of $2 million
and $1 million, respectively, which are included within Cash Flows from Investing
Activities on the Consolidated Statements of Cash Flows. Amounts received
during the year ended December 31, 2022, included in Cash Flows from Investing
Activities on the Consolidated Statements of Cash Flows were immaterial.
Significant investments in affiliates accounted for under the equity
method are discussed below.
Electric Utilities and Infrastructure
Duke Energy owns a 50% interest in DATC. DATC owns 100% interest in
DATC Path 15 Transmission LLC, which owns transmission rights in North
America. In January 2025, Duke Energy entered into an agreement to sell its
indirect 50% ownership interest in DATC Path 15 Transmission LLC. In
conjunction with the sale and to reflect the investment’s fair value as of
December 31, 2024, a pretax charge of $15 million was recorded in Equity in
(losses) earnings of unconsolidated affiliates on Duke Energy’s Consolidated
Statements of Operations for the year ended December 31, 2024. The
transaction is expected to close in the second quarter of 2025.
In November 2024, Duke Energy sold its 50% interest in Pioneer, which
also builds, owns and operates electric transmission facilities in North America.
Proceeds from the sale approximated the carrying value of the investment.
Gas Utilities and Infrastructure
Pipeline Investments
Piedmont owns a 21.49% investment in Cardinal, an intrastate pipeline
located in North Carolina.
Duke Energy owns a 7.5% interest in Sabal Trail, a 517-mile interstate
natural gas pipeline, which provides natural gas to Duke Energy Florida and
Florida Power and Light.
Storage Facilities
Piedmont owns a 45% interest in Pine Needle, an interstate LNG storage
facility located in North Carolina, and a 50% interest in Hardy Storage, an
underground interstate natural gas storage facility located in West Virginia.
Renewable Natural Gas Investments
Duke Energy has held an investment in SustainRNG, a developer of
renewable natural gas projects, and investments in multiple project companies
developed by SustainRNG. In December 2024, Duke Energy recorded a pretax
charge of $54 million within Equity in (losses) earnings of unconsolidated
affiliates on the Consolidated Statements of Operations, fully impairing Duke
Energy’s investments in the project companies.
Other
Duke Energy has a 17.5% indirect economic ownership interest and a
25% board representation and voting rights interest in NMC, which owns and
operates a methanol and MTBE business in Jubail, Saudi Arabia.
14.
RELATED PARTY TRANSACTIONS
The Subsidiary Registrants engage in related party transactions in
accordance with the applicable state and federal commission regulations.
Refer to the Consolidated Balance Sheets of the Subsidiary Registrants for
balances due to or due from related parties. Transactions with related parties
included in the Consolidated Statements of Operations and Comprehensive
Income are presented in the following table.
Years Ended December 31,
(in millions)
2024
2023
2022
Duke Energy Carolinas
Corporate governance and shared service expenses(a)
$812
$823
$838
Indemnification coverages(b)
44
34
28
JDA revenue(c)
35
34
109
JDA expense(c)
187
177
600
Intercompany natural gas purchases(d)
12
11
12
Progress Energy
Corporate governance and shared service expenses(a)
$709
$736
$818
Indemnification coverages(b)
57
47
43
JDA revenue(c)
187
177
600
JDA expense(c)
35
34
109
Intercompany natural gas purchases(d)
75
75
76
Years Ended
December 31,
(in millions)
2024
2023
2022
Duke Energy Progress
Corporate governance and shared service expenses(a)
$426
$434
$469
Indemnification coverages(b)
23
20
20
JDA revenue(c)
187
177
600
JDA expense(c)
35
34
109
Intercompany natural gas purchases(d)
75
75
76
Duke Energy Florida
Corporate governance and shared service expenses(a)
$283
$302
$349
Indemnification coverages(b)
34
27
23
Duke Energy Ohio
Corporate governance and shared service expenses(a)
$304
$294
$334
Indemnification coverages(b)
6
5
5
Duke Energy Indiana
Corporate governance and shared service expenses(a)
$355
$365
$447
Indemnification coverages(b)
10
8
8
Piedmont
Corporate governance and shared service expenses(a)
$166
$149
$155
Indemnification coverages(b)
4
4
3
Intercompany natural gas sales(d)
87
86
88
Natural gas storage and transportation costs(e)
23
24
23
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
169
(a)
The Subsidiary Registrants are charged their proportionate share of corporate governance and other
shared services costs, primarily related to human resources, employee benefits, information technology,
legal and accounting fees, as well as other third-party costs. These amounts are primarily recorded in
Operation, maintenance and other on the Consolidated Statements of Operations and Comprehensive
Income.
(b)
The Subsidiary Registrants incur expenses related to certain indemnification coverages through Bison,
Duke Energy’s wholly owned captive insurance subsidiary. These expenses are recorded in Operation,
maintenance and other on the Consolidated Statements of Operations and Comprehensive Income.
(c)
Duke Energy Carolinas and Duke Energy Progress participate in a JDA, which allows the collective
dispatch of power plants between the service territories to reduce customer rates. Revenues from the
sale of power and expenses from the purchase of power pursuant to the JDA are recorded in Operating
Revenues and Fuel used in electric generation and purchased power, respectively, on the Consolidated
Statements of Operations and Comprehensive Income.
(d)
Piedmont provides long-term natural gas delivery service to certain Duke Energy Carolinas and Duke
Energy Progress natural gas-fired generation facilities. Piedmont records the sales in Operating Revenues,
and Duke Energy Carolinas and Duke Energy Progress record the related purchases as a component of
Fuel used in electric generation and purchased power on their respective Consolidated Statements of
Operations and Comprehensive Income. These intercompany revenues and expenses are eliminated in
consolidation.
(e)
Piedmont has related party transactions as a customer of its equity method investments in Pine Needle,
Hardy Storage and Cardinal natural gas storage and transportation facilities. These expenses are
included in Cost of natural gas on Piedmont’s Consolidated Statements of Operations and Comprehensive
Income.
In addition to the amounts presented above, the Subsidiary Registrants
have other affiliate transactions, including rental of office space, participation
in a money pool arrangement, other operational transactions and their
proportionate share of certain charged expenses. See Note 7 for more
information regarding money pool. These transactions of the Subsidiary
Registrants are incurred in the ordinary course of business and are eliminated
in consolidation.
As discussed in Note 18, certain trade receivables were previously sold
by Duke Energy Ohio and Duke Energy Indiana to CRC, an affiliate formed by a
subsidiary of Duke Energy. The proceeds obtained from the sales of
receivables were largely cash but included a subordinated note from CRC for a
portion of the purchase price. In March 2024, Duke Energy repaid all
outstanding CRC borrowings and terminated the related CRC credit facility.
Intercompany Income Taxes
Duke Energy and the Subsidiary Registrants file a consolidated federal income tax return and other state and jurisdictional returns. The Subsidiary
Registrants have a tax sharing agreement with Duke Energy for the allocation of consolidated tax liabilities and benefits. Income taxes recorded represent
amounts the Subsidiary Registrants would incur as separate C-Corporations. The following table includes the balance of intercompany income tax receivables
and payables for the Subsidiary Registrants.
(in millions)
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
December 31, 2024
Intercompany income tax receivable
$ —
$ —
$ —
$154
$—
$ —
$—
Intercompany income tax payable
419
169
315
—
43
110
43
December 31, 2023
Intercompany income tax receivable
$ —
$ —
$ —
$ —
$91
$ 53
$—
Intercompany income tax payable
81
92
94
114
—
—
57
15.
DERIVATIVES AND HEDGING
The Duke Energy Registrants use commodity, interest rate and foreign
currency contracts to manage commodity price risk, interest rate risk and
foreign currency exchange rate risk. The primary use of commodity derivatives
is to hedge the generation portfolio against changes in the prices of
electricity and natural gas. Piedmont enters into natural gas supply contracts
to provide diversification, reliability and natural gas cost benefits to its
customers. Interest rate derivatives are used to manage interest rate risk
associated with borrowings. Foreign currency derivatives are used to manage
risk related to foreign currency exchange rates on certain issuances of debt.
All derivative instruments not identified as NPNS are recorded at fair
value as assets or liabilities on the Consolidated Balance Sheets. Cash
collateral related to derivative instruments executed under master netting
arrangements is offset against the collateralized derivatives on the Consolidated
Balance Sheets. The cash impacts of settled derivatives are recorded as
operating activities on the Consolidated Statements of Cash Flows.
INTEREST RATE RISK
The Duke Energy Registrants are exposed to changes in interest rates as
a result of their issuance or anticipated issuance of variable-rate and fixed-rate
debt and commercial paper. Interest rate risk is managed by limiting variable-
rate exposures to a percentage of total debt and by monitoring changes in
interest rates. To manage risk associated with changes in interest rates, the
Duke Energy Registrants may enter into interest rate swaps, U.S. Treasury lock
agreements and other financial contracts. In anticipation of certain fixed-rate
debt issuances, a series of forward-starting interest rate swaps or Treasury
locks may be executed to lock in components of current market interest
rates. These instruments are later terminated prior to or upon the issuance of
the corresponding debt.
Cash Flow Hedges
For a derivative designated as hedging the exposure to variable cash
flows of a future transaction, referred to as a cash flow hedge, the effective
portion of the derivative’s gain or loss is initially reported as a component of
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
170
other comprehensive income and subsequently reclassified into earnings once
the future transaction impacts earnings. Amounts for interest rate contracts
are reclassified to earnings as interest expense over the term of the related debt.
Gains and losses reclassified out of AOCI for the years ended December 31,
2024, 2023, and 2022, were not material. Duke Energy’s interest rate derivatives
designated as hedges include forward-starting interest rate swaps not
accounted for under regulatory accounting.
Undesignated Contracts
Undesignated contracts primarily include contracts not designated as a
hedge because they are accounted for under regulatory accounting or contracts
that do not qualify for hedge accounting.
Duke Energy’s interest rate swaps for its regulated operations employ
regulatory accounting. With regulatory accounting, the mark-to-market gains
or losses on the swaps are deferred as regulatory liabilities or regulatory assets,
respectively. Regulatory assets and liabilities are amortized consistent with
the treatment of the related costs in the ratemaking process. The accrual of
interest on the swaps is recorded as Interest Expense on the Duke Energy
Registrant’s Consolidated Statements of Operations and Comprehensive Income.
The following tables show notional amounts of outstanding derivatives related to interest rate risk.
December 31, 2024
(in millions)
Duke
Energy
Duke Energy
Carolinas
Progress
Energy
Duke Energy
Progress
Duke Energy
Florida
Duke Energy
Indiana
Duke Energy
Ohio
Cash flow hedges
$2,825
$
—
$
—
$
—
$ —
$ —
$—
Undesignated contracts
3,202
1,150
1,775
1,125
650
250
27
Total notional amount
$6,027
$1,150
$1,775
$1,125
$650
$250
$27
December 31, 2023
(in millions)
Duke
Energy
Duke Energy
Carolinas
Progress
Energy
Duke Energy
Progress
Duke Energy
Florida
Duke Energy
Indiana
Duke Energy
Ohio
Cash flow hedges
$2,300
$
—
$
—
$ —
$ —
$ —
$—
Undesignated contracts
2,727
1,050
1,250
925
325
400
27
Total notional amount
$5,027
$1,050
$1,250
$925
$325
$400
$27
COMMODITY PRICE RISK
The Duke Energy Registrants are exposed to the impact of changes in
the prices of electricity purchased and sold in bulk power markets and natural
gas purchases, including Piedmont’s natural gas supply contracts. Exposure
to commodity price risk is influenced by a number of factors including the term
of contracts, the liquidity of markets and delivery locations. To manage risk
associated with commodity prices, the Duke Energy Registrants may enter into
long-term power purchase or sales contracts and long-term natural gas
supply agreements.
Undesignated Contracts
For the Subsidiary Registrants, bulk power electricity and natural gas
purchases flow through fuel adjustment clauses, formula-based contracts or
other cost sharing mechanisms. Differences between the costs included in
rates and the incurred costs, including undesignated derivative contracts, are
largely deferred as regulatory assets or regulatory liabilities. Piedmont
policies allow for the use of financial instruments to hedge commodity price
risks. The strategy and objective of these hedging programs are to use the
financial instruments to reduce natural gas cost volatility for customers.
Volumes
The tables below include volumes of outstanding commodity derivatives.
Amounts disclosed represent the absolute value of notional volumes of
commodity contracts excluding NPNS. The Duke Energy Registrants have
netted contractual amounts where offsetting purchase and sale contracts exist
with identical delivery locations and times of delivery. Where all commodity
positions are perfectly offset, no quantities are shown.
December 31, 2024
Duke
Energy
Duke Energy
Carolinas
Progress
Energy
Duke Energy
Progress
Duke Energy
Ohio
Duke Energy
Indiana
Piedmont
Electricity (GWh)
12,229
—
—
—
1,287
10,942
—
Natural gas (millions of Dth)
779
276
246
246
—
32
225
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
171
December 31, 2023
Duke
Energy
Duke Energy
Carolinas
Progress
Energy
Duke Energy
Progress
Duke Energy
Ohio
Duke Energy
Indiana
Piedmont
Electricity (GWh)
13,608
—
—
—
1,616
11,992
—
Natural gas (millions of Dth)
846
279
274
274
—
30
263
FOREIGN CURRENCY RISK
Duke Energy may enter into foreign currency derivatives to hedge
exposure to changes in foreign currency exchange rates, such as that arising
from the issuance of debt denominated in a currency other than U.S. dollars.
Fair Value Hedges
Derivatives related to existing fixed rate securities are accounted for as
fair value hedges, where the derivatives’ fair value gains or losses and hedged
items’ fair value gains or losses are both recorded directly to earnings on the
same income statement line item, including foreign currency gains or losses
arising from changes in the U.S. currency exchange rates. Duke Energy has
elected to exclude the cross-currency basis spread from the assessment of
effectiveness in the fair value hedges of its foreign currency risk and record any
difference between the change in the fair value of the excluded components
and the amounts recognized in earnings as a component of other comprehensive
income or loss.
The following table shows Duke Energy’s outstanding derivatives related
to foreign currency risk.
Fair Value Gain (Loss)(a)
(in millions)
Pay Notional
(in millions)
Pay Rate
Receive
Notional
(in millions)
Receive
Rate
Hedge
Maturity
Date
Years Ended December 31,
2024
2023
2022
Fair value hedges
$ 645
4.75%
600 euros
3.10%
June 2028
$ (41)
$17
$ (3)
537
5.31%
500 euros
3.85%
June 2034
(34)
15
(2)
815
5.65%
750 euros
3.75%
April 2031
(38)
—
—
Total notional amount
$1,997
1,850 euros
$(113)
$32
$ (5)
(a)
Amounts are recorded in Other Income and expenses, net on the Consolidated Statement of Operations, which offsets an equal translation adjustment of the foreign denominated debt. See the Consolidated Statements
of Comprehensive Income for amounts excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded.
LOCATION AND FAIR VALUE OF DERIVATIVE ASSETS AND LIABILITIES RECOGNIZED IN THE CONSOLIDATED BALANCE SHEETS
The following tables show the fair value and balance sheet location of derivative instruments. Although derivatives subject to master netting arrangements
are netted on the Consolidated Balance Sheets, the fair values presented below are shown gross and cash collateral on the derivatives has not been netted against
the fair values shown.
Derivative Assets
December 31, 2024
(in millions)
Duke
Energy
Duke Energy
Carolinas
Progress
Energy
Duke Energy
Progress
Duke Energy
Florida
Duke Energy
Ohio
Duke Energy
Indiana
Piedmont
Commodity Contracts
Not Designated as Hedging Instruments
Current
$ 49
$20
$ 17
$ 17
$—
$ 1
$ 8
$ 1
Noncurrent
60
29
32
32
—
—
—
—
Total Derivative Assets – Commodity Contracts
$109
$49
$ 49
$ 49
$—
$ 1
$ 8
$ 1
Interest Rate Contracts
Designated as Hedging Instruments
Current
$108
$—
$ —
$ —
$—
$—
$—
$—
Noncurrent
52
—
—
—
—
—
—
—
Not Designated as Hedging Instruments
Current
$110
$19
$ 55
$ 44
$11
$—
$36
$—
Noncurrent
50
26
23
16
7
—
—
—
Total Derivative Assets – Interest Rate Contracts
$320
$45
$ 78
$ 60
$18
$—
$36
$—
Foreign Currency Contracts
Designated as Hedging Instruments
Noncurrent
5
—
—
—
—
—
—
—
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
172
Derivative Assets
December 31, 2024
(in millions)
Duke
Energy
Duke Energy
Carolinas
Progress
Energy
Duke Energy
Progress
Duke Energy
Florida
Duke Energy
Ohio
Duke Energy
Indiana
Piedmont
Total Derivative Assets – Foreign Currency Contracts
$
5
$—
$ —
$ —
$—
$—
$—
$—
Total Derivative Assets
$434
$94
$127
$109
$18
$ 1
$44
$ 1
Derivative Liabilities
December 31, 2024
(in millions)
Duke
Energy
Duke Energy
Carolinas
Progress
Energy
Duke Energy
Progress
Duke Energy
Florida
Duke Energy
Ohio
Duke Energy
Indiana
Piedmont
Commodity Contracts
Not Designated as Hedging Instruments
Current
$108
$57
$32
$32
$—
$—
$ 3
$16
Noncurrent
134
31
24
24
—
—
—
78
Total Derivative Liabilities – Commodity Contracts
$242
$88
$56
$56
$—
$—
$ 3
$94
Interest Rate Contracts
Not Designated as Hedging Instruments
Current
2
—
2
1
1
—
—
—
Noncurrent
1
—
—
—
—
1
—
—
Total Derivative Liabilities – Interest Rate Contracts
$
3
$—
$ 2
$ 1
$ 1
$ 1
$—
$—
Foreign Currency Contracts
Designated as Hedging Instruments
Current
$ 35
$—
$—
$—
$—
$—
$—
$—
Noncurrent
39
—
—
—
—
—
—
—
Total Derivative Liabilities – Foreign Currency Contracts
$ 74
$—
$—
$—
$—
$—
$—
$—
Total Derivative Liabilities
$319
$88
$58
$57
$ 1
$ 1
$ 3
$94
Derivative Assets
December 31, 2023
(in millions)
Duke
Energy
Duke Energy
Carolinas
Progress
Energy
Duke Energy
Progress
Duke Energy
Florida
Duke Energy
Ohio
Duke Energy
Indiana
Piedmont
Commodity Contracts
Not Designated as Hedging Instruments
Current
$ 25
$ 1
$ 3
$ 1
$ 2
$ 1
$18
$ 1
Noncurrent
57
26
31
31
—
—
—
—
Total Derivative Assets – Commodity Contracts
$ 82
$27
$34
$32
$ 2
$ 1
$18
$ 1
Interest Rate Contracts
Designated as Hedging Instruments
Current
$ 31
$—
$—
$—
$—
$—
$—
$—
Noncurrent
17
—
—
—
—
—
—
—
Not Designated as Hedging Instruments
Current
$
5
$ 5
$—
$—
$—
$—
$—
$—
Noncurrent
10
3
—
—
—
—
7
—
Total Derivative Assets – Interest Rate Contracts
$ 63
$ 8
$—
$—
$—
$—
$ 7
$—
Foreign Currency Contracts
Designated as Hedging Instruments
Noncurrent
$ 44
$—
$—
$—
$—
$—
$—
$—
Total Derivative Assets – Foreign Currency Contracts
$ 44
$—
$—
$—
$—
$—
$—
$—
Total Derivative Assets
$189
$35
$34
$32
$ 2
$ 1
$25
$ 1
Derivative Liabilities
December 31, 2023
(in millions)
Duke
Energy
Duke Energy
Carolinas
Progress
Energy
Duke Energy
Progress
Duke Energy
Florida
Duke Energy
Ohio
Duke Energy
Indiana
Piedmont
Not Designated as Hedging Instruments
Current
$354
$177
$138
$138
$—
$—
$18
$ 20
Noncurrent
255
67
61
61
—
—
—
127
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
173
Derivative Liabilities
December 31, 2023
(in millions)
Duke
Energy
Duke Energy
Carolinas
Progress
Energy
Duke Energy
Progress
Duke Energy
Florida
Duke Energy
Ohio
Duke Energy
Indiana
Piedmont
Total Derivative Liabilities – Commodity Contracts
$609
$244
$199
$199
$—
$—
$18
$147
Interest Rate Contracts
Designated as Hedging Instruments
Current
$ 25
$ —
$ —
$ —
$—
$—
$—
$ —
Noncurrent
26
—
—
—
—
—
—
—
Not Designated as Hedging Instruments
Current
13
2
11
11
—
—
—
—
Noncurrent
39
14
24
9
15
1
—
—
Total Derivative Liabilities – Interest Rate Contracts
$103
$ 16
$ 35
$ 20
$15
$ 1
$—
$ —
Foreign Currency Contracts
Designated as Hedging Instruments
Current
$ 17
$ —
$ —
$ —
$—
$—
$—
$ —
Total Derivative Liabilities – Foreign Currency Contracts
$ 17
$ —
$ —
$ —
$—
$—
$—
$ —
Total Derivative Liabilities
$729
$260
$234
$219
$15
$ 1
$18
$147
OFFSETTING ASSETS AND LIABILITIES
The following tables present the line items on the Consolidated Balance Sheets where derivatives are reported. Substantially all of Duke Energy’s
outstanding derivative contracts are subject to enforceable master netting arrangements. The amounts shown are calculated by counterparty. Accounts
receivable or accounts payable may also be available to offset exposures in the event of bankruptcy. These amounts are not included in the tables below.
Derivative Assets
December 31, 2024
(in millions)
Duke
Energy
Duke Energy
Carolinas
Progress
Energy
Duke Energy
Progress
Duke Energy
Florida
Duke Energy
Ohio
Duke Energy
Indiana
Piedmont
Current
Gross amounts recognized
$267
$ 39
$ 72
$ 61
$11
$ 1
$44
$ 1
Offset
(29)
(15)
(14)
(14)
—
—
—
—
Net amounts presented in Current Assets: Other
$238
$ 24
$ 58
$ 47
$11
$ 1
$44
$ 1
Noncurrent
Gross amounts recognized
$167
$ 55
$ 55
$ 48
$ 7
$—
$—
$—
Offset
(37)
(19)
(17)
(17)
—
—
—
—
Net amounts presented in Other Noncurrent Assets: Other
$130
$ 36
$ 38
$ 31
$ 7
$—
$—
$—
Derivative Liabilities
December 31, 2024
(in millions)
Duke
Energy
Duke Energy
Carolinas
Progress
Energy
Duke Energy
Progress
Duke Energy
Florida
Duke Energy
Ohio
Duke Energy
Indiana
Piedmont
Current
Gross amounts recognized
$145
$ 57
$ 34
$ 33
$ 1
$—
$ 3
$16
Offset
(29)
(15)
(14)
(14)
—
—
—
—
Cash collateral posted
(3)
(2)
—
—
—
—
(1)
—
Net amounts presented in Current Liabilities: Other
$113
$ 40
$ 20
$ 19
$ 1
$—
$ 2
$16
Noncurrent
Gross amounts recognized
$174
$ 31
$ 24
$ 24
$—
$ 1
$—
$78
Offset
(37)
(19)
(17)
(17)
—
—
—
—
Cash collateral posted
(4)
(4)
—
—
—
—
—
—
Net amounts presented in Other Noncurrent Liabilities: Other
$133
$ 8
$ 7
$ 7
$—
$ 1
$—
$78
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
174
Derivative Assets
December 31, 2023
(in millions)
Duke
Energy
Duke Energy
Carolinas
Progress
Energy
Duke Energy
Progress
Duke Energy
Florida
Duke Energy
Ohio
Duke Energy
Indiana
Piedmont
Current
Gross amounts recognized
$ 61
$ 6
$ 3
$ 1
$ 2
$ 1
$18
$ 1
Offset
(2)
(1)
(1)
(1)
—
—
—
—
Net amounts presented in Current Assets: Other
$ 59
$ 5
$ 2
$ —
$ 2
$ 1
$18
$ 1
Noncurrent
Gross amounts recognized
$128
$ 29
$ 31
$ 31
$—
$—
$ 7
$—
Offset
(37)
(14)
(22)
(22)
—
—
—
—
Net amounts presented in Other Noncurrent Assets: Other
$ 91
$ 15
$ 9
$ 9
$—
$—
$ 7
$—
Derivative Liabilities
December 31, 2023
(in millions)
Duke
Energy
Duke Energy
Carolinas
Progress
Energy
Duke Energy
Progress
Duke Energy
Florida
Duke Energy
Ohio
Duke Energy
Indiana
Piedmont
Current
Gross amounts recognized
$409
$179
$149
$149
$—
$—
$ 18
$ 20
Offset
(2)
(1)
(1)
(1)
—
—
—
—
Cash collateral posted
(96)
(48)
(30)
(30)
—
—
(18)
—
Net amounts presented in Current Liabilities: Other
$311
$130
$118
$118
$—
$—
$ —
$ 20
Noncurrent
Gross amounts recognized
$320
$ 81
$ 85
$ 70
$15
$ 1
$ —
$127
Offset
(37)
(14)
(22)
(22)
—
—
—
—
Cash collateral posted
(66)
(38)
(28)
(28)
—
—
—
—
Net amounts presented in Other Noncurrent Liabilities: Other
$217
$ 29
$ 35
$ 20
$15
$ 1
$ —
$127
OBJECTIVE CREDIT CONTINGENT FEATURES
Certain derivative contracts contain objective credit contingent features. These features include the requirement to post cash collateral or letters of credit
if specific events occur, such as a credit rating downgrade below investment grade. The following tables show information with respect to derivative contracts
that are in a net liability position and contain objective credit risk-related payment provisions.
December 31, 2024
(in millions)
Duke
Energy
Duke Energy
Carolinas
Progress
Energy
Duke Energy
Progress
Aggregate fair value of derivatives in a net liability position
$101
$52
$49
$49
Fair value of collateral already posted
6
6
—
—
Additional cash collateral or letters of credit in the event credit risk-related contingent features were
triggered
95
46
49
49
December 31, 2023
(in millions)
Duke
Energy
Duke Energy
Carolinas
Progress
Energy
Duke Energy
Progress
Aggregate fair value of derivatives in a net liability position
$342
$175
$166
$166
Fair value of collateral already posted
144
86
58
58
Additional cash collateral or letters of credit in the event credit risk-related contingent features were
triggered
198
89
108
108
The Duke Energy Registrants have elected to offset cash collateral and fair values of derivatives. For amounts to be netted, the derivative and cash
collateral must be executed with the same counterparty under the same master netting arrangement.
16.
INVESTMENTS IN DEBT AND EQUITY SECURITIES
Duke Energy’s investments in debt and equity securities are primarily comprised of investments held in (i) the NDTF at Duke Energy Carolinas, Duke Energy
Progress and Duke Energy Florida, (ii) the grantor trusts at Duke Energy Florida and Duke Energy Indiana related to OPEB plans and (iii) Bison. The Duke Energy
Registrants classify investments in debt securities as AFS and investments in equity securities as FV-NI.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
175
For investments in debt securities classified as AFS, the unrealized gains and losses are included in other comprehensive income until realized, at which
time they are reported through net income. For investments in equity securities classified as FV-NI, both realized and unrealized gains and losses are reported
through net income. Substantially all of Duke Energy’s investments in debt and equity securities qualify for regulatory accounting, and accordingly, all associated
realized and unrealized gains and losses on these investments are deferred as a regulatory asset or liability.
Duke Energy classifies the majority of investments in debt and equity securities as long term, unless otherwise noted.
Investment Trusts
The investments within the Investment Trusts are managed by
independent investment managers with discretion to buy, sell and invest
pursuant to the objectives set forth by the investment manager agreements
and trust agreements. The Duke Energy Registrants have limited oversight of
the day-to-day management of these investments. As a result, the ability to hold
investments in unrealized loss positions is outside the control of the Duke
Energy Registrants. Accordingly, all unrealized losses associated with debt
securities within the Investment Trusts are recognized immediately and deferred
to regulatory accounts where appropriate.
Other AFS Securities
Unrealized gains and losses on all other AFS securities are included in
other comprehensive income until realized, unless it is determined the carrying
value of an investment has a credit loss. The Duke Energy Registrants
analyze all investment holdings each reporting period to determine whether a
decline in fair value is related to a credit loss. If a credit loss exists, the
unrealized credit loss is included in earnings. There were no material credit
losses as of December 31, 2024, and 2023.
Other Investments amounts are recorded in Other within Other
Noncurrent Assets on the Consolidated Balance Sheets.
DUKE ENERGY
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt
investments are classified as AFS.
December 31, 2024
December 31, 2023
(in millions)
Gross Unrealized
Holding Gains
Gross Unrealized
Holding Losses
Estimated
Fair Value
Gross Unrealized
Holding Gains
Gross Unrealized
Holding Losses
Estimated
Fair Value
NDTF
Cash and cash equivalents
$
—
$ —
$
139
$
—
$ —
$
133
Equity securities
5,753
61
8,233
4,942
22
7,278
Corporate debt securities
6
33
673
12
43
632
Municipal bonds
2
14
342
6
16
347
U.S. government bonds
3
84
1,806
24
65
1,575
Other debt securities
1
8
239
1
13
178
Total NDTF Investments
$5,765
$200
$11,432
$4,985
$159
$10,143
Other Investments
Cash and cash equivalents
$
—
$ —
$
47
$
—
$ —
$
31
Equity securities
39
4
160
33
—
158
Corporate debt securities
—
5
79
—
6
82
Municipal bonds
—
1
83
1
2
77
U.S. government bonds
—
5
59
—
2
65
Other debt securities
—
4
45
—
2
47
Total Other Investments
$
39
$ 19
$
473
$
34
$ 12
$
460
Total Investments
$5,804
$219
$11,905
$5,019
$171
$10,603
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the years ended December 31,
2024, 2023 and 2022, were as follows.
Years Ended December 31,
(in millions)
2024
2023
2022
FV-NI:
Realized gains
$600
$129
$201
Realized losses
85
146
316
AFS:
Realized gains
28
44
28
Realized losses
67
140
151
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
176
DUKE ENERGY CAROLINAS
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt
investments are classified as AFS.
December 31, 2024
December 31, 2023
(in millions)
Gross Unrealized
Holding Gains
Gross Unrealized
Holding Losses
Estimated
Fair Value
Gross Unrealized
Holding Gains
Gross Unrealized
Holding Losses
Estimated
Fair Value
NDTF
Cash and cash equivalents
$
—
$ —
$
62
$
—
$—
$
51
Equity securities
3,386
33
4,751
2,886
14
4,196
Corporate debt securities
2
27
401
4
35
390
Municipal bonds
—
4
36
—
4
50
U.S. government bonds
—
50
991
13
33
826
Other debt securities
1
8
223
1
13
172
Total NDTF Investments
$3,389
$122
$6,464
$2,904
$99
$5,685
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the years ended December 31,
2024, 2023 and 2022, were as follows.
Years Ended December 31,
(in millions)
2024
2023
2022
FV-NI:
Realized gains
$298
$82
$124
Realized losses
40
79
177
AFS:
Realized gains
14
22
22
Realized losses
40
65
86
PROGRESS ENERGY
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt
investments are classified as AFS.
December 31, 2024
December 31, 2023
(in millions)
Gross Unrealized
Holding Gains
Gross Unrealized
Holding Losses
Estimated
Fair Value
Gross Unrealized
Holding Gains
Gross Unrealized
Holding Losses
Estimated
Fair Value
NDTF
Cash and cash equivalents
$
—
$—
$
77
$
—
$—
$
82
Equity securities
2,367
28
3,482
2,056
8
3,082
Corporate debt securities
4
6
272
8
8
242
Municipal bonds
2
10
306
6
12
297
U.S. government bonds
3
34
815
11
32
749
Other debt securities
—
—
16
—
—
6
Total NDTF Investments
$2,376
$78
$4,968
$2,081
$60
$4,458
Other Investments
Cash and cash equivalents
$
—
$—
$
23
$
—
$—
$
18
Municipal bonds
—
—
24
—
1
23
Total Other Investments
$
—
$—
$
47
$
—
$ 1
$
41
Total Investments
$2,376
$78
$5,015
$2,081
$61
$4,499
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
177
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the years ended December 31,
2024, 2023 and 2022, were as follows.
Years Ended December 31,
(in millions)
2024
2023
2022
FV-NI:
Realized gains
$302
$47
$ 77
Realized losses
45
67
139
AFS:
Realized gains
14
22
6
Realized losses
27
75
48
DUKE ENERGY PROGRESS
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt
investments are classified as AFS.
December 31, 2024
December 31, 2023
(in millions)
Gross Unrealized
Holding Gains
Gross Unrealized
Holding Losses
Estimated
Fair Value
Gross Unrealized
Holding Gains
Gross Unrealized
Holding Losses
Estimated
Fair Value
NDTF
Cash and cash equivalents
$
—
$—
$
54
$
—
$—
$
55
Equity securities
2,256
28
3,362
1,956
8
2,970
Corporate debt securities
4
6
256
7
8
229
Municipal bonds
2
10
306
6
12
297
U.S. government bonds
3
26
645
10
18
518
Other debt securities
—
—
14
—
—
6
Total NDTF Investments
$2,265
$70
$4,637
$1,979
$46
$4,075
Other Investments
Cash and cash equivalents
$
—
$—
$
16
$
—
$—
$
14
Total Other Investments
$
—
$—
$
16
$
—
$—
$
14
Total Investments
$2,265
$70
$4,653
$1,979
$46
$4,089
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the years ended December 31,
2024, 2023 and 2022, were as follows.
Years Ended December 31,
(in millions)
2024
2023
2022
FV-NI:
Realized gains
$288
$44
$ 76
Realized losses
44
66
136
AFS:
Realized gains
13
20
6
Realized losses
26
70
44
DUKE ENERGY FLORIDA
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt
investments are classified as AFS.
December 31, 2024
December 31, 2023
(in millions)
Gross Unrealized
Holding Gains
Gross Unrealized
Holding Losses
Estimated
Fair Value
Gross Unrealized
Holding Gains
Gross Unrealized
Holding Losses
Estimated
Fair Value
NDTF
Cash and cash equivalents
$ —
$—
$ 23
$ —
$—
$ 27
Equity securities
111
—
120
100
—
112
Corporate debt securities
—
—
16
1
—
13
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
178
December 31, 2024
December 31, 2023
(in millions)
Gross Unrealized
Holding Gains
Gross Unrealized
Holding Losses
Estimated
Fair Value
Gross Unrealized
Holding Gains
Gross Unrealized
Holding Losses
Estimated
Fair Value
U.S. government bonds
—
8
170
1
14
231
Other debt securities
—
—
2
—
—
—
Total NDTF Investments(a)
$111
$ 8
$331
$102
$14
$383
Other Investments
Cash and cash equivalents
$ —
$—
$
3
$ —
$—
$
3
Municipal bonds
—
—
24
—
1
23
Total Other Investments
$ —
$—
$ 27
$ —
$ 1
$ 26
Total Investments
$111
$ 8
$358
$102
$15
$409
(a)
During the years ended December 31, 2024, and 2023, Duke Energy Florida received reimbursements from the NDTF for costs related to ongoing decommissioning activity of Crystal River Unit 3.
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the years ended December 31,
2024, 2023 and 2022, were immaterial.
DUKE ENERGY INDIANA
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are measured at FV-NI and debt
investments are classified as AFS.
December 31, 2024
December 31, 2023
(in millions)
Gross Unrealized
Holding Gains
Gross Unrealized
Holding Losses
Estimated
Fair Value
Gross Unrealized
Holding Gains
Gross Unrealized
Holding Losses
Estimated
Fair Value
Investments
Cash and cash equivalents
$—
$—
$
1
$—
$—
$
1
Equity securities
—
4
89
4
—
98
Corporate debt securities
—
—
6
—
—
8
Municipal bonds
—
1
43
1
1
46
U.S. government bonds
—
—
7
—
—
10
Total Investments
$—
$ 5
$146
$ 5
$ 1
$163
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the years ended December 31,
2024, 2023 and 2022, were immaterial.
DEBT SECURITY MATURITIES
The table below summarizes the maturity date for debt securities.
December 31, 2024
(in millions)
Duke
Energy
Duke Energy
Carolinas
Progress
Energy
Duke Energy
Progress
Duke Energy
Florida
Duke Energy
Indiana
Due in one year or less
$
89
$
9
$
62
$
12
$ 50
$ 4
Due after one through five years
791
303
408
310
98
20
Due after five through 10 years
721
441
234
219
15
12
Due after 10 years
1,725
898
729
680
49
20
Total
$3,326
$1,651
$1,433
$1,221
$212
$56
17.
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
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
179
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, 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
—
—
—
Derivative assets
434
2
423
9
—
Total assets
12,339
9,625
2,677
9
28
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
180
December 31, 2024
(in millions)
Total Fair Value
Level 1
Level 2
Level 3
Not Categorized
Derivative liabilities
(319)
(3)
(316)
—
—
Net assets
$12,020
$9,622
$2,361
$ 9
$28
December 31, 2023
(in millions)
Total Fair Value
Level 1
Level 2
Level 3
Not Categorized
NDTF cash and cash equivalents
$
133
$ 133
$
—
$—
$—
NDTF equity securities
7,278
7,241
—
—
37
NDTF debt securities
2,732
829
1,903
—
—
Other equity securities
158
158
—
—
—
Other debt securities
271
55
216
—
—
Other cash and cash equivalents
31
31
—
—
—
Derivative assets
189
37
137
15
—
Total assets
10,792
8,484
2,256
15
37
Derivative liabilities
(729)
(60)
(669)
—
—
Net assets
$10,063
$8,424
$1,587
$15
$37
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)
2024
2023
Balance at beginning of period
$ 15
$ 34
Purchases, sales, issuances and settlements:
Purchases
29
47
Settlements
(46)
(72)
Total gains included on the Consolidated Balance Sheet
11
6
Balance at end of period
$ 9
$ 15
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, 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
December 31, 2023
(in millions)
Total Fair Value
Level 1
Level 2
Not Categorized
NDTF cash and cash equivalents
$
51
$
51
$
—
$—
NDTF equity securities
4,196
4,159
—
37
NDTF debt securities
1,438
375
1,063
—
Derivative assets
35
—
35
—
Total assets
5,720
4,585
1,098
37
Derivative liabilities
(260)
—
(260)
—
Net assets
$5,460
$4,585
$ 838
$37
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
181
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, 2024
December 31, 2023
(in millions)
Total Fair Value
Level 1
Level 2
Total Fair Value
Level 1
Level 2
NDTF cash and cash equivalents
$
77
$
77
$
—
$
82
$
82
$ —
NDTF equity securities
3,482
3,482
—
3,082
3,082
—
NDTF debt securities
1,409
502
907
1,294
454
840
Other debt securities
24
—
24
23
—
23
Other cash and cash equivalents
23
23
—
18
18
—
Derivative assets
127
—
127
34
—
34
Total assets
5,142
4,084
1,058
4,533
3,636
897
Derivative liabilities
(58)
—
(58)
(234)
—
(234)
Net assets
$5,084
$4,084
$1,000
$4,299
$3,636
$ 663
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, 2024
December 31, 2023
(in millions)
Total Fair Value
Level 1
Level 2
Total Fair Value
Level 1
Level 2
NDTF cash and cash equivalents
$
54
$
54
$ —
$
55
$
55
$ —
NDTF equity securities
3,362
3,362
—
2,970
2,970
—
NDTF debt securities
1,221
365
856
1,050
266
784
Other cash and cash equivalents
16
16
—
14
14
—
Derivative assets
109
—
109
32
—
32
Total assets
4,762
3,797
965
4,121
3,305
816
Derivative liabilities
(57)
—
(57)
(219)
—
(219)
Net assets
$4,705
$3,797
$908
$3,902
$3,305
$ 597
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, 2024
December 31, 2023
(in millions)
Total Fair Value
Level 1
Level 2
Total Fair Value
Level 1
Level 2
NDTF cash and cash equivalents
$ 23
$ 23
$—
$ 27
$ 27
$ —
NDTF equity securities
120
120
—
112
112
—
NDTF debt securities
188
137
51
244
188
56
Other debt securities
24
—
24
23
—
23
Other cash and cash equivalents
3
3
—
3
3
—
Derivative assets
18
—
18
2
—
2
Total assets
376
283
93
411
330
81
Derivative liabilities
(1)
—
(1)
(15)
—
(15)
Net assets
$375
$283
$92
$396
$330
$ 66
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, 2024, and 2023.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
182
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, 2024
December 31, 2023
(in millions)
Total Fair Value
Level 1
Level 2
Level 3
Total Fair Value
Level 1
Level 2
Level 3
Other equity securities
$ 89
$89
$—
$—
$ 98
$ 98
$—
$—
Other debt securities
56
—
56
—
64
—
64
—
Other cash equivalents
1
1
—
—
1
1
—
—
Derivative assets
44
—
36
8
25
5
7
13
Total assets
190
90
92
8
188
104
71
13
Derivative liabilities
(3)
(3)
—
—
(18)
(18)
—
—
Net assets
$187
$87
$92
$ 8
$170
$ 86
$71
$13
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)
2024
2023
Balance at beginning of period
$ 13
$ 29
Purchases, sales, issuances and settlements:
Purchases
27
42
Settlements
(42)
(68)
Total gains included on the Consolidated Balance Sheet
10
10
Balance at end of period
$ 8
$ 13
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, 2024
December 31, 2023
(in millions)
Total Fair Value
Level 1
Level 2
Total Fair Value
Level 1
Level 2
Derivative assets
$ 1
$ 1
$ —
$
1
$ 1
$ —
Derivative liabilities
(94)
—
(94)
(147)
—
(147)
Net (liabilities) assets
$(93)
$ 1
$(94)
$(146)
$ 1
$(147)
QUANTITATIVE INFORMATION ABOUT UNOBSERVABLE INPUTS
The following tables include quantitative information about the Duke Energy Registrants’ derivatives classified as Level 3.
December 31, 2024
Investment Type
Fair Value
(in millions)
Valuation Technique
Unobservable Input
Range
Weighted
Average
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
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
183
December 31, 2023
Investment Type
Fair Value
(in millions)
Valuation Technique
Unobservable Input
Range
Weighted
Average
Range
Duke Energy Ohio
FTRs
$ 2
RTO auction pricing
FTR price – per MWh
$0.36 – $2.11
$0.71
Duke Energy Indiana
FTRs
13
RTO auction pricing
FTR price – per MWh
(1.05) – 9.64
1.26
Duke Energy
Total Level 3 derivatives
$15
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, 2024
December 31, 2023
(in millions)
Book Value
Fair Value
Book Value
Fair Value
Duke Energy(a)
$80,689
$73,440
$75,252
$69,790
Duke Energy Carolinas
17,490
15,975
16,012
15,077
Progress Energy
24,496
22,548
23,759
22,553
Duke Energy Progress
12,504
11,009
11,714
10,595
Duke Energy Florida
10,348
9,752
10,401
10,123
Duke Energy Ohio
4,165
3,871
3,518
3,310
Duke Energy Indiana
4,798
4,329
4,502
4,230
Piedmont
4,003
3,584
3,668
3,336
(a)
Book value of long-term debt includes $1.0 billion as of December 31, 2024, and December 31, 2023, 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, 2024, and December 31, 2023, 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.
18.
VARIABLE INTEREST ENTITIES
A VIE is an entity that is evaluated for consolidation using more than a
simple analysis of voting control. The analysis to determine whether an entity
is a VIE considers contracts with an entity, credit support for an entity, the
adequacy of the equity investment of an entity and the relationship of voting
power to the amount of equity invested in an entity. This analysis is performed
either upon the creation of a legal entity or upon the occurrence of an event
requiring reevaluation, such as a significant change in an entity’s assets or
activities. A qualitative analysis of control determines the party that consolidates
a VIE. This assessment is based on (i) what party has the power to direct the
activities of the VIE that most significantly impact its economic performance
and (ii) what party has rights to receive benefits or is obligated to absorb
losses that could potentially be significant to the VIE. The analysis of the party
that consolidates a VIE is a continual reassessment.
CONSOLIDATED VIEs
The obligations of the consolidated VIEs discussed in the following
paragraphs are nonrecourse to the Duke Energy Registrants. The registrants
have no requirement to provide liquidity to, purchase assets of or guarantee
performance of these VIEs unless noted in the following paragraphs.
No financial support was provided to any of the consolidated VIEs during
the years ended December 31, 2024, 2023 and 2022, or is expected to be
provided in the future, that was not previously contractually required.
Receivables Financing – DERF/DEPR/DEFR
DERF, DEPR and DEFR are bankruptcy remote, special purpose
subsidiaries of Duke Energy Carolinas, Duke Energy Progress and Duke Energy
Florida, respectively. DERF, DEPR and DEFR are wholly owned LLCs with
separate legal existence from their parent companies, and their assets are not
generally available to creditors of their parent companies. On a revolving
basis, DERF, DEPR and DEFR buy certain accounts receivable arising from the
sale of electricity and related services from their parent companies.
DERF, DEPR and DEFR borrow amounts under credit facilities to buy these
receivables. Borrowing availability from the credit facilities is limited to the
amount of qualified receivables purchased, which generally exclude receivables
past due more than a predetermined number of days and reserves for
expected past-due balances. The sole source of funds to satisfy the related
debt obligations is cash collections from the receivables. Amounts borrowed
under the DERF, DEPR, and DEFR credit facilities are reflected on the
Consolidated Balance Sheets as Current maturities of long-term debt.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
184
The most significant activity that impacts the economic performance of
DERF, DEPR and DEFR are the decisions made to manage delinquent receivables.
Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida are
considered the primary beneficiaries and consolidate DERF, DEPR and DEFR,
respectively, as they make those decisions.
In April 2024, Duke Energy Florida repaid all outstanding DEFR
borrowings totaling $325 million and terminated the related DEFR credit
facility. Additionally, Duke Energy Florida’s related restricted receivables
outstanding at DEFR at the time of termination totaled $459 million and were
transferred back to Duke Energy Florida to be collected and reported as
Receivables on the Consolidated Balance Sheets.
In January 2025, Duke Energy Carolinas repaid all outstanding DERF
borrowings totaling $500 million and terminated the related DERF credit
facility. Additionally, Duke Energy Carolinas’ related restricted receivables
outstanding at DERF at the time of termination totaled $1,081 million and were
transferred back to Duke Energy Carolinas to be collected and reported as
Receivables on the Consolidated Balance Sheets.
Receivables Financing – CRC
CRC is a bankruptcy remote, special purpose entity indirectly owned by
Duke Energy. On a revolving basis, CRC bought certain accounts receivable
arising from the sale of electricity, natural gas and related services from Duke
Energy Ohio and Duke Energy Indiana. CRC then borrowed amounts under a
credit facility to buy the receivables from Duke Energy Ohio and Duke Energy
Indiana. Borrowing availability from the credit facility was limited to the amount
of qualified receivables sold to CRC, which generally excluded receivables past
due more than a predetermined number of days and reserves for expected past-
due balances. The sole source of funds to satisfy the related debt obligation was
cash collections from the receivables.
The proceeds Duke Energy Ohio and Duke Energy Indiana received from
the sale of receivables to CRC were approximately 75% cash and 25% in the
form of a subordinated note from CRC. The subordinated note was a retained
interest in the receivables sold.
CRC was considered a VIE because (i) equity capitalization was
insufficient to support its operations, (ii) power to direct the activities that
most significantly impact the economic performance of the entity was not held
by the equity holder and (iii) deficiencies in net worth of CRC were funded by
Duke Energy. The most significant activities that impacted the economic
performance of CRC were decisions made to manage delinquent receivables.
Duke Energy was considered the primary beneficiary and consolidated CRC as it
made these decisions. Neither Duke Energy Ohio nor Duke Energy Indiana
consolidated CRC.
In March 2024, Duke Energy repaid all outstanding CRC borrowings
totaling $350 million and terminated the related CRC credit facility.
Additionally, Duke Energy’s related restricted receivables outstanding at CRC
at the time of termination totaled $682 million, consisting of $316 million and
$366 million of restricted receivables that were transferred back to Duke
Energy Indiana and Duke Energy Ohio, respectively, to be collected and reported
as Receivables on the Consolidated Balance Sheets.
Receivables Financing — Credit Facilities
The following table summarizes the amounts and expiration dates of the credit facilities and associated restricted receivables described above.
Duke Energy
Duke Energy
Carolinas
Duke Energy
Progress
Duke Energy
Florida
(in millions)
CRC
DERF
DEPR
DEFR
Expiration date
(a)
(c)
April 2025
(b)
Credit facility amount
(a)
(c)
$400
(b)
Amounts borrowed at December 31, 2024
—
500
400
—
Amounts borrowed at December 31, 2023
312
500
400
325
Restricted Receivables at December 31, 2024
—
1,054
835
—
Restricted Receivables at December 31, 2023
663
991
833
532
(a)
In March 2024, Duke Energy repaid all outstanding CRC borrowing and terminated the related $350 million CRC credit facility.
(b)
In April 2024, Duke Energy Florida repaid all outstanding DEFR borrowing and terminated the related $325 million DEFR credit facility.
(c)
In January 2025, Duke Energy Carolinas repaid all outstanding DERF borrowing and terminated the related $500 million DERF credit facility.
Nuclear Asset-Recovery Bonds – Duke Energy Florida Project Finance
Duke Energy Florida Project Finance, LLC (DEFPF) is a bankruptcy
remote, wholly owned special purpose subsidiary of Duke Energy Florida. DEFPF
was formed in 2016 for the sole purpose of issuing nuclear asset-recovery
bonds to finance Duke Energy Florida’s unrecovered regulatory asset related to
Crystal River Unit 3.
In 2016, DEFPF issued senior secured bonds and used the proceeds to
acquire nuclear asset-recovery property from Duke Energy Florida. The nuclear
asset-recovery property acquired includes the right to impose, bill, collect
and adjust a non-bypassable nuclear asset-recovery charge from all Duke
Energy Florida retail customers until the bonds are paid in full and all
financing costs have been recovered. The nuclear asset-recovery bonds are
secured by the nuclear asset-recovery property and cash collections from the
nuclear asset-recovery charges are the sole source of funds to satisfy the debt
obligation. The bondholders have no recourse to Duke Energy Florida.
DEFPF is considered a VIE primarily because the equity capitalization is
insufficient to support its operations. Duke Energy Florida has the power to
direct the significant activities of the VIE as described above and therefore Duke
Energy Florida is considered the primary beneficiary and consolidates DEFPF.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
185
The following table summarizes the impact of DEFPF on Duke Energy Florida’s Consolidated Balance Sheets.
December 31,
(in millions)
2024
2023
Regulatory Assets: Current
61
59
Current Assets: Other
35
37
Other Noncurrent Assets: Regulatory assets
741
803
Current Liabilities: Other
8
8
Current maturities of long-term debt
59
59
Long-Term Debt
773
831
Storm Recovery Bonds
Duke Energy Carolinas NC Storm Funding, LLC (DECNCSF), Duke Energy
Progress NC Storm Funding, LLC (DEPNCSF) and Duke Energy Progress SC
Storm Funding, LLC (DEPSCSF) are bankruptcy remote, wholly owned special
purpose subsidiaries of Duke Energy Carolinas and Duke Energy Progress.
DECNCSF and DEPNCSF were formed in 2021 while DECSCSF was formed in
2024, all for the sole purpose of issuing storm recovery bonds to finance certain
of Duke Energy Carolinas’ and Duke Energy Progress’ unrecovered regulatory
assets related to storm costs incurred in North Carolina and South Carolina.
In 2021, DECNCSF and DEPNCSF issued senior secured bonds, and used
the proceeds to acquire storm recovery property from Duke Energy Carolinas
and Duke Energy Progress. The storm recovery property was created by state
legislation and NCUC financing orders for the purpose of financing storm costs
incurred in 2018 and 2019. In April 2024, DEPSCSF issued $177 million of
senior secured bonds and used the proceeds to acquire storm recovery property
from Duke Energy Progress. The storm recovery property was created by state
legislation and a PSCSC financing order for the purpose of financing storm
costs incurred from 2014 through 2022.
The storm recovery property acquired includes the right to impose, bill,
collect and adjust a non-bypassable charge from all Duke Energy Carolinas’
and Duke Energy Progress’ North Carolina and South Carolina retail customers
until the bonds are paid in full and all financing costs have been recovered.
The storm recovery bonds are secured by the storm recovery property and cash
collections from the storm recovery charges are the sole source of funds to
satisfy the debt obligation. The bondholders have no recourse to Duke Energy
Carolinas or Duke Energy Progress. These entities are considered VIEs primarily
because their equity capitalization is insufficient to support their operations.
Duke Energy Carolinas and Duke Energy Progress have the power to direct the
significant activities of the VIEs as described above and therefore Duke
Energy Carolinas and Duke Energy Progress are considered the primary
beneficiaries. Duke Energy Carolinas consolidates DECNCSF and Duke Energy
Progress consolidates DEPNCSF and DEPSCSF.
The following table summarizes the impact of these VIEs on Duke Energy Carolinas’ and Duke Energy Progress’ Consolidated Balance Sheets.
December 31, 2024
December 31, 2023
Duke
Energy
Carolinas
Duke Energy Progress
Duke
Energy
Carolinas
Duke
Energy
Progress
(in millions)
DECNCSF
DEPNCSF
DEPSCSF
DECNCSF
DEPNCSF
Regulatory Assets: Current
$ 12
$ 39
$
8
$ 12
$ 39
Current Assets: Other
9
27
13
9
31
Other Noncurrent Assets: Regulatory assets
189
620
155
196
643
Other Noncurrent Assets: Other
1
4
1
1
2
Current maturities of long-term debt
10
34
9
10
34
Current Liabilities: Other
2
10
7
3
8
Long-Term Debt
198
646
163
208
680
Purchasing Company – Duke Energy Florida
Duke Energy Florida Purchasing Company, LLC (DEF ProCo) is a wholly
owned special purpose subsidiary of Duke Energy Florida. DEF ProCo was
formed in 2023 as the primary procurement agent for equipment, materials
and supplies for Duke Energy Florida. DEF ProCo interacts with third-party
suppliers on Duke Energy Florida’s behalf with credit and risk support provided
by Duke Energy Florida. DEF ProCo is a qualified reseller under Florida tax
law and conveys acquired assets to Duke Energy Florida through leases on each
acquired asset.
This entity is considered a VIE primarily because the equity capitalization
is insufficient to support their operations. Duke Energy Florida has the power
to direct the significant activities of this VIE as described above and therefore
Duke Energy Florida is considered the primary beneficiary and consolidates
the procurement company.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
186
The following table summarizes the impact of this VIE on Duke Energy Florida’s Consolidated Balance Sheets.
(in millions)
December 31,
2024
December 31,
2023
Inventory
$494
462
Accounts Payable
208
188
NON-CONSOLIDATED VIEs
The following tables summarize the impact of non-consolidated VIEs on the Consolidated Balance Sheets.
December 31, 2024
(in millions)
Duke Energy
Natural Gas
Investments
Duke
Energy
Ohio
Duke
Energy
Indiana
Receivables from affiliated companies
$—
$—
$—
Investments in equity method unconsolidated affiliates
—
—
—
Other noncurrent assets
17
—
—
Total assets
$17
$—
$—
Other current liabilities
2
—
—
Other noncurrent liabilities
—
—
—
Total liabilities
2
$—
$—
Net assets
$15
$—
$—
December 31, 2023
(in millions)
Duke Energy
Natural Gas
Investments
Duke
Energy
Ohio
Duke
Energy
Indiana
Receivables from affiliated companies
$ —
$150
$208
Investments in equity method unconsolidated affiliates
67
—
—
Other noncurrent assets
43
—
—
Total assets
$110
$150
$208
Other current liabilities
4
—
—
Other noncurrent liabilities
5
—
—
Total liabilities
$
9
$ —
$ —
Net assets
$101
$150
$208
The Duke Energy Registrants are not aware of any situations where the maximum exposure to loss significantly exceeds the carrying values shown above.
Natural Gas Investments
Duke Energy has investments in various joint ventures including
pipeline and renewable natural gas projects. These entities are considered
VIEs due to having insufficient equity to finance their own activities without
subordinated financial support. Duke Energy does not have the power to direct
the activities that most significantly impact the economic performance, the
obligation to absorb losses or the right to receive benefits of these VIEs and
therefore does not consolidate these entities.
CRC
See discussion under Consolidated VIEs for additional information
related to CRC.
Amounts included in Receivables from affiliated companies in the above
table for Duke Energy Ohio and Duke Energy Indiana reflect their retained
interest in receivables sold to CRC as of December 31, 2023. The subordinated
notes held by Duke Energy Ohio and Duke Energy Indiana are stated at fair
value as of December 31, 2023. Prior to Duke Energy terminating the CRC credit
facility, carrying values of retained interests were determined by allocating
the carrying value of the receivables between assets sold and interests retained
based on relative fair value. The allocated bases of the subordinated notes
were not materially different than their face value because (i) the receivables
generally turned over in less than two months, (ii) credit losses were reasonably
predictable due to the broad customer base and lack of significant
concentration and (iii) the equity in CRC was subordinate to all retained
interests and thus would absorb losses first. The hypothetical effect on fair
value of the retained interests assuming both a 10% and a 20% unfavorable
variation in credit losses or discount rates was not material due to the short
turnover of receivables and historically low credit loss history. Interest
accrued to Duke Energy Ohio and Duke Energy Indiana on the retained interests
using the acceptable yield method.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
187
Key assumptions used in estimating fair value as of December 31, 2023, are detailed in the following table.
Duke
Energy
Ohio
Duke
Energy
Indiana
Anticipated credit loss ratio
0.6%
0.4%
Discount rate
6.1%
6.1%
Receivable turnover rate
13.9%
12.0%
The following table shows the gross and net receivables sold. See discussion under Consolidated VIEs for additional information related to
CRC’s termination in March 2024.
Duke Energy Ohio
Duke Energy Indiana
December 31,
December 31,
(in millions)
2024
2023
2024
2023
Receivables sold
$—
$361
$—
$351
Less: Retained interests
—
150
—
208
Net receivables sold
$—
$211
$—
$143
The following table shows sales and cash flows related to receivables sold and reflects CRC activity prior to its termination in March 2024.
Duke Energy Ohio
Duke Energy Indiana
Years Ended December 31,
Years Ended December 31,
(in millions)
2024
2023
2022
2024
2023
2022
Sales
Receivables sold
$474
$2,578
$2,562
$473
$3,223
$3,744
Loss recognized on sale
7
34
18
6
39
26
Cash flows
Cash proceeds from receivables sold
478
2,591
2,424
523
3,294
3,498
Collection fees received
—
1
1
—
2
2
Return received on retained interests
4
19
10
4
25
15
Cash flows from sales of receivables are reflected within Cash Flows
From Operating Activities and Cash Flows from Investing Activities on Duke
Energy Ohio’s and Duke Energy Indiana’s Consolidated Statements of Cash
Flows.
Collection fees received in connection with servicing transferred
accounts receivable were included in Operation, maintenance and other on
Duke Energy Ohio’s and Duke Energy Indiana’s Consolidated Statements of
Operations and Comprehensive Income. The loss recognized on sales of
receivables was calculated monthly by multiplying receivables sold during the
month by the required discount. The required discount was derived monthly
utilizing a three-year weighted average formula that considered charge-off
history, late charge history and turnover history on the sold receivables, as well
as a component for the time value of money. The discount rate, or component
for the time value of money, was the prior month-end Daily Simple SOFR plus a
fixed rate of 1%.
19.
REVENUE
Duke Energy recognizes revenue consistent with amounts billed under
tariff offerings or at contractually agreed upon rates based on actual physical
delivery of electric or natural gas service, including estimated volumes
delivered when billings have not yet occurred. As such, the majority of Duke
Energy’s revenues have fixed pricing based on the contractual terms of the
published tariffs. Absent decoupling mechanisms, the variability in expected
cash flows of the majority of Duke Energy’s revenue is attributable to the
customer’s volumetric demand and ultimate quantities of energy or natural
gas supplied and used during the billing period. The stand-alone selling price
of related sales are designed to support recovery of prudently incurred costs
and an appropriate return on invested assets and are primarily governed by
published tariff rates or contractual agreements approved by relevant regulatory
bodies. As described in Note 1, certain excise taxes and franchise fees levied
by state or local governments are required to be paid even if not collected from
the customer. These taxes are recognized on a gross basis as part of
revenues. Duke Energy elects to account for all other taxes net of revenues.
Performance obligations are satisfied over time as energy or natural gas
is delivered and consumed with billings generally occurring monthly and related
payments due within 30 days, depending on regulatory requirements. In no
event does the timing between payment and delivery of the goods and services
exceed one year. Using this output method for revenue recognition provides a
faithful depiction of the transfer of electric and natural gas service as customers
obtain control of the commodity and benefit from its use at delivery.
Additionally, Duke Energy has an enforceable right to consideration for energy
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
188
or natural gas delivered at any discrete point in time and will recognize
revenue at an amount that reflects the consideration to which Duke Energy is
entitled for the energy or natural gas delivered.
As described above, the majority of Duke Energy’s tariff revenues are at
will and, as such, related contracts with customers have an expected duration
of one year or less and will not have future performance obligations for
disclosure. Additionally, other long-term revenue streams, including wholesale
contracts, generally provide services that are part of a single performance
obligation, the delivery of electricity or natural gas. As such, other than material
fixed consideration under long-term contracts, related disclosures for future
performance obligations are also not applicable.
Duke Energy earns substantially all of its revenues through its
reportable segments, EU&I and GU&I.
Electric Utilities and Infrastructure
EU&I earns the majority of its revenues through retail and wholesale
electric service through the generation, transmission, distribution and sale of
electricity. Duke Energy generally provides retail and wholesale electric service
customers with their full electric load requirements or with supplemental
load requirements when the customer has other sources of electricity.
Retail electric service is generally marketed throughout Duke Energy’s
electric service territory through standard service offers. The standard service
offers are through tariffs determined by regulators in Duke Energy’s regulated
service territory. Each tariff, which is assigned to customers based on
customer class, has multiple components such as an energy charge, a demand
charge, a basic facilities charge and applicable riders. Duke Energy considers
each of these components to be aggregated into a single performance
obligation for providing electric service, or in the case of distribution only
customers in Duke Energy Ohio, for delivering electricity. Electricity is considered
a single performance obligation satisfied over time consistent with the series
guidance and is provided and consumed over the billing period, generally one
month. Retail electric service is typically provided to at-will customers who
can cancel service at any time, without a substantive penalty. Additionally, Duke
Energy adheres to applicable regulatory requirements in each jurisdiction to
ensure the collectability of amounts billed and appropriate mitigating procedures
are followed when necessary. As such, revenue from contracts with customers
for such contracts is equivalent to the electricity supplied and billed in that
period (including unbilled estimates).
Wholesale electric service is generally provided under long-term
contracts using cost-based pricing. FERC regulates costs that may be
recovered from customers and the amount of return companies are permitted
to earn. Wholesale contracts include both energy and demand charges. For full
requirements contracts, Duke Energy considers both charges as a single
performance obligation for providing integrated electric service. For contracts
where energy and demand charges are considered separate performance
obligations, energy and demand are each a distinct performance obligation
under the series guidance and are satisfied as energy is delivered and stand-
ready service is provided on a monthly basis. This service represents
consumption over the billing period and revenue is recognized consistent with
billings and unbilled estimates, which generally occur monthly. Contractual
amounts owed are typically trued up annually based upon incurred costs in
accordance with FERC published filings and the specific customer’s actual peak
demand. Estimates of variable consideration related to potential additional
billings or refunds owed are updated quarterly.
The majority of wholesale revenues are full requirements contracts
where the customers purchase the substantial majority of their energy needs
and do not have a fixed quantity of contractually required energy or capacity. As
such, related forecasted revenues are considered optional purchases.
Supplemental requirements contracts that include contracted blocks of energy
and capacity at contractually fixed prices have the following estimated
remaining performance obligations:
Remaining Performance Obligations
(in millions)
2025
2026
2027
2028
2029
Thereafter
Total
Duke Energy Carolinas
$12
$12
$12
$12
$—
$—
$ 48
Progress Energy
36
43
13
13
13
42
160
Duke Energy Progress
6
6
6
6
6
20
50
Duke Energy Florida
30
37
7
7
7
22
110
Duke Energy Indiana
17
17
15
5
—
—
54
Revenues for block sales are recognized monthly as energy is delivered
and stand-ready service is provided, consistent with invoiced amounts and
unbilled estimates.
Gas Utilities and Infrastructure
GU&I earns its revenue through retail and wholesale natural gas service
through the transportation, distribution and sale of natural gas. Duke Energy
generally provides retail and wholesale natural gas service customers with all
natural gas load requirements. Additionally, while natural gas can be stored,
substantially all natural gas provided by Duke Energy is consumed by customers
simultaneously with receipt of delivery.
Retail natural gas service is marketed throughout Duke Energy’s natural
gas service territory using published tariff rates. The tariff rates are established
by regulators in Duke Energy’s service territories. Each tariff, which is
assigned to customers based on customer class, have multiple components,
such as a commodity charge, demand charge, customer or monthly charge and
transportation costs. Duke Energy considers each of these components to be
aggregated into a single performance obligation for providing natural gas
service. For contracts where Duke Energy provides all of the customer’s natural
gas needs, the delivery of natural gas is considered a single performance
obligation satisfied over time, and revenue is recognized monthly based on
billings and unbilled estimates as service is provided and the commodity is
consumed over the billing period. Additionally, natural gas service is typically at
will and customers can cancel service at any time, without a substantive
penalty. Duke Energy also adheres to applicable regulatory requirements to
ensure the collectability of amounts billed and receivable and appropriate
mitigating procedures are followed when necessary.
Certain long-term individually negotiated contracts exist to provide
natural gas service. These contracts are regulated and approved by state
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
189
commissions. The negotiated contracts may have multiple components,
including a natural gas and a demand charge, similar to retail natural gas
contracts. Duke Energy considers each of these components to be a single
performance obligation for providing natural gas service. This service represents
consumption over the billing period, generally one month.
Fixed capacity payments under long-term contracts for the GU&I
segment include minimum margin contracts and supply arrangements with
municipalities and power generation facilities. Revenues for related sales are
recognized monthly as natural gas is delivered and stand-ready service is
provided, consistent with invoiced amounts and unbilled estimates. Estimated
remaining performance obligations are as follows:
Remaining Performance Obligations
(in millions)
2025
2026
2027
2028
2029
Thereafter
Total
Piedmont
$64
$51
$49
$46
$44
$151
$405
Other
The remainder of Duke Energy’s operations is presented as Other, which
does not include material revenues from contracts with customers.
Disaggregated Revenues
For the EU&I and GU&I segments, revenue by customer class is most
meaningful to Duke Energy as each respective customer class collectively
represents unique customer expectations of service, generally has different
energy and demand requirements, and operates under tailored, regulatory
approved pricing structures. Additionally, each customer class is impacted
differently by weather and a variety of economic factors including the level of
population growth, economic investment, employment levels, and regulatory
activities in each of Duke Energy’s jurisdictions. As such, analyzing revenues
disaggregated by customer class allows Duke Energy to understand the nature,
amount, timing and uncertainty of revenue and cash flows arising from
contracts with customers. Disaggregated revenues are presented as follows:
Year Ended December 31, 2024
(in millions)
By market or type of customer
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Electric Utilities and Infrastructure
Residential
$12,901
$4,150
$ 6,592
$2,872
$3,720
$1,009
$1,149
$
—
Commercial
8,207
3,080
3,718
1,754
1,964
590
818
—
Industrial
3,427
1,488
1,066
742
324
149
724
—
Wholesale
2,205
547
1,414
1,268
146
51
194
—
Other revenues
1,029
350
674
343
331
89
107
—
Total Electric Utilities and Infrastructure revenue from contracts with
customers
$27,769
$9,615
$13,464
$6,979
$6,485
$1,888
$2,992
$
—
Gas Utilities and Infrastructure
Residential
$ 1,320
$
—
$
—
$
—
$
—
$ 427
$
—
$ 893
Commercial
639
—
—
—
—
153
—
486
Industrial
158
—
—
—
—
33
—
125
Power Generation
—
—
—
—
—
—
—
33
Other revenues
126
—
—
—
—
26
—
100
Total Gas Utilities and Infrastructure revenue from contracts with customers
$ 2,243
$
—
$
—
$
—
$
—
$ 639
$
—
$1,637
Other
Revenue from contracts with customers
$
38
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Total revenue from contracts with customers
$30,050
$9,615
$13,464
$6,979
$6,485
$2,527
$2,992
$1,637
Other revenue sources(a)
$
307
$ 103
$
169
$
38
$ 110
$
18
$
48
$
92
Total revenues
$30,357
$9,718
$13,633
$7,017
$6,595
$2,545
$3,040
$1,729
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
190
Year Ended December 31, 2023
(in millions)
By market or type of customer
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Electric Utilities and Infrastructure
Residential
$12,098
$3,409
$ 6,510
$2,540
$3,970
$ 947
$1,233
$
—
Commercial
7,895
2,670
3,762
1,588
2,174
552
911
—
Industrial
3,416
1,334
1,105
733
372
191
786
—
Wholesale
2,175
492
1,388
1,240
148
46
248
—
Other revenues
962
318
590
325
265
93
157
—
Total Electric Utilities and Infrastructure revenue from contracts with
customers
$26,546
$8,223
$13,355
$6,426
$6,929
$1,829
$3,335
$
—
Gas Utilities and Infrastructure
Residential
$ 1,226
$
—
$
—
$
—
$
—
$ 435
$
—
$ 792
Commercial
605
—
—
—
—
154
—
450
Industrial
141
—
—
—
—
26
—
115
Power Generation
—
—
—
—
—
—
—
31
Other revenues
119
—
—
—
—
24
—
95
Total Gas Utilities and Infrastructure revenue from contracts with customers
$ 2,091
$
—
$
—
$
—
$
—
$ 639
$
—
$1,483
Other
Revenue from contracts with customers
$
37
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Total revenue from contracts with customers
$28,674
$8,223
$13,355
$6,426
$6,929
$2,468
$3,335
$1,483
Other revenue sources(a)
$
386
$
65
$
189
$
62
$ 107
$
39
$
64
$ 145
Total revenues
$29,060
$8,288
$13,544
$6,488
$7,036
$2,507
$3,399
$1,628
Year Ended December 31, 2022
(in millions)
By market or type of customer
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Electric Utilities and Infrastructure
Residential
$11,377
$3,275
$ 5,812
$2,378
$3,434
$ 862
$1,430
$
—
Commercial
7,356
2,396
3,396
1,480
1,916
517
1,049
—
Industrial
3,504
1,251
1,095
770
325
202
956
—
Wholesale
2,856
561
1,785
1,346
439
127
383
—
Other revenues
795
372
994
768
226
61
19
—
Total Electric Utilities and Infrastructure revenue from contracts with
customers
$25,888
$7,855
$13,082
$6,742
$6,340
$1,769
$3,837
$
—
Gas Utilities and Infrastructure
Residential
$ 1,462
$
—
$
—
$
—
$
—
$ 488
$
—
$ 974
Commercial
765
—
—
—
—
180
—
585
Industrial
170
—
—
—
—
24
—
144
Power Generation
—
—
—
—
—
—
—
94
Other revenues
360
—
—
—
—
25
—
271
Total Gas Utilities and Infrastructure revenue from contracts with customers
$ 2,757
$
—
$
—
$
—
$
—
$ 717
$
—
$2,068
Other
Revenue from contracts with customers
$
30
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Total revenue from contracts with customers
$28,675
$7,855
$13,082
$6,742
$6,340
$2,486
$3,837
$2,068
Other revenue sources(a)
$
93
$
2
$
43
$
11
$
13
$
28
$
85
$
56
Total revenues
$28,768
$7,857
$13,125
$6,753
$6,353
$2,514
$3,922
$2,124
(a)
Other revenue sources include revenues from leases, derivatives and alternative revenue programs that are not considered revenues from contracts with customers. Alternative revenue programs in certain jurisdictions
include regulatory mechanisms that periodically adjust for over or under collection of related revenues.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
191
The following table presents the reserve for credit losses for trade and other receivables.
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Balance at December 31, 2021
$ 121
$ 42
$ 36
$ 21
$ 16
$ 4
$ 3
$ 15
Write-Offs
(158)
(73)
(70)
(36)
(34)
—
—
(12)
Credit Loss Expense
160
40
72
17
55
2
1
11
Other Adjustments
93
59
43
42
(1)
—
—
—
Balance at December 31, 2022
$ 216
$ 68
$ 81
$ 44
$ 36
$ 6
$ 4
$ 14
Write-Offs
(164)
(71)
(84)
(41)
(42)
—
—
(10)
Credit Loss Expense
101
35
48
12
37
3
1
7
Other Adjustments
52
24
29
29
—
—
—
—
Balance at December 31, 2023
$ 205
$ 56
$ 74
$ 44
$ 31
$ 9
$ 5
$ 11
Write-Offs
(132)
(55)
(73)
(45)
(28)
—
—
(4)
Credit Loss Expense
98
39
51
25
26
3
2
3
Other Adjustments
38
29
21
20
—
31
8
—
Balance at December 31, 2024
$ 209
$ 69
$ 73
$ 44
$ 29
$43
$15
$ 10
Trade and other receivables are evaluated based on an estimate of the risk of loss over the life of the receivable and current and historical conditions using
supportable assumptions. Management evaluates the risk of loss for trade and other receivables by comparing the historical write-off amounts to total revenue
over a specified period. Historical loss rates are adjusted due to the impact of current conditions, as well as forecasted conditions over a reasonable time period. The
calculated write-off rate can be applied to the receivable balance for which an established reserve does not already exist. Management reviews the assumptions
and risk of loss periodically for trade and other receivables.
20.
STOCKHOLDERS’ EQUITY
Basic EPS is computed by dividing net income available to Duke Energy
common stockholders, as adjusted for distributed and undistributed earnings
allocated to participating securities and accumulated preferred dividends, by
the weighted average number of common shares outstanding during the
period. Diluted EPS is computed by dividing net income available to Duke Energy
common stockholders, as adjusted for distributed and undistributed earnings
allocated to participating securities and accumulated preferred dividends, by
the diluted weighted average number of common shares outstanding during
the period. Diluted EPS reflects the potential dilution that could occur if securities
or other agreements to issue common stock, such as equity forward sale
agreements or convertible debt, were exercised or settled. Duke Energy applies
the if-converted method for calculating any potential dilutive effect of the
conversion of the outstanding convertible notes on diluted EPS, if applicable.
Duke Energy’s participating securities are RSUs that are entitled to dividends
declared on Duke Energy common stock during the RSUs vesting periods.
Dividends declared on preferred stock are recorded on the Consolidated
Statements of Operations as a reduction of net income to arrive at net income
available to Duke Energy common stockholders. Dividends accumulated on
preferred stock are an adjustment to net income used in the calculation of basic
and diluted EPS.
The following table presents Duke Energy’s basic and diluted EPS calculations, the weighted average number of common shares outstanding and common
and preferred share dividends declared.
Years Ended December 31,
(in millions, except per share amounts)
2024
2023
2022
Net Income available to Duke Energy common stockholders
$ 4,402
$ 2,735
$ 2,444
Less: Income (Loss) from discontinued operations attributable to Duke Energy common stockholders
7
(1,391)
(1,215)
Accumulated preferred stock dividends adjustment
14
—
—
Less: Impact of participating securities
6
6
2
Income from continuing operations available to Duke Energy common stockholders
$ 4,403
$ 4,120
$ 3,657
Income (Loss) from discontinued operations, net of tax
$
10
$ (1,455)
$ (1,323)
Add: (Income) Loss attributable to NCI
(3)
64
108
Income (Loss) from discontinued operations attributable to Duke Energy common stockholders
$
7
$ (1,391)
$ (1,215)
Weighted average common shares outstanding – basic and diluted
772
771
770
EPS from continuing operations available to Duke Energy common stockholders
Basic and Diluted(a)
$
5.70
$
5.35
$
4.74
Earnings (Loss) Per Share from discontinued operations attributable to Duke Energy common stockholders
Basic and Diluted(a)
$
0.01
$ (1.81)
$ (1.57)
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
192
Years Ended December 31,
(in millions, except per share amounts)
2024
2023
2022
Potentially dilutive items excluded from the calculation(b)
2
2
2
Dividends declared per common share
$
4.14
$
4.06
$
3.98
Dividends declared on Series A preferred stock per depositary share(c)
$ 1.437
$ 1.437
$ 1.437
Dividends declared on Series B preferred stock per share(d)
$48.750
$48.750
$48.750
(a)
For the periods presented subsequent to issuance in April 2023, the convertible notes were excluded from the calculations of diluted EPS because the effect was antidilutive.
(b)
Performance stock awards were not included in the dilutive securities calculation because the performance measures related to the awards had not been met.
(c)
5.75% Series A Cumulative Redeemable Perpetual Preferred Stock dividends are payable quarterly in arrears on the 16th day of March, June, September and December. The preferred stock has a $25 liquidation
preference per depositary share.
(d)
4.875% Series B Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock dividends were payable semiannually in arrears on the 16th day of March and September. The preferred stock was redeemed on
September 16, 2024.
Common Stock
In November 2022, Duke Energy filed a prospectus supplement and
executed an Equity Distribution Agreement (EDA) under which it may sell up to
$1.5 billion of its common stock through an ATM offering program, including
an equity forward sales component. Under the terms of the EDA, Duke Energy
may issue and sell shares of common stock through September 2025.
The following table shows ATM equity issuances pursuant to forward
contracts executed during the year ended December 31, 2024.
Tranche
Shares Priced
Initial Forward Price
1
802,371
$ 92.77
2
729,674
$101.10
3
737,280
$100.99
4
662,266
$111.45
Total
2,931,591
In December 2024, Duke Energy physically settled the equity forwards by
delivering approximately 2.9 million shares of common stock in exchange for
net cash proceeds of $297 million. Additionally, in December 2024, a fifth and
final tranche of ATM equity issuances delivered 671,216 shares of common
stock in exchange for net cash proceeds of $74 million, resulting in a total of
3.6 million shares of common stock issued in exchange for total cash proceeds
of $371 million for the year ended December 31, 2024.
Preferred Stock
On September 16, 2024, Duke Energy redeemed all 1 million outstanding
shares of Series B Preferred Stock for a redemption price of $1,000 per share
or $1 billion in total. Following the redemption, dividends ceased to accrue on
the shares of Series B Preferred Stock, shares of the Series B Preferred Stock
were no longer deemed outstanding and all rights of the holders of such shares
of Series B Preferred Stock terminated. In conjunction with the redemption,
Duke Energy recorded $16 million in preferred stock redemption costs, calculated
as the difference of $11 million between the carrying value on the redemption
date of the Series B Preferred Stock and the total amount of consideration paid
to redeem, and including the recognition of an excise tax liability under the
IRA of $5 million. The preferred stock redemption costs were recorded as a
reduction to Retained earnings on Duke Energy Corporation’s Consolidated
Balance Sheets during the year ended December 31, 2024.
The Series A Preferred Stock has no maturity or mandatory redemption
date, is not redeemable at the option of the holders and Duke Energy may call
the preferred stock, in whole or in part, at any time at a redemption price of
$25 per depositary share. Duke Energy is also required to redeem all accumulated
and unpaid dividends if the call option is exercised.
Dividends issued on its Series A Preferred Stock are subject to approval
by the Board of Directors. However, the deferral of dividend payments on the
preferred stock prohibits the declaration of common stock dividends.
The Series A Preferred Stock rank, with respect to dividends and
distributions upon liquidation or dissolution:
• senior to Common Stock and to each other class or series of capital
stock established after the original issue date of the Series A Preferred
Stock that is expressly made subordinated to the Series A Preferred
Stock;
• on a parity with any class or series of capital stock established after
the original issue date of the Series A Preferred Stock that is not
expressly made senior or subordinated to the Series A Preferred Stock;
• junior to any class or series of capital stock established after the
original issue date of the Series A Preferred Stock that is expressly
made senior to the Series A Preferred Stock;
• junior to all existing and future indebtedness (including indebtedness
outstanding under Duke Energy’s credit facilities, unsecured senior
notes, junior subordinated debentures and commercial paper) and
other liabilities with respect to assets available to satisfy claims
against Duke Energy; and
• structurally subordinated to existing and future indebtedness and
other liabilities of Duke Energy’s subsidiaries and future preferred
stock of subsidiaries.
Holders of Series A Preferred Stock have no voting rights with respect to
matters that generally require the approval of voting stockholders. The limited
voting rights of holders of Series A Preferred Stock include the right to vote
as a single class, respectively, on certain matters that may affect the preference
or special rights of the preferred stock, except in the instance that Duke
Energy elects to defer the payment of dividends for a total of six quarterly full
dividend periods for Series A Preferred Stock. If dividends are deferred for a
cumulative total of six quarterly full dividend periods for Series A Preferred
Stock, whether or not for consecutive dividend periods, holders of the preferred
stock have the right to elect two additional Board members to the Board of
Directors.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
193
21.
SEVERANCE
During 2023, as Duke Energy transitioned from the foundational work of
energy transition strategy planning to the launch of the largest power generation
build period in its history, it streamlined certain functions and changed how
it was structured and staffed to ensure the resulting organization reflected best-
in-class standards, was optimally aligned with its jurisdictions, and was
best positioned to serve its customers, stakeholders and investors. As a result,
Duke Energy extended involuntary severance benefits to certain employees in
specific areas as a part of its organizational optimization. For the year ended
December 31, 2023, Duke Energy recorded severance charges of approximately
$97 million within Operations, maintenance and other on the Consolidated
Statements of Operations. These charges, along with amortization of
severance regulatory deferrals and reversals of certain prior period severance
costs, resulted in a total severance charge of $102 million in 2023.
During 2022, Duke Energy identified opportunities to eliminate work and
create sustainable savings through a workload reduction initiative with a focus
on process improvement through digital technology, governance simplification
and elimination of low-value work. As a result, Duke Energy extended
involuntary severance benefits to certain employees in specific areas as a part
of this initiative.
The following table presents the direct and allocated severance and related charges accrued for 341 employees in 2024, 682 employees in 2023 and 233
employees in 2022 by the Duke Energy Registrants within Operation, maintenance and other on the Consolidated Statements of Operations.
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Year Ended December 31, 2024(a)(b)
$ (28)
$(11)
$ (9)
$ (5)
$ (4)
$(2)
$(4)
$(2)
Year Ended December 31, 2023(c)(d)(e)
102
53
33
21
12
3
6
4
Year Ended December 31, 2022(f)(g)
65
40
20
17
3
1
2
2
(a)
Includes adjustments associated with 2022 severance charges of approximately $(1) million and $(1) million for Duke Energy and Duke Energy Carolinas, respectively.
(b)
Includes adjustments associated with 2023 severance charges of approximately $(27) million, $(11) million, $(9) million, $(5) million, $(4) million, $(2) million, $(4) million and $(2) million for Duke Energy, Duke Energy
Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont, respectively.
(c)
Includes amortization of deferred severance charges of approximately $22 million, $14 million, $8 million and $8 million for Duke Energy, Duke Energy Carolinas, Progress Energy and Duke Energy Progress, respectively.
(d)
Includes adjustments associated with 2021 severance charges of approximately $(6) million, $(2) million, $(3) million, $(2) million, $(1) million and $(1) million for Duke Energy, Duke Energy Carolinas, Progress Energy,
Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana, respectively.
(e)
Includes adjustments associated with 2022 severance charges of approximately $(14) million, $(7) million, $(5) million, $(3) million, $(2) million, $(1) million and $(1) million for Duke Energy, Duke Energy Carolinas,
Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio and Duke Energy Indiana, respectively.
(f)
Includes amortization of deferred severance charges of approximately $33 million, $22 million, $11 million and $11 million for Duke Energy, Duke Energy Carolinas, Progress Energy and Duke Energy Progress, respectively.
(g)
Includes adjustments associated with 2021 severance charges of approximately $(19) million, $(6) million, $(8) million, $(4) million, $(4) million, $(1) million, $(2) million and $(1) million for Duke Energy, Duke Energy
Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont, respectively.
The table below presents the severance liability for past and ongoing severance plans including the plans described above.
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Balance at December 31, 2022
$ 64
$ 15
$ 6
$ 4
$ 2
$—
$—
$ 1
Provision/Adjustments
80
30
13
6
7
1
4
2
Cash Reductions
(42)
(10)
(3)
(2)
(1)
—
—
(1)
Balance at December 31, 2023
$102
$ 35
$ 16
$ 8
$ 8
$ 1
$ 4
$ 2
Provision/Adjustments
(28)
(6)
(3)
(1)
(2)
(1)
(3)
(1)
Cash Reductions
(55)
(21)
(11)
(6)
(5)
—
(1)
(1)
Balance at December 31, 2024
$ 19
$ 8
$ 2
$ 1
$ 1
$—
$—
$—
22.
STOCK-BASED COMPENSATION
The Duke Energy Corporation 2023 Long-Term Incentive Plan (the 2023
Plan) provides for the grant of stock-based compensation awards to employees
and outside directors. The 2023 Plan superseded the Duke Energy Corporation
2015 Long-Term Incentive Plan (the 2015 Plan). No additional grants will be
made from the 2015 Plan. The 2023 Plan reserves 15 million shares of
common stock for issuance. Duke Energy has historically issued new shares
upon exercising or vesting of share-based awards. However, Duke Energy may
use a combination of new share issuances and open market repurchases for
share-based awards that are exercised or vest in the future. Duke Energy has
not determined with certainty the amount of such new share issuances or open
market repurchases.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
194
The following table summarizes the total expense recognized by the
Duke Energy Registrants, net of tax, for stock-based compensation.
Years Ended December 31,
(in millions)
2024
2023
2022
Duke Energy
$70
$71
$74
Duke Energy Carolinas
25
25
27
Progress Energy
28
28
27
Duke Energy Progress
17
17
17
Duke Energy Florida
11
11
10
Duke Energy Ohio
5
5
5
Duke Energy Indiana
7
7
7
Piedmont
4
4
4
Duke Energy’s pretax stock-based compensation costs, the tax benefit
associated with stock-based compensation expense and stock-based
compensation costs capitalized are included in the following table.
Years Ended December 31,
(in millions)
2024
2023
2022
RSU awards
$49
$54
$ 58
Performance awards
47
43
42
Pretax stock-based compensation cost
$96
$97
$100
Stock-based compensation costs capitalized
6
6
5
Stock-based compensation expense
$90
$91
$ 95
Tax benefit associated with stock-based compensation
expense
$20
$20
$ 21
RESTRICTED STOCK UNIT AWARDS
RSU awards generally vest over periods from immediate to three years.
Fair value amounts are based on the market price of Duke Energy’s common
stock on the grant date. The following table includes information related to RSU
awards.
Years Ended December 31,
2024
2023
2022
Shares granted (in thousands)
598
670
654
Fair value (in millions)
$ 59
$ 65
$ 64
The following table summarizes information about RSU awards
outstanding.
Shares
(in thousands)
Weighted Average
Grant Date Fair Value
(per share)
Outstanding at December 31, 2023
1,115
$96
Granted
598
99
Vested
(581)
95
Forfeited
(73)
98
Outstanding at December 31, 2024
1,059
98
RSU awards expected to vest
1,014
98
The total grant date fair value of shares vested during the years ended
December 31, 2024, 2023 and 2022, was $55 million, $52 million and
$49 million, respectively. At December 31, 2024, Duke Energy had $37 million
of unrecognized compensation cost, which is expected to be recognized over a
weighted average period of 24 months.
PERFORMANCE AWARDS
Stock-based performance awards generally vest after three years to the
extent performance targets are met. The actual number of shares issued will
range from zero to 200% of target shares, depending on the level of performance
achieved.
Performance awards contain performance conditions and a market
condition. The performance conditions are based on Duke Energy’s cumulative
adjusted EPS and total incident case rate (total incident case rate is one of
our key employee safety metrics). The market condition is based on TSR of Duke
Energy relative to a predefined peer group.
Relative TSR is valued using a path-dependent model that incorporates
expected relative TSR into the fair value determination of Duke Energy’s
performance-based share awards. The model uses three-year historical
volatilities and correlations for all companies in the predefined peer group,
including Duke Energy, to simulate Duke Energy’s relative TSR as of the end of
the performance period. For each simulation, Duke Energy’s relative TSR
associated with the simulated stock price at the end of the performance period
plus expected dividends within the period results in a value per share for the
award portfolio. The average of these simulations is the expected portfolio value
per share. Actual life to date results of Duke Energy’s relative TSR for each
grant are incorporated within the model. For performance awards granted in
2024, the model used a risk-free interest rate of 4.49%, which reflects the yield
on three-year Treasury bonds as of the grant date, and an expected volatility
of 18.7% based on Duke Energy’s historical volatility over three years using daily
stock prices.
The following table includes information related to stock-based
performance awards.
Years Ended December 31,
2024
2023
2022
Shares granted assuming target performance (in
thousands)
440
422
408
Fair value (in millions)
$ 42
$ 42
$ 40
The following table summarizes information about stock-based
performance awards outstanding and assumes payout at the target level.
Shares
(in thousands)
Weighted Average
Grant Date Fair Value
(per share)
Outstanding at December 31, 2023
1,115
$96
Granted
440
95
Vested
(338)
88
Forfeited
(30)
96
Outstanding at December 31, 2024
1,187
98
Stock-based performance awards expected
to vest
1,156
98
The total grant date fair value of shares vested during the years ended
December 31, 2024, 2023 and 2022, was $30 million, $31 million and
$25 million, respectively. At December 31, 2024, Duke Energy had $24 million
of unrecognized compensation cost, which is expected to be recognized over a
weighted average period of 22 months.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
195
23.
EMPLOYEE BENEFIT PLANS
DEFINED BENEFIT RETIREMENT PLANS
Duke Energy and certain subsidiaries maintain, and the Subsidiary
Registrants participate in, qualified, non-contributory defined benefit
retirement plans, which consist of the Duke Energy Retirement Cash Balance
Plan (RCBP) and the Duke Energy Legacy Pension Plan (DELPP) These plans
cover most employees using a cash balance formula. Under a cash balance
formula, a plan participant accumulates a retirement benefit consisting of pay
credits based upon a percentage of current eligible earnings, age or age
and years of service and interest credits. Certain employees are eligible for
benefits that use a final average earnings formula. Under these final average
earnings formulas, a plan participant accumulates a retirement benefit equal to
the sum of percentages of their (i) highest three-, four- or five-year average
earnings, (ii) highest three-, four- or five-year average earnings in excess of
covered compensation per year of participation (maximum of 35 years) or
(iii) highest three-year average earnings times years of participation in excess
of 35 years. Duke Energy also maintains, and the Subsidiary Registrants
participate in, non-qualified, non-contributory defined benefit retirement plans
that cover certain executives. The qualified and non-qualified, non-
contributory defined benefit plans are closed to new participants.
Duke Energy uses a December 31 measurement date for its defined
benefit retirement plan assets and obligations. Actuarial gains experienced by
the defined benefit retirement plans in remeasuring plan obligations as of
December 31, 2024, were primarily attributable to the increase in the discount
rate used to measure plan obligations. Actuarial losses experienced by the
defined benefit retirement plans in remeasuring plan assets as of December 31,
2024, were primarily attributable to actual investment performance that was
less than expected investment performance. Actuarial gains experienced by the
defined benefit retirement plans in remeasuring plan assets on December 31,
2023, were primarily attributable to actual investment performance that
exceeded expected investment performance. Actuarial losses experienced by
the defined benefit retirement plans in remeasuring plan obligations as of
December 31, 2023, were primarily attributable to the decrease in the discount
rate used to measure plan obligations.
As a result of the application of settlement accounting due to total lump-
sum benefit payments exceeding the settlement threshold (defined as the sum
of service cost and interest cost on projected benefit obligation components
of net periodic benefit costs) for one of its qualified pension plans, Duke Energy
recognized settlement charges of $72 million, of which $60 million was
recorded to Regulatory Assets within Other Noncurrent Assets on the
Consolidated Balance Sheets and $12 million was recorded to Other income
and expenses, net, within the Consolidated Statement of Operations as of, and
for the year ended, December 31, 2024. No settlement charges were recorded
in 2023. Duke Energy recognized settlement charges of $117 million, of which
$95 million was recorded to Regulatory Assets within Other Noncurrent
Assets on the Consolidated Balance Sheets and $22 million was recorded to
Other income and expenses, net, within the Consolidated Statement of
Operations as of, and for the year ended, December 31, 2022.
Settlement charges recognized by the Subsidiary Registrants as of
December 31, 2024, which represents amounts allocated by Duke Energy for
employees of the Subsidiary Registrants and allocated charges for their
proportionate share of settlement charges for employees of Duke Energy’s
shared service affiliate, and recorded to Regulatory Assets within Other
Noncurrent Assets on the Consolidated Balance Sheets were $31 million for
Duke Energy Carolinas, $23 million for Progress Energy, $16 million for Duke
Energy Progress, $7 million for Duke Energy Florida, $3 million for Duke Energy
Indiana, and $4 million for Piedmont. Settlement charges recognized by the
Subsidiary Registrants as of December 31, 2024, recorded to Other income and
expenses, net, within the 2024 Consolidated Statements of Operations were
$3 million for Duke Energy Carolinas, $5 million for Progress Energy, $5 million
for Duke Energy Progress, $2 million for Duke Energy Ohio and $1 million for
Piedmont.
Settlement charges recognized by the Subsidiary Registrants as of
December 31, 2022, which represent amounts allocated by Duke Energy for
employees of the Subsidiary Registrants and allocated charges for their
proportionate share of settlement charges for employees of Duke Energy’s
shared services affiliate, and recorded to Regulatory Assets within Other
Noncurrent Assets on the Consolidated Balance Sheets were $35 million for Duke
Energy Carolinas, $23 million for Progress Energy, $16 million for Duke
Energy Progress, $7 million for Duke Energy Florida, $8 million for Duke Energy
Indiana and $29 million for Piedmont. Settlement charges recognized by the
Subsidiary Registrants as of December 31, 2022, recorded to Other income and
expenses, net, within the 2022 Consolidated Statements of Operations were
$3 million for Duke Energy Carolinas, $5 million for Progress Energy, $5 million
for Duke Energy Progress, $1 million for Duke Energy Florida, $5 million for
Duke Energy Ohio and $6 million for Piedmont.
The settlement charges reflect the recognition of a pro-rata portion of
previously unrecognized actuarial losses, equal to the percentage of reduction
in the projected benefit obligation resulting from total lump-sum benefit
payments. Settlement charges recognized as a regulatory asset within Other
Noncurrent Assets on the Consolidated Balance Sheets are amortized over the
average remaining service period for participants in the plan. Amortization of
settlement charges is disclosed in the tables below as a component of net
periodic pension costs.
Effective December 31, 2022, Duke Energy Florida changed its method
for calculating the market related value of plan assets (MRVA) from the fair
value method to a method that recognizes changes in fair value of its plan
assets over a five-year period. This represents a change in regulatory treatment
that will serve to mitigate the impact of market volatility on retail customer
rates, resulting in the timing of net periodic pension cost recognition that is
more consistent with treatment of the related cost in the ratemaking process.
The three-year retrospective impact of this method change of $24 million
was recognized by Duke Energy, Progress Energy and Duke Energy Florida,
respectively, and was recorded to Other income and expenses, net, within the
Consolidated Statement of Operations as of December 31, 2022, and has been
disclosed in the tables below as a component of net periodic pension costs.
Net periodic benefit costs disclosed in the tables below represent the
cost of the respective benefit plan for the periods presented prior to
capitalization of amounts reflected as Net property, plant and equipment, on
the Consolidated Balance Sheets. Only the service cost component of net periodic
benefit costs is eligible to be capitalized. The remaining non-capitalized
portions of net periodic benefit costs are classified as either: (1) service cost,
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
196
which is recorded in Operations, maintenance and other on the Consolidated
Statements of Operations; or as (2) components of non-service cost, which is
recorded in Other income and expenses, net on the Consolidated Statements
of Operations. Amounts presented in the tables below for the Subsidiary
Registrants represent the amounts of pension and other post-retirement benefit
cost allocated by Duke Energy for employees of the Subsidiary Registrants.
Additionally, the Consolidated Statements of Operations of the Subsidiary
Registrants also include allocated net periodic benefit costs for their
proportionate share of pension and post-retirement benefit cost for employees
of Duke Energy’s shared services affiliate that provide support to the
Subsidiary Registrants. However, in the tables below, these amounts are only
presented within the Duke Energy column (except for amortization of settlement
charges). These allocated amounts are included in the governance and
shared service costs discussed in Note 14.
Duke Energy’s policy is to fund amounts on an actuarial basis to provide
assets sufficient to meet benefit payments to be paid to plan participants. The
following table includes information related to the Duke Energy Registrants’
contributions to its qualified defined benefit pension plans.
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Contributions Made:
2024
$100
$26
$23
$14
$9
$5
$8
$3
2023
100
26
22
13
9
5
8
3
2022
58
15
13
8
5
3
5
2
QUALIFIED PENSION PLANS
Components of Net Periodic Pension Costs
Year Ended December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Service cost
$ 114
$ 37
$ 32
$ 19
$ 13
$ 3
$ 6
$ 4
Interest cost on projected benefit obligation
325
78
103
47
56
17
26
9
Expected return on plan assets
(613)
(161)
(217)
(99)
(116)
(25)
(42)
(20)
Amortization of actuarial loss
36
8
10
6
5
1
4
3
Amortization of prior service credit
(13)
(1)
—
—
—
—
(2)
(7)
Amortization of settlement charges(c)
32
12
10
9
2
2
2
5
Net periodic pension costs(a)(b)
$(119)
$ (27)
$ (62)
$(18)
$ (40)
$ (2)
$ (6)
$ (6)
Year Ended December 31, 2023
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Service cost
$ 117
$ 38
$ 33
$ 19
$ 13
$ 3
$ 6
$ 4
Interest cost on projected benefit obligation
344
84
107
49
57
18
27
9
Expected return on plan assets
(588)
(160)
(198)
(93)
(104)
(24)
(40)
(20)
Amortization of actuarial loss
10
2
4
2
2
—
2
—
Amortization of prior service credit
(14)
(1)
—
—
—
—
(2)
(7)
Amortization of settlement charges
19
9
5
3
1
—
1
4
Net periodic pension costs(a)(b)
$(112)
$ (28)
$ (49)
$(20)
$ (31)
$ (3)
$ (6)
$(10)
Year Ended December 31, 2022
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Service cost
$ 152
$ 48
$ 43
$ 25
$ 17
$ 4
$ 9
$ 5
Interest cost on projected benefit obligation
249
59
77
35
41
13
20
8
Expected return on plan assets
(558)
(152)
(183)
(88)
(94)
(23)
(37)
(24)
Amortization of actuarial loss
81
16
23
12
12
4
9
5
Amortization of prior service credit
(18)
(3)
—
—
—
—
(2)
(7)
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
197
Year Ended December 31, 2022
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Amortization of settlement charges(c)
32
9
8
7
1
5
1
7
MRVA method change
24
—
24
—
24
—
—
—
Net periodic pension costs(a)(b)
$ (38)
$ (23)
$
(8)
$ (9)
$ 1
$ 3
$ —
$ (6)
(a)
Duke Energy amounts exclude $2 million, $3 million and $3 million for the years ended December 2024, 2023 and 2022, respectively, of regulatory asset amortization resulting from purchase accounting adjustments
associated with Duke Energy’s merger with Cinergy in April 2006.
(b)
Duke Energy Ohio amounts exclude $1 million, $1 million and $1 million for the years ended December 2024, 2023 and 2022, respectively, of regulatory asset amortization resulting from purchase accounting adjustments
associated with Duke Energy’s merger with Cinergy in April 2006.
(c)
Includes settlement charges not deferred as a regulatory asset.
Amounts Recognized in Accumulated Other Comprehensive Income and Regulatory Assets
Year Ended December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Regulatory assets, net increase
$147
$39
$33
$ 1
$31
$11
$ 6
$16
Accumulated other comprehensive loss (income)
Deferred income tax benefit
$
3
$—
$—
$—
$—
$—
$—
$—
Amortization of prior year service credit
1
—
—
—
—
—
—
—
Amortization of prior year actuarial losses
(12)
—
1
—
—
—
(2)
—
Net amount recognized in accumulated other comprehensive income
$ (8)
$—
$ 1
$—
$—
$—
$ (2)
$—
Year Ended December 31, 2023
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Regulatory assets, net increase (decrease)
$ 5
$(14)
$ 8
$—
$ 9
$ (3)
$ (2)
$13
Accumulated other comprehensive loss (income)
Amortization of prior year actuarial losses
(2)
—
—
—
—
—
—
—
Net amount recognized in accumulated other comprehensive income
$(2)
$ —
$—
$—
$—
$—
$—
$—
Reconciliation of Funded Status to Net Amount Recognized
Year Ended December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Change in Projected Benefit Obligation
Obligation at prior measurement date
$6,299
$1,514
$1,990
$ 911
$1,069
$325
$496
$175
Service cost
107
36
30
18
12
3
6
4
Interest cost
325
78
103
47
56
17
26
9
Actuarial (gain)/loss
(106)
(13)
(50)
(27)
(22)
(3)
(16)
5
Benefits paid
(645)
(177)
(198)
(111)
(88)
(33)
(41)
(12)
Transfers
—
6
—
—
—
—
—
—
Obligation at measurement date
$5,980
$1,444
$1,875
$ 838
$1,027
$309
$471
$181
Accumulated Benefit Obligation at measurement date
$5,948
$1,444
$1,861
$ 838
$1,013
$304
$466
$181
Change in Fair Value of Plan Assets
Plan assets at prior measurement date
$7,162
$1,853
$2,453
$1,120
$1,316
$326
$514
$213
Employer contributions
100
26
23
14
9
5
8
3
Actual return on plan assets
270
73
98
46
53
11
17
10
Benefits paid
(645)
(177)
(198)
(111)
(88)
(33)
(41)
(12)
Transfers
—
6
—
—
—
—
—
—
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
198
Year Ended December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Plan assets at measurement date
$6,887
$1,781
$2,376
$1,069
$1,290
$309
$498
$214
Funded status of plan
$ 907
$ 337
$ 501
$ 231
$ 263
$ —
$ 27
$ 33
Year Ended December 31, 2023
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Change in Projected Benefit Obligation
Obligation at prior measurement date
$6,358
$1,554
$1,975
$ 909
$1,055
$333
$499
$170
Service cost
110
36
30
18
12
3
6
3
Interest cost
344
84
107
49
57
18
27
9
Actuarial loss
94
11
47
18
29
2
4
9
Benefits paid
(607)
(177)
(159)
(80)
(78)
(31)
(40)
(16)
Transfers
—
6
(10)
(3)
(6)
—
—
—
Obligation at measurement date
$6,299
$1,514
$1,990
$ 911
$1,069
$325
$496
$175
Accumulated Benefit Obligation at measurement date
$6,267
$1,517
$1,975
$ 912
$1,053
$317
$494
$176
Change in Fair Value of Plan Assets
Plan assets at prior measurement date
$6,993
$1,815
$2,371
$1,083
$1,271
$323
$501
$203
Employer contributions
100
26
22
13
9
5
8
3
Actual return on plan assets
676
183
229
107
120
29
45
23
Benefits paid
(607)
(177)
(159)
(80)
(78)
(31)
(40)
(16)
Transfers
—
6
(10)
(3)
(6)
—
—
—
Plan assets at measurement date
$7,162
$1,853
$2,453
$1,120
$1,316
$326
$514
$213
Funded status of plan
$ 863
$ 339
$ 463
$ 209
$ 247
$
1
$ 18
$ 38
Amounts Recognized in the Consolidated Balance Sheets
December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Prefunded pension(a)
$ 907
$337
$501
$231
$263
$ 74
$101
$ 33
Noncurrent pension liability(b)
$
—
$ —
$ —
$ —
$ —
$ 74
$ 74
$ —
Net asset (liability) recognized
$ 907
$337
$501
$231
$263
$ —
$ 27
$ 33
Regulatory assets
$2,168
$570
$711
$354
$356
$100
$182
$113
Accumulated other comprehensive income (loss)
Deferred income tax benefit
$
(24)
$ —
$ (1)
$ —
$ —
$ —
$ —
$ —
Net actuarial loss
115
—
4
—
—
—
—
—
Net amounts recognized in accumulated other comprehensive income
$
91
$ —
$
3
$ —
$ —
$ —
$ —
$ —
December 31, 2023
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Prefunded pension(a)
$ 863
$339
$463
$209
$247
$74
$105
$38
Noncurrent pension liability(b)
$
—
$ —
$ —
$ —
$ —
$73
$ 87
$—
Net asset (liability) recognized
$ 863
$339
$463
$209
$247
$ 1
$ 18
$38
Regulatory assets
$2,021
$531
$678
$353
$325
$89
$176
$97
Accumulated other comprehensive (income) loss
Deferred income tax benefit
$
(27)
$ —
$ (1)
$ —
$ —
$—
$ —
$—
Prior service credit
(1)
—
—
—
—
—
—
—
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
199
December 31, 2023
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Net actuarial loss
127
—
3
—
—
—
2
—
Net amounts recognized in accumulated other comprehensive loss
$
99
$ —
$
2
$ —
$ —
$—
$
2
$—
(a)
Included in Other within Other Noncurrent Assets on the Consolidated Balance Sheets.
(b)
Included in Accrued pension and other post-retirement benefit costs on the Consolidated Balance Sheets.
Information for Plans with Accumulated Benefit Obligation in Excess of Plan Assets
December 31, 2024
(in millions)
Duke
Energy
Ohio
Duke
Energy
Indiana
Projected benefit obligation
$106
$203
Accumulated benefit obligation
101
197
Fair value of plan assets
32
128
December 31, 2023
(in millions)
Duke
Energy
Ohio
Duke
Energy
Indiana
Projected benefit obligation
$105
$208
Accumulated benefit obligation
100
203
Fair value of plan assets
31
121
Assumptions Used for Pension Benefits Accounting
The discount rate used to determine the current year pension obligation
and following year’s pension expense is based on a bond selection-settlement
portfolio approach. This approach develops a discount rate by selecting a
portfolio of high-quality corporate bonds that generate sufficient cash flow to
provide for projected benefit payments of the plan. The selected bond portfolio is
derived from a universe of non-callable corporate bonds rated Aa quality or
higher. After the bond portfolio is selected, a single interest rate is determined
that equates the present value of the plan’s projected benefit payments
discounted at this rate with the market value of the bonds selected.
The RCBP contains a mostly active participant population while the
DELPP contains a mostly inactive participant population. The average
remaining service period for RCBP participants is nine years and the average
life expectancy of DELPP participants is 15 years. Unrecognized net actuarial
gains/losses and prior service credit are amortized over 12 years for Duke
Energy and Duke Energy Florida, 14 years for Duke Energy Ohio, 13 years for
Duke Energy Indiana, 11 years for Duke Energy Carolinas, Progress Energy and
Duke Energy Progress and nine years for Piedmont.
The following tables present the assumptions or range of assumptions used for pension benefit accounting.
December 31,
2024
2023
2022
Benefit Obligations
Discount rate
5.70%
5.40%
5.60%
Interest crediting rate
4.78%
4.15%
4.35%
Salary increase
3.50% – 4.00%
3.50% – 4.00%
3.50% – 4.00%
Net Periodic Benefit Cost
Discount rate
5.00% – 5.40%
5.60%
2.90% – 5.70%
Interest crediting rate
4.15%
4.35%
4.00%
Salary increase
3.50% – 4.00%
3.50% – 4.00%
3.50% – 4.00%
Expected long-term rate of return on plan assets
8.50% – 7.00%
6.50 – 8.25%
6.50%
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
200
Expected Benefit Payments
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Years ending December 31,
2025
$ 628
$173
$183
$ 98
$ 84
$ 31
$ 43
$19
2026
606
161
179
91
87
30
42
18
2027
586
153
175
87
87
29
42
17
2028
572
149
173
85
87
29
41
17
2029
546
138
167
79
87
29
42
16
2030-2034
2,407
567
762
338
420
129
197
73
NON-QUALIFIED PENSION PLANS
The accumulated benefit obligation, which equals the projected benefit
obligation for non-qualified pension plans, was $203 million for Duke Energy,
$8 million for Duke Energy Carolinas, $72 million for Progress Energy, $22 million
for Duke Energy Progress, $27 million for Duke Energy Florida, $2 million for
Duke Energy Ohio, $1 million for Duke Energy Indiana and $2 million for Piedmont
as of December 31, 2024.
Employer contributions, which equal benefits paid for non-qualified
pension plans, were $30 million for Duke Energy, $2 million for Duke Energy
Carolinas, $8 million for Progress Energy, $3 million for Duke Energy Progress
and $3 million for Duke Energy Florida for the year ended December 31, 2024.
Employer contributions were not material for Duke Energy Ohio, Duke Energy
Indiana or Piedmont for the year ended December 31, 2024.
Net periodic pension costs for non-qualified pension plans were not
material for the years ended December 31, 2024, 2023 or 2022.
OTHER POST-RETIREMENT BENEFIT PLANS
Duke Energy provides, and the Subsidiary Registrants participate in,
some health care and life insurance benefits for retired employees on a
contributory and non-contributory basis. Employees are eligible for these
benefits if they have satisfied the applicable eligibility requirements (e.g., age
and service) at retirement, as defined in the plans. The health care benefits
include medical, dental, vision and prescription drug coverage and are subject
to certain limitations, such as deductibles and copayments.
Duke Energy did not make any prefunding contributions to its other post-
retirement benefit plans during the years ended December 31, 2024, 2023 or
2022.
Components of Net Periodic Other Post-Retirement Benefit Costs
Year Ended December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Service cost
$ 2
$ —
$ —
$—
$—
$—
$—
$—
Interest cost on accumulated post-retirement benefit obligation
17
3
7
4
3
1
1
1
Expected return on plan assets
(11)
(8)
—
—
—
—
—
(2)
Amortization of actuarial (gain) loss
(6)
(2)
8
6
2
(2)
(4)
—
Amortization of prior service credit
(21)
(4)
(11)
(6)
(5)
—
(5)
—
Net periodic post-retirement benefit costs(a)(b)
$(19)
$(11)
$ 4
$ 4
$—
$ (1)
$ (8)
$ (1)
Year Ended December 31, 2023
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Service cost
$ 2
$ 1
$ —
$—
$—
$—
$—
$—
Interest cost on accumulated post-retirement benefit obligation
22
5
9
5
4
1
1
1
Expected return on plan assets
(11)
(7)
—
—
—
—
—
(2)
Amortization of actuarial (gain) loss
(6)
(3)
8
5
2
(2)
(3)
—
Amortization of prior service credit
(23)
(5)
(11)
(6)
(5)
—
(5)
—
Net periodic post-retirement benefit costs(a)(b)
$(16)
$(9)
$ 6
$ 4
$ 1
$ (1)
$ (7)
$ (1)
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
201
Year Ended December 31, 2022
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Service cost
$ 3
$ 1
$—
$—
$—
$—
$—
$—
Interest cost on accumulated post-retirement benefit obligation
17
4
7
4
3
1
1
1
Expected return on plan assets
(10)
(6)
—
—
—
—
—
(2)
Amortization of actuarial loss
2
—
1
1
1
—
—
—
Amortization of prior service credit
(8)
(3)
(2)
(1)
(1)
—
—
(2)
Net periodic post-retirement benefit costs(a)(b)
$ 4
$ (4)
$ 6
$ 4
$ 3
$ 1
$ 1
$ (3)
(a)
Duke Energy amounts exclude $4 million, $4 million and $4 million for the years ended December 2024, 2023 and 2022, respectively, of regulatory asset amortization resulting from purchase accounting adjustments
associated with Duke Energy’s merger with Cinergy in April 2006.
(b)
Duke Energy Ohio amounts exclude $1 million, $1 million and $1 million for the years ended December 2024, 2023 and 2022, respectively, of regulatory asset amortization resulting from purchase accounting adjustments
associated with Duke Energy’s merger with Cinergy in April 2006.
AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME AND REGULATORY ASSETS AND LIABILITIES
Year Ended December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Regulatory assets, net (decrease) increase
$(42)
$(62)
$23
$17
$ 5
$ (1)
$ (3)
$—
Regulatory liabilities, net (decrease) increase
$(76)
$(71)
$12
$12
$—
$ (3)
$(12)
$—
Accumulated other comprehensive (income) loss
Amortization of prior year actuarial gain
1
—
—
—
—
—
—
—
Net amount recognized in accumulated other comprehensive income
$ 1
$ —
$—
$—
$—
$—
$ —
$—
Year Ended December 31, 2023
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Regulatory assets, net increase (decrease)
$73
$79
$ (7)
$ (5)
$—
$ (2)
$ (2)
$ 1
Regulatory liabilities, net increase (decrease)
$41
$62
$—
$—
$—
$ (4)
$ (8)
$—
Accumulated other comprehensive (income) loss
Amortization of prior year service credit
$ 1
$—
$—
$—
$—
$—
$—
$—
Amortization of prior year actuarial gain
$—
$—
$ (1)
$—
$—
$—
$—
$—
Net amount recognized in accumulated other comprehensive income
$ 1
$—
$ (1)
$—
$—
$—
$—
$—
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
202
Reconciliation of Funded Status to Accrued Other Post-Retirement Benefit Costs
Year Ended December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Change in Benefit Obligation
Accumulated post-retirement benefit obligation at prior measurement date
$ 347
$ 69
$ 146
$ 84
$ 60
$ 19
$ 24
$15
Service cost
2
—
—
—
—
—
—
—
Interest cost
17
3
7
4
3
1
1
1
Plan participants’ contributions
3
1
1
—
—
—
—
—
Actuarial losses (gains)
2
(2)
7
5
3
—
(2)
—
Benefits paid
(37)
(8)
(15)
(6)
(6)
(2)
(3)
(1)
Accumulated post-retirement benefit obligation at measurement date
$ 334
$ 63
$ 146
$ 87
$ 60
$ 18
$ 20
$15
Change in Fair Value of Plan Assets
Plan assets at prior measurement date
$ 156
$102
$
(1)
$ (1)
$ (1)
$ 7
$ 3
$27
Actual return on plan assets
7
4
—
—
—
—
—
3
Benefits paid
(37)
(8)
(15)
(6)
(6)
(2)
(3)
(1)
Tax refund
5
4
—
—
—
—
—
—
Employer contributions
27
4
14
7
7
2
—
—
Plan participants’ contributions
3
1
1
—
—
—
—
—
Plan assets at measurement date
$ 161
$107
$
(1)
$ —
$ —
$ 7
$ —
$29
Funded status of plan
$(173)
$ 44
$(147)
$(87)
$(60)
$(11)
$(20)
$14
Year Ended December 31, 2023
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Change in Benefit Obligation
Accumulated post-retirement benefit obligation at prior measurement date
$ 437
$112
$ 168
$ 95
$ 69
$ 20
$ 30
$21
Service cost
2
1
—
—
—
—
—
—
Interest cost
22
5
9
5
4
1
1
1
Plan participants’ contributions
4
1
1
1
1
—
—
—
Actuarial (gains) losses
(10)
(2)
(10)
(6)
(4)
1
(1)
1
Transfers
(50)
(34)
—
—
—
—
—
(6)
Benefits paid
(58)
(14)
(22)
(11)
(10)
(3)
(6)
(2)
Accumulated post-retirement benefit obligation at measurement date
$ 347
$ 69
$ 146
$ 84
$ 60
$ 19
$ 24
$15
Change in Fair Value of Plan Assets
Plan assets at prior measurement date
$ 162
$105
$ —
$ (2)
$ (2)
$ 7
$ 3
$31
401(h) asset transfers
—
(8)
—
—
—
—
—
—
Actual return on plan assets
19
8
—
—
—
1
—
4
Benefits paid
(58)
(14)
(22)
(11)
(10)
(3)
(6)
(2)
Transfers
(13)
4
—
—
—
—
—
(7)
Employer contributions
42
6
20
11
10
2
6
1
Plan participants’ contributions
4
1
1
1
1
—
—
—
Plan assets at measurement date
$ 156
$102
$
(1)
$ (1)
$ (1)
$ 7
$ 3
$27
Funded status of plan
$(191)
$ 33
$(147)
$(85)
$(61)
$(12)
$(21)
$12
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
203
Amounts Recognized in the Consolidated Balance Sheets
December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Prefunded post-retirement benefit(a)
$ —
$ 44
$ —
$—
$—
$ 1
$—
$ 14
Current post-retirement liability(b)
8
—
5
3
2
1
—
—
Noncurrent post-retirement liability(c)
165
—
142
84
58
11
20
—
Net liability (asset) recognized
$173
$(44)
$147
$87
$60
$11
$20
$(14)
Regulatory assets
$ 81
$ 17
$ 62
$46
$16
$ 1
$20
$ 1
Regulatory liabilities
$154
$ 35
$ 12
$12
$—
$14
$62
$ —
Accumulated other comprehensive (income) loss Deferred income tax
expense
$
3
$ —
$ —
$—
$—
$—
$—
$ —
Net actuarial gain
(12)
—
(1)
—
—
—
—
—
Net amounts recognized in accumulated other comprehensive income
$ (9)
$ —
$ (1)
$—
$—
$—
$—
$ —
December 31, 2023
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Prefunded post-retirement benefit(a)
$ —
$ 61
$ —
$—
$—
$ 1
$—
$ 12
Current post-retirement liability(b)
12
3
5
3
2
1
—
—
Noncurrent post-retirement liability(c)
179
25
142
82
59
12
21
—
Net liability (asset) recognized
$191
$ (33)
$147
$85
$61
$12
$21
$(12)
Regulatory assets
$123
$ 79
$ 39
$29
$11
$ 2
$23
$ 1
Regulatory liabilities
$230
$106
$ —
$—
$—
$17
$74
$ —
Accumulated other comprehensive (income) loss Deferred income tax
expense
$
3
$ —
$ —
$—
$—
$—
$—
$ —
Net actuarial gain
(13)
—
(1)
—
—
—
—
—
Net amounts recognized in accumulated other comprehensive income
$ (10)
$ —
$ (1)
$—
$—
$—
$—
$ —
(a)
Included in Other within Other Noncurrent Assets on the Consolidated Balance Sheets.
(b)
Included in Other within Current Liabilities on the Consolidated Balance Sheets.
(c)
Included in Accrued pension and other post-retirement benefit costs on the Consolidated Balance Sheets.
Assumptions Used for Other Post-Retirement Benefits Accounting
The discount rate used to determine the current year other post-
retirement benefits obligation and following year’s other post-retirement
benefits expense is based on a bond selection-settlement portfolio approach.
This approach develops a discount rate by selecting a portfolio of high-quality
corporate bonds that generate sufficient cash flow to provide for projected
benefit payments of the plan. The selected bond portfolio is derived from a
universe of non-callable corporate bonds rated Aa quality or higher. After the
bond portfolio is selected, a single interest rate is determined that equates the
present value of the plan’s projected benefit payments discounted at this
rate with the market value of the bonds selected.
The average remaining service period of active covered employees is
seven years for Duke Energy, Duke Energy Carolinas and Duke Energy Florida,
six years for Duke Energy Ohio, Duke Energy Indiana and Piedmont and five years
for Progress Energy and Duke Energy Progress.
The following tables present the assumptions used for other post-retirement benefits accounting.
December 31,
2024
2023
2022
Benefit Obligations
Discount rate
5.70%
5.40%
5.60%
Net Periodic Benefit Cost
Discount rate
5.40%
5.60%
2.90%
Expected long-term rate of return on plan assets
6.50% – 8.25%
6.50% – 8.25%
6.50%
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
204
Assumed Health Care Cost Trend Rate
December 31,
2024
2023
Health care cost trend rate assumed for next year – pre-65 trend
7.00%
6.50%
Rate to which the cost trend is assumed to decline (the ultimate trend rate)
4.75%
4.75%
Year that rate reaches ultimate trend
2034-2035
2031-2032
Expected Benefit Payments
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Years ending December 31,
2025
$ 52
$13
$18
$11
$ 8
$3
$4
$2
2026
45
11
16
10
7
3
3
2
2027
41
9
16
9
7
2
3
2
2028
38
8
15
9
6
2
3
2
2029
35
7
14
8
6
2
2
2
2030-2034
124
21
59
35
24
6
8
6
PLAN ASSETS
Description and Allocations
Duke Energy Corporation Master Retirement Trust
Assets for both the qualified pension and other post-retirement benefits
are maintained in the Duke Energy Corporation Master Retirement Trust.
Approximately 98% of the Duke Energy Corporation Master Retirement Trust
assets were allocated to qualified pension plans and approximately 2% were
allocated to other post-retirement plans (comprised of 401(h) accounts), as of
December 31, 2024, and 2023. The investment objective of the Duke Energy
Corporation Master Retirement Trust is to invest in a diverse portfolio of assets
that is expected to generate positive surplus return over time (i.e., asset
growth greater than liability growth) subject to a prudent level of portfolio risk,
for the purpose of enhancing the security of benefits for plan participants.
As of December 31, 2024, Duke Energy assumes qualified pension and
other post-retirement plan assets will generate a long-term rate of return of
8.50% for the RCBP pension and RCBP 401(h) account assets and 7.00% for
the DELPP pension and DELPP 401(h) account assets. The expected long-term
rate of return was developed using a weighted average calculation of
expected returns based primarily on future expected returns across asset
classes considering the use of active asset managers, where applicable. The
asset allocation targets were set after considering the investment objective and
the risk profile. Equity securities are held for their higher expected returns.
Debt securities are primarily held to hedge the qualified pension plan. Return
seeking debt securities, hedge funds and other global securities are held for
diversification. Investments within asset classes are diversified to achieve
broad market participation and reduce the impact of individual managers or
investments.
Effective January 1, 2025, the target asset allocation for the RCBP
assets is 35% liability hedging and 65% return-seeking assets and the target
asset allocation for the DELPP assets is 80% liability hedging assets and
20% return-seeking assets. Duke Energy periodically reviews its asset allocation
targets, and over time, as the funded status of the benefit plans increase,
the level of asset risk relative to plan liabilities may be reduced to better manage
Duke Energy’s benefit plan liabilities and reduce funded status volatility.
Qualified pension and other post-retirement benefits for the Subsidiary
Registrants are derived from the Duke Energy Corporation Master Retirement
Trust, as such, each are allocated their proportionate share of the assets
discussed below.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
205
The following table includes the target asset allocations by asset class at December 31, 2024, and the actual asset allocations for the RCBP assets.
Target
Allocation
Actual Allocation at December 31,
2024
2023
Global equity securities
45%
44%
45%
Global private equity securities
2%
1%
2%
Debt securities
35%
33%
35%
Return seeking debt securities
7%
7%
6%
Hedge funds
4%
5%
4%
Real estate and cash
7%
10%
8%
Total
100%
100%
100%
The following table includes the target asset allocations by asset class at December 31, 2024, and the actual asset allocations for the DELPP assets.
Target
Allocation
Actual Allocation at December 31,
2024
2023
Global equity securities
14%
15%
14%
Global private equity securities
1%
—%
—%
Debt securities
80%
79%
79%
Return seeking debt securities
2%
2%
2%
Hedge funds
1%
—%
2%
Real estate and cash
2%
4%
3%
Total
100%
100%
100%
Other post-retirement assets
Duke Energy’s other post-retirement assets are comprised of Voluntary Employees’ Beneficiary Association (VEBA) trusts and 401(h) accounts held within
the Duke Energy Corporation Master Retirement Trust. Duke Energy’s investment objective is to achieve sufficient returns, subject to a prudent level of portfolio
risk, for the purpose of promoting the security of plan benefits for participants.
The following table presents target and actual asset allocations for the VEBA trusts at December 31, 2024.
Target
Allocation
Actual Allocation at
December 31,
2024
2023
U.S. equity securities
29%
34%
30%
Non-U.S. equity securities
15%
15%
15%
Real estate
5%
7%
7%
Debt securities
47%
31%
30%
Cash
4%
13%
18%
Total
100%
100%
100%
Fair Value Measurements
Duke Energy classifies recurring and nonrecurring fair value
measurements based on the fair value hierarchy as discussed in Note 17.
Valuation methods of the primary fair value measurements disclosed
below are as follows:
Investments in equity securities
Investments in equity securities are typically valued at the closing price
in the principal active market as of the last business day of the reporting
period. Principal active markets for equity prices include published exchanges
such as NASDAQ and NYSE. Foreign equity prices are translated from their
trading currency using the currency exchange rate in effect at the close of the
principal active market. Prices have not been adjusted to reflect after-hours
market activity. The majority of investments in equity securities are valued
using Level 1 measurements. When the price of an institutional commingled
fund is unpublished, it is not categorized in the fair value hierarchy, even though
the funds are readily available at the fair value.
Investments in corporate debt securities and U.S. government securities
Most debt investments are valued based on a calculation using 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.
Most debt valuations are Level 2 measurements. If the market for a particular
fixed-income security is relatively inactive or illiquid, the measurement is
Level 3. U.S. Treasury debt is typically Level 2.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
206
Investments in short-term investment funds
Investments in short-term investment funds are valued at the net asset
value of units held at year end and are readily redeemable at the measurement
date. Investments in short-term investment funds with published prices are
valued as Level 1. Investments in short-term investment funds with unpublished
prices are valued as Level 2.
Duke Energy Corporation Master Retirement Trust
The following tables provide the fair value measurement amounts for the Duke Energy Corporation Master Retirement Trust qualified pension and other post-
retirement assets.
December 31, 2024
(in millions)
Total Fair
Value
Level 1
Level 2
Level 3
Not
Categorized(b)
Equity securities
$2,461
$2,216
$ 231
$—
$ 14
Corporate debt securities
2,415
—
2,415
—
—
Short-term investment funds
310
—
310
—
—
Partnership interests
68
—
—
68
—
Hedge funds
164
—
—
—
164
U.S. government securities
1,398
—
1,398
—
—
Governments bonds – foreign
128
—
128
—
—
Cash
15
15
—
—
—
Government and commercial mortgage-backed securities
1
—
1
—
—
Net pending transactions and other investments
9
11
(2)
—
—
Total assets(a)
$6,969
$2,242
$4,481
$68
$178
(a)
Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont were allocated approximately 27%, 33%, 15%, 18%, 5%, 7% and 3%,
respectively, of the Duke Energy Corporation Master Retirement Trust at December 31, 2024. Accordingly, all amounts included in the table above are allocable to the Subsidiary Registrants using these percentages.
(b)
Certain investments that are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy.
December 31, 2023
(in millions)
Total
Fair Value
Level 1
Level 2
Level 3
Not
Categorized(b)
Equity securities
$2,221
$1,995
$ 211
$—
$ 15
Corporate debt securities
2,807
—
2,807
—
—
Short-term investment funds
233
—
233
—
—
Partnership interests
76
—
—
76
—
Hedge funds
164
—
—
—
164
U.S. government securities
1,571
—
1,571
—
—
Governments bonds – foreign
107
—
107
—
—
Cash
7
7
—
—
—
Government and commercial mortgage-backed securities
1
—
1
—
—
Net pending transactions and other investments
54
40
14
—
—
Total assets(a)
$7,241
$2,042
$4,944
$76
$179
(a)
Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont were allocated approximately 27%, 33%, 15%, 18%, 5%, 7% and 3%,
respectively, of the Duke Energy Corporation Master Retirement Trust at December 31, 2023. Accordingly, all amounts included in the table above are allocable to the Subsidiary Registrants using these percentages.
(b)
Certain investments that are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy.
The following table provides a reconciliation of beginning and ending balances of Duke Energy Corporation Master Retirement Trust qualified pension and
other post-retirement assets at fair value on a recurring basis where the determination of fair value includes significant unobservable inputs (Level 3).
(in millions)
2024
2023
Balance at January 1
$ 76
$62
Sales
(10)
(8)
Total gains and other, net
2
22
Balance at December 31
$ 68
$76
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
207
Other post-retirement assets
The following tables provide the fair value measurement amounts for VEBA trust assets.
December 31, 2024
(in millions)
Total Fair
Value
Level 2
Cash and cash equivalents
$ 3
$ 3
Real estate
1
1
Equity securities
10
10
Debt securities
6
6
Total assets
$20
$20
December 31, 2023
(in millions)
Total Fair
Value
Level 2
Cash and cash equivalents
$ 4
$ 4
Real estate
1
1
Equity securities
9
9
Debt securities
6
6
Total assets
$20
$20
EMPLOYEE SAVINGS PLANS
Retirement Savings Plan
Duke Energy Corporation sponsors, and the Subsidiary Registrants
participate in, employee savings plans that cover substantially all U.S.
employees. Most employees participate in a matching contribution formula
where Duke Energy provides a matching contribution generally equal to 100%
of employee before-tax and Roth 401(k) contributions of up to 6% of eligible
pay per pay period. Dividends on Duke Energy shares held by the savings plans
are charged to retained earnings when declared and shares held in the plans
are considered outstanding in the calculation of basic and diluted EPS. For new
and rehired employees who are not eligible to participate in Duke Energy’s
defined benefit plans, an additional employer contribution of 4% of eligible
pay per pay period, which is subject to a three-year vesting schedule, is provided
to the employee’s savings plan account.
The following table includes pretax employer matching contributions made by Duke Energy and expensed by the Subsidiary Registrants.
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Years ended December 31,
2024
$257
$81
$72
$43
$29
$6
$13
$14
2023
238
75
62
40
22
6
13
13
2022
246
76
65
43
22
6
12
13
24.
INCOME TAXES
Inflation Reduction Act
In August 2022, the IRA was signed into law. Among other provisions,
the IRA implemented a new 15% corporate alternative minimum tax based on
GAAP net income, with certain adjustments as defined by the IRA, and clean
energy-related provisions. The IRA’s clean energy provisions included, among
other provisions, the extension and modification of existing investment and PTCs
for projects placed in service through 2024 and introduced new technology-
neutral clean energy-related credits beginning in 2025. In addition, the IRA
created a new, zero-emission nuclear power PTC and a clean hydrogen PTC.
For the year ended December 31, 2024, Duke Energy Carolinas and Duke
Energy Progress have recorded nuclear PTCs of approximately $449 million and
$73 million, respectively. These amounts represent the estimated net
realizable value of the PTCs, which were deferred to a regulatory liability. The
Company will continue to assess its calculations and interpretations as new
information and guidance becomes available. The Subsidiary Registrants
are working with the state utility commissions on the appropriate regulatory
process to pass the net realizable value back to customers over time. In 2024,
net proceeds of $558 million was received related to the sale of tax credits,
which includes primarily $428 million of nuclear power PTCs at Duke Energy
Carolinas, $65 million of nuclear power PTCs at Duke Energy Progress, and
$43 million of solar PTCs at Duke Energy Florida. See Note 4 for further
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
208
details on the IRA as it relates to Duke Energy Florida and Duke Energy
Carolinas’ approval for a stand-alone rider starting January 1, 2025.
Income Tax Expense
Components of Income Tax Expense
Tax benefit from discontinued operations, in the following tables, includes income tax benefits related to the Commercial Renewables Disposal Groups. See
Note 2 for further details.
Year Ended December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Current income taxes
Federal
$(365)
$178
$359
$ 373
$ 14
$52
$ 70
$40
State
31
75
34
40
(12)
3
12
(6)
Foreign
2
—
—
—
—
—
—
—
Total current income taxes
(332)
253
393
413
2
55
82
34
Deferred income taxes
Federal
858
10
(22)
(215)
181
8
(19)
40
State
81
(25)
59
(6)
86
1
8
21
Total deferred income taxes(a)
939
(15)
37
(221)
267
9
(11)
61
ITC amortization
(17)
(12)
(4)
(3)
(1)
—
—
—
Income tax expense from continuing operations
590
226
426
189
268
64
71
95
Tax benefit from discontinued operations
(50)
—
—
—
—
—
—
—
Total income tax expense included in Consolidated Statements of Operations
$ 540
$226
$426
$ 189
$268
$64
$ 71
$95
(a)
Total deferred income taxes include the utilization of NOL carryforwards and tax credit carryforwards of $523 million at Duke Energy and $8 million at Duke Energy Indiana. In addition, total deferred income taxes include
the generation of NOL carryforwards and tax credit carryforwards of $47 million at Duke Energy Carolinas, $85 million at Progress Energy, $66 million at Duke Energy Progress, $30 million at Duke Energy Florida,
$26 million at Duke Energy Ohio, and $8 million at Piedmont.
Year Ended December 31, 2023
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Current income taxes
Federal(b)
$ 71
$173
$ 459
$198
$279
$ (46)
$ 10
$44
State
1
22
38
4
71
(3)
9
3
Foreign
3
—
—
—
—
—
—
—
Total current income taxes
75
195
497
202
350
(49)
19
47
Deferred income taxes
Federal
319
(43)
(154)
(69)
(89)
111
77
25
State
53
(7)
38
19
—
1
14
12
Total deferred income taxes(a)
372
(50)
(116)
(50)
(89)
112
91
37
ITC amortization
(9)
(4)
(4)
(3)
—
—
—
—
Income tax expense from continuing operations
438
141
377
149
261
63
110
84
Tax benefit from discontinued operations
(359)
—
—
—
—
—
—
—
Total income tax expense included in Consolidated Statements of Operations
$ 79
$141
$ 377
$149
$261
$ 63
$110
$84
(a)
Total deferred income taxes includes the generation of NOL carryforwards and tax credit carryforwards of $214 million at Duke Energy and $54 million at Duke Energy Indiana. In addition, total deferred income taxes
includes the generation of NOL carryforwards and tax credit carryforwards of $2 million at Duke Energy Carolinas, $116 million at Progress Energy, $59 million at Duke Energy Progress, $5 million at Duke Energy Florida,
$22 million at Duke Energy Ohio, and $15 million at Piedmont.
(b)
Total current federal income tax at Duke Energy includes corporate alternative minimum tax, net of tax credit utilization, of $69 million. In addition, under the IRA transferability provision, Progress Energy elected to sell
$28 million of PTCs generated by Duke Energy Florida.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
209
Year Ended December 31, 2022
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Current income taxes
Federal
$
1
$ (71)
$ (13)
$ 37
$ (37)
$ (2)
$ 38
$32
State
(8)
(13)
(3)
—
(23)
1
2
2
Foreign
4
—
—
—
—
—
—
—
Total current income taxes
(3)
(84)
(16)
37
(60)
(1)
40
34
Deferred income taxes
Federal
328
230
310
118
201
(22)
(63)
12
State
(14)
(16)
59
7
84
3
—
(7)
Total deferred income taxes(a)
314
214
369
125
285
(19)
(63)
5
ITC amortization
(11)
(4)
(5)
(4)
—
(1)
(1)
—
Income tax expense (benefit) from continuing operations
300
126
348
158
225
(21)
(24)
39
Tax benefit from discontinued operations
(503)
—
—
—
—
—
—
—
Total income tax (benefit) expense included in Consolidated Statements of
Operations
$(203)
$126
$348
$158
$225
$(21)
$(24)
$39
(a)
Total deferred income taxes includes the generation of NOL carryforwards and tax credit carryforwards of $550 million at Duke Energy, $97 million at Duke Energy Carolinas, $128 million at Progress Energy, $9 million at
Duke Energy Progress, $111 million at Duke Energy Florida, $7 million at Duke Energy Ohio, $13 million at Duke Energy Indiana, and $12 million at Piedmont.
Duke Energy Income from Continuing Operations before Income Taxes
Years Ended December 31,
(in millions)
2024
2023
2022
Domestic
$5,145
$4,700
$3,991
Foreign
49
67
87
Income from continuing operations before income taxes
$5,194
$4,767
$4,078
Statutory Rate Reconciliation
The following tables present a reconciliation of income tax expense at the U.S. federal statutory tax rate to the actual tax expense from continuing
operations.
Year Ended December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Income tax expense, computed at the statutory rate of 21%
$1,090
$ 443
$ 545
$ 284
$ 279
$ 85
$ 108
$ 107
State income tax, net of federal income tax effect
88
40
73
27
58
3
16
12
Amortization of EDIT
(436)
(225)
(121)
(98)
(23)
(23)
(49)
(18)
AFUDC equity income
(48)
(24)
(16)
(13)
(3)
(1)
(3)
(4)
AFUDC equity depreciation
38
19
14
7
7
2
4
—
Production tax credits
(46)
—
(46)
—
(46)
—
—
—
Other tax credits
(43)
(23)
(16)
(12)
(4)
(1)
(2)
(2)
Other items, net
(53)
(4)
(7)
(6)
—
(1)
(3)
—
Income tax expense from continuing operations
$ 590
$ 226
$ 426
$ 189
$ 268
$ 64
$ 71
$ 95
Effective tax rate
11.4%
10.7%
16.4%
14.0%
20.2%
15.8%
13.9%
18.7%
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
210
Year Ended December 31, 2023
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Income tax expense, computed at the statutory rate of 21%
$1,001
$ 338
$ 490
$ 241
$ 268
$ 83
$ 128
$ 97
State income tax, net of federal income tax effect
43
12
60
18
56
(2)
18
12
Amortization of EDIT
(388)
(197)
(114)
(91)
(23)
(22)
(33)
(20)
AFUDC equity income
(41)
(19)
(14)
(11)
(3)
(2)
(2)
(4)
AFUDC equity depreciation
37
18
13
6
7
2
4
—
Tax credits(b)
(63)
(11)
(46)
(7)
(39)
(2)
(2)
(1)
Interest on company-owned life insurance(a)
(114)
—
—
—
—
—
—
—
Other items, net
(37)
—
(12)
(7)
(5)
6
(3)
—
Income tax expense from continuing operations
$ 438
$ 141
$ 377
$ 149
$ 261
$ 63
$ 110
$ 84
Effective tax rate
9.2%
8.8%
16.2%
13.0%
20.4%
15.9%
18.1%
18.1%
(a)
During 2023, the Company evaluated the deductibility of certain items spanning periods currently open under federal statute, including items related to interest on company-owned life insurance. As a result of this
analysis, the Company recorded a favorable federal adjustment of approximately $114 million and a favorable state adjustment of approximately $6 million. The favorable state adjustment is included in State income
tax, net of federal income tax effect, in the above table.
(b)
Tax credits at Progress Energy and Duke Energy Florida include $28 million of certain eligible PTCs, net of discount, that were elected to be sold in 2023 under the transferability provisions of the IRA.
Year Ended December 31, 2022
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Income tax expense, computed at the statutory rate of 21%
$ 856
$ 362
$ 457
$ 245
$ 238
$ 59
$
24
$ 76
State income tax, net of federal income tax effect
(17)
(23)
44
6
48
3
2
(4)
Amortization of EDIT
(481)
(195)
(133)
(74)
(59)
(79)
(48)
(23)
AFUDC equity income
(41)
(20)
(14)
(11)
(3)
(1)
(2)
(2)
AFUDC equity depreciation
36
18
12
6
6
1
4
—
Other tax credits
(43)
(12)
(16)
(9)
(7)
(2)
(3)
(8)
Other items, net
(10)
(4)
(2)
(5)
2
(2)
(1)
—
Income tax expense (benefit) from continuing operations
$ 300
$ 126
$ 348
$ 158
$ 225
$ (21)
$ (24)
$ 39
Effective tax rate
7.4%
7.3%
16.0%
13.6%
19.8%
(7.5)%
(21.2)%
10.8%
Valuation allowances have been established for certain state NOL carryforwards and state income tax credits that reduce deferred tax assets to an amount
that will be realized on a more-likely-than-not basis. The net change in the total valuation allowance is included in state income tax, net of federal income tax
effect, in the above tables.
Valuation allowances have been established for foreign tax credits and certain tax attributes that reduce deferred tax assets to an amount that will be
realized on a more-likely-than-not basis. The net change in the total valuation allowance is included in Other items, net in the above tables.
DEFERRED TAXES
Net Deferred Income Tax Liability Components
December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Deferred credits and other liabilities
$
284
$
217
$
84
$
43
$
41
$
17
$
15
$
40
Lease obligations
430
88
265
179
86
2
12
2
Pension, post-retirement and other employee benefits
89
(33)
(23)
(1)
(26)
6
1
(2)
Progress Energy merger purchase accounting adjustments(a)
227
—
—
—
—
—
—
—
Tax credits and NOL carryforwards
3,845
522
783
312
449
70
145
57
Regulatory liabilities and deferred credits
—
—
—
—
—
—
10
—
Other
35
11
5
3
2
4
—
8
Valuation allowance
(517)
—
—
—
—
—
—
—
Total deferred income tax assets
4,393
805
1,114
536
552
99
183
105
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
211
December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Investments and other assets
(2,114)
(1,350)
(724)
(671)
(69)
—
—
(48)
Accelerated depreciation rates
(11,942)
(3,203)
(4,608)
(1,624)
(3,047)
(1,361)
(1,677)
(1,019)
Regulatory assets and deferred debits, net
(1,761)
(304)
(1,045)
(585)
(460)
(52)
—
(56)
Total deferred income tax liabilities
(15,817)
(4,857)
(6,377)
(2,880)
(3,576)
(1,413)
(1,677)
(1,123)
Net deferred income tax liabilities
$(11,424)
$(4,052)
$(5,263)
$(2,344)
$(3,024)
$(1,314)
$(1,494)
$(1,018)
(a)
Primarily related to lease obligations and debt fair value adjustments.
The following table presents the expiration of tax credits and NOL carryforwards.
December 31, 2024
(in millions)
Amount
Expiration Year
General Business Credits
$2,186
2032 – 2044
Foreign Tax Credits(c)
615
2027 – 2028
State Carryforwards and Credits(a)
316
2025 – Indefinite
Corporate AMT Credits
717
Indefinite
Foreign NOL carryforwards(b)
11
2027 – 2042
Total tax credits and NOL carryforwards
$3,845
(a)
A valuation allowance of $102 million has been recorded on the state NOL and attribute carryforwards, as presented in the Net Deferred Income Tax Liability Components table.
(b)
A valuation allowance of $11 million has been recorded on the foreign NOL carryforwards, as presented in the Net Deferred Income Tax Liability Components table.
(c)
A valuation allowance of $404 million has been recorded on the foreign tax credits, as presented in the Net Deferred Income Tax Liability Components table.
In 2024, the Company recorded a corporate alternative minimum tax liability, net of tax credit utilization, of $133 million. In addition, under the IRA
transferability provision, the Company received net proceeds of $558 million related to the sale of certain tax credits generated by Duke Energy Carolinas, Duke
Energy Progress and Duke Energy Florida.
December 31, 2023
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Deferred credits and other liabilities
$
327
$
194
$
77
$
21
$
56
$
13
$
18
$
42
Lease obligations
418
86
256
179
77
4
15
3
Pension, post-retirement and other employee benefits
65
(41)
(22)
(1)
(25)
5
2
(5)
Progress Energy merger purchase accounting adjustments(a)
260
—
—
—
—
—
—
—
Tax credits and NOL carryforwards
4,489
445
686
230
425
44
154
50
Regulatory liabilities and deferred credits
—
—
—
—
—
—
47
—
Investments and other assets
—
—
—
—
—
—
1
—
Other
102
29
22
12
8
5
5
9
Valuation allowance
(544)
—
—
—
—
—
—
—
Total deferred income tax assets
5,117
713
1,019
441
541
71
242
99
Investments and other assets
(1,812)
(1,213)
(596)
(520)
(91)
—
—
(37)
Accelerated depreciation rates
(11,969)
(3,411)
(4,557)
(1,823)
(2,778)
(1,314)
(1,678)
(944)
Regulatory assets and deferred debits, net
(1,892)
(468)
(1,063)
(658)
(405)
(29)
—
(51)
Total deferred income tax liabilities
(15,673)
(5,092)
(6,216)
(3,001)
(3,274)
(1,343)
(1,678)
(1,032)
Net deferred income tax liabilities
$(10,556)
$(4,379)
$(5,197)
$(2,560)
$(2,733)
$(1,272)
$(1,436)
$ (933)
(a)
Primarily related to lease obligations and debt fair value adjustments.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
212
UNRECOGNIZED TAX BENEFITS
The following tables present changes to unrecognized tax benefits.
Year Ended December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Unrecognized tax benefits – January 1
$62
$21
$24
$18
$6
$ 2
$ 3
$11
Gross increases – current period tax positions
12
4
5
4
1
—
—
2
Unrecognized tax benefits – December 31
$74
$25
$29
$22
$7
$ 2
$ 3
$13
Year Ended December 31, 2023
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Unrecognized tax benefits – January 1
$ 65
$17
$19
$13
$ 5
$ 1
$ 2
$ 9
Gross decreases – tax positions in prior periods
(15)
—
—
—
—
—
—
—
Gross increases – current period tax positions
12
4
5
5
1
1
1
2
Total changes
(3)
4
5
5
1
1
1
2
Unrecognized tax benefits – December 31
$ 62
$21
$24
$18
$ 6
$ 2
$ 3
$11
Year Ended December 31, 2022
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Unrecognized tax benefits – January 1
$51
$13
$15
$10
$4
$ 1
$ 2
$4
Gross increases – current period tax positions
14
4
4
3
1
—
—
5
Total changes
14
4
4
3
1
—
—
5
Unrecognized tax benefits – December 31
$65
$17
$19
$13
$5
$ 1
$ 2
$9
The following table includes additional information regarding the Duke Energy Registrants’ unrecognized tax benefits at December 31, 2024. None of Duke
Energy Registrants anticipates a material increase or decrease in unrecognized tax benefits within the next 12 months.
December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Amount that if recognized, would affect the effective tax rate or regulatory
liability(a)
$68
$24
$27
$20
$7
$2
$3
$11
(a)
The Duke Energy Registrants are unable to estimate the specific amounts that would affect the ETR versus the regulatory liability.
Duke Energy and its subsidiaries are no longer subject to federal, state, local or non-U.S. income tax examinations by tax authorities for years before 2019,
aside from certain tax attributes carried forward for utilization in future years.
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
213
25.
OTHER INCOME AND EXPENSES, NET
The components of Other income and expenses, net on the Consolidated Statements of Operations are as follows.
Year Ended December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Interest income
$ 63
$
9
$ 18
$ 14
$ 4
$ 8
$ 5
$19
AFUDC equity
233
113
74
61
13
7
19
21
Post-in-service equity returns
52
31
20
20
—
1
1
—
Nonoperating income, other
313
94
123
48
69
3
37
14
Other income and expense, net
$661
$247
$235
$143
$86
$19
$62
$54
Year Ended December 31, 2023
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Interest income
$ 29
$ 10
$ 14
$
9
$ 7
$25
$25
$19
AFUDC equity
198
91
67
52
15
9
10
21
Post-in-service equity returns
39
19
19
19
—
1
—
—
Nonoperating income, other
332
118
101
44
56
6
41
17
Other income and expense, net
$598
$238
$201
$124
$78
$41
$76
$57
Year Ended December 31, 2022
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Interest income
$ 27
$
2
$ 24
$
4
$20
$11
$15
$19
AFUDC equity
197
98
68
52
16
7
13
11
Post-in-service equity returns
34
14
18
18
—
1
1
—
Nonoperating income, other
134
107
71
40
38
—
7
16
Other income and expense, net
$392
$221
$181
$114
$74
$19
$36
$46
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, LLC •
DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, LLC • PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
214
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
Disclosure controls and procedures are controls and other procedures
that are designed to ensure that information required to be disclosed by the
Duke Energy Registrants in the reports they file or submit under the Exchange
Act is recorded, processed, summarized and reported, within the time periods
specified by the SEC rules and forms.
Disclosure controls and procedures include, without limitation, controls
and procedures designed to provide reasonable assurance that information
required to be disclosed by the Duke Energy Registrants in the reports they file
or submit under the Exchange Act is accumulated and communicated to
management, including the Chief Executive Officer and Chief Financial Officer,
as appropriate, to allow timely decisions regarding required disclosure.
Under the supervision and with the participation of management,
including the Chief Executive Officer and Chief Financial Officer, the Duke
Energy Registrants have evaluated the effectiveness of their disclosure controls
and procedures (as such term is defined in Rule 13a-15(e) and 15d-15(e)
under the Exchange Act) as of December 31, 2024, and, based upon this
evaluation, the Chief Executive Officer and Chief Financial Officer have
concluded that these controls and procedures are effective in providing
reasonable assurance of compliance.
Changes in Internal Control Over Financial Reporting
Under the supervision and with the participation of management,
including the Chief Executive Officer and Chief Financial Officer, the Duke
Energy Registrants have evaluated changes in internal control over financial
reporting (as such term is defined in Rules 13a-15 and 15d-15 under the
Exchange Act) that occurred during the fiscal quarter ended December 31, 2024,
and have concluded no change has materially affected, or is reasonably likely
to materially affect, internal controls over financial reporting.
Management’s Annual Report on Internal Control Over Financial Reporting
The Duke Energy Registrants’ management is responsible for establishing
and maintaining an adequate system of internal control over financial reporting,
as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). The
Duke Energy Registrants’ internal control system was designed to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes, in accordance with
GAAP. Due to inherent limitations, internal control over financial reporting may
not prevent or detect misstatements. Also, projections of any evaluation of
effectiveness of the internal control over financial reporting to future periods
are subject to the risk that controls may become inadequate because of changes
in conditions, or that the degree of compliance with policies and procedures
may deteriorate.
The Duke Energy Registrants’ management, including their Chief
Executive Officer and Chief Financial Officer, has conducted an evaluation of
the effectiveness of their internal control over financial reporting as of
December 31, 2024, based on the framework in the Internal Control – Integrated
Framework (2013) issued by the Committee of Sponsoring Organizations of
the Treadway Commission. Based on that evaluation, management concluded
that its internal controls over financial reporting were effective as of
December 31, 2024.
Deloitte & Touche LLP, Duke Energy’s independent registered public
accounting firm, has issued an attestation report on the effectiveness of Duke
Energy’s internal control over financial reporting, which is included herein.
This report is not applicable to the Subsidiary Registrants as these companies
are not accelerated or large accelerated filers.
PART II
215
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of
Duke Energy Corporation
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of Duke Energy Corporation and subsidiaries (the “Company”) as of December 31, 2024, based
on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission
(COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on
criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated
financial statements as of and for the year ended December 31, 2024, of the Company and our report dated February 27, 2025, expressed an unqualified opinion
on those financial statements.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of
internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility
is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the
PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations
of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding
of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of
internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit
provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over
financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect
the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation
of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.
/s/ Deloitte and Touche LLP
Charlotte, North Carolina
February 27, 2025
PART II
216
ITEM 9B. OTHER INFORMATION
Director and Officer Trading Arrangements
Except as described below, during the three months ended December 31, 2024, no director or officer of the Company adopted, terminated or modified a
Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as each term is defined in Item 408(a) of Regulation S-K.
During the three months ended September 30, 2024, Alex Glenn, Senior Vice President and Chief Executive Officer, Duke Energy Florida and Midwest,
adopted a 10b5-1 trading arrangement for the sale of up to 15,002 shares of the Company’s common stock between November 15, 2024, and November 17, 2025,
or such earlier date such plan is terminated sooner pursuant to the terms specified therein, including but not limited to the execution of all trades specified
therein. Such plan terminated upon the sale of all shares available under the plan, which transaction was timely reported on a Form 4 filed with the Commission
on November 18, 2024. Mr. Glenn’s 10b5-1 trading arrangement was entered into during an open insider trading window and is intended to satisfy the alternative
defense of Rule 10b5-1 under the Exchange Act and the Company’s policies regarding insider transactions.
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Information regarding Duke Energy’s Executive Officers is set forth in Part I, Item 1, “Business — Information about Our Executive Officers,” in this Annual
Report. Duke Energy will provide information that is responsive to the remainder of this Item 10 in its definitive proxy statement or in an amendment to this Annual
Report not later than 120 days after the end of the fiscal year covered by this Annual Report. That information is incorporated in this Item 10 by reference.
Insider Trading Policy
We have adopted trading policies and procedures governing the purchase, sale, and/or other dispositions of Duke Energy’s securities by directors, officers
and employees or the Company itself that are reasonably designed to promote compliance with insider trading laws, rules and regulations, and any listing standards
applicable to the Company. A copy of our Securities Trading Policy is filed as Exhibit 19 to this Annual Report on Form 10-K.
ITEM 11. EXECUTIVE COMPENSATION
Duke Energy will provide information that is responsive to this Item 11 in its definitive proxy statement or in an amendment to this Annual Report not later
than 120 days after the end of the fiscal year covered by this Annual Report. That information is incorporated in this Item 11 by reference.
Policies Related to Stock Option Grants and Similar Option-Like Instruments
The Compensation and People Development Committee of the Board of Directors (the Compensation Committee) maintains an equity grant policy which
establishes the specific procedures for the timing of equity awards. We have not granted stock options to our employees since 2013, so the policy currently
governs the timing of RSUs and performance shares granted to our employees and stock awards granted to our independent directors. Under this policy, annual
grants may be made at any previously scheduled meeting of the Compensation Committee or the Board of Directors, provided that reasonable efforts will be made
to make such grants at the first regularly scheduled meeting of each calendar year, and annual grants to independent directors may be made by the Board of
Directors at any previously scheduled meeting of the Board of Directors, provided that reasonable efforts will be made to make such grants at the regularly scheduled
meeting of the Board of Directors that is held in conjunction with the annual meeting each year. Other stock award grants may be made during any “open
window period” as defined in our securities trading policy or on the same day as any previously scheduled meeting of the Board of Directors or the Compensation
Committee. We have not timed the release of material non-public information for the purpose of affecting the value of any executive or director compensation,
and we have no plan to do so.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
Equity Compensation Plan Information
The following table shows information as of December 31, 2024, about securities to be issued upon exercise of outstanding options, warrants and rights
under Duke Energy’s equity compensation plans, along with the weighted average exercise price of the outstanding options, warrants and rights and the number
of securities remaining available for future issuance under the plans.
Plan Category
Number of securities
to be issued upon
exercise of
outstanding options,
warrants and rights
(a)
Weighted average
exercise price of
outstanding options,
warrants and rights
(b)(1)
Number of securities
remaining available for
future issuance under equity
compensation plans
(excluding securities
reflected in column (a))
(c)
Equity compensation plans approved by security holders
3,680,932(2)
n/a
13,585,751(3)
Equity compensation plans not approved by security holders
99,986(4)
n/a
n/a(5)
Total
3,780,918
n/a
13,585,751
PART III
217
(1)
As of December 31, 2024, no options were outstanding under equity compensation plans.
(2)
Includes RSUs and performance shares (assuming the maximum payout level) granted under the Duke Energy Corporation 2015 Long-Term Incentive Plan or the Duke Energy Corporation 2023 Long-Term Incentive Plan,
as well as shares that could be payable with respect to certain compensation deferred under the Duke Energy Corporation Executive Savings Plan (Executive Savings Plan) or the Duke Energy Corporation Directors’ Savings
Plan (Directors’ Savings Plan).
(3)
Includes shares remaining available for issuance pursuant to stock awards under the Duke Energy Corporation 2023 Long-Term Incentive Plan. The Duke Energy Corporation 2015 Long-Term Incentive Plan is no longer
available for the grant of additional stock awards.
(4)
Includes shares that could be payable with respect to certain compensation deferred under the Executive Savings Plan or the Directors’ Savings Plan, each of which is a non-qualified deferred compensation plan
described in more detail below.
(5)
The number of shares remaining available for future issuance under equity compensation plans not approved by security holders cannot be determined because it is based on the amount of future voluntary deferrals, if
any, under the Executive Savings Plan and the Directors’ Savings Plan.
Under the Executive Savings Plan, participants can elect to defer a
portion of their base salary and short-term incentive compensation. Participants
also receive a company matching contribution in excess of the contribution
limits prescribed by the Internal Revenue Code under the Duke Energy Retirement
Savings Plan, which is the 401(k) plan in which employees are generally
eligible to participate. Eligible participants may also earn pay credits based on
age and length of service on eligible earnings that exceed limits prescribed
by the Internal Revenue Code.
In general, payments are made following termination of employment or
death in the form of a lump sum or installments, as selected by the participant.
Participants may direct the deemed investment of their accounts (with
certain exceptions) among investment options available under the Duke Energy
Retirement Savings Plan, including the Duke Energy Common Stock Fund.
Participants may change their investment elections on a daily basis. Deferrals
of equity awards are credited with earnings and losses based on the
performance of the Duke Energy Common Stock Fund. The benefits payable
under the plan are unfunded and subject to the claims of Duke Energy’s creditors.
Under the Directors’ Savings Plan, outside directors may elect to defer
all or a portion of their annual compensation, generally consisting of retainers.
Deferred amounts are credited to an unfunded account, the balance of which
is adjusted for the performance of phantom investment options, including the
Duke Energy Common Stock Fund, as elected by the director, and generally
are paid when the director terminates his or her service from the Board of
Directors.
Duke Energy will provide additional information that is responsive to
this Item 12 in its definitive proxy statement or in an amendment to this
Annual Report not later than 120 days after the end of the fiscal year covered
by this Annual Report. That information is incorporated in this Item 12 by
reference.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
Duke Energy will provide information that is responsive to this Item 13 in its definitive proxy statement or in an amendment to this Annual Report not later
than 120 days after the end of the fiscal year covered by this Annual Report. That information is incorporated in this Item 13 by reference.
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Deloitte provided professional services to the Duke Energy Registrants. The following tables present the Deloitte fees for services rendered to the Duke
Energy Registrants during 2024 and 2023.
Year Ended December 31, 2024
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Types of Fees
Audit Fees(a)
$14.7
$3.4
$5.2
$2.7
$2.5
$2.2
$1.9
$1.4
Audit-Related Fees(b)
0.7
0.1
0.4
0.3
0.1
0.2
—
—
Total Fees
$15.4
$3.5
$5.6
$3.0
$2.6
$2.4
$1.9
$1.4
Year Ended December 31, 2023
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Piedmont
Types of Fees
Audit Fees(a)
$14.0
$3.3
$5.0
$2.5
$2.5
$2.1
$1.8
$1.4
Audit-Related Fees(b)
0.5
0.1
0.2
0.1
0.1
0.2
—
—
Total Fees
$14.5
$3.4
$5.2
$2.6
$2.6
$2.3
$1.8
$1.4
(a)
Audit Fees are fees billed, or expected to be billed, by Deloitte for professional services for the financial statement audits, audit of the Duke Energy Registrants’ financial statements included in Duke Energy’s Annual
Report on Form 10-K, reviews of financial statements included in Quarterly Reports on Form 10-Q, and services associated with securities filings such as comfort letters and consents.
(b)
Audit-Related Fees are fees billed, or expected to be billed, by Deloitte for assurance and related services that are reasonably related to the performance of an audit or review of financial statements, including
statutory reporting requirements.
To safeguard the continued independence of the independent auditor, the Audit Committee of Duke Energy adopted a policy that all services provided by the
independent auditor require preapproval by the Audit Committee. Pursuant to the policy, certain audit services, audit-related services, tax services and other
services have been specifically preapproved up to fee limits. In the event the cost of any of these services may exceed the fee limits, the Audit Committee must
specifically approve the service. All services performed in 2024 and 2023 by the independent accountant were approved by the Audit Committee pursuant to the
preapproval policy.
PART III
218
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) Consolidated Financial Statements and Supplemental Schedules included in Part II of this Annual Report are as follows:
Duke Energy Corporation
Consolidated Financial Statements
Consolidated Statements of Operations for the Years Ended December 31, 2024, 2023 and 2022
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2024, 2023 and 2022
Consolidated Balance Sheets as of December 31, 2024, and 2023
Consolidated Statements of Cash Flows for the Years Ended December 31, 2024, 2023 and 2022
Consolidated Statements of Changes in Equity for the Years Ended December 31, 2024, 2023 and 2022
Notes to the Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm
All other schedules are omitted because they are not required, or because the required information is included in the Consolidated Financial
Statements or Notes.
Duke Energy Carolinas, LLC
Consolidated Financial Statements
Consolidated Statements of Operations and Comprehensive Income for the Years Ended December 31, 2024, 2023 and 2022
Consolidated Balance Sheets as of December 31, 2024, and 2023
Consolidated Statements of Cash Flows for the Years Ended December 31, 2024, 2023 and 2022
Consolidated Statements of Changes in Equity for the Years Ended December 31, 2024, 2023 and 2022
Notes to the Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm
All other schedules are omitted because they are not required, or because the required information is included in the Consolidated Financial
Statements or Notes.
Progress Energy, Inc.
Consolidated Financial Statements
Consolidated Statements of Operations and Comprehensive Income for the Years Ended December 31, 2024, 2023 and 2022
Consolidated Balance Sheets as of December 31, 2024, and 2023
Consolidated Statements of Cash Flows for the Years Ended December 31, 2024, 2023 and 2022
Consolidated Statements of Changes in Equity for the Years Ended December 31, 2024, 2023 and 2022
Notes to the Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm
All other schedules are omitted because they are not required, or because the required information is included in the Consolidated Financial
Statements or Notes.
Duke Energy Progress, LLC
Consolidated Financial Statements
Consolidated Statements of Operations and Comprehensive Income for the Years Ended December 31, 2024, 2023 and 2022
Consolidated Balance Sheets as of December 31, 2024, and 2023
Consolidated Statements of Cash Flows for the Years Ended December 31, 2024, 2023 and 2022
Consolidated Statements of Changes in Equity for the Years Ended December 31, 2024, 2023 and 2022
Notes to the Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm
All other schedules are omitted because they are not required, or because the required information is included in the Consolidated Financial
Statements or Notes.
Duke Energy Florida, LLC
Consolidated Financial Statements
Consolidated Statements of Operations and Comprehensive Income for the Years Ended December 31, 2024, 2023 and 2022
Consolidated Balance Sheets as of December 31, 2024, and 2023
Consolidated Statements of Cash Flows for the Years Ended December 31, 2024, 2023 and 2022
Consolidated Statements of Changes in Equity for the Years Ended December 31, 2024, 2023 and 2022
Notes to the Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm
All other schedules are omitted because they are not required, or because the required information is included in the Consolidated Financial
Statements or Notes.
PART IV
219
Duke Energy Ohio, Inc.
Consolidated Financial Statements
Consolidated Statements of Operations and Comprehensive Income for the Years Ended December 31, 2024, 2023 and 2022
Consolidated Balance Sheets as of December 31, 2024, and 2023
Consolidated Statements of Cash Flows for the Years Ended December 31, 2024, 2023 and 2022
Consolidated Statements of Changes in Equity for the Years Ended December 31, 2024, 2023 and 2022
Notes to the Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm
All other schedules are omitted because they are not required, or because the required information is included in the Consolidated Financial
Statements or Notes.
Duke Energy Indiana, LLC
Consolidated Financial Statements
Consolidated Statements of Operations and Comprehensive Income for the Years Ended December 31, 2024, 2023 and 2022
Consolidated Balance Sheets as of December 31, 2024, and 2023
Consolidated Statements of Cash Flows for the Years Ended December 31, 2024, 2023 and 2022
Consolidated Statements of Changes in Equity for the Years Ended December 31, 2024, 2023 and 2022
Notes to the Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm
All other schedules are omitted because they are not required, or because the required information is included in the Consolidated Financial
Statements or Notes.
Piedmont Natural Gas Company, Inc.
Consolidated Financial Statements
Consolidated Statements of Operations and Comprehensive Income for the Years Ended December 31, 2024, 2023 and 2022
Consolidated Balance Sheets as of December 31, 2024, and 2023
Consolidated Statements of Cash Flows for the Years Ended December 31, 2024, 2023 and 2022
Consolidated Statements of Changes in Equity for the Years Ended December 31, 2024, 2023 and 2022
Notes to the Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm
All other schedules are omitted because they are not required, or because the required information is included in the Consolidated Financial
Statements or Notes.
PART IV
220
EXHIBIT INDEX
Exhibits filed herewith are designated by an asterisk (*). All exhibits not so designated are incorporated by reference to a prior filing, as indicated. Items
constituting management contracts or compensatory plans or arrangements are designated by a double asterisk (**). The Company agrees to furnish upon
request to the commission a copy of any omitted schedules or exhibits upon request on all items designated by a triple asterisk (***).
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
2.1
Agreement and Plan of Merger between Duke Energy Corporation, Diamond
Acquisition Corporation and Progress Energy, Inc., dated as of January 8, 2011
(incorporated by reference to Exhibit 2.1 to Duke Energy Corporation’s Current
Report on Form 8-K filed on January 11, 2011, File No. 1-32853).
X
X
2.2
Agreement and Plan of Merger between Piedmont Natural Gas Company, Duke
Energy Corporation and Forest Subsidiary, Inc. (incorporated by reference to
Exhibit 2.1 to Duke Energy Corporation’s Current Report on Form 8-K filed on
October 26, 2015, File No. 1-32853).
X
X
3.1
Amended and Restated Certificate of Incorporation of Duke Energy Corporation
(incorporated by reference to Exhibit 3.1 to registrant’s Current Report on Form 8-K
filed on May 20, 2014, File No. 1-32853).
X
3.2
Amended and Restated By-Laws of Duke Energy Corporation, effective as of May 8,
2024 (incorporated by reference to Exhibit 3.1 to registrant’s Current Report on
Form 8-K filed on May 13, 2024, File No. 1-32853).
X
3.3
Articles of Organization including Articles of Conversion of Duke Energy Carolina’s,
LLC (incorporated by reference to Exhibit 3.1 to registrant’s Current Report on
Form 8-K filed on April 7, 2006, File No. 1-4928).
X
3.3.1
Amended Articles of Organization of Duke Energy Carolinas, LLC, effective
October 1, 2006 (incorporated by reference to Exhibit 3.1 to registrant’s Quarterly
Report on Form 10-Q for the quarter ended September 30, 2006, filed on
November 13, 2006, File No. 1-4928).
X
3.4
Amended Articles of Incorporation of Duke Energy Ohio, Inc. (formerly The
Cincinnati Gas & Electric Company), effective October 23, 1996, (incorporated by
reference to Exhibit 3(a) to registrant’s Quarterly Report on Form 10-Q for the
quarter ended September 30, 1996, filed on November 13, 1996, File No. 1-1232).
X
3.4.1
Amended Articles of Incorporation, effective September 19, 2006 (incorporated by
reference to Exhibit 3.1 to Duke Energy Ohio, Inc.’s (formerly The Cincinnati Gas &
Electric Company) Quarterly Report on Form 10-Q for the quarter ended
September 30, 2006, filed on November 17, 2006, File No. 1-1232).
X
3.5
Certificate of Conversion of Duke Energy Indiana, LLC (incorporated by reference to
Exhibit 3.1 to registrant’s Current Report on Form 8-K filed on January 4, 2016,
File No. 1-3543).
X
3.5.1
Articles of Entity Conversion of Duke Energy Indiana, LLC (incorporated by reference
to Exhibit 3.2 to registrant’s Current Report on Form 8-K filed on January 4, 2016,
File No. 1-3543).
X
3.5.2
Plan of Entity Conversion of Duke Energy Indiana, LLC (incorporated by reference to
Exhibit 3.3 to registrant’s Current Report on Form 8-K filed on January 4, 2016, File
No. 1-3543).
X
3.5.3
Articles of Organization of Duke Energy Indiana, LLC (incorporated by reference to
Exhibit 3.4 to registrant’s Current Report on Form 8-K filed on January 4, 2016, File
No. 1-3543).
X
3.5.4
Amended and Restated Limited Liability Company Operating Agreement of Duke
Energy Indiana, LLC, dated August 25, 2021 (incorporated by reference to
Exhibit 3.1 to registrant’s Quarterly Report on Form 10-Q for the quarter ended
September 30, 2021, filed on November 4, 2021, File No. 1-3543).
X
3.6
Limited Liability Company Operating Agreement of Duke Energy Carolinas, LLC
(incorporated by reference to Exhibit 3.2 to registrant’s Current Report on Form 8-K
filed on April 7, 2006, File No. 1-4928).
X
3.7
Regulations of Duke Energy Ohio, Inc. (formerly The Cincinnati Gas & Electric
Company), effective July 23, 2003 (incorporated by reference to Exhibit 3.2 to
registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2003,
filed on August 13, 2003, File No. 1-1232).
X
3.8
Articles of Organization including Articles of Conversion for Duke Energy Progress,
LLC (incorporated by reference to Exhibit 3.1 to registrant’s Current Report on
Form 8-K filed on August 4, 2015, File No. 1-3382).
X
3.8.1
Plan of Conversion of Duke Energy Progress, Inc. (incorporated by reference to
Exhibit 3.2 to registrant’s Current Report on Form 8-K filed on August 4, 2015, File
No. 1-3382).
X
PART IV
E-1
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
3.8.2
Limited Liability Company Operating Agreement of Duke Energy Progress, LLC
(incorporated by reference to Exhibit 3.3 to registrant’s Current Report on Form 8-K
filed on August 4, 2015, File No. 1-3382).
X
*3.9
Articles of Merger of Diamond Acquisition Corporation into Progress Energy, Inc.
and Articles of Incorporation of Progress Energy, Inc., effective July 2, 2012.
X
*3.10
By-Laws of Progress Energy, Inc. (formerly Diamond Acquisition Corporation),
effective July 2, 2012.
X
3.11
Articles of Conversion for Duke Energy Florida, LLC (incorporated by reference to
Exhibit 3.4 to registrant’s Current Report on Form 8-K filed on August 4, 2015, File
No. 1-3274).
X
3.11.1
Articles of Organization for Duke Energy Florida, LLC (incorporated by reference to
Exhibit 3.5 to registrant’s Current Report on Form 8-K filed on August 4, 2015, File
No. 1-3274).
X
3.11.2
Plan of Conversion of Duke Energy Florida, Inc. (incorporated by reference to
Exhibit 3.6 to registrant’s Current Report on Form 8-K filed on August 4, 2015, File
No. 1-3274).
X
3.11.3
Limited Liability Company Operating Agreement of Duke Energy Florida, LLC
(incorporated by reference to Exhibit 3.7 to registrant’s Current Report on Form 8-K
filed on August 4, 2015, File No. 1-3274).
X
3.12
Amended and Restated Articles of Incorporation of Piedmont Natural Gas Company,
Inc., dated as of October 3, 2016 (incorporated by reference to Exhibit 3.1 to
registrant’s Annual Report on Form 10-K for the fiscal year ended October 31, 2016,
filed on December 22, 2016, File No. 001-06196).
X
3.12.1
By-Laws of Piedmont Natural Gas Company, Inc., as amended and restated
effective October 3, 2016 (incorporated by reference to Exhibit 3.2 to registrant’s
Current Report on Form 8-K filed on October 3, 2016, File No. 1-06196).
X
3.13
Certificate of Designations with respect to Series A Preferred Stock, dated
March 28, 2019 (incorporated by reference to Exhibit 3.1 to registrant’s Current
Report on Form 8-K filed on March 29, 2019, File No. 1-32853).
X
3.14
Certificate of Designation with respect to the Series B Preferred Stock, dated
September 11, 2019 (incorporated by reference to Exhibit 3.1 to registrant’s Current
Report on Form 8-K filed on September 12, 2019, File No. 1-32853).
X
3.15
Description of Registered Securities (incorporated by reference from the registrant’s
prospectus contained in Form S-3 filed on September 23, 2019, File
No. 333-233896, under the headings “Description of Common Stock,” “Description
of Preferred Stock,” “Description of Depositary Shares,” “Description of Stock
Purchase Contracts and Stock Purchase Units,” and “Description of Debt
Securities”).
X
3.16
Description of Registered Securities (incorporated by reference from the registrant’s
prospectus contained in Form S-3 filed on September 23, 2019, File
No. 333-233896-01, under the heading “Description of Debt Securities”).
X
3.17
Description of Registered Securities (incorporated by reference from the registrant’s
prospectus contained in Form S-3 filed on September 23, 2019,
File No. 333-233896-02, under the headings “Description of First Mortgage Bonds”
and “Description of Debt Securities”).
X
3.18
Description of Registered Securities (incorporated by reference from the registrant’s
prospectus contained in Form S-3 filed on September 23, 2019, File
No. 333-233896-03, under the headings “Description of First Mortgage Bonds” and
“Description of Unsecured Debt Securities”).
X
3.19
Description of Registered Securities (incorporated by reference from the registrant’s
prospectus contained in Form S-3 filed on September 23, 2019, File
No. 333-233896-04, under the headings “Description of First Mortgage Bonds” and
“Description of Unsecured Debt Securities”).
X
3.20
Description of Registered Securities (incorporated by reference from the registrant’s
prospectus contained in Form S-3 filed on September 23, 2019, File
No. 333-233896-05, under the headings “Description of First Mortgage Bonds” and
“Description of Debt Securities”).
X
3.21
Description of Registered Securities (incorporated by reference from the registrant’s
prospectus contained in Form S-3 filed on September 23, 2019, File
No. 333-233896-06, under the headings “Description of First and Refunding
Mortgage Bonds,” “Description of Senior Notes,” and “Description of Subordinate
Notes”).
X
4.1
Indenture between Duke Energy Corporation and The Bank of New York Mellon Trust
Company, N.A., as Trustee, dated as of June 3, 2008 (incorporated by reference to
Exhibit 4.1 to Duke Energy Corporation’s Current Report on Form 8-K filed on
June 16, 2008, File No. 1-32853).
X
PART IV
E-2
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
4.1.1
First Supplemental Indenture, dated as of June 16, 2008 (incorporated by reference
to Exhibit 4.2 to Duke Energy Corporation’s Current Report on Form 8-K filed on
June 16, 2008, File No. 1-32853).
X
4.1.2
Second Supplemental Indenture, dated as of January 26, 2009 (incorporated by
reference to Exhibit 4.1 to Duke Energy Corporation’s Current Report on Form 8-K
filed on January 26, 2009, File No. 1-32853).
X
4.1.3
Third Supplemental Indenture, dated as of August 28, 2009 (incorporated by
reference to Exhibit 4.1 to Duke Energy Corporation’s Current Report on Form 8-K
filed on August 28, 2009, File No. 1-32853).
X
4.1.4
Fourth Supplemental Indenture, dated as of March 25, 2010 (incorporated by
reference to Exhibit 4.1 to Duke Energy Corporation’s Current Report on Form 8-K
filed on March 25, 2010, File No. 1-32853).
X
4.1.5
Fifth Supplemental Indenture, dated as of August 25, 2011 (incorporated by
reference to Exhibit 4.1 to Duke Energy Corporation’s Current Report on Form 8-K
filed on August 25, 2011, File No. 1-32853).
X
4.1.6
Sixth Supplemental Indenture, dated as of November 17, 2011 (incorporated by
reference to Exhibit 4.1 to Duke Energy Corporation’s Current Report on Form 8-K
filed on November 17, 2011, File No. 1-32853).
X
4.1.7
Seventh Supplemental Indenture, dated as of August 16, 2012 (incorporated by
reference to Exhibit 4.1 to Duke Energy Corporation’s Current Report on Form 8-K
filed on August 16, 2012, File No. 1-32853).
X
4.1.8
Eighth Supplemental Indenture, dated as of January 14, 2013 (incorporated by
reference to Exhibit 2 to the Registration Statement on Form 8-A of Duke Energy
Corporation filed on January 14, 2013, File No. 1-32853).
X
4.1.9
Ninth Supplemental Indenture, dated as of June 13, 2013 (incorporated by
reference to Exhibit 4.1 to Duke Energy Corporation’s Current Report on Form 8-K
filed on June 13, 2013, File No. 1-32853).
X
4.1.10
Tenth Supplemental Indenture, dated as of October 11, 2013 (incorporated by
reference to Exhibit 4.1 to Duke Energy Corporation’s Current Report on Form 8-K
filed on October 11, 2013, File No. 1-32853).
X
4.1.11
Eleventh Supplemental Indenture, dated as of April 4, 2014 (incorporated by
reference to Exhibit 4.1 to Duke Energy Corporation’s Current Report on Form 8-K
filed on April 4, 2014, File No. 1-32853).
X
4.1.12
Twelfth Supplemental Indenture, dated as of November 19, 2015 (incorporated by
reference to Exhibit 4.2 to Duke Energy Corporation’s Current Report on Form 8-K
filed on November 19, 2015, File No. 1-32853).
X
4.1.13
Thirteenth Supplemental Indenture, dated as of April 18, 2016, to the indenture
dated as of June 3, 2008, between Duke Energy Corporation and The Bank of New
York Mellon Trust Company, N.A., as Trustee (incorporated by reference to
Exhibit 4.1 to Duke Energy Corporation’s Quarterly Report on Form 10-Q for the
quarter ended March 31, 2016, filed on May 5, 2016, File No. 1-32853).
X
4.1.14
Fourteenth Supplemental Indenture, dated as of August 12, 2016 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on
August 12, 2016, File No. 1-32853).
X
4.1.15
Fifteenth Supplemental Indenture, dated as of April 11, 2017 (incorporated by
reference to Exhibit 4.2 to registrant’s Quarterly Report on Form 10-Q for the
quarter ended March 31, 2017, filed on May 9, 2017, File No. 1-32853).
X
4.1.16
Sixteenth Supplemental Indenture, dated as of June 13, 2017 (incorporated by
reference to Exhibit 4.1 to registrant’s Quarterly Report on Form 10-Q for the
quarter ended June 30, 2017, filed on August 3, 2017, File No. 1-32853).
X
4.1.17
Seventeenth Supplemental Indenture, dated as of August 10, 2017 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on
August 10, 2017, File No. 1-32853).
X
4.1.18
Eighteenth Supplemental Indenture, dated as of March 29, 2018 (incorporated by
reference to Exhibit 4.2 to registrant’s Quarterly Report on Form 10-Q for the
quarter ended March 31, 2018, filed on May 10, 2018, File No. 1-32853).
X
4.1.19
Nineteenth Supplemental Indenture, dated as of May 16, 2018 (incorporated by
reference to Exhibit 4.1 to registrant’s Quarterly Report on Form 10-Q for the
quarter ended June 30, 2018, filed on August 2, 2018, File No. 1-32853).
X
4.1.20
Twentieth Supplemental Indenture (incorporated by reference to Exhibit 4.2 to
registrant’s Registration Statement on Form 8-A filed on September 17, 2018, File
No. 1-32853).
X
4.1.21
Twenty-first Supplemental Indenture (incorporated by reference to Exhibit 4.1 to
registrant’s Current Report on Form 8-K filed on March 11, 2019, File no. 1-32853).
X
PART IV
E-3
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
4.1.22
Twenty-second Supplemental Indenture, dated as of June 7, 2019 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on June 7,
2019, File No. 1-32853).
X
4.1.23
Twenty-third Supplemental Indenture, dated as of May 15, 2020 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on May 15,
2020, File No. 1-32853).
X
4.1.24
Twenty-fourth Supplemental Indenture, dated as of September 11, 2020
(incorporated by reference to Exhibit 4.2 to registrant’s Current Report on Form 8-K
filed on September 11, 2020, File No. 1-32853).
X
4.1.25
Twenty-fifth Supplemental Indenture, dated as of June 10, 2021 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on June 10,
2021, File No. 1-32853).
X
4.1.26
Twenty-sixth Supplemental Indenture, dated as of September 28, 2021
(incorporated by reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K
filed on September 28, 2021, File No. 1-32853).
X
4.1.27
Twenty-seventh Supplemental Indenture, dated as of June 15, 2022, to the
indenture, dated as of June 3, 2008, between Duke Energy Corporation and The
Bank of New York Mellon Trust Company, N.A., as Trustee (incorporated by reference
to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on June 15, 2022, File
No. 1-32853).
X
4.1.28
Twenty-eighth Supplemental Indenture, dated as of August 11, 2022, to the
indenture, dated as of June 3, 2008, between Duke Energy Corporation and The
Bank of New York Mellon Trust Company, N.A., as Trustee, and forms of global notes
included therein (incorporated by reference to Exhibit 4.1 to registrant’s Current
Report on Form 8-K filed on August 11, 2022, File No. 1-32853).
X
4.1.29
Twenty-ninth Supplemental Indenture, dated as of December 8, 2022, to the
Indenture, dated as of June 3, 2008, between Duke Energy Corporation and The
Bank of New York Mellon Trust Company, N.A., as Trustee, and forms of global notes
included therein (incorporated by reference to Exhibit 4.1 to registrant’s Current
Report on Form 8-K filed on December 8, 2022, File No. 1-32853).
X
4.1.30
Thirtieth Supplemental Indenture, dated as of September 8, 2023, to the Indenture,
dated as of June 3, 2008, between Duke Energy Corporation and The Bank of New
York Mellon Trust Company, N.A., as Trustee, and forms of global notes included
therein (incorporated by reference to exhibit 4.1 to registrant’s Current Report on
Form 8-K filed on September 8, 2023, File No. 1-32853).
X
4.1.31
Thirty-second Supplemental Indenture, dated as of April 12, 2024, to the indenture,
dated as of June 3, 2008, between the registrant and The Bank of New York Mellon
Trust Company, N.A., as Trustee, and form of global note (incorporated by reference
to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on April 12, 2024, File
No. 1-32853).
X
4.1.32
Thirty-third Supplemental Indenture, dated as of June 7, 2024, to the Indenture,
dated as of June 3, 2008, between the registrant and The Bank of New York Mellon
Trust Company, N.A., as Trustee, and forms of global notes (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on June 7,
2024, File No. 1-32853).
X
4.1.33
Thirty-fourth Supplemental Indenture, dated as of August 22, 2024, between the
registrant and The Bank of New York Mellon Trust Company, N.A., as Trustee, and
form of global debenture included therein (incorporated by reference to Exhibit 4.1
to registrant’s Current Report on Form 8-K filed on August 22, 2024, File
No. 1-32853).
X
4.2
Indenture, dated as of April 6, 2023, by and between Duke Energy Corporation and
The Bank of New York Mellon Trust Company, N.A., as Trustee, and form of global
note included therein (incorporated by reference to Exhibit 4.1 to registrant’s
Current Report on Form 8-K filed on April 6, 2023, File No. 1-32853).
X
4.3
Senior Indenture between Duke Energy Carolinas, LLC and The Bank of New York
Mellon Trust Company, N.A., as successor trustee to JPMorgan Chase Bank
(formerly known as The Chase Manhattan Bank), dated as of September 1, 1998
(incorporated by reference to Exhibit 4-D-1 to registrant’s Post-Effective
Amendment No. 2 to Registration Statement on Form S-3 filed on April 7, 1999, File
No. 333-14209).
X
4.3.1
Fifteenth Supplemental Indenture, dated as of April 3, 2006 (incorporated by
reference to Exhibit 4.4.1 to registrant’s Registration Statement on Form S-3 filed
on October 3, 2007, File No. 333-146483-03).
X
4.3.2
Sixteenth Supplemental Indenture, dated as of June 5, 2007 (incorporated by
reference to Exhibit 4.1 registrant’s Current Report on Form 8-K filed on June 6,
2007, File No. 1-4928).
X
PART IV
E-4
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
4.4
First and Refunding Mortgage from Duke Energy Carolinas, LLC to The Bank of New
York Mellon Trust Company, N.A., successor trustee to Guaranty Trust Company of
New York, dated as of December 1, 1927 (incorporated by reference to Exhibit 7(a)
to registrant’s Form S-1, effective October 15, 1947, File No. 2-7224).
X
4.4.1
Instrument of Resignation, Appointment and Acceptance among Duke Energy
Carolinas, LLC, JPMorgan Chase Bank, N.A., as Trustee, and The Bank of New York
Mellon Trust Company, N.A., as Successor Trustee, dated as of September 24, 2007,
(incorporated by reference to Exhibit 4.6.1 to registrant’s Registration Statement on
Form S-3 filed on October 3, 2007, File No. 333-146483).
X
4.4.2
Ninth Supplemental Indenture, dated as of February 1, 1949 (incorporated by
reference to Exhibit 7(j) to registrant’s Form S-1 filed on February 3, 1949, File
No. 2-7808).
X
4.4.3
Twentieth Supplemental Indenture, dated as of June 15, 1964 (incorporated by
reference to Exhibit 4-B-20 to registrant’s Form S-1 filed on August 23, 1966, File
No. 2-25367).
X
4.4.4
Twenty-third Supplemental Indenture, dated as of February 1, 1968 (incorporated
by reference to Exhibit 2-B-26 to registrant’s Form S-9 filed on January 21, 1969,
File No. 2-31304).
X
4.4.5
Sixtieth Supplemental Indenture, dated as of March 1, 1990 (incorporated by
reference to Exhibit 4-B-61 to registrant’s Annual Report on Form 10-K for the year
ended December 31, 1990, File No.1-4928).
X
4.4.6
Sixty-third Supplemental Indenture, dated as of July 1, 1991 (incorporated by
reference to Exhibit 4-B-64 to registrant’s Registration Statement on Form S-3 filed
on February 13, 1992, File No. 33-45501).
X
4.4.7
Eighty-fourth Supplemental Indenture, dated as of March 20, 2006 (incorporated
by reference to Exhibit 4.6.9 to registrant’s Registration Statement on Form S-3
filed on October 3, 2007, File No. 333-146483-03).
X
4.4.8
Eighty-fifth Supplemental Indenture, dated as of January 10, 2008 (incorporated by
reference to Exhibit 4.1 to Duke Energy Carolinas, LLC’s Current Report on Form 8-K
filed on January 11, 2008, File No.1-4928).
X
4.4.9
Eighty-seventh Supplemental Indenture, dated as of April 14, 2008 (incorporated
by reference to Exhibit 4.1 to Duke Energy Carolinas, LLC’s Current Report on
Form 8-K filed on April 15, 2008, File No.1-4928).
X
4.4.10
Eighty-eighth Supplemental Indenture, dated as of November 17, 2008
(incorporated by reference to Exhibit 4.1 to Duke Energy Carolinas, LLC’s Current
Report on Form 8-K filed on November 20, 2008, File No.1-4928).
X
4.4.11
Ninetieth Supplemental Indenture, dated as of November 19, 2009 (incorporated by
reference to Exhibit 4.1 to Duke Energy Carolinas, LLC’s Current Report on Form 8-K
filed on November 19, 2009, File No.1-4928).
X
4.4.12
Ninety-first Supplemental Indenture, dated as of June 7, 2010 (incorporated by
reference to Exhibit 4.1 to Duke Energy Carolinas, LLC’s Current Report on Form 8-K
filed on June 7, 2010, File No.1-4928).
X
4.4.13
Ninety-third Supplemental Indenture, dated as of May 19, 2011 (incorporated by
reference to Exhibit 4.1 to Duke Energy Carolinas, LLC’s Current Report on Form 8-K
filed on May 19, 2011, File No.1-4928).
X
4.4.14
Ninety-fourth Supplemental Indenture, dated as of December 8, 2011 (incorporated
by reference to Exhibit 4.1 to Duke Energy Carolinas, LLC’s Current Report on
Form 8-K filed on December 8, 2011, File No.1-4928).
X
4.4.15
Ninety-fifth Supplemental Indenture, dated as of September 21, 2012 (incorporated
by reference to Exhibit 4.1 to Duke Energy Carolinas, LLC’s Current Report on
Form 8-K filed on September 21, 2012, File No.1-4928).
X
4.4.16
Ninety-sixth Supplemental Indenture, dated as of March 12, 2015, between Duke
Energy Carolinas, LLC and The Bank of New York Mellon Trust Company, N.A., as
Trustee (incorporated by reference to Exhibit 4.1 to Duke Energy Carolinas, LLC’s
Current Report on Form 8-K filed on March 12, 2015, File No. 1-4928).
X
4.4.17
Ninety-seventh Supplemental Indenture, dated as of March 11, 2016 (incorporated
by reference to Exhibit 4.1 to Duke Energy Carolinas, LLC’s Current Report on
Form 8-K filed on March 11, 2016, File No. 1-4928).
X
4.4.18
Ninety-eighth Supplemental Indenture, dated as of November 17, 2016
(incorporated by reference to Exhibit 4.1 to Duke Energy Carolinas, LLC’s Current
Report on Form 8-K filed on November 17, 2016, File No. 1-4928).
X
4.4.19
Ninety-ninth Supplemental Indenture, dated as of November 14, 2017
(incorporated by reference to Exhibit 4.1 to Duke Energy Carolinas, LLC Current
Report on Form 8-K filed on November 14, 2017, File No. 1-4928).
X
PART IV
E-5
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
4.4.20
One Hundredth Supplemental Indenture, dated as of March 1, 2018 (incorporated
by reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on
March 1, 2018, File No. 1-4928).
X
4.4.21
One-hundred and second Supplemental Indenture, dated as of August 14, 2019
(incorporated by reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K
filed on August 14, 2019, File No. 1-4928).
X
4.4.22
One-hundred and third Supplemental Indenture, dated as of January 8, 2020
(incorporated by reference to Exhibit 4.2 to registrant’s Current Report on Form 8-K
filed on January 8, 2020, File No. 1-4928).
X
4.4.23
One-hundred and fourth Supplemental Indenture, dated as of January 8, 2020
(incorporated by reference to Exhibit 4.3 to registrant’s Current Report on Form 8-K
filed on January 8, 2020, File No. 1-4928).
X
4.4.24
One-hundred and fifth Supplemental Indenture, dated as of April 1, 2021
(incorporated by reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K
filed on April 1, 2021, File No. 1-4928).
X
4.4.25
One-hundred and sixth Supplemental Indenture, dated as of March 4, 2022
between the registrant and The Bank of New York Mellon Trust Company, N.A., as
Trustee, and forms of global bonds representing the First and Refunding Mortgage
Bonds, 2.85% Series due 2032 and First and Refunding Mortgage Bonds, 3.55%
Series due 2052 (incorporated by reference to Exhibit 4.1 to registrant’s Current
Report on Form 8-K filed on March 4, 2022, File No. 1-32853).
X
4.4.26
One-hundred and seventh Supplemental Indenture, dated as of January 6, 2023,
between Duke Energy Carolinas, LLC and The Bank of New York Mellon Trust
Company, N.A., as Trustee (incorporated by reference to Exhibit 4.1 to registrant’s
Current Report on Form 8-K filed on January 6, 2023, File No. 1-04928).
X
4.4.27
One-hundred and eighth Supplemental Indenture, dated as of June 15, 2023,
between Duke Energy Carolinas, LLC and The Bank of New York Mellon Trust
Company, N.A., as Trustee (incorporated by reference to Exhibit 4.2 to registrant’s
Current Report on Form 8-K filed on June 15, 2023, File No. 1-04928).
X
4.4.28
One-hundred and ninth Supplemental Indenture, dated as of June 15, 2023,
between Duke Energy Carolinas, LLC and The Bank of New York Mellon Trust
Company, N.A., as Trustee (incorporated by reference to Exhibit 4.3 to registrant’s
Current Report on Form 8-K filed on June 15, 2023, File No. 1-04928).
X
4.4.29
One-hundred and tenth Supplemental Indenture, dated as of January 5, 2024,
between Duke Energy Carolinas, LLC and The Bank of New York Mellon Trust
Company, N.A., as Trustee (incorporated by reference to Exhibit 4.2 to registrant’s
Current Report on Form 8-K, filed on January 5, 2024, File No. 1-04928).
X
4.4.30
One-hundred and eleventh Supplemental Indenture, dated as of January 5, 2024,
between Duke Energy Carolinas, LLC and The Bank of New York Mellon Trust
Company, N.A., as Trustee, and a form of global bonds representing the First and
Refunding Mortgage Bonds, 4.85% Series due 2034 (incorporated by reference to
Exhibit 4.3 to registrant’s Current Report on Form 8-K, filed on January 5, 2024, File
No. 1-04928).
X
4.5
Mortgage and Deed of Trust between Duke Energy Progress, Inc. (formerly Carolina
Power & Light Company) and The Bank of New York Mellon (formerly Irving Trust
Company) and Frederick G. Herbst (Tina D. Gonzalez, successor), as Trustees, dated
as of May 1, 1940.
X
4.5.1
First through Fifth Supplemental Indentures thereto (incorporated by reference to
Exhibit 2(b), File No. 2-64189).
X
4.5.2
Sixth Supplemental Indenture dated April 1, 1960 (incorporated by reference to
Exhibit 2(b)-5, File No. 2-16210).
X
4.5.3
Seventh Supplemental Indenture dated November 1, 1961 (incorporated by
reference to Exhibit 2(b)-6, File No. 2-16210).
X
4.5.4
Eighth Supplemental Indenture dated July 1, 1964 (incorporated by reference to
Exhibit 4(b)-8, File No. 2-19118).
X
4.5.5
Ninth Supplemental Indenture dated April 1, 1966 (incorporated by reference to
Exhibit 4(b)-2, File No. 2-22439).
X
4.5.6
Tenth Supplemental Indenture dated October 1, 1967 (incorporated by reference to
Exhibit 4(b)-2, File No. 2-24624).
X
4.5.7
Eleventh Supplemental Indenture dated October 1, 1968 (incorporated by reference
to Exhibit 2(c), File No. 2-27297).
X
4.5.8
Twelfth Supplemental Indenture dated January 1, 1970 (incorporated by reference
to Exhibit 2(c), File No. 2-30172).
X
PART IV
E-6
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
4.5.9
Thirteenth Supplemental Indenture dated August 1, 1970 (incorporated by
reference to Exhibit 2(c), File No. 2-35694).
X
4.5.10
Fourteenth Supplemental Indenture dated January 1, 1971 (incorporated by
reference to Exhibit 2(c), File No. 2-37505).
X
4.5.11
Fifteenth Supplemental Indenture dated October 1, 1971 (incorporated by reference
to Exhibit 2(c), File No. 2-39002).
X
4.5.12
Sixteenth Supplemental Indenture dated May 1, 1972 (incorporated by reference to
Exhibit 2(c), File No. 2-41738).
X
4.5.13
Seventeenth Supplemental Indenture dated November 1, 1973 (incorporated by
reference to Exhibit 2(c), File No. 2-43439).
X
4.5.14
Eighteenth Supplemental Indenture dated (incorporated by reference to
Exhibit 2(c), File No. 2-47751).
X
4.5.15
Nineteenth Supplemental Indenture dated May 1, 1974 (incorporated by reference
to Exhibit 2(c), File No. 2-49347).
X
4.5.16
Twentieth Supplemental Indenture dated December 1, 1974 (incorporated by
reference to Exhibit 2(c), File No. 2-53113).
X
4.5.17
Twenty-first Supplemental Indenture dated April 15, 1975 (incorporated by
reference to Exhibit 2(d), File No. 2-53113).
X
4.5.18
Twenty-second Supplemental Indenture dated October 1, 1977 (incorporated by
reference to Exhibit 2(c), File No. 2-59511).
X
4.5.19
Twenty-third Supplemental Indenture dated June 1, 1978 (incorporated by reference
to Exhibit 2(c), File No. 2-61611).
X
4.5.20
Twenty-fourth Supplemental Indenture dated May 15, 1979 (incorporated by
reference to Exhibit 2(d), File No. 2-64189).
X
4.5.21
Twenty-fifth Supplemental Indenture dated November 1, 1979 (incorporated by
reference to Exhibit 2(c), File No. 2-65514).
X
4.5.22
Twenty-sixth Supplemental Indenture dated November 1, 1979 (incorporated by
reference to Exhibit 2(c), File No. 2-66851).
X
4.5.23
Twenty-seventh Supplemental Indenture dated April 1, 1980 (incorporated by
reference to Exhibit 2(d), File No. 2-66851).
X
4.5.24
Twenty-eighth Supplemental Indenture dated October 1, 1980 (incorporated by
reference to Exhibit 4(b)-1, File No. 2-81299).
X
4.5.25
Twenty-ninth Supplemental Indenture dated October 1, 1980 (incorporated by
reference to Exhibit 4(b)-2, File No. 2-81299).
X
4.5.26
Thirtieth Supplemental Indenture dated December 1, 1982 (incorporated by
reference to Exhibit 4(b)- 3, File No. 2-81299).
X
4.5.27
Thirty-first Supplemental Indenture dated March 15, 1983 (incorporated by
reference to Exhibit 4(c)-1, File No. 2-95505).
X
4.5.28
Thirty-second Supplemental Indenture dated March 15, 1983 (incorporated by
reference to Exhibit 4(c)-2, File No. 2-95505).
X
4.5.29
Thirty-third Supplemental Indenture dated December 1, 1983 (incorporated by
reference to Exhibit 4(c)-3, File No. 2-95505).
X
4.5.30
Thirty-fourth Supplemental Indenture dated December 15, 1983 (incorporated by
reference to Exhibit 4(c)-4, File No. 2-95505).
X
4.5.31
Thirty-fifth Supplemental Indenture dated April 1, 1984 (incorporated by reference
to Exhibit 4(c)-5, File No. 2-95505).
X
4.5.32
Thirty-sixth Supplemental Indenture dated June 1, 1984 (incorporated by reference
to Exhibit 4(c)-6, File No. 2-95505).
X
4.5.33
Thirty-seventh Supplemental Indenture dated June 1, 1984 (incorporated by
reference to Exhibit 4(c)-7, File No. 2-95505).
X
4.5.34
Thirty-eighth Supplemental Indenture dated June 1, 1984 (incorporated by
reference to Exhibit 4(c)- 8, File No. 2-95505).
X
4.5.35
Thirty-ninth Supplemental Indenture dated April 1, 1985 (incorporated by reference
to Exhibit 4(b), File No. 33-25560).
X
4.5.36
Fortieth Supplemental Indenture dated October 1, 1985 (incorporated by reference
to Exhibit 4(c), File No. 33-25560).
X
4.5.37
Forty-first Supplemental Indenture dated March 1, 1986 (incorporated by reference
to Exhibit 4(d), File No. 33-25560).
X
4.5.38
Forty-second Supplemental Indenture dated July 1, 1986 (incorporated by reference
to Exhibit 4(e), File No. 33-25560).
X
PART IV
E-7
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
4.5.39
Forty-third Supplemental Indenture dated January 1, 1987 (incorporated by
reference to Exhibit 4(f), File No. 33-25560).
X
4.5.40
Forty-fourth Supplemental Indenture dated December 1, 1987 (incorporated by
reference to Exhibit 4(g), File No. 33-25560).
X
4.5.41
Forty-fifth Supplemental Indenture dated September 1, 1988 (incorporated by
reference to Exhibit 4(h), File No. 33-25560).
X
4.5.42
Forty-sixth Supplemental Indenture dated April 1, 1989 (incorporated by reference
to Exhibit 4(b), File No. 33-33431).
X
4.5.43
Forty-seventh Supplemental Indenture dated August 1, 1989 (incorporated by
reference to Exhibit 4(c), File No. 33-33431).
X
4.5.44
Forty-eighth Supplemental Indenture dated November 15, 1990 (incorporated by
reference to Exhibit 4(b), File No. 33-38298).
X
4.5.45
Forty-ninth Supplemental Indenture dated November 15, 1990 (incorporated by
reference to Exhibit 4(c), File No. 33-38298).
X
4.5.46
Fiftieth Supplemental Indenture dated February 15, 1991 (incorporated by
reference to Exhibit 4(h), File No. 33-42869).
X
4.5.47
Fifty-first Supplemental Indenture dated April 1, 1991 (incorporated by reference to
Exhibit 4(i), File No. 33-42869).
X
4.5.48
Fifty-second Supplemental Indenture dated September 15, 1991(incorporated by
reference to Exhibit 4(e), File No. 33-48607).
X
4.5.49
Fifty-third Supplemental Indenture dated January 1, 1992 (incorporated by
reference to Exhibit 4(f), File No. 33-48607).
X
4.5.50
Fifty-fourth Supplemental Indenture dated April 15, 1992 (incorporated by
reference to Exhibit 4(g), File No. 33-48607).
X
4.5.51
Fifty-fifth Supplemental Indenture dated July 1, 1992 (incorporated by reference to
Exhibit 4(e), File No. 33-55060).
X
4.5.52
Fifty-sixth Supplemental Indenture dated October 1, 1992 (incorporated by
reference to Exhibit 4(f), File No. 33-55060).
X
4.5.53
Fifty-seventh Supplemental Indenture dated February 1, 1993 (incorporated by
reference to Exhibit 4(e), File No. 33-60014).
X
4.5.54
Fifty-eighth Supplemental Indenture dated March 1, 1993 (incorporated by
reference to Exhibit 4(f), File No. 33-60014).
X
4.5.55
Fifty-ninth Supplemental Indenture dated July 1, 1993 (incorporated by reference to
Exhibit 4(a) to Post-Effective Amendment No. 1, File No. 33-38349).
X
4.5.56
Sixtieth Supplemental Indenture dated July 1, 1993 (incorporated by reference to
Exhibit 4(b) to Post-Effective Amendment No. 1, File No. 33-38349).
X
4.5.57
Sixty-first Supplemental Indenture dated August 15, 1993 (incorporated by
reference to Exhibit 4(e), File No. 33-50597).
X
4.5.58
Sixty-second Supplemental Indenture dated January 15, 1994 (incorporated by
reference to Exhibit 4 to Duke Energy Progress’ Current Report on Form 8-K dated
January 19, 1994, File No. 1-3382).
X
4.5.59
Sixty-third Supplemental Indenture dated May 1, 1994 (incorporated by reference to
Exhibit 4(f) to Duke Energy Progress’ Registration Statement on Form S-3, File
No. 033-57835).
X
4.5.60
Sixty-fourth Supplemental Indenture dated August 15, 1997 (incorporated by
reference to Exhibit to Duke Energy Progress’ Current Report on Form 8-K dated
August 26, 1997, File No. 1-3382).
X
4.5.61
Sixty-fifth Supplemental Indenture dated April 1, 1998 (incorporated by reference
to Exhibit 4(b) to Duke Energy Progress’ Registration Statement on Form S-3 filed
December 18, 1998, File No. 333-69237).
X
4.5.62
Sixty-sixth Supplemental Indenture dated March 1, 1999 (incorporated by reference
to Exhibit 4(c) to Duke Energy Progress’ Current Report on Form 8-K filed on
March 19, 1999, File No. 1-3382).
X
4.5.63
Form of Carolina Power & Light Company First Mortgage Bond, 6.80% Series Due
August 15, 2007 (incorporated by reference to Exhibit 4 to Duke Energy Progress’
Quarterly Report on Form 10-Q for the period ended September 30, 1998, File
No. 1-3382).
X
4.5.64
Sixty-eighth Supplemental Indenture dated April 1, 2000 (incorporated by reference
to Exhibit No. 4(b) to Duke Energy Progress’ Current Report on Form 8-K filed on
April 20, 2000, File No. 1-3382).
X
PART IV
E-8
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
4.5.65
Sixty-ninth Supplemental Indenture dated June 1, 2000 (incorporated by reference
to Exhibit No. 4b(2) to Duke Energy Progress’ Annual Report on Form 10-K for the
year ended December 31, 2000, filed on March 29, 2001, File No. 1-3382).
X
4.5.66
Seventieth Supplemental Indenture dated July 1, 2000 (incorporated by reference to
Exhibit 4b(3) to Duke Energy Progress’ Annual Report on Form 10-K for the year
ended December 31, 2000, filed on March 29, 2001, File No. 1-3382).
X
4.5.67
Seventy-first Supplemental Indenture dated February 1, 2002 (incorporated by
reference to Exhibit 4b(2) to Duke Energy Progress’ Annual Report on Form 10-K for
the year ended December 31, 2001, filed on March 28, 2002, File No. 1-3382 and
1-15929).
X
4.5.68
Seventy-second Supplemental Indenture, dated as of September 1, 2003
(incorporated by reference to Exhibit 4 to Duke Energy Progress, Inc.’s (formerly
Carolina Power & Light Company (d/b/a Progress Energy Carolinas, Inc.)) Current
Report on Form 8-K filed on September 12, 2003, File No. 1-3382).
X
4.5.69
Seventy-third Supplemental Indenture, dated as of March 1, 2005 (incorporated by
reference to Exhibit 4 to Duke Energy Progress, Inc.’s (formerly Carolina Power &
Light Company (d/b/a Progress Energy Carolinas, Inc.)) Current Report on Form 8-K
filed on March 22, 2005, File No. 1-3382).
X
4.5.70
Seventy-fourth Supplemental Indenture, dated as of November 1, 2005
(incorporated by reference to Exhibit 4 to Duke Energy Progress, Inc.’s (formerly
Carolina Power & Light Company (d/b/a Progress Energy Carolinas, Inc.)) Current
Report on Form 8-K filed on November 30, 2005, File No. 1-3382).
X
4.5.71
Seventy-fifth Supplemental Indenture, dated as of March 1, 2008 (incorporated by
reference to Exhibit 4 to Duke Energy Progress, Inc.’s (formerly Carolina Power &
Light Company (d/b/a Progress Energy Carolinas, Inc.)) Current Report on Form 8-K
filed on March 13, 2008, File No. 1-3382).
X
4.5.72
Seventy-sixth Supplemental Indenture, dated as of January 1, 2009 (incorporated
by reference to Exhibit 4 to Duke Energy Progress, Inc.’s (formerly Carolina Power &
Light Company (d/b/a Progress Energy Carolinas, Inc.)) Current Report on Form 8-K
filed on January 15, 2009, File No. 1-3382).
X
4.5.73
Seventy-seventh Supplemental Indenture, dated as of June 18, 2009 (incorporated
by reference to Exhibit 4 to Duke Energy Progress, Inc.’s (formerly Carolina Power &
Light Company (d/b/a Progress Energy Carolinas, Inc.)) Current Report on Form 8-K
filed on June 23, 2009, File No. 1-3382).
X
4.5.74
Seventy-eighth Supplemental Indenture, dated as of September 1, 2011
(incorporated by reference to Exhibit 4 to Duke Energy Progress, Inc.’s (formerly
Carolina Power & Light Company (d/b/a Progress Energy Carolinas, Inc.)) Current
Report on Form 8-K filed on September 15, 2011, File No. 1-3382).
X
4.5.75
Seventy-ninth Supplemental Indenture, dated as of May 1, 2012 (incorporated by
reference to Exhibit 4 to Duke Energy Progress, Inc.’s (formerly Carolina Power &
Light Company (d/b/a Progress Energy Carolinas, Inc.)) Current Report on Form 8-K
filed on May 18, 2012, File No. 1-3382).
X
4.5.76
Eightieth Supplemental Indenture, dated as of March 1, 2013 (incorporated by
reference to Exhibit 4.1 to Duke Energy Progress, Inc.’s (formerly Carolina Power &
Light Company (d/b/a Progress Energy Carolinas, Inc.)) Current Report on Form 8-K
filed on March 12, 2013, File No. 1-3382).
X
4.5.77
Eighty-second Supplemental Indenture, dated as of March 1, 2014, between Duke
Energy Progress, Inc. and The Bank of New York Mellon (formerly Irving Trust
Company) and Tina D. Gonzalez (successor to Frederick G. Herbst) and forms of
global notes (incorporated by reference to Exhibit 4.1 to Duke Energy Progress,
Inc.’s Current Report on Form 8-K filed on March 6, 2014, File No. 1-3382).
X
4.5.78
Eighty-third Supplemental Indenture, dated as of November 1, 2014, between Duke
Energy Progress, Inc. and The Bank of New York Mellon (formerly Irving Trust
Company) and Tina D. Gonzalez (successor to Frederick G. Herbst) and forms of
global notes (incorporated by reference to Exhibit 4.1 to Duke Energy Progress,
Inc.’s Current Report on Form 8-K filed on November 20, 2014, File No. 1-3382).
X
4.5.79
Eighty-fifth Supplemental Indenture, dated as of August 1, 2015 (incorporated by
reference to Exhibit 4.1 to Duke Energy Progress, LLC’s Current Report on Form 8-K
filed on August 13, 2015, File No. 1-3382).
X
4.5.80
Eighty-sixth Supplemental Indenture, dated as of September 1, 2016 (incorporated
by reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on
September 16, 2016, File No. 1-3382).
X
4.5.81
Eighty-seventh Supplemental Indenture, dated as of September 1, 2017
(incorporated by reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K
filed on September 8, 2017, File No. 1-3382).
X
PART IV
E-9
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
4.5.82
Eighty-ninth Supplemental Indenture (incorporated by reference to Exhibit 4.1 to
registrant’s Current Report on Form 8-K filed on March 7, 2019, File no. 1-3382).
X
4.5.83
Ninetieth Supplemental Indenture, dated as of August 1, 2020 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on
August 20, 2020, File No. 1-3382).
X
4.5.84
Ninety-first Supplemental Indenture, dated as of August 1, 2021 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on
August 12, 2021, File No. 1-3382).
X
4.5.85
Ninety-second Supplemental Indenture, dated as of March 1, 2022 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on
March 17, 2022, File No. 1-3382).
X
4.5.86
Ninety-fourth Supplemental Indenture, dated as of March 1, 2023 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on March 9,
2023, File No. 1-3382).
X
4.5.87
Ninety-fifth Supplemental Indenture, dated as of March 1, 2024 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on
March 14, 2024, File No. 1-3382).
X
4.5.88
First Supplemental Indenture, dated as of August 1, 2020 (incorporated by
reference to Exhibit 4.2 to registrant’s Current Report on Form 8-K filed on
August 20, 2020, File No. 1-3382).
X
4.6
Indenture (for Debt Securities) between Duke Energy Progress, Inc. (formerly
Carolina Power & Light Company) and The Bank of New York Mellon (successor in
interest to The Chase Manhattan Bank), as Trustee (incorporated by reference to
Exhibit 4(a) to registrant’s Current Report on Form 8-K filed on November 5, 1999,
File No. 1-3382).
X
4.7
Indenture (for [Subordinated] Debt Securities) (open ended) (incorporated by
reference to Exhibit 4(a)(2) to Duke Energy Progress, Inc.’s (formerly Carolina
Power & Light Company (d/b/a Progress Energy Carolinas, Inc.)) Registration
Statement on Form S-3 filed on November 18, 2008, File No. 333-155418).
X
4.8
Indenture (for First Mortgage Bonds) between Duke Energy Florida, Inc. (formerly
Florida Power Corporation) and The Bank of New York Mellon (as successor to
Guaranty Trust Company of New York and The Florida National Bank of
Jacksonville), as Trustee, dated as of January 1, 1944, (incorporated by reference to
Exhibit B-18 to registrant’s Form A-2, File No. 2-5293).
X
4.8.1
Seventh Supplemental Indenture (incorporated by reference to Exhibit 4(b) to Duke
Energy Florida, Inc.’s (formerly Florida Power Corporation) Registration Statement
on Form S-3 filed on September 27, 1991, File No. 33-16788).
X
4.8.2
Eighth Supplemental Indenture (incorporated by reference to Exhibit 4(c) to Duke
Energy Florida, Inc.’s (formerly Florida Power Corporation) Registration Statement
on Form S-3 filed on September 27, 1991, File No. 33-16788).
X
4.8.3
Sixteenth Supplemental Indenture (incorporated by reference to Exhibit 4(d) to Duke
Energy Florida, Inc.’s (formerly Florida Power Corporation) Registration Statement
on Form S-3 filed on September 27, 1991, File No. 33-16788).
X
4.8.4
Twenty-ninth Supplemental Indenture (incorporated by reference to Exhibit 4(c) to
Duke Energy Florida, Inc.’s (formerly Florida Power Corporation) Registration
Statement on Form S-3 filed on September 17, 1982, File No. 2-79832).
X
4.8.5
Thirty-eighth Supplemental Indenture, dated as of July 25, 1994 (incorporated by
reference to exhibit 4(f) to Duke Energy Florida, Inc.’s (formerly Florida Power
Corporation) Registration Statement on Form S-3 filed on August 29, 1994, File
No. 33-55273).
X
4.8.6
Forty-first Supplemental Indenture, dated as of February 1, 2003 (incorporated by
reference to Exhibit 4 to Duke Energy Florida, Inc.’s (formerly Duke Energy Florida
Power Corporation (d/b/a Progress Energy Florida, Inc.)) Current Report on Form 8-K
filed on February 21, 2003, File No. 1-3274).
X
4.8.7
Forty-second Supplemental Indenture, dated as of April 1, 2003 (incorporated by
reference to Exhibit 4 to Duke Energy Florida, Inc.’s (formerly Florida Power
Corporation (d/b/a Progress Energy Florida, Inc.)) Quarterly Report on Form 10-Q for
the quarter ended June 30, 2003, filed on August 11, 2003, File No. 1-3274).
X
4.8.8
Forty-third Supplemental Indenture, dated as of November 1, 2003 (incorporated by
reference to Exhibit 4 to Duke Energy Florida, Inc.’s (formerly Florida Power
Corporation (d/b/a Progress Energy Florida, Inc.)) Current Report on Form 8-K filed
on November 21, 2003, File No. 1-3274).
X
4.8.9
Forty-fourth Supplemental Indenture, dated as of August 1, 2004 (incorporated by
reference to Exhibit 4(m) to Duke Energy Florida, Inc.’s (formerly Florida Power
Corporation (d/b/a Progress Energy Florida, Inc.)) Annual Report on Form 10-K for
the year ended December 31, 2004, filed on March 16, 2005, File No. 1-3274).
X
PART IV
E-10
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
4.8.10
Forty-sixth Supplemental Indenture, dated as of September 1, 2007 (incorporated
by reference to Exhibit 4 to Duke Energy Florida, Inc.’s (formerly Florida Power
Corporation (d/b/a Progress Energy Florida, Inc.)) Current Report on Form 8-K filed
on September 19, 2007, File No. 1-3274).
X
4.8.11
Forty-seventh Supplemental Indenture, dated as of December 1, 2007 (incorporated
by reference to Exhibit 4 to Duke Energy Florida, Inc.’s (formerly Florida Power
Corporation (d/b/a Progress Energy Florida, Inc.)) Current Report on Form 8-K filed
on December 13, 2007, File No. 1-3274).
X
4.8.12
Forty-eighth Supplemental Indenture, dated as of June 1, 2008 (incorporated by
reference to Exhibit 4 to Duke Energy Florida, Inc.’s (formerly Florida Power
Corporation (d/b/a Progress Energy Florida, Inc.)) Current Report on Form 8-K filed
on June 18, 2008, File No. 1-3274).
X
4.8.13
Forty-ninth Supplemental Indenture, dated as of March 1, 2010 (incorporated by
reference to Exhibit 4 to Duke Energy Florida, Inc.’s (formerly Florida Power
Corporation (d/b/a Progress Energy Florida, Inc.)) Current Report on Form 8-K filed
on March 25, 2010, File No. 1-3274).
X
4.8.14
Fiftieth Supplemental Indenture, dated as of August 11, 2011 (incorporated by
reference to Exhibit 4 to Duke Energy Florida, Inc.’s (formerly Florida Power
Corporation (d/b/a Progress Energy Florida, Inc.)) Current Report on Form 8-K filed
on August 18, 2011, File No. 1-3274).
X
4.8.15
Fifty-first Supplemental Indenture, dated as of November 1, 2012 (incorporated by
reference to Exhibit 4.1 to Duke Energy Florida, Inc.’s (formerly Florida Power
Corporation (d/b/a Progress Energy Florida, Inc.)) Current Report on Form 8-K filed
on November 20, 2012, File No. 1-3274).
X
4.8.16
Fifty-third Supplemental Indenture, dated as of September 1, 2016 (incorporated
by reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on
September 9, 2016, File No. 1-03274).
X
4.8.17
Fifty-fifth Supplemental Indenture, dated as of June 1, 2018 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on June 21,
2018, File No. 1-3274).
X
4.8.18
Fifty-sixth Supplemental Indenture, dated as of November 1, 2019 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on
November 26, 2019, File No. 1-3274).
X
4.8.19
Fifty-seventh Supplemental Indenture, dated as of June 1, 2020 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on June 11,
2020, File No. 1-3274).
X
4.8.20
Fifty-eighth Supplemental Indenture, dated as of November 1, 2021 (incorporated
by reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on
December 2, 2021, File No. 1-3274).
X
4.8.21
Fifty-ninth Supplemental Indenture, dated as of November 1, 2022 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on
November 10, 2022, File No. 1-3274).
X
4.8.22
Sixtieth Supplemental Indenture, dated as of September 1, 2023, between Duke
Energy Florida, LLC and The Bank of New York Mellon, as successor Trustee and
Calculation Agent (incorporated by reference to Exhibit 4.1 to registrant’s Current
Report on Form 8-K filed on September 29, 2023, File No. 1-3274).
X
4.8.23
Sixty-first Supplemental Indenture, dated as of November 1, 2023, between Duke
Energy Florida, LLC and The Bank of New York Mellon, as successor Trustee
(incorporated by reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K
filed on November 9, 2023, File No. 1-3274).
X
4.8.24
Sixty-second Supplemental Indenture, dated as of April 1, 2024, between Duke
Energy Florida, LLC and The Bank of New York Mellon, as successor Trustee and
Calculation Agent (incorporated by reference to Exhibit 4.1 to registrant’s Current
Report on Form 8-K filed on April 5, 2024, File No. 1-3274).
X
4.9
Indenture (for Debt Securities) between Duke Energy Florida, Inc. (formerly Florida
Power Corporation (d/b/a Progress Energy Florida, Inc.)) and The Bank of New York
Mellon Trust Company, National Association (successor in interest to J.P. Morgan
Trust Company, National Association), as Trustee, dated as of December 7, 2005
(incorporated by reference to Exhibit 4(a) to registrant’s Current Report on Form 8-K
filed on December 13, 2005, File No. 1-3274).
X
4.9.1
First Supplemental Indenture, dated as of December 12, 2017 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on
December 12, 2017, File No. 1-03274).
X
4.9.2
Second Supplemental Indenture, dated as of November 26, 2019 (incorporated by
reference to Exhibit 4.2 to registrant’s Current Report on Form 8-K filed on
November 26, 2019, File No. 1-3274).
X
PART IV
E-11
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
4.10
Indenture (for [Subordinated] Debt Securities) (open ended) (incorporated by
reference to Exhibit 4(a)(2) Duke Energy Florida, Inc.’s (formerly Florida Power
Corporation (d/b/a Progress Energy Florida, Inc.)) Registration Statement on
Form S-3 filed on November 18, 2008, File No. 333-155418).
X
4.11
Original Indenture (Unsecured Debt Securities) between Duke Energy Ohio, Inc.
(formerly The Cincinnati Gas & Electric Company) and The Bank of New York Mellon
Trust Company, N.A., as Successor Trustee, dated as of May 15, 1995 (incorporated
by reference to Exhibit 3 to registrant’s Form 8-A filed on July 27, 1995, File
No. 1-1232).
X
4.11.1
First Supplemental Indenture, dated as of June 1, 1995 (incorporated by reference
to Exhibit 4 B to Duke Energy Ohio, Inc.’s (formerly The Cincinnati Gas & Electric
Company) Quarterly Report on Form 10-Q for the quarter ended June 30, 1995, filed
on August 11, 1995, File No. 1-1232).
X
4.11.2
Seventh Supplemental Indenture, dated as of June 15, 2003 (incorporated by
reference to Exhibit 4.1 to Duke Energy Ohio, Inc.’s (formerly The Cincinnati Gas &
Electric Company) Quarterly Report on Form 10-Q for the quarter ended June 30,
2003, filed on August 13, 2003, File No. 1-1232).
X
4.12
Original Indenture (First Mortgage Bonds) between Duke Energy Ohio, Inc. (formerly
The Cincinnati Gas & Electric Company) and The Bank of New York Mellon Trust
Company, N.A., as Successor Trustee, dated as of August 1, 1936 (incorporated by
reference to an exhibit to registrant’s Registration Statement No. 2-2374).
X
4.12.1
Fortieth Supplemental Indenture, dated as of March 23, 2009 (incorporated by
reference to Exhibit 4.1 to Duke Energy Ohio, Inc.’s (formerly The Cincinnati Gas &
Electric Company) Current Report on Form 8-K filed on March 24, 2009, File
No. 1-1232).
X
4.12.2
Forty-second Supplemental Indenture, dated as of September 6, 2013 (incorporated
by reference to Exhibit 4.1 to Duke Energy Ohio, Inc.’s (formerly The Cincinnati
Gas & Electric Company) Current Report on Form 8-K filed on September 6, 2013,
File No. 1-1232).
X
4.12.3
Forty-fourth Supplemental Indenture, dated as of June 23, 2016 (incorporated by
reference to Exhibit 4.1 registrant’s Current Report on Form 8-K filed on June 23,
2016, File No. 1-1232).
X
4.12.4
Forty-fifth Supplemental Indenture, dated as of March 27, 2017 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on
March 27,2017, File No. 1-01232).
X
4.12.5
Forty-sixth Supplemental Indenture, dated as of January 8, 2019 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on
January 8, 2019, File No. 1-1232).
X
4.12.6
Forty-seventh Supplemental Indenture, dated as of May 21, 2020 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on May 21,
2020, File No. 1-1232).
X
4.12.7
Forty-eighth Supplemental Indenture, dated as of March 22, 2023 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on
March 22, 2023, File No. 1-1232).
X
4.12.8
Forty-ninth Supplemental Indenture, dated as of March 14, 2024 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on
March 14, 2024, File No. 1-1232).
X
4.13
Indenture between Duke Energy Indiana, LLC (formerly PSI Energy, Inc.) and The
Bank of New York Mellon Trust Company, N.A., as Successor Trustee, dated as of
November 15, 1996 (incorporated by reference to Exhibit 4(v) to the Cinergy Corp.
Form 10-K for the year ended December 31, 1996, filed on March 27, 1997, File
No. 1-11377).
X
4.13.1
Third Supplemental Indenture, dated as of March 15, 1998 (incorporated by
reference to Exhibit 4-w to Cinergy Corp.’s Annual Report on Form 10-K for the year
ended December 31, 1997, filed on March 27, 1998, File No. 1-11377).
X
4.13.2
Eighth Supplemental Indenture, dated as of September 23, 2003 (incorporated by
reference to Exhibit 4.2 to Duke Energy Indiana, LLC’s (formerly PSI Energy, Inc.)
Quarterly Report on Form 10-Q for the quarter ended September 30, 2003, filed on
November 13, 2003, File No. 1-3543).
X
4.133
Ninth Supplemental Indenture, dated as of October 21, 2005 (incorporated by
reference to Exhibit 4.7.3 to Duke Energy Indiana, LLC’s (formerly PSI Energy, Inc.)
Registration Statement on Form S-3 filed on September 29, 2010, File
No. 333-169633).
X
4.13.4
Tenth Supplemental Indenture, dated as of June 9, 2006 (incorporated by reference
to Exhibit 4.1 to Duke Energy Indiana, LLC’s (formerly PSI Energy, Inc.) Current
Report on Form 8-K filed on June 15, 2006, File No. 1-3543).
X
PART IV
E-12
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
4.14
Original Indenture (First Mortgage Bonds) between Duke Energy Indiana, LLC
(formerly PSI Energy, Inc.) and Deutsche Bank National Trust Company, as
Successor Trustee, dated as of September 1, 1939, (filed as an exhibit in File
No. 70-258).
X
4.14.1
Tenth Supplemental Indenture, dated as of July 1, 1952, (filed as an exhibit in File
No. 2-9687).
X
4.14.2
Twenty-third Supplemental Indenture, dated as of January 1, 1977, (filed as an
exhibit in File No. 2-57828).
X
4.14.3
Twenty-fifth Supplemental Indenture, dated as of September 1, 1978, (filed as an
exhibit in File No. 2-62543).
X
4.14.4
Twenty-sixth Supplemental Indenture, dated as of September 1, 1978, (filed as an
exhibit in File No. 2-62543).
X
4.14.5
Thirtieth Supplemental Indenture, dated as of August 1, 1980, (filed as an exhibit
in File No. 2-68562).
X
4.14.6
Thirty-fifth Supplemental Indenture, dated as of March 30, 1984, (filed as an
exhibit to registrant’s Annual Report on Form 10-K for the year ended December 31,
1984, File No. 1-3543).
X
4.14.7
Forty-sixth Supplemental Indenture, dated as of June 1, 1990, (filed as an exhibit
to registrant’s Annual Report on Form 10-K for the year ended December 31, 1991,
File No. 1-3543).
X
4.14.8
Forty-seventh Supplemental Indenture, dated as of July 15, 1991, (filed as an
exhibit to registrant’s Annual Report on Form 10-K for the year ended December 31,
1991, File No. 1-3543).
X
4.14.9
Forty-eighth Supplemental Indenture, dated as of July 15, 1992, (filed as an exhibit
to registrant’s Annual Report on Form 10-K for the year ended December 31, 1992,
File No. 1-3543).
X
4.14.10
Fifty-second Supplemental Indenture, dated as of April 30, 1999 (incorporated by
reference to Exhibit 4 to Duke Energy Indiana, LLC’s (formerly PSI Energy, Inc.)
Quarterly Report on Form 10-Q for the quarter ended March 31, 1999, filed on
May 13, 1999, File No. 1-3543).
X
4.14.11
Fifty-seventh Supplemental Indenture, dated as of August 21, 2008 (incorporated
by reference to Exhibit 4.1 to Duke Energy Indiana, LLC’s (formerly PSI Energy, Inc.)
Current Report Form 8-K filed on August 21, 2008, File No. 1-3543).
X
4.14.12
Fifty-eighth Supplemental Indenture, dated as of December 19, 2008 (incorporated
by reference to Exhibit 4.8.12 to Duke Energy Indiana, LLC’s (formerly PSI Energy,
Inc.) Registration Statement on Form S-3 filed on September 29, 2010, File
No. 333-169633-02).
X
4.14.13
Fifty-ninth Supplemental Indenture, dated as of March 23, 2009 (incorporated by
reference to Exhibit 4.1 to Duke Energy Indiana, LLC’s (formerly PSI Energy, Inc.)
Current Report on Form 8-K filed on March 24, 2009, File No. 1-3543).
X
4.14.14
Sixtieth Supplemental Indenture, dated as of June 1, 2009 (incorporated by
reference to Exhibit 4.8.14 to Duke Energy Indiana, LLC’s (formerly PSI Energy, Inc.)
Registration Statement on Form S-3 filed on September 29, 2010, File
No. 333-169633-02).
X
4.14.15
Sixty-first Supplemental Indenture, dated as of October 1, 2009 (incorporated by
reference to Exhibit 4.8.15 to Duke Energy Indiana, LLC’s (formerly PSI Energy, Inc.)
Registration Statement on Form S-3 filed on September 29, 2010, File
No. 333-169633-02).
X
4.14.16
Sixty-second Supplemental Indenture, dated as of July 9, 2010 (incorporated by
reference to Exhibit 4.1 to Duke Energy Indiana, LLC’s (formerly PSI Energy, Inc.)
Current Report on Form 8-K filed on July 9, 2010, File No. 1-3543).
X
4.14.17
Sixty-third Supplemental Indenture, dated as of September 23, 2010 (incorporated
by reference to Exhibit 4.8.17 to Duke Energy Indiana, LLC’s (formerly PSI Energy,
Inc.) Registration Statement on Form S-3 filed on September 29, 2010, File
No. 333-169633-02).
X
4.14.18
Sixty-fourth Supplemental Indenture, dated as of December 1, 2011 (incorporated
by reference to Exhibit 4(d)(2)(xviii) to Duke Energy Indiana, LLC’s (formerly PSI
Energy, Inc.) Registration Statement on Form S-3 filed on September 30, 2013, File
No. 333-191462-03).
X
4.14.19
Sixty-fifth Supplemental Indenture, dated as of March 15, 2012 (incorporated by
reference to Exhibit 4.1 to Duke Energy Indiana, LLC’s (formerly PSI Energy, Inc.)
Current Report on Form 8-K filed on March 15, 2012, File No. 1-3543).
X
4.14.20
Sixty-sixth Supplemental Indenture, dated as of July 11, 2013 (incorporated by
reference to Exhibit 4.1 to Duke Energy Indiana, LLC’s (formerly PSI Energy, Inc.)
Current Report on Form 8-K filed on July 11, 2013, File No. 1-3543).
X
PART IV
E-13
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
4.14.21
Sixty-seventh Supplemental Indenture, dated as of January 1, 2016, between Duke
Energy Indiana, Inc. and Deutsche Bank National Trust Company, as Trustee,
supplementing and amending the Indenture of Mortgage or Deed of Trust, dated
September 1, 1939, between Duke Energy Indiana, Inc. and Deutsche Bank
National Trust Company, as Trustee (incorporated by reference to Exhibit 4.2 to
Duke Energy Indiana, LLC’s (formerly PSI Energy, Inc.) Quarterly Report on
Form 10-Q for the quarter ended March 31, 2016, filed on May 5, 2016, File
No. 1-3543).
X
4.14.22
Sixty-eighth Supplemental Indenture, dated as of May 12, 2016 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on May 12,
2016, File No. 1-3543).
X
4.14.23
Sixty-ninth Supplemental Indenture, dated as of September 27, 2019 (incorporated
by reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on
September 27, 2019, File No. 1-3543).
X
4.14.24
Seventieth Supplemental Indenture, dated as of March 12, 2020 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on
March 12, 2020, File No. 1-3543).
X
4.14.25
Seventy-first Supplemental Indenture, dated as of March 23, 2023 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on
March 23, 2023, File No. 1-3543).
X
4.14.26
Seventy-second Supplemental Indenture, dated as of March 1, 2024, between Duke
Energy Indiana, LLC and Deutsche Bank National Trust Company, as Trustee
(incorporated by reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K
filed on March 1, 2024, File No. 1-3543).
X
4.15
Repayment Agreement between Duke Energy Ohio, Inc. (formerly The Cincinnati
Gas & Electric Company) and The Dayton Power and Light Company, dated as of
December 23, 1992, (filed with registrant’s Annual Report on Form 10-K for the
year ended December 31, 1992, File No. 1-1232).
X
4.16
Unsecured Promissory Note between Duke Energy Indiana, LLC (formerly PSI Energy,
Inc.) and the Rural Utilities Service, dated as of October 14, 1998 (incorporated by
reference to Exhibit 4 to registrant’s Annual Report on Form 10-K for the year ended
December 31, 1998, filed on March 8, 1999, File No. 1-3543).
X
4.17
Indenture (for Debt Securities) dated as of February 15, 2001 between Progress
Energy, Inc. and The Bank of New York Mellon Trust Company, National Association
(successor in interest to Bank One Trust Company, N.A.), as Trustee (incorporated
by reference to Exhibit 4(a) to Progress Energy, Inc.’s Current Report on Form 8-K
filed on February 27, 2001, File No. 1-15929).
X
4.18
Form of 3.47% Series A Senior Notes due July 16, 2027 (incorporated by reference
to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on March 29, 2012,
File No. 1-06196).
X
4.19
Form of 3.57% Series B Senior Notes due July 16, 2027 (incorporated by reference
to Exhibit 4.2 to registrant’s Current Report on Form 8-K filed on March 29, 2012,
File No. 1-06196).
X
4.20
Form of 4.65% Senior Notes due 2043 (incorporated by reference to Exhibit 4.2 to
registrant’s Current Report on Form 8-K filed on August 1, 2013, File No. 1-06196).
X
4.21
Form of 4.10% Senior Notes due 2034 (incorporated by reference to Exhibit 4.2 to
registrant’s Current Report on Form 8-K filed on September 18, 2014, File
No. 1-06196).
X
4.22
Form of 3.60% Senior Notes due 2025 (incorporated by reference to Exhibit 4.2 to
registrant’s Current Report on Form 8-K filed on September 14, 2015, File
No. 1-06196).
X
4.23
Form of 3.64% Senior Notes due 2046 (incorporated by reference to Exhibit 4.2 to
registrant’s Current Report on Form 8-K filed on July 28, 2016, File No. 1-06196).
X
4.24
Indenture, dated as of April 1, 1993, between Piedmont and The Bank of New York
Mellon Trust Company, N.A. (as successor to Citibank, N.A.), Trustee (incorporated
by reference to Exhibit 4.1 to registrant’s Registration Statement on Form S-3 filed
on May 16, 1995, File No. 33-59369).
X
4.24.1
Second Supplemental Indenture, dated as of June 15, 2003, between Piedmont and
Citibank, N.A., Trustee (incorporated by reference to Exhibit 4.3 to registrant’s
Registration Statement on Form S-3 filed on June 19, 2003, File No. 333-106268).
X
4.24.2
Fourth Supplemental Indenture, dated as of May 6, 2011, between Piedmont
Natural Gas Company, Inc. and The Bank of New York Mellon Trust Company, N.A.,
as trustee (incorporated by reference to Exhibit 4.2 to registrant’s Registration
Statement on Form S-3-ASR filed on July 7, 2011, File No. 333-175386).
X
PART IV
E-14
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
4.24.3
Sixth Supplemental Indenture, dated September 18, 2014, between Piedmont
Natural Gas Company, Inc. and The Bank of New York Mellon Trust Company, N.A.
(incorporated by reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K
filed on September 18, 2014, File No. 1-06196).
X
4.24.4
Seventh Supplemental Indenture, dated September 14, 2015, between Piedmont
Natural Gas Company, Inc. and The Bank of New York Mellon Trust Company, N.A.
(incorporated by reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K
filed on September 14, 2015, File No. 1-06196).
X
4.24.5
Eighth Supplemental Indenture, dated July 28, 2016, between Piedmont Natural
Gas Company, Inc. and The Bank of New York Mellon Trust Company, N.A.
(incorporated by reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K
filed on July 28, 2016, File No. 1-06196).
X
4.24.6
Ninth Supplemental Indenture, dated as of May 24, 2019 (incorporated by reference
to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on May 24, 2019, File
No. 1-6196).
X
4.24.7
Tenth Supplemental Indenture, dated as of May 21, 2020 (incorporated by reference
to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on May 21, 2020, File
No. 1-6196).
X
4.24.8
Eleventh Supplemental Indenture, dated as of March 11, 2021 (incorporated by
reference to Exhibit 4.1 to registrant’s Current Report on Form 8-K filed on
March 11, 2021, File No. 1-6196).
X
4.24.9
Twelfth Supplemental Indenture dated as of May 13, 2022 between Piedmont
Natural Gas Company, Inc. and The Bank of New York Mellon Trust Company, N.A.,
as successor to Citibank, N.A. (incorporated by reference to Exhibit 4.1 to
registrant’s Current Report on Form 8-K filed on May 13, 2022, File No. 1-6196).
X
4.24.10
Thirteenth Supplemental Indenture, dated as of June 8, 2023 between Piedmont
Natural Gas Company, Inc. and The Bank of New York Mellon Trust Company, N.A.,
as successor to Citibank, N.A. (incorporated by reference to exhibit 4.1 to
registrant’s Current Report on Form 8-K filed on June 8, 2023, File No. 1-6196).
X
4.24.11
Fourteenth Supplemental Indenture, dated as of August 14, 2024, between the
registrant and The Bank of New York Mellon Trust Company, N.A., as successor to
Citibank, N.A. (incorporated by reference to Exhibit 4.1 to registrant’s Current
Report on Form 8-K filed on August 14, 2024, File No. 1-6196).
X
4.25
Medium-Term Note, Series A, dated as of October 6, 1993 (incorporated by
reference to Exhibit 4.8 to registrant’s Annual Report on Form 10-K for the year
ended October 31, 1993, File No. 1-06196).
X
4.26
Form of 6% Medium-Term Note, Series E, dated as of December 19, 2003
(incorporated by reference to Exhibit 99.2 to registrant’s Current Report on
Form 8-K filed on December 23, 2003, File No. 1-06196).
X
4.27
Form of Master Global Note (incorporated by reference to Exhibit 4.4 to registrant’s
Registration Statement on Form S-3 filed on April 30, 1997, File No. 333-26161).
X
4.28
Pricing Supplement of Medium-Term Notes, Series B, dated October 4, 1996
(incorporated by reference to Exhibit 4.11 to registrant’s Annual Report on
Form 10-K for the year ended October 31, 1996, File No. 1-06196).
X
4.29
Agreement of Resignation, Appointment and Acceptance dated as of March 29,
2007, by and among Piedmont Natural Gas Company, Inc., Citibank, N.A., and The
Bank of New York Trust Company, N.A. (incorporated by reference to Exhibit 4.1 to
registrant’s Quarterly Report on Form 10-Q for the Quarter ended April 30, 2007,
filed on June 8, 2007, File No. 1-06196).
X
4.30
Term Loan Credit Agreement, dated as of March 26, 2024, by and among Duke
Energy Corporation, as Borrower, the lenders party thereto and PNC Bank, N.A., as
Administrative Agent (incorporated by reference to Exhibit 4.6 to registrant’s
Quarterly Report on Form 10-Q for the Quarter ended March 31, 2024, filed on
May 7, 2024, File No. 1-32853).
X
10.1
Agreements with Piedmont Electric Membership Corporation, Rutherford Electric
Membership Corporation and Blue Ridge Electric Membership Corporation
(incorporated by reference to Exhibit 10.15 to Duke Energy Corporation’s Quarterly
Report on Form 10-Q for the Quarter ended June 30, 2006, filed on August 9, 2006,
File No. 1-32853).
X
10.2
Asset Purchase Agreement between Saluda River Electric Cooperative, Inc., as
Seller, and Duke Energy Carolinas, LLC, as Purchaser, dated as of December 20,
2006 (incorporated by reference to Exhibit 10.1 to registrant’s Current Report on
Form 8-K filed on December 27, 2006, File No. 1-4928).
X
PART IV
E-15
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
10.3
Settlement between Duke Energy Corporation, Duke Energy Carolinas, LLC and the
U.S. Department of Justice resolving Duke Energy’s used nuclear fuel litigation
against the U.S. Department of Energy, dated as of March 6, 2007 (incorporated by
reference to Item 8.01 to registrant’s Current Report on Form 8-K filed on March 12,
2007, File No. 1-4928).
X
10.4
Letter Agreement between Georgia Natural Gas Company and Piedmont Energy
Company dated February 12, 2016 (incorporated by reference to Exhibit 10.1 to
registrant’s Current Report on Form 8-K filed on February 18, 2016, File
No. 1-06196).
X
10.5
Assignment of Membership Interests dated as of October 3, 2016 between
Piedmont ACP Company, LLC and Dominion Atlantic Coast Pipeline, LLC,
(incorporated by reference to Exhibit 10.1 to registrant’s Current Report on
Form 8-K filed on October 7, 2016, File No. 1-06196).
X
10.6
Agreements between Piedmont Electric Membership Corporation, Rutherford
Electric Membership Corporation and Blue Ridge Electric Membership Corporation
(incorporated by reference to Exhibit 10.15 to Duke Energy Corporation’s Quarterly
Report on Form 10-Q for the Quarter ended June 30, 2006, filed on August 9, 2006,
File No. 1-32853).
X
10.7
Conveyance and Assignment Agreement, dated as of October 3, 2016, by and
between Piedmont Energy Company and Georgia Natural Gas Company
(incorporated by reference to Exhibit 10.1 to registrant’s Current Report on
Form 8-K filed on October 3, 2016, File No. 1-06196).
X
10.8
Engineering, Procurement and Construction Management Agreement between Duke
Energy Indiana, LLC (formerly PSI Energy, Inc.) and Bechtel Power Corporation,
dated as of December 15, 2008 (incorporated by reference to Exhibit 10.16 to
registrant’s Annual Report on Form 10-K for the year ended December 31, 2008,
filed on March 13, 2009, File No. 1-3543). (Portions of the exhibit have been
omitted and filed separately with the Securities and Exchange Commission
pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the
Securities Exchange Act of 1934, as amended.)
X
10.9
Formation and Sale Agreement between Duke Ventures, LLC, Crescent Resources,
LLC, Morgan Stanley Real Estate Fund V U.S. L.P., Morgan Stanley Real Estate
Fund V Special U.S., L.P., Morgan Stanley Real Estate Investors V U.S., L.P., MSP
Real Estate Fund V, L.P., and Morgan Stanley Strategic Investments, Inc., dated as
of September 7, 2006 (incorporated by reference to Exhibit 10.3 to Duke Energy
Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30,
2006, filed on November 9, 2006, File No. 1-32853).
X
10.10
Operating Agreement of Pioneer Transmission, LLC (incorporated by reference to
Exhibit 10.1 to Duke Energy Corporation’s Quarterly Report on Form 10-Q for the
quarter ended September 30, 2008, filed on November 7, 2008, File No. 1-32853).
X
10.11**
Amended and Restated Duke Energy Corporation Directors’ Saving Plan, dated as
of January 1, 2014 (incorporated by reference to Exhibit 10.32 to Duke Energy
Corporation’s Annual Report on Form 10-K for the year ended December 31, 2013,
filed on February 28, 2014, File No. 1-32853).
X
10.12**
Amendment to Duke Energy Corporation Directors’ Savings Plan, effective as of
December 16, 2021 (incorporated by reference to Exhibit 10.12 to Duke Energy
Corporation’s Annual Report on Form 10-K for the year ended December 31, 2021,
filed on February 24, 2022, File No. 1-32853).
X
10.13
Engineering, Procurement and Construction Management Agreement between Duke
Energy Indiana, LLC (formerly PSI Energy, Inc.) and Bechtel Power Corporation,
dated as of December 15, 2008 (incorporated by reference to Item 1.01 to
registrant’s Current Report on Form 8-K filed on December 19, 2008, File Nos.
1-32853 and 1-3543). (Portions of the exhibit have been omitted and filed
separately with the Securities and Exchange Commission pursuant to a request for
confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act
of 1934, as amended).
X
X
10.14**
Duke Energy Corporation Executive Severance Plan (incorporated by reference to
Exhibit 10.1 to registrant’s Current Report on Form 8-K filed on January 13, 2011,
File No. 1-32853).
X
10.14.1**
Amendment to Duke Energy Corporation Executive Officer Severance Plan
(incorporated by reference to Exhibit 10.2 to registrant’s Quarterly Report on
Form 10-Q for the quarter ended June 30, 2024, filed on August 6, 2024, File
No. 1-32853).
X
PART IV
E-16
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
10.15
$6,000,000,000 Five-Year Credit Agreement between Duke Energy Corporation,
Duke Energy Carolinas, LLC, Duke Energy Ohio, Inc., Duke Energy Indiana, LLC,
Duke Energy Kentucky, Inc., Carolina Power and Light Company d/b/a Duke Energy
Progress, Inc. and Florida Power Corporation, d/b/a Duke Energy Florida, Inc., as
Borrowers, the lenders listed therein, Wells Fargo Bank, National Association, as
Administrative Agent, Bank of America, N.A. and The Royal Bank of Scotland plc, as
Co-Syndication Agents and Bank of China, New York Branch, Barclays Bank PLC,
Citibank, N.A., Credit Suisse AG, Cayman Islands Branch, Industrial and
Commercial Bank of China Limited, New York Branch, JPMorgan Chase Bank, N.A.
and UBS Securities LLC, as Co-Documentation Agents, dated as of November 18,
2011 (incorporated by reference to Exhibit 10.1 to registrant’s Current Report on
Form 8-K filed on November 25, 2011, File Nos. 1-32853, 1-4928, 1-1232 and
1-3543).
X
X
X
X
10.15.1
Amendment No. 1 and Consent between Duke Energy Corporation, Duke Energy
Carolinas, LLC, Duke Energy Ohio, Inc., Duke Energy Indiana, LLC, Duke Energy
Kentucky, Inc., Duke Energy Progress, Inc., Duke Energy Florida, Inc., and Wells
Fargo Bank, National Association, dated as of December 18, 2013 (incorporated by
reference to Exhibit 10.1 to registrant’s Current Report on Form 8-K filed on
December 23, 2013, File Nos. 1-32853, 1-4928, 1-3382, 1-3274, 1-1232 and
1-3543).
X
X
X
X
X
X
10.15.2
Amendment No. 2 and Consent between Duke Energy Corporation, Duke Energy
Carolinas, LLC, Duke Energy Ohio, Inc., Duke Energy Indiana, LLC, Duke Energy
Kentucky, Inc., Duke Energy Progress, Inc., and Duke Energy Florida, Inc., the
Lenders party hereto, the issuing Lenders party hereto, Wells Fargo Bank, National
Association, as Administrative Agent and Swingline Lender, dated as of January 30,
2015 (incorporated by reference to Exhibit 10.1 of registrant’s Current Report on
Form 8-K filed on February 5, 2015, File Nos. 1-32853, 1-4928, 1-1232, 1-3543,
1-3382 and 1-3274).
X
X
X
X
X
X
10.15.3
Amendment No. 3 and Consent, dated as of March 16, 2017, among the
registrants, the Lenders party thereto, the issuing Lenders party thereto, and Wells
Fargo Bank, National Association, as Administrative Agent and Swingline Lender
(incorporated by reference to Exhibit 10.1 to registrants’ Current Report on
Form 8-K filed on March 17, 2017, File Nos. 1-32853, 1-04928, 1-03382, 1-03274,
1-01232, 1-03543, 1-06196).
X
X
X
X
X
X
X
10.15.4
Amendment No.4 and Consent, dated as of March 18, 2019, among Duke Energy
Corporation, Duke Energy Carolinas, LLC, Duke Energy Ohio, Inc., Duke Energy
Indiana, LLC, Duke Energy Kentucky, Inc., Duke Energy Progress, LLC, Duke Energy
Florida, LLC, and Piedmont Natural Gas Company, Inc., the Lenders party thereto,
the Issuing Lenders party thereto, and Wells Fargo Bank, National Association, as
Administrative Agent and Swingline Lender (incorporated by reference to
Exhibit 10.1 to registrants’ Current Report on Form 8-K filed on March 21, 2019,
File Nos. 1-32853. 1-4928, 1-3382, 1-3274, 1-1232, 1-3543, 1-6196).
X
X
X
X
X
X
X
10.15.5
Amendment No. 5 and Consent, dated as of March 16, 2020, among registrants’,
the Lenders party thereto, the Issuing Lenders party thereto, and Wells Fargo Bank,
N.A., as Administrative Agent, and Swingline Lender (incorporated by reference to
Exhibit 10.1 to registrants’ Current Report on Form 8-K filed on March 17, 2020,
File Nos. 1-32853, 1-4928, 1-3382, 1-3274, 1-1232, 1-3543, 1-6196).
X
X
X
X
X
X
X
10.16**
Duke Energy Corporation 2015 Long-Term Incentive Plan (incorporated by reference
to Appendix C to registrant’s DEF 14A filed on March 26, 2015, File No. 1-32853).
X
10.16.1**
Amendment to Duke Energy Corporation 2015 Long-Term Incentive Plan
(incorporated by reference to Exhibit 10.16.1 to Duke Energy Corporation’s Annual
Report on Form 10-K for the year ended December 31, 2018, filed on February 28,
2019, File No. 1-32853).
X
10.17**
Duke Energy Corporation 2023 Long-Term Incentive Plan (incorporated by reference
to Appendix C to registrant’s DEF14A filed on March 23, 2023, File No.1-32853).
X
10.18**
Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.4 to
registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017
filed on May 9, 2017, File No. 1-32853).
X
10.19**
Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.24
to Duke Energy Corporation’s Annual Report on Form 10-K for the year ended
December 31, 2017, filed on February 21, 2018, File No. 1-32853).
X
10.20**
Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.3 to
Duke Energy Corporation’s Quarterly Report on Form 10-Q for the quarter ended
March 31, 2019, filed on May 9, 2019, File No. 1-32853).
X
10.21**
Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.4 to
Duke Energy Corporation’s Quarterly Report on Form 10-Q for the quarter ended
March 31, 2022, filed on May 9, 2022, File No. 1-32853).
X
10.22**
Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.21
to registrant’s Annual Report on Form 10-K for the year ended December 31, 2022,
filed on February 27, 2023, File No. 1-32853).
X
PART IV
E-17
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
10.23**
Performance Share Award Agreement (incorporated by reference to Exhibit 10.2 to
Duke Energy Corporation’s Quarterly Report on Form 10-Q for the quarter ended
March 31, 2019, filed on May 9, 2019, File No. 1-32853).
X
10.24**
Performance Share Award Agreement (incorporated by reference to Exhibit 10.4 to
Duke Energy Corporation’s Quarterly Report on Form 10-Q for the quarter ended
March 31, 2020, filed on May 12, 2020, File No. 1-32853).
X
10.25**
Performance Share Award Agreement (incorporated by reference to Exhibit 10.24 to
registrant’s Annual Report on Form 10-K for the year ended December 31, 2022,
Filed on February 27, 2023, File No. 1-32853).
X
10.26
Settlement Agreement between Duke Energy Corporation, the North Carolina
Utilities Commission Staff and the North Carolina Public Staff, dated as of
November 28, 2012 (incorporated by reference to Exhibit 10.1 to registrant’s
Current Report on Form 8-K filed on November 29, 2012, File No. 1-32853).
X
10.27
Settlement Agreement between Duke Energy Corporation and the North Carolina
Attorney General, dated as of December 3, 2012 (incorporated by reference
Item 7.01 to registrant’s Current Report on Form 8-K filed on December 3, 2012,
File No. 1-32853).
X
10.28
Settlement Agreement between Duke Energy Carolinas, LLC, Duke Energy Progress,
LLC, and The North Carolina Department of Environmental Quality, dated as of
December 31, 2019 (incorporated by reference to Exhibit 10.1 to registrants’
Current Report on Form 8-K filed on January 2, 2020, File Nos. 1-4928, 1-3382).
X
X
10.29
Duke Energy Carolinas Summary of Partial Settlement in North Carolina Rate Case
(incorporated by reference to Exhibit 99.1 to registrant’s Current Report on
Form 8-K filed on March 26, 2020, File Nos. 1-32853, 1-4928, 1-3382).
X
X
X
10.30
Coal Combustion Residuals Settlement Agreement between registrants and the
Public Staff-North Carolina Utilities Commission, the North Carolina Attorney
General’s Office, and the Sierra Club, dated as of January 22, 2021 (incorporated by
reference to Exhibit 10.1 to registrants’ Quarterly Report on Form 10-Q for the
quarter ended March 31, 2021, filed on May 10, 2021, File Nos. 1-32853, 1-4928,
1-3382).
X
X
X
10.31
Investment Agreement by and among Cinergy Corp., Duke Energy Indiana HoldCo,
LLC, Duke Energy Corporation, and Epson Investment PTE. LTD,. dated as of
January 28, 2021 (incorporated by reference to Exhibit 10.2 to registrants’ Quarterly
Report on Form 10-Q for the quarter ended March 31, 2021, filed on May 10, 2021,
File Nos. 1-32853, 1-3543).
X
X
10.32
Cooperation Agreement, dated as of November 13, 2021, by and among Duke
Energy Corporation, Elliott Investment Management L.P., and Elliott International,
L.P.(incorporated by reference to registrant’s Current Report on Form 8-K filed on
November 15, 2021, File No. 1-32853).
X
10.33**
Form of Change-in-Control Agreement (incorporated by reference to Exhibit 10.58
to registrant’s Annual Report on Form 10-K for the year ended December 31, 2012,
filed on March 1, 2013, File No. 1-32853).
X
10.33.1**
Amendment to Duke Energy Corporation Form of Change-in-Control Agreement
(incorporated by reference to Exhibit 10.1 to registrant’s Quarterly Report on
Form 10-Q for the quarter ended June 30, 2024, filed on August 6, 2024, File
No. 1-32853).
X
10.33.2**
Amendment to Duke Energy Corporation Change-in-Control Agreement by and
among Duke Energy Corporation and Harry K. Sideris (incorporated by reference to
Exhibit 10.1 to registrant’s Current Report on Form 8-K filed on January 13, 2025,
File No. 1-32853).
X
10.34**
Amended and Restated Duke Energy Corporation Executive Cash Balance Plan,
dated as of January 1, 2014 (incorporated by reference to Exhibit 10.52 to Duke
Energy Corporation’s Annual Report on Form 10-K for the year ended December 31,
2013, filed on February 28, 2014, File No. 1-32852).
X
10.34.1**
Amended and Restated Duke Energy Corporation Executive Cash Balance Plan,
dated as of September 30, 2020 (incorporated by reference to Exhibit 10.1 to
registrant’s Current Report on Form 8-K filed on September 25, 2020, File
No. 1-32853).
X
10.35
Purchase, Construction and Ownership Agreement, dated as of July 30, 1981,
between Duke Energy Progress, Inc. (formerly Carolina Power & Light Company) and
North Carolina Municipal Power Agency Number 3 and Exhibits, together with
resolution, dated as of December 16, 1981, changing name to North Carolina
Eastern Municipal Power Agency, amending letter, dated as of February 18, 1982,
and amendment, dated as of February 24, 1982 (incorporated by reference to
Exhibit 10(a) to registrant’s File No. 33-25560).
X
PART IV
E-18
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
10.36
Operating and Fuel Agreement, dated as of July 30, 1981, between Duke Energy
Progress, Inc. (formerly Carolina Power & Light Company) and North Carolina
Municipal Power Agency Number 3 and Exhibits, together with resolution, dated as
of December 16, 1981, changing name to North Carolina Eastern Municipal Power
Agency, amending letters, dated as of August 21, 1981, and December 15, 1981,
and amendment, dated as of February 24, 1982 (incorporated by reference to
Exhibit 10(b) to registrant’s File No. 33-25560).
X
10.37
Power Coordination Agreement, dated as of July 30, 1981, between Duke Energy
Progress, Inc. (formerly Carolina Power & Light Company) and North Carolina
Municipal Power Agency Number 3 and Exhibits, together with resolution, dated as
of December 16, 1981, changing name to North Carolina Eastern Municipal Power
Agency and amending letter, dated as of January 29, 1982 (incorporated by
reference to Exhibit 10(c) to registrant’s File No. 33-25560).
X
10.38
Amendment, dated as of December 16, 1982, to Purchase, Construction and
Ownership Agreement, dated as of July 30, 1981, between Duke Energy Progress,
Inc. (formerly Carolina Power & Light Company) and North Carolina Eastern
Municipal Power Agency (incorporated by reference to Exhibit 10(d) to registrant’s
File No. 33-25560).
X
10.39
Precedent and Related Agreements between Duke Energy Florida, Inc. (formerly
Florida Power Corporation d/b/a Progress Energy Florida, Inc. (“PEF”)), Southern
Natural Gas Company, Florida Gas Transmission Company (“FGT”), and BG LNG
Services, LLC (“BG”), including: a) Precedent Agreement between Southern Natural
Gas Company and PEF, dated as of December 2, 2004; b) Gas Sale and Purchase
Contract between BG and PEF, dated as of December 1, 2004; c) Interim Firm
Transportation Service Agreement by and between FGT and PEF, dated as of
December 2, 2004; d) Letter Agreement between FGT and PEF, dated as of
December 2, 2004, and Firm Transportation Service Agreement between FGT and
PEF to be entered into upon satisfaction of certain conditions precedent; e)
Discount Agreement between FGT and PEF, dated as of December 2, 2004; f)
Amendment to Gas Sale and Purchase Contract between BG and PEF, dated as of
January 28, 2005; and g) Letter Agreement between FGT and PEF, dated as of
January 31, 2005 (incorporated by reference to Exhibit 10.1 to registrant’s Current
Report on Form 8-K/A filed on March 15, 2005, File Nos. 1-15929 and 1-3274).
(Portions of the exhibit have been omitted and filed separately with the Securities
and Exchange Commission pursuant to a request for confidential treatment
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.)
X
X
10.40
Engineering, Procurement and Construction Agreement between Duke Energy
Florida, Inc. (formerly Florida Power Corporation d/b/a/ Progress Energy Florida,
Inc.), as owner, and a consortium consisting of Westinghouse Electric Company LLC
and Stone & Webster, Inc., as contractor, for a two-unit AP1000 Nuclear Power
Plant, dated as of December 31, 2008 (incorporated by reference to Exhibit 10.1 to
registrant’s Current Report on Form 8-K filed on March 2, 2009, File Nos. 1-15929
and 1-3274). (Portions of the exhibit have been omitted and filed separately with
the Securities and Exchange Commission pursuant to a request for confidential
treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.)
X
X
10.41**
Employment Agreement between Duke Energy Corporation and Lynn J. Good, dated
as of June 17, 2013 (incorporated by reference to Exhibit 10.1 to Duke Energy
Corporation’s Current Report on Form 8-K filed on June 18, 2013, File No. 1-32853).
X
10.41.1**
Amendment to Employment Agreement between Duke Energy Corporation and
Lynn J. Good, dated as of June 25, 2015 (incorporated by reference to Exhibit 10.1
to Duke Energy Corporation’s Current Report on Form 8-K filed on June 29, 2015,
File No. 1-32853).
X
10.42**
Amended and Restated Duke Energy Corporation Executive Short-Term Incentive
Plan, effective February 23, 2022 (incorporated by reference to Exhibit 10.1 to
registrant’s Current Report on Form 8-K filed on February 24, 2022, File
No. 1-32853).
X
10.43**
Duke Energy Corporation 2017 Director Compensation Program Summary
(incorporated by reference to Exhibit 10.3 to Duke Energy Corporation’s Quarterly
Report on Form 10-Q for the quarter ended June 30, 2017, filed on August 3, 2017,
File No. 1-32853).
X
10.44**
Duke Energy Corporation 2022 Director Compensation Program Summary
(incorporated by reference to Exhibit 10.5 to Duke Energy Corporation’s Quarterly
Report on Form 10-Q for the quarter ended March 31, 2022, filed on May 9, 2022,
File No. 1-32853).
X
10.45**
Duke Energy Corporation 2023 Director Compensation Program Summary
(incorporated by reference to Exhibit 10.6 to Duke Energy Corporation’s Quarterly
Report on Form 10-Q for the quarter ended March 31, 2023, filed on May 9, 2023,
File No. 1-32853).
X
PART IV
E-19
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
10.46**
Amended and Restated Duke Energy Corporation Executive Savings Plan, dated as
of January 1, 2014 (incorporated by reference to Exhibit 10.82 to Duke Energy
Corporation’s Annual Report on Form 10-K for the year ended December 31, 2013,
filed on February 28, 2014, File No. 1-32853).
X
10.46.1**
Amendment to Duke Energy Corporation Executive Savings Plan, dated as of
January 1, 2014 (incorporated by reference to Exhibit 10.1 to Duke Energy
Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30,
2017, filed on November 3, 2017, File No. 1-32853).
X
10.46.2**
Amendment to Duke Energy Corporation Executive Savings Plan, dated as of
October 1, 2020 (incorporated by reference to Exhibit 10.2 to Duke Energy
Corporation’s Current Report on Form 8-K filed on September 25, 2020, File
No. 1-32853).
X
10.47**
Retention Award Agreement (incorporated by reference to Exhibit 10.42 to Duke
Energy Corporation’s Annual Report on Form 10-K for the year ended December 31,
2021, filed on February 24, 2022, File No. 1-32853).
X
10.48
Agreement between Duke Energy SAM, LLC, Duke Energy Ohio, Inc., Duke Energy
Commercial Enterprise, Inc. and Dynegy Resource I, LLC, dated as of August 21,
2014 (incorporated by reference to Exhibit 10.61 to Duke Energy Corporation’s
Annual Report on Form 10-K for the year ended December 31, 2014, filed on
March 2, 2015, File No. 1-32853).
X
X
10.49
Asset Purchase Agreement between Duke Energy Progress, Inc. and North Carolina
Eastern Municipal Power Agency, dated as of September 5, 2014 (incorporated by
reference to Exhibit 10.62 to Duke Energy Corporation’s Annual Report on
Form 10-K for the year ended December 31, 2014, filed on March 2, 2015, File
No. 1-32853).
X
X
10.50
Accelerated Stock Repurchase Program executed by Goldman, Sachs & Co., and
JPMorgan Chase Bank, N.A. on April 6, 2015, under an agreement with Duke Energy
Corporation (incorporated by reference to Exhibit 10.1 to Duke Energy Corporation’s
Current Report on Form 8-K filed on April 6, 2015, File No. 1-32853).
X
10.51
Plea Agreement between Duke Energy Corporation and the Court of the Eastern
District of North Carolina in connection with the May 14, 2015, Dan River Grand
Jury Settlement (incorporated by reference to Exhibit 10.3 to Duke Energy
Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015,
filed on August 7, 2015, File No. 1-32853).
X
10.52
Plea Agreement between Duke Energy Corporation and the Court of the Eastern
District of North Carolina in connection with the May 14, 2015, Dan River Grand
Jury Settlement (incorporated by reference to Exhibit 10.4 to Duke Energy
Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015,
filed on August 7, 2015, File No. 1-32853).
X
10.53
Purchase and Sale Agreement by and among Duke Energy International Group
S.à.r.l., Duke Energy International Brazil Holdings S.à.r.l. and China Three Gorges
(Luxembourg) Energy S.à.r.l., dated as of October 10, 2016 (incorporated by
reference to Exhibit 2.1 to registrant’s Current Report on Form 8-K filed on
October 13, 2016, File No. 1-32853).
X
10.54
Purchase and Sale Agreement by and among Duke Energy Brazil Holdings II, C.V.,
Duke Energy International Uruguay Investments SRL, Duke Energy International
Group S.à.r.l., Duke Energy International España Holdings SL, Duke Energy
International Investments No. 2 Ltd., ISQ Enerlam Aggregator, L.P., and Enerlam
(UK) Holdings Ltd., dated as of October 10, 2016 (incorporated by reference to
Exhibit 2.2. to registrant’s Current Report on Form 8-K filed on October 13, 2016,
File No. 1-32853).
X
10.55
$1,000,000,000 Credit Agreement, dated as of June 14, 2017, among Duke Energy
Corporation, the Lenders listed therein, The Bank of Nova Scotia, as Administrative
Agent, PNC Bank, N.A., Sumitomo Mitsui Banking Corporation, and TD Bank, N.A.,
as Co-Syndication Agents, and Bank of China, New York Branch, BNP Paribas,
Santander Bank, N.A. and U.S. Bank N.A., as Co-Documentation Agents
(incorporated by reference to Exhibit 10.1 to registrant’s Current Report on
Form 8-K filed on June 14, 2017, File No. 1-32853).
X
10.56
$1,000,000,000 Credit Agreement, dated as of May 15, 2019, among Duke Energy
Corporation, the Lenders party thereto, The Bank of Nova Scotia, as Administrative
Agent, PNC Bank, N.A., Sumitomo Mitsui Banking Corporation, and TD Bank, N.A.,
as Co-Syndication Agents, and Bank of China, New York Branch, BNP Paribas,
Santander Bank, N.A., and U.S. Bank, N.A., as Co-Documentation Agents
(incorporated by reference to Exhibit 10.1 to registrant’s Current Report on
Form 8-K filed on May 16, 2019, File No. 1-32853).
X
PART IV
E-20
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
10.56.1
First Amendment to $1,000,000,000 Credit Agreement, dated as of May 15, 2019,
among Duke Energy Corporation, the Lenders party therein, The Bank of Nova
Scotia, as Administrative Agent, PNC Bank, N.A., Sumitomo Mitsui Banking
Corporation, and TD Bank, N.A., as Co-Syndication Agents, and Bank of China,
New York Branch, BNP Paribas, Santander Bank, N.A., and U.S. Bank, N.A., as
Co-Documentation Agents (incorporated by reference to Exhibit 10.3 to registrant’s
Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, filed on
May 10, 2021, File No. 1-32853).
X
10.57
Amended and Restated Credit Agreement, dated as of March 18, 2022, among
Duke Energy Corporation, Duke Energy Carolinas, LLC, Duke Energy Ohio, Inc., Duke
Energy Indiana, LLC, Duke Energy Kentucky, Inc., Duke Energy Progress, LLC, Duke
Energy Florida, LLC, and Piedmont Natural Gas Company, Inc., the Lenders party
thereto, Wells Fargo Bank, National Association, as Administrative Agent and
Swingline Lender and Wells Fargo Securities, LLC, as Joint Lead Arranger, Joint
Bookrunner and Sustainability Structuring Agent. that increases the amount of the
credit facility from $8B to $9B (incorporated by reference to Exhibit 10.1 to
registrants’ Current Report on Form 8-K filed on March 21, 2022, File Nos.
1-32853, 1-4928, 1-3382, 1-3274, 1-1232, 1-3543, 1-6196).
X
X
X
X
X
X
X
10.57.1
Amendment No. 1, dated as of March 17, 2023, to Amended and Restated Credit
Agreement, dated as of March 18, 2022 (incorporated by reference to Exhibit 10.1
to registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31,
2023, filed on May 9, 2023, File Nos. 1-32853, 1-4928, 1-3382, 1-3274, 1-1232,
1-3543, 1-6196).
X
X
X
X
X
X
X
10.58
$800 million Credit Agreement, dated as of October 21, 2022, among Duke Energy
Florida, LLC, as Borrower, the lenders listed therein, Truist Bank, as Administrative
Agent, Truist Securities, Inc., Mizuho Bank Ltd., and TD Bank, N.A., as Joint Lead
Arrangers, and Truist Securities, Inc., as Sole Bookrunner (incorporated by reference
to Exhibit 10.1 to registrant’s Current Report on Form 8-K filed on October 21,
2022, File No. 1-3274
X
10.59
$1.5 billion 364-Day Term Loan Credit Agreement, dated as of March 19, 2020,
among the registrant, as Borrower, certain Lenders from time to time parties
thereto, and PNC Bank, N.A., as Administrative Agent, and registrant’s borrowing of
the remaining $500 million under registrant’s existing $1 billion revolving credit
facility on March 17, 2020 (incorporated by reference to Exhibit 10.1 to registrant’s
Current Report on Form 8-K filed on March 19, 2020, File No. 1-32853).
X
10.60
Joinder Agreement, dated as of March 27, 2020, by and among, the registrant,
each of the Incremental Lenders listed therein, and PNC Bank, N.A., as
Administrative Agent (incorporated by reference to Exhibit 10.2.1 to registrant’s
Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, filed on
May 12, 2020, File No. 1-32853).
X
10.61
$1,400,000,000 Term Loan Credit Facility, dated as of March 9, 2022, among the
registrant, as Borrower, certain Lenders from time to time parties thereto, and The
Bank of Nova Scotia as Administrative Agent and Coordinating Lead Arranger
(incorporated by reference to Exhibit 10.1 to registrant’s Current Report on
Form 8-K filed on March 22, 2022, File No. 1-32853).
X
10.61.1
Lender Waiver Letter, dated as of March 29, 2023, to Amended and Restated Term
Loan Credit Agreement, dated as of March 9, 2022 (incorporated by reference to
Exhibit 10.2 to registrant’s Quarterly Report of Form 10-Q for the quarter ended
March 31, 2023, filed on May 9, 2023, File Nos. 1-32853, 1-4928, 1-3382, 1-3274,
1-1232, 1-3543, 1-6196).
X
X
X
X
X
X
X
10.62
Note Purchase Agreement, dated as of May 6, 2011, among Piedmont Natural Gas
Company, Inc. and the Purchasers party thereto (incorporated by reference to
Exhibit 10 to registrant’s Current Report on Form 8-K filed on May 12, 2011, File
No. 1-06196).
X
10.63
Amended and Restated Limited Liability Company Agreement of Constitution
Pipeline Company, LLC dated April 9, 2012, by and among Williams Partners
Operating LLC and Cabot Pipeline Holdings LLC (incorporated by reference to
Exhibit 10.1 to registrant’s Quarterly Report on Form 10-Q for the quarter ended
January 31, 2013, filed on March 6, 2013, File No. 1-06196).
X
10.63.1
First Amendment to Amended and Restated Limited Liability Company Agreement
of Constitution Pipeline Company, LLC, dated as of November 9, 2012, by and
among Constitution Pipeline Company, LLC, Williams Partners Operating LLC,
Cabot Pipeline Holdings LLC, and Piedmont Constitution Pipeline Company, LLC
(incorporated by reference to Exhibit 10.2 to registrant’s Quarterly Report on
Form 10-Q for the quarter ended January 31, 2013, filed on March 6, 2013, File
No. 1-06196).
X
PART IV
E-21
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
10.63.2
Second Amendment to Amended and Restated Limited Liability Company
Agreement of Constitution Pipeline Company, LLC, dated as of May 29, 2013, by
and among Constitution Pipeline Company, LLC, Williams Partners Operating LLC,
Cabot Pipeline Holdings LLC, Piedmont Constitution Pipeline Company, LLC, and
Capitol Energy Ventures Corp. (incorporated by reference to Exhibit 99.1 to
registrant’s Current Report on Form 8-K filed on September 4, 2013, File
No. 1-06196).
X
10.64
Second Amended and Restated Limited Liability Company Agreement of SouthStar
Energy Services LLC, dated as of September 1, 2013, by and between Georgia
Natural Gas Company and Piedmont Energy Company (incorporated by reference to
Exhibit 10.39 to registrant’s Annual Report on Form 10-K for the year ended
October 31, 2013, filed on December 23, 2013, File No. 1-06196).
X
10.65
Limited Liability Company Agreement of Atlantic Coast Pipeline, LLC, dated as of
September 2, 2014, by and between Dominion Atlantic Coast Pipeline, LLC, Duke
Energy ACP, LLC, Piedmont ACP Company, LLC, and Maple Enterprise Holdings, Inc.
(incorporated by reference to Exhibit 10.35 to registrant’s Annual Report on
Form 10-K for the year ended October 31, 2014, filed on December 23, 2014, File
No. 1-06196).
X
10.66
Amended and Restated Limited Liability Company Operating Agreement of Duke
Energy Indiana Holdco, LLC (incorporated by reference to Exhibit 10.1 to
registrants’ Current Report on Form 8-K filed on September 8, 2021, File
Nos. 1-32853, 1-03543).
X
X
10.67
Engineering, Procurement and Construction Agreement between Duke Energy
Business Services, LLC, as agent for and on behalf of Piedmont Natural Gas
Company Inc. and Matrix Service, Inc., dated as of April 30, 2019 (incorporated by
reference to Exhibit 10.1 to registrant’s Quarterly Report on Form 10-Q for the
quarter ended June 30, 2019, filed on August 6, 2019, File No. 1-06196). (Portions
of the exhibit have been omitted for confidentiality.)
X
10.68
Decommissioning Services Agreement between Duke Energy Florida, LLC, and ADP
CR3, LLC, and ADP SF1, LLC (incorporated by reference to Exhibit 10.3 to
registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019,
filed on August 6, 2019, File No. 2-5293). (Portions of the exhibit have been
omitted for confidentiality.)
X
10.69
Form of Forward Sale Agreement (incorporated by reference to Exhibit 10.1 to
registrant’s Current Report on Form 8-K filed on November 8, 2019, File
No. 1-32853).
X
10.70
Lease Agreement dated as of December 23, 2019, between the registrant and CGA
525 South Tryon TIC 1, LLC, a Delaware limited liability company, CGA 525 South
Tryon TIC 2, LLC, a Delaware limited liability company, and CK 525 South Tryon TIC,
LLC, a Delaware limited liability company (incorporated by reference to
Exhibit 10.64 to registrant’s Annual Report on Form 10-K for the year ended
December 31, 2019, filed on February 20, 2020, File No. 1-4928).
X
10.71
Construction Agency Agreement dated as of December 23, 2019, between the
registrant and CGA 525 South Tryon TIC 1, LLC, a Delaware limited liability
company, CGA 525 South Tryon TIC 2, LLC, a Delaware limited liability company,
and CK 525 South Tryon TIC, LLC, a Delaware limited liability company
(incorporated by reference to Exhibit 10.65 to registrant’s Annual Report on
Form 10-K for the year ended December 31, 2019, filed on February 20, 2020, File
No. 1-4928).
X
10.72
Equity Distribution Agreement, dated November 10, 2022, among Duke Energy
Corporation and Barclays Capital, Inc., BofA Securities, Inc., Credit Suisse
Securities (USA) LLC, Mizuho Securities USA LLC, Scotia Capital (USA) Inc. and
SMBC Nikko Securities America, Inc., acting as sales agents, and Barclays Capital
Inc., BofA Securities Inc., Credit Suisse Securities (USA) LLC, Mizuho Markets
Americas LLC and Scotia Capital (USA) Inc. or their respective affiliates, acting as
forward purchasers (incorporated by reference to Exhibit 10.1 to registrant’s
Current Report on Form 8-K, filed on November 10, 2022, File No. 1-32853).
X
*19
Duke Energy Corporation Securities Trading Policy, as amended May 9, 2024
X
*21
List of Subsidiaries
X
*23.1.1
Consent of Independent Registered Public Accounting Firm.
X
*23.1.2
Consent of Independent Registered Public Accounting Firm.
X
*23.1.3
Consent of Independent Registered Public Accounting Firm.
X
*23.1.4
Consent of Independent Registered Public Accounting Firm.
X
*23.1.5
Consent of Independent Registered Public Accounting Firm.
X
*23.1.6
Consent of Independent Registered Public Accounting Firm.
X
*23.1.7
Consent of Independent Registered Public Accounting Firm.
X
PART IV
E-22
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
*24.1
Power of attorney authorizing Lynn J. Good and others to sign the Annual Report on
behalf of the registrant and certain of its directors and officers.
X
*24.2
Certified copy of resolution of the Board of Directors of the registrant authorizing
power of attorney.
X
*31.1.1
Certification of the Chief Executive Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
X
*31.1.2
Certification of the Chief Executive Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
X
*31.1.3
Certification of the Chief Executive Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
X
*31.1.4
Certification of the Chief Executive Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
X
*31.1.5
Certification of the Chief Executive Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
X
*31.1.6
Certification of the Chief Executive Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
X
*31.1.7
Certification of the Chief Executive Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
X
*31.1.8
Certification of the Chief Executive Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
X
*31.2.1
Certification of the Chief Financial Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
X
*31.2.2
Certification of the Chief Financial Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
X
*31.2.3
Certification of the Chief Financial Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
X
*31.2.4
Certification of the Chief Financial Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
X
*31.2.5
Certification of the Chief Financial Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
X
*31.2.6
Certification of the Chief Financial Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
X
*31.2.7
Certification of the Chief Financial Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
X
*31.2.8
Certification of the Chief Financial Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
X
*32.1.1
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
X
*32.1.2
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
X
*32.1.3
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
X
*32.1.4
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
X
*32.1.5
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
X
*32.1.6
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
X
*32.1.7
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
X
*32.1.8
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
X
*32.2.1
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
X
*32.2.2
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
X
*32.2.3
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
X
*32.2.4
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
X
PART IV
E-23
Exhibit
Number
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana Piedmont
*32.2.5
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
X
*32.2.6
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
X
*32.2.7
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
X
*32.2.8
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
X
*97**
Duke Energy Corporation Clawback Policy
X
*101.INS
XBRL Instance Document (this does not appear in the Interactive Data File because
it’s XBRL tags are embedded within the Inline XBRL document).
X
X
X
X
X
X
X
X
*101.SCH
XBRL Taxonomy Extension Schema Document
X
X
X
X
X
X
X
X
*101.CAL
XBRL Taxonomy Calculation Linkbase Document
X
X
X
X
X
X
X
X
*101.LAB
XBRL Taxonomy Label Linkbase Document
X
X
X
X
X
X
X
X
*101.PRE
XBRL Taxonomy Presentation Linkbase Document
X
X
X
X
X
X
X
X
*101.DEF
XBRL Taxonomy Definition Linkbase Document
X
X
X
X
X
X
X
X
*104
Cover Page Interactive Data File (formatted in Inline XBRL and contained in
Exhibit 101).
X
X
X
X
X
X
X
X
The total amount of securities of each respective registrant or its subsidiaries authorized under any instrument with respect to long-term debt not filed as an
exhibit does not exceed 10% of the total assets of such registrant and its subsidiaries on a consolidated basis. Each registrant agrees, upon request of the SEC,
to furnish copies of any or all of such instruments to it.
PART IV
E-24
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed
on their behalf by the undersigned, thereunto duly authorized.
Date: February 27, 2025
DUKE ENERGY CORPORATION
(Registrant)
By:
/s/ LYNN J. GOOD
Lynn J. Good
Chair and Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the date indicated.
(i)
/s/ LYNN J. GOOD
Lynn J. Good
Chair and Chief Executive Officer (Principal Executive Officer and Director)
(ii)
/s/ BRIAN D. SAVOY
Brian D. Savoy
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
(iii)
/s/ CYNTHIA S. LEE
Cynthia S. Lee
Senior Vice President, Chief Accounting Officer and Controller (Principal Accounting Officer)
(iv)
Directors:
Derrick Burks*
Lynn J. Good*
Annette K. Clayton*
John T. Herron*
Theodore F. Craver, Jr.*
Idalene F. Kesner*
Robert M. Davis*
E. Marie McKee*
Caroline D. Dorsa*
Michael J. Pacilio*
W. Roy Dunbar*
Thomas E. Skains*
Nicholas C. Fanandakis*
William E. Webster, Jr.*
Brian D. Savoy, by signing his name hereto, does hereby sign this document on behalf of the registrant and on behalf of each of the above-named persons
previously indicated by asterisk (*) pursuant to a power of attorney duly executed by the registrant and such persons, filed with the Securities and Exchange
Commission as an exhibit hereto.
By:
/s/ BRIAN D. SAVOY
Attorney-In-Fact
Date: February 27, 2025
PART IV
E-25
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
Date: February 27, 2025
DUKE ENERGY CAROLINAS, LLC
(Registrant)
By:
/s/ LYNN J. GOOD
Lynn J. Good
Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the date indicated.
(i)
/s/ LYNN J. GOOD
Lynn J. Good
Chief Executive Officer (Principal Executive Officer)
(ii)
/s/ BRIAN D. SAVOY
Brian D. Savoy
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
(iii)
/s/ CYNTHIA S. LEE
Cynthia S. Lee
Senior Vice President, Chief Accounting Officer and Controller (Principal Accounting Officer)
(iv)
Directors:
/s/ KODWO GHARTEY-TAGOE
Kodwo Ghartey-Tagoe
/s/ LYNN J. GOOD
Lynn J. Good
/s/ JULIA S. JANSON
Julia S. Janson
Date: February 27, 2025
PART IV
E-26
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
Date: February 27, 2025
PROGRESS ENERGY, INC.
(Registrant)
By:
/s/ LYNN J. GOOD
Lynn J. Good
Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the date indicated.
(i)
/s/ LYNN J. GOOD
Lynn J. Good
Chief Executive Officer (Principal Executive Officer)
(ii)
/s/ BRIAN D. SAVOY
Brian D. Savoy
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
(iii)
/s/ CYNTHIA S. LEE
Cynthia S. Lee
Senior Vice President, Chief Accounting Officer and Controller (Principal Accounting Officer)
(iv)
Directors:
/s/ KODWO GHARTEY-TAGOE
Kodwo Ghartey-Tagoe
/s/ LYNN J. GOOD
Lynn J. Good
Date: February 27, 2025
PART IV
E-27
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
Date: February 27, 2025
DUKE ENERGY PROGRESS, LLC
(Registrant)
By:
/s/ LYNN J. GOOD
Lynn J. Good
Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the date indicated.
(i)
/s/ LYNN J. GOOD
Lynn J. Good
Chief Executive Officer (Principal Executive Officer)
(ii)
/s/ BRIAN D. SAVOY
Brian D. Savoy
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
(iii)
/s/ CYNTHIA S. LEE
Cynthia S. Lee
Senior Vice President, Chief Accounting Officer and Controller (Principal Accounting Officer)
(iv)
Directors:
/s/ KODWO GHARTEY-TAGOE
Kodwo Ghartey-Tagoe
/s/ T. PRESTON GILLESPIE JR.
T. Preston Gillespie Jr.
/s/ R. ALEXANDER GLENN
R. Alexander Glenn
/s/ LYNN J. GOOD
Lynn J. Good
/s/ JULIA S. JANSON
Julia S. Janson
Date: February 27, 2025
PART IV
E-28
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
Date: February 27, 2025
DUKE ENERGY FLORIDA, LLC
(Registrant)
By:
/s/ LYNN J. GOOD
Lynn J. Good
Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the date indicated.
(i)
/s/ LYNN J. GOOD
Lynn J. Good
Chief Executive Officer (Principal Executive Officer)
(ii)
/s/ BRIAN D. SAVOY
Brian D. Savoy
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
(iii)
/s/ CYNTHIA S. LEE
Cynthia S. Lee
Senior Vice President, Chief Accounting Officer and Controller (Principal Accounting Officer)
(iv)
Directors:
/s/ KODWO GHARTEY-TAGOE
Kodwo Ghartey-Tagoe
/s/ T. PRESTON GILLESPIE JR.
T. Preston Gillespie Jr.
/s/ R. ALEXANDER GLENN
R. Alexander Glenn
/s/ LYNN J. GOOD
Lynn J. Good
/s/ JULIA S. JANSON
Julia S. Janson
Date: February 27, 2025
PART IV
E-29
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
Date: February 27, 2025
DUKE ENERGY OHIO, INC.
(Registrant)
By:
/s/ LYNN J. GOOD
Lynn J. Good
Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the date indicated.
(i)
/s/ LYNN J. GOOD
Lynn J. Good
Chief Executive Officer (Principal Executive Officer)
(ii)
/s/ BRIAN D. SAVOY
Brian D. Savoy
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
(iii)
/s/ CYNTHIA S. LEE
Cynthia S. Lee
Senior Vice President, Chief Accounting Officer and Controller (Principal Accounting Officer)
(iv)
Directors:
/s/ KODWO GHARTEY-TAGOE
Kodwo Ghartey-Tagoe
/s/ R. ALEXANDER GLENN
R. Alexander Glenn
/s/ LYNN J. GOOD
Lynn J. Good
Date: February 27, 2025
PART IV
E-30
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
Date: February 27, 2025
DUKE ENERGY INDIANA, LLC
(Registrant)
By:
/s/ LYNN J. GOOD
Lynn J. Good
Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the date indicated.
(i)
/s/ LYNN J. GOOD
Lynn J. Good
Chief Executive Officer (Principal Executive Officer)
(ii)
/s/ BRIAN D. SAVOY
Brian D. Savoy
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
(iii)
/s/ CYNTHIA S. LEE
Cynthia S. Lee
Senior Vice President, Chief Accounting Officer and Controller (Principal Accounting Officer)
(iv)
Directors:
/s/ R. ALEXANDER GLENN
R. Alexander Glenn
/s/ KELLEY A. KARN
Kelley A. Karn
/s/ STAN PINEGAR
Stan Pinegar
Date: February 27, 2025
PART IV
E-31
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
Date: February 27, 2025
PIEDMONT NATURAL GAS COMPANY, INC.
(Registrant)
By:
/s/ LYNN J. GOOD
Lynn J. Good
Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the date indicated.
(i)
/s/ LYNN J. GOOD
Lynn J. Good
Chief Executive Officer (Principal Executive Officer)
(ii)
/s/ BRIAN D. SAVOY
Brian D. Savoy
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
(iii)
/s/ CYNTHIA S. LEE
Cynthia S. Lee
Senior Vice President, Chief Accounting Officer and Controller (Principal Accounting Officer)
(iv)
Directors:
/s/ KODWO GHARTEY-TAGOE
Kodwo Ghartey-Tagoe
/s/ LYNN J. GOOD
Lynn J. Good
/s/ BRIAN D. SAVOY
Brian D. Savoy
Date: February 27, 2025
PART IV
E-32
Featured substation located in Duke Energy Progress jurisdiction.