Duke Energy Corporation
11/07/2025 | Press release | Distributed by Public on 11/07/2025 11:15
Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following combined Management's Discussion and Analysis of Financial Condition and Results of Operations is separately filed by Duke Energy and Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont. 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.
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. Duke Energy's consolidated financial information includes the results of the Subsidiary Registrants, which along with Duke Energy, are collectively referred to as the Duke Energy Registrants.
Management's Discussion and Analysis should be read in conjunction with the Condensed Consolidated Financial Statements and Notes for the nine months ended September 30, 2025, and with Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2024.
Executive Overview
Acting on Investment Opportunities. We operate in some of the most attractive jurisdictions in the country and the affordable, reliable power we provide continues to play a key role in bringing business and job growth to our region. Our service territories continue to experience accelerating investment opportunities driven by a deepening economic development pipeline and significant customer growth. To efficiently fund this growth and the related capital required in the coming years, we entered into two strategic transactions in the third quarter of 2025.
In August 2025, we entered into an investment agreement to receive $6 billion in exchange for a 19.7% indirect investment in Duke Energy Florida. Subject to regulatory approvals, the transaction is expected to be completed through a series of closings starting in 2026 through mid-2028. In July 2025, we announced the sale of Piedmont's Tennessee business to Spire Inc. for $2.48 billion. Subject to regulatory approvals, we expect to complete the Piedmont transaction on March 31, 2026. Proceeds from both transactions will support Duke Energy's expanded capital plan and replaces certain originally planned long-term debt and common equity issuances through 2029.
Both of these transactions, along with our unwavering focus on operational excellence and value creation, demonstrate our continued ability to meet the unprecedented long-term growth anticipated across our service territories. See Note 2 to the Condensed Consolidated Financial Statements, "Dispositions," for further information.
Building a Smarter Energy Future. During the nine months ended September 30, 2025, we continued to move our regulatory strategy forward and execute on investments for building a smarter energy future while maintaining our focus on safety and operational excellence, our customers, growth of our business as well as the engagement and empowerment of our employees. These priorities enable us to provide strong, sustainable value for our employees, customers, communities and shareholders.
•In January 2025, Piedmont and Duke Energy Indiana received constructive orders on their general rate cases from the NCUC and IURC, respectively. New rates were effective in November 2024 for Piedmont and late February 2025 for Duke Energy Indiana. New rates were also effective in January 2025 for Duke Energy Florida's new three-year rate plan. In June 2025, Duke Energy Progress filed a South Carolina base rate case and Duke Energy Kentucky filed a natural gas base rate case. In July 2025, Duke Energy Carolinas filed a South Carolina base rate case. In October 2025, Duke Energy Kentucky received a constructive order on its electric base rate case filed last December and Duke Energy Progress reached a comprehensive settlement in its South Carolina base rate case. Our regulatory efforts continue to focus on securing critical investments for reliable customer service while ensuring timely cost recovery across our service territories.
•In October 2025, Duke Energy Progress received an order from the NCUC granting the CPCN for the second CC unit in Person County and Duke Energy Indiana received an order from the IURC granting the CPCN for the Cayuga CC project. Also in October 2025, Duke Energy Carolinas filed for a CECPCN with the PSCSC for a new CC unit in Anderson County, South Carolina. These advanced natural gas plants, along with our planned CTs, will provide critical generation as we continue to modernize our energy infrastructure in the coming years.
•We reached key milestones to recover costs related to critical storm restoration activities from the 2024 historic storm season while also seeking to minimize customer bill impacts resulting from hurricanes Debby, Helene and Milton. In February 2025, the FPSC voted to approve Duke Energy Florida's storm cost recovery of approximately $1.1 billion over 12 months beginning in March 2025. During 2025, Duke Energy Carolinas and Duke Energy Progress reached constructive settlements in Phase 2 proceedings andfinancing orders have been issued by both the NCUC and PSCSC. In September 2025, we issued North Carolina storm recovery bonds and expect to securitize the related South Carolina storm costs by the end of 2025.
•Our nuclear sites continue to positively impact the customers we serve by safely producing clean, reliable and low-cost electricity, as well as providing economic benefits for our local communities that includes thousands of well-paying jobs and significant tax benefits. During 2025, we continue to sell nuclear PTCs to further reduce the cost of electricity for our customers. Additionally, in March 2025, the NRC issued a subsequent license renewal for Oconee that allows an additional 20 years of operation through 2054. Oconee is the first Duke Energy nuclear facility to reach this significant approval milestone to permit extension of its operations to 80 years. In April 2025, we submitted an application to the NRC for Robinson to extend the plant's operations an additional 20 years through 2050.
•In July 2025, Duke Energy Carolinas filed its final license application with the FERC to extend the operating license for the Bad Creek Pumped Storage Hydroelectric Station. Located in South Carolina, Bad Creek is designed to produce significant amounts of energy when our customers need it most, performing a vital role on the company's system since 1991. If approved, the application would extend plant operations for an additional 50 years through 2077.
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•In August 2025, we filedapplications with the NCUC, PSCSC and FERC to combine our utilities that operate in the Carolinas, by which Duke Energy Progress will merge into Duke Energy Carolinas. This proposed transaction would result in a single electric utility serving our North Carolina and South Carolina service territories. The single utility's ability to plan, execute and operate resources more efficiently is expected to result in substantial cost savings to benefit customers by reducing the overall costs to serve. The targeted effective date is January 1, 2027, subject to regulatory approvals.
Operational Excellence. In June 2025, as the summer's first heat wave brought triple-digit temperatures to parts of North Carolina and South Carolina, our customers set a new summertime record for electricity usage, surpassing the previous summertime record set in July 2024. We maintain our focus on operational excellence and prepare for extreme weather by identifying potential risks, effectively maintaining adequate short-term planning reserves, leveraging outage scheduling optimization and controlling planned and emergent equipment issues.
Economic Development.In June 2025, the governor of North Carolina announced Amazon is planning to invest an estimated $10 billion to launch a new high-tech cloud computing and artificial intelligence innovation campus in Richmond County, North Carolina. The site selected for this project was included in Duke Energy's Site Readiness Program in 2019, a program that helps state, regional and local economic development partners increase the competitiveness of potential industrial land. These new data centers will be located in Duke Energy Progress' service territory and the investment is expected to be among the largest in North Carolina's history, a testament to the impactful and ongoing work of continuing to bring economic development success to the vibrant communities we proudly serve.
See Notes 4 and 17 to the Condensed Consolidated Financial Statements, "Regulatory Matters" and "Income Taxes," for additional information.
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 Note 4 to the Condensed Consolidated Financial Statements, "Regulatory Matters."
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. Regulatory filings have been made for recovery of storm costs across all jurisdictions and full recovery is expected by early 2026. For more information related to storm costs, regulatory asset deferrals and financing activities, see "Liquidity and Capital Resources" and Notes 4, 6 and 13 to the Condensed Consolidated Financial Statements, "Regulatory Matters," "Debt and Credit Facilities" and Variable Interest Entities."
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. In June 2025, the EPA proposed to repeal EPA Rule 111 as well as an alternative proposal for a narrower set of requirements. For more information, see "Other Matters."
Supply Chain
The Company continues to monitor the ongoing stability of markets for key materials and supplies, including potential restrictions on the trade of certain rare earth materials and technologies used in electric utility infrastructure. Public policy outcomes, including potential impacts from new or escalating tariffs or other actions from federal executive orders, federal legislation or other rulemakings, could disrupt or impact Duke Energy's supply chain, future financial results, capital plan execution or the ability to execute on the Company's vision for a smarter energy future.
Goodwill
The Duke Energy Registrants performed their annual goodwill impairment tests as of August 31, 2025. 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 Condensed 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.
| MD&A | MATTERS IMPACTING FUTURE RESULTS | ||||
Minority Interest in Florida Progress
In August 2025, Duke Energy, Progress Energy and Florida Progress entered into an investment agreement for Florida Progress to receive $6 billion in exchange for a 19.7% indirect investment in Duke Energy Florida. The transaction is subject to the satisfaction of certain customary conditions described in the investment agreement, including receipt of the approval of the FERC and completion of review by CFIUS, as well as approval, or a determination that the transaction does not require approval, by the NRC. The transaction is expected to be completed through a series of closings through June 30, 2028. Termination of the transaction under certain specified circumstances could require the investor to pay a $240 million termination fee to Progress Energy and result in Duke Energy seeking alternative funding sources through 2029, including additional long-term debt and common equity issuances. For additional information, see Note 2 to the Condensed Consolidated Financial Statements, "Dispositions."
Sale of Piedmont's Tennessee Business
In July 2025, Piedmont entered into a purchase agreement to sell Piedmont's Tennessee business. Completion of the transaction is subject to customary closing conditions, including approval from the TPUC and expiration or termination of the applicable waiting period under the HSR. The HSR waiting period for the transaction expired in September 2025. There is no assurance of the transaction as failure to obtain related approvals or to satisfy conditions in the purchase agreement could result in termination of the transaction. The purchase agreement contains termination rights and Spire Inc. may be required to pay a termination fee equal to 6.5% of the purchase price under certain circumstances that result in termination of the transaction. Termination of the purchase agreement could also result in Duke Energy seeking alternative funding sources for its 2025-2029 capital and investment expenditures plan, including additional long-term debt and common equity issuances. Completion of the transaction could impact the operating revenues and profitability of Piedmont, including potential recognition of a gain on sale. In the third quarter of 2025, Duke Energy and Piedmont reclassified the Piedmont Tennessee Disposal Group to assets held for sale. For additional information, see Note 2 to the Condensed Consolidated Financial Statements, "Dispositions."
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 capital plan execution, future financial results or the ability to execute on the Company'svision for a smarter energy future.
Results of Operations
Non-GAAP Measures
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, adjusted earnings and adjusted EPS, discussed below. Non-GAAP financial measures are numerical measures of financial performance, financial position or cash flows that exclude (or include) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. 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 presented may not be comparable to similarly titled measures used by other companies because other companies may not calculate the measures in the same manner.
Management evaluates financial performance in part based on non-GAAP financial measures, including adjusted earnings and adjusted EPS. Adjusted earnings and adjusted EPS represent income from continuing operations available to Duke Energy Corporation common stockholders in dollar and basic per share amounts, adjusted for the dollar and per share impact of special items. Special items represent certain charges and credits, which management believes are not indicative of Duke Energy's ongoing performance. The most directly comparable GAAP measures for adjusted earnings and adjusted EPS are GAAP Reported Earnings (Loss) and GAAP Reported Basic Earnings (Loss) Per Share, respectively.
Special items included in the periods presented below include the following, which management believes do not reflect ongoing costs:
•Regulatory Matters primarily represents impairment charges related to the 2024 Duke Energy Carolinas' South Carolina rate case order.
•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.
Discontinued operations primarily represents the operating results of Duke Energy's Commercial Renewables Disposal Groups.
Three Months Ended September 30, 2025, as compared to September 30, 2024
GAAP reported EPS was $1.81 for the three months ended September 30, 2025, compared to $1.60 for the three months ended September 30, 2024. In addition to the drivers below, GAAP reported EPS increased primarily due to the net impact of charges related to nonrecurring customer billing adjustments in the prior year and charges related to the redemption of Series B Preferred Stock in the prior year.
As discussed above, management also evaluates financial performance based on adjusted EPS. Duke Energy's adjusted EPS was $1.81 for the three months ended September 30, 2025, compared to $1.62 for the three months ended September 30, 2024. The increase in adjusted EPS was primarily due to the implementation of new rates and riders, along with higher sales volumes, partially offset by higher interest expense, milder weather, and higher depreciation and property taxes on a growing asset base.
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The following table reconciles non-GAAP measures, including adjusted EPS, to their most directly comparable GAAP measures.
| Three Months Ended September 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| (in millions, except per share amounts) | Earnings | EPS | Earnings | EPS | |||||||||||||||||||
|
GAAP Reported Earnings/GAAP Reported EPS
|
$ | 1,407 | $ | 1.81 | $ | 1,226 | $ | 1.60 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
|
System Post-Implementation Costs(a)
|
- | - | 16 | 0.02 | |||||||||||||||||||
|
Preferred Redemption Costs(b)
|
- | - | 16 | 0.02 | |||||||||||||||||||
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Discontinued Operations(c)
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- | - | (22) | (0.03) | |||||||||||||||||||
| Adjusted Earnings/Adjusted EPS | $ | 1,407 | $ | 1.81 | $ | 1,236 | $ | 1.62 | |||||||||||||||
Note: Total EPS may not foot due to rounding.
(a)Net of $5 million tax benefit. $17 million recorded within Operating Revenues, $1 million recorded within Operations, maintenance and other and $3 million recorded within Other Income and expenses.
(b) Recorded within Preferred Redemption Costs.
(c) Recorded in Income (Loss) from Discontinued Operations, net of tax.
Nine Months Ended September 30, 2025, as compared to September 30, 2024
GAAP Reported EPS was $4.81 for the nine months ended September 30, 2025, compared to $4.17 for the nine months ended September 30, 2024. In addition to the drivers below, GAAP reported EPS increased primarily due to impairments related to the 2024 South Carolina rate case in the prior year, the net impact of charges related to nonrecurring customer billing adjustments in the prior year and charges related to the redemption of Series B Preferred Stock in the prior year.
As discussed above, management also evaluates financial performance based on adjusted EPS. Duke Energy's adjusted EPS was $4.81 for the nine months ended September 30, 2025, compared to $4.24 for the nine months ended September 30, 2024. The increase in adjusted EPS was primarily due to the implementation of new rates and riders, along with higher retail sales volumes, partially offset by higher interest expense, operation and maintenance expense, and depreciation and property taxes on a growing asset base.
The following table reconciles non-GAAP measures, including adjusted EPS, to their most directly comparable GAAP measures.
| Nine Months Ended September 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| (in millions, except per share amounts) | Earnings | EPS | Earnings | EPS | |||||||||||||||||||
| GAAP Reported Earnings/GAAP Reported EPS | $ | 3,743 | $ | 4.81 | $ | 3,211 | $ | 4.17 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
|
Regulatory Matters(a)
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- | - | 25 | 0.03 | |||||||||||||||||||
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System Post-Implementation Costs(b)
|
- | - | 16 | 0.02 | |||||||||||||||||||
|
Preferred Redemption Costs(c)
|
- | - | 16 | 0.02 | |||||||||||||||||||
|
Discontinued Operations(d)
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1 | - | (9) | (0.01) | |||||||||||||||||||
| Adjusted Earnings/Adjusted EPS | $ | 3,744 | $ | 4.81 | $ | 3,259 | $ | 4.24 | |||||||||||||||
Note: Total EPS may not foot due to rounding.
(a)Net of $8 million tax benefit. $42 million recorded within Impairment of assets and other charges, $2 million within Operations,
maintenance and other, and an $11 million reduction recorded within Interest Expense.
(b)Net of $5 million tax benefit. $17 million recorded within Operating Revenues, $1 million recorded within Operations, maintenance and other and $3 million recorded within Other Income and expenses.
(c) Recorded within Preferred Redemption Costs.
(d) Recorded in Income (Loss) from Discontinued Operations, net of tax.
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 noncontrolling interests and preferred stock dividends. Segment income includes intercompany revenues and expenses that are eliminated on the Condensed Consolidated Financial Statements.
Duke Energy's segment structure includes the following segments: EU&I and GU&I. The remainder of Duke Energy's operations is presented as Other. See Note 3 to the Condensed Consolidated Financial Statements, "Business Segments," for additional information on Duke Energy's segment structure.
| MD&A | SEGMENT RESULTS - ELECTRIC UTILITIES AND INFRASTRUCTURE | ||||
Electric Utilities and Infrastructure
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| (in millions) | 2025 | 2024 | Variance | 2025 | 2024 | Variance | |||||||||||||||||||||||||||||
| Operating Revenues | 8,180 | $ | 7,852 | $ | 328 | $ | 22,365 | $ | 21,475 | $ | 890 | ||||||||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||||||||||||||
| Fuel used in electric generation and purchased power | 2,309 | 2,664 | (355) | 6,326 | 7,266 | (940) | |||||||||||||||||||||||||||||
| Operation, maintenance and other | 1,728 | 1,387 | 341 | 4,746 | 3,965 | 781 | |||||||||||||||||||||||||||||
| Depreciation and amortization | 1,448 | 1,352 | 96 | 4,184 | 3,823 | 361 | |||||||||||||||||||||||||||||
| Property and other taxes | 394 | 345 | 49 | 1,143 | 1,033 | 110 | |||||||||||||||||||||||||||||
| Impairment of assets and other charges | (1) | (5) | 4 | (2) | 38 | (40) | |||||||||||||||||||||||||||||
| Total operating expenses | 5,878 | 5,743 | 135 | 16,397 | 16,125 | 272 | |||||||||||||||||||||||||||||
| Gains on Sales of Other Assets and Other, net | 12 | 2 | 10 | 21 | 9 | 12 | |||||||||||||||||||||||||||||
| Operating Income | 2,314 | 2,111 | 203 | 5,989 | 5,359 | 630 | |||||||||||||||||||||||||||||
| Other Income and Expenses, net | 164 | 129 | 35 | 461 | 401 | 60 | |||||||||||||||||||||||||||||
| Interest Expense | 522 | 514 | 8 | 1,587 | 1,501 | 86 | |||||||||||||||||||||||||||||
| Income Before Income Taxes | 1,956 | 1,726 | 230 | 4,863 | 4,259 | 604 | |||||||||||||||||||||||||||||
| Income Tax Expense | 264 | 244 | 20 | 653 | 631 | 22 | |||||||||||||||||||||||||||||
|
Less: Net Income Attributable to Noncontrolling Interest
|
34 | 31 | 3 | 82 | 66 | 16 | |||||||||||||||||||||||||||||
| Segment Income | $ | 1,658 | $ | 1,451 | $ | 207 | $ | 4,128 | $ | 3,562 | $ | 566 | |||||||||||||||||||||||
| Duke Energy Carolinas GWh sales | 25,316 | 24,848 | 468 | 71,042 | 69,720 | 1,322 | |||||||||||||||||||||||||||||
| Duke Energy Progress GWh sales | 18,871 | 19,131 | (260) | 54,114 | 52,473 | 1,641 | |||||||||||||||||||||||||||||
| Duke Energy Florida GWh sales | 13,038 | 13,423 | (385) | 33,832 | 34,124 | (292) | |||||||||||||||||||||||||||||
| Duke Energy Ohio GWh sales | 6,951 | 6,804 | 147 | 18,729 | 18,494 | 235 | |||||||||||||||||||||||||||||
| Duke Energy Indiana GWh sales | 8,704 | 8,550 | 154 | 24,566 | 23,541 | 1,025 | |||||||||||||||||||||||||||||
| Total Electric Utilities and Infrastructure GWh sales | 72,880 | 72,756 | 124 | 202,283 | 198,352 | 3,931 | |||||||||||||||||||||||||||||
| Net proportional MW capacity in operation | 55,270 | 54,416 | 854 | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2025, as compared to September 30, 2024
EU&I'sresults were driven by higher revenues from rate cases across multiple jurisdictionsand higher weather-normal retail sales volumes, partially offset by higher operation and maintenance and depreciation expenses.The following is a detailed discussion of the variance drivers by line item.
Operating Revenues. The variance was driven primarily by:
•a $286 million increase in storm recovery revenues at Duke Energy Florida;
•a $238 million increase due to higher pricing from jurisdictional rate cases primarily at Duke Energy Carolinas, Duke Energy Indiana, Duke Energy Florida and Duke Energy Progress;
•a $94 millionincrease in weather-normal retail sales volumes; and
•a $22 million increase in other revenues primarily due to higher transmission revenues across all jurisdictions.
Partially offset by:
•a $329 million decrease in fuel revenues primarily due to net lower rates in the current year.
Operating Expenses. The variance was driven primarily by:
•a $341 million increase in operation, maintenance and other primarily driven by higher storm amortization at Duke Energy Florida, increased costs related to customer products and services programs at Duke Energy Carolinas, higherplant maintenance at Duke Energy Indiana andhigher employee-related expenses across all jurisdictions, partially offset by lower storm costs in the current year at Duke Energy Progress, Duke Energy Carolinas and Duke Energy Ohio;
•a $96 million increase in depreciation and amortization primarily due to higher depreciable base across all jurisdictions and higher depreciation rates driven by rate cases; and
•a $49 million increase in property and other taxes due to a higher base on which property taxes are levied and higher sales and use tax refunds in the prior year at Duke Energy Carolinas and Duke Energy Progress.
| MD&A | SEGMENT RESULTS - ELECTRIC UTILITIES AND INFRASTRUCTURE | ||||
Partially offset by:
•a $355 million decrease in fuel used in electric generation and purchased power primarily due to higher recovery of fuel expense in the prior year at Duke Energy Carolinas and Duke Energy Progress andlower fuel cost recovery and lower purchased power driven by the expiration of contracts in the prior year at Duke Energy Florida, partially offset by higher fuel costs and purchased power at Duke Energy Ohio.
Other Income and Expense. The increase was primarily driven by higher AFUDC equity base and rates compared to the prior year across all jurisdictions.
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 nuclear PTCs, investment tax credits and EDIT. The ETRs for the three months ended September 30, 2025, and 2024, were 13.5% and 14.1%, respectively.
Nine Months Ended September 30, 2025, as compared to September 30, 2024
EU&I'sresults were driven by higher revenues from rate cases across multiple jurisdictions,higher weather-normal retail sales volumes and higher transmission revenues, partially offset by higher operation and maintenance and depreciation expenses.The following is a detailed discussion of the variance drivers by line item.
Operating Revenues. The variance was driven primarily by:
•a $735 million increase due to higher pricing from jurisdictional rate cases primarily at Duke Energy Carolinas, Duke Energy Indiana, Duke Energy Florida and Duke Energy Progress;
•a $550 million increase in storm recovery revenues at Duke Energy Florida;
•a $244 millionincrease in weather-normal retail sales volumes;
•a$112 million increase in rider revenues primarily due to the SPP at Duke Energy Florida, the North Carolina Municipal Power Agency (NCEMPA) rider at Duke Energy Progress, as well as the Uncollectible Expense Riders and Distribution Capital Investment Rider and higher OVEC rider collections and OVEC sales into PJM at Duke Energy Ohio;
•an $82 million increase in other revenues due to higher transmission revenues across all jurisdictions and higher Clean Energy Connection subscription revenues at Duke Energy Florida; and
•a $60 million increase in retail sales due to favorable weather compared to prior year.
Partially offset by:
•a $978 million decrease in fuel revenues primarily due to net lower rates in the current year, partially offset by higher volumes.
Operating Expenses. The variance was driven primarily by:
•a $781 million increase in operation, maintenance and other primarily driven by higher storm amortization at Duke Energy Florida, increased litigation and environmental costs, as well as joint owner reimbursements in the prior year at Duke Energy Carolinas, an increase in TDSIC rider amortizations at Duke Energy Indiana, increased customer products and services program costs and higher employee-related expenses across all jurisdictions, partially offset by lower storm costs in the current year at Duke Energy Progress, Duke Energy Carolinas and Duke Energy Florida;
•a $361 million increase in depreciation and amortization primarily due to higher depreciable base across all jurisdictions and higher depreciation rates driven by rate cases; and
•a $110 million increase in property and other taxes due to a higher base on which property taxes are levied.
Partially offset by:
•a $940 million decrease in fuel used in electric generation and purchased power primarily due to lower fuel cost recovery and lower purchased power driven by the expiration of contracts in the prior year at Duke Energy Florida and higher recovery of fuel expense in the prior year at Duke Energy Carolinas, partially offset by higher fuel costs and purchased power at Duke Energy Progress and Duke Energy Ohio; and
•a $40 million decrease in impairment of assets and other charges primarily related to the 2024 South Carolina rate case order in the prior yearat Duke Energy Carolinas and Duke Energy Progress.
Other Income and Expense. The increase was primarily driven by higher AFUDC equity base and rates compared to the prior year across all jurisdictions.
Interest Expense. The increase was primarily driven by higher outstanding debt balances, current year return on deferred nuclear PTC liability, absence of prior year return on deferred South Carolina grid costs, partially offset bylower intercompany interest expense and current year return on deferred storm costs at Duke Energy Carolinas and Duke Energy Progress.
Income Tax Expense.The increase in tax expense was primarily due to an increase in pretax income, mostly offset by an increase in the amortization of nuclear PTCs, investment tax credits and EDIT. The ETRs for the nine months ended September 30, 2025, and 2024, were 13.4% and 14.8%, respectively. The decrease in the ETR was primarily due to an increase in the amortization of nuclear PTCs and investment tax credits.
| MD&A | SEGMENT RESULTS - GAS UTILITIES AND INFRASTRUCTURE | ||||
Gas Utilities and Infrastructure
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| (in millions) | 2025 | 2024 | Variance | 2025 | 2024 | Variance | |||||||||||||||||||||||||||||
| Operating Revenues | $ | 394 | $ | 332 | $ | 62 | $ | 2,027 | $ | 1,615 | $ | 412 | |||||||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||||||||||||||
| Cost of natural gas | 110 | 70 | 40 | 642 | 380 | 262 | |||||||||||||||||||||||||||||
| Operation, maintenance and other | 125 | 113 | 12 | 379 | 359 | 20 | |||||||||||||||||||||||||||||
| Depreciation and amortization | 106 | 100 | 6 | 325 | 294 | 31 | |||||||||||||||||||||||||||||
| Property and other taxes | 41 | 36 | 5 | 129 | 120 | 9 | |||||||||||||||||||||||||||||
| Total operating expenses | 382 | 319 | 63 | 1,475 | 1,153 | 322 | |||||||||||||||||||||||||||||
| Operating Income | 12 | 13 | (1) | 552 | 462 | 90 | |||||||||||||||||||||||||||||
|
Other Income and Expenses, net
|
19 | 15 | 4 | 51 | 49 | 2 | |||||||||||||||||||||||||||||
| Interest Expense | 67 | 67 | - | 197 | 189 | 8 | |||||||||||||||||||||||||||||
|
(Loss) Income Before Income Taxes
|
(36) | (39) | 3 | 406 | 322 | 84 | |||||||||||||||||||||||||||||
|
Income Tax (Benefit) Expense
|
(10) | (14) | 4 | 77 | 57 | 20 | |||||||||||||||||||||||||||||
|
Segment Income
|
$ | (26) | $ | (25) | $ | (1) | $ | 329 | $ | 265 | $ | 64 | |||||||||||||||||||||||
| Piedmont LDC throughput (dekatherms) | 150,368,042 | 162,163,516 | (11,795,474) | 457,572,934 | 453,695,306 | 3,877,628 | |||||||||||||||||||||||||||||
| Duke Energy Midwest LDC throughput (Mcf) | 9,505,511 | 9,607,415 | (101,904) | 63,843,944 | 55,774,760 | 8,069,184 | |||||||||||||||||||||||||||||
Three Months Ended September 30, 2025, as compared to September 30, 2024
GU&I's results were impacted primarily by margin growth, partially offset by higher operations, maintenance and other. The following is a detailed discussion of the variance drivers by line item.
Operating Revenues. The variance was driven primarily by:
•a $52 million increase in cost of natural gas revenues primarily due to higher commodity prices; and
•a $7 million increase due to higher pricing from the 2024 Piedmont North Carolina rate case.
Operating Expenses. The variance was driven primarily by:
•a $40 million increase in the cost of natural gas due primarily to higher commodityprices,partially offset by lower storage balancing charges in the current year; and
•a $12 million increase in operations, maintenance and other primarily due to higher customer information technology (IT) system costs.
Income Tax (Benefit) Expense.The decrease in the tax benefit was primarily due to a decrease in pretax losses and the amortization of EDIT. The ETRs for the three months ended September 30, 2025, and 2024, were 27.8% and 35.9%, respectively. The decrease in the ETR was primarily due to AFUDC equity and the amortization of EDIT in relation to pretax losses.
Nine Months Ended September 30, 2025, as compared to September 30, 2024
GU&I's results were impacted primarily by higher revenues from the 2024 Piedmont North Carolina rate case, partially offset by higher depreciation and amortization. The following is a detailed discussion of the variance drivers by line item.
Operating Revenues. The variance was driven primarily by:
•a $274 million increase in cost of natural gas revenues primarily due to higher commodity prices;
•a $92 million increase due to higher pricing from the 2024 Piedmont North Carolina rate case; and
•a $21 million increase in Midwest rider revenue.
Operating Expenses. The variance was driven primarily by:
•a $262 million increase in the cost of natural gas primarily due to higher commodity prices, partially offset by lower storage balancing charges in the current year;
•a $31 million increase in depreciation and amortization primarily due to higher depreciable base, partially offset by lower Tennessee depreciation due to assets meeting the held for sale criteria; and
•a $20 million increase in operations, maintenance and other primarily due to higher customer IT system costs and employee-related expenses.
| MD&A | SEGMENT RESULTS - GAS UTILITIES AND INFRASTRUCTURE | ||||
Income Tax (Benefit) Expense. The increase in tax expense was primarily due to an increase in pretax income. The ETRs for the nine months ended September 30, 2025, and 2024, were 19.0% and 17.7%, respectively. The increase in the ETR was primarily due to a decrease in the amortization of EDIT.
Other
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| (in millions) | 2025 | 2024 | Variance | 2025 | 2024 | Variance | |||||||||||||||||||||||||||||
| Operating Revenues | $ | 40 | $ | 42 | $ | (2) | $ | 122 | $ | 120 | $ | 2 | |||||||||||||||||||||||
| Operating Expenses | 43 | 31 | 12 | 187 | 157 | 30 | |||||||||||||||||||||||||||||
| Gains on Sales of Other Assets and Other, net | 5 | 5 | - | 16 | 16 | - | |||||||||||||||||||||||||||||
|
Operating Income (Loss)
|
2 | 16 | (14) | (49) | (21) | (28) | |||||||||||||||||||||||||||||
| Other Income and Expenses, net | 40 | 72 | (32) | 102 | 218 | (116) | |||||||||||||||||||||||||||||
| Interest Expense | 332 | 321 | 11 | 968 | 921 | 47 | |||||||||||||||||||||||||||||
| Loss Before Income Taxes | (290) | (233) | (57) | (915) | (724) | (191) | |||||||||||||||||||||||||||||
| Income Tax Benefit | (79) | (66) | (13) | (243) | (207) | (36) | |||||||||||||||||||||||||||||
| Less: Preferred Dividends | 14 | 39 | (25) | 41 | 92 | (51) | |||||||||||||||||||||||||||||
|
Less: Preferred Redemption Costs
|
- | 16 | (16) | - | 16 | (16) | |||||||||||||||||||||||||||||
| Net Loss | $ | (225) | $ | (222) | $ | (3) | $ | (713) | $ | (625) | $ | (88) | |||||||||||||||||||||||
Three Months Ended September 30, 2025, as compared to September 30, 2024
Other's results were primarily driven by lower interest income and higher interest expense, partially offset by impacts from the redemption of the Company's Series B Preferred Stock in the prior year.
Operating Expenses.The increase was driven by accrued reserves released in the prior year.
Other Income and Expenses, net.The decrease was primarily driven by lower money pool interest income.
Interest Expense.The increase was primarily due to higher outstanding long-term debt balances.
Income Tax Benefit. The increase in the tax benefit was primarily due to an increase in pretax losses. The ETRs for the three months ended September 30, 2025, and 2024, were 27.2% and 28.3%, respectively. The decrease in the ETR was primarily due to lower state tax benefits and tax impacts related to the NMC investment.
Preferred Dividends.The decrease was due to the redemption of the Company's Series B Preferred Stock in the prior year.
Preferred Redemption Costs. The decrease was due to the redemption of the Company's Series B Preferred Stock in the prior year.
Nine Months Ended September 30, 2025, as compared to September 30, 2024
Other's results were primarily driven by lower interest income, higher interest expense and lower equity earnings from the NMC investment, partially offset by impacts from the redemption of the Company's Series B Preferred Stock in the prior year.
Operating Expenses.The increase was driven by higher captive insurance losses due to claims experience and accrued reserves released in the prior year, partially offset by contributions to the Duke Energy Foundation in the prior year.
Other Income and Expenses, net.The decrease was primarily driven by lower money pool interest income, lower equity earnings from the NMC investment and lower return on investments that fund certain employee benefit obligations.
Interest Expense.The increase was primarily due to higher outstanding long-term debt balances and higher money pool interest expense, partially offset by lower short-term commercial paper borrowings.
Income Tax Benefit. The increase in the tax benefit was primarily due to an increase in pretax losses. The ETRs for the nine months ended September 30, 2025, and 2024, were 26.6% and 28.6%, respectively. The decrease in the ETR was primarily due to lower state tax benefits and tax impacts related to the NMC investment.
Preferred Dividends.The decrease was due to the redemption of the Company's Series B Preferred Stock in the prior year.
Preferred Redemption Costs. The decrease was due to the redemption of the Company's Series B Preferred Stock in the prior year.
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| (in millions) | 2025 | 2024 | Variance | 2025 | 2024 | Variance | |||||||||||||||||||||||||||||
| Income (Loss) From Discontinued Operations, net of tax | $ | - | $ | 25 | $ | (25) | $ | (1) | $ | 12 | $ | (13) | |||||||||||||||||||||||
Three Months Ended September 30, 2025, as compared to September 30, 2024
The variance was primarily driven by prior year operating results related to the Commercial Renewables Disposal Groups.
| MD&A | SEGMENT RESULTS - DISCONTINUED OPERATIONS | ||||
Nine Months Ended September 30, 2025, as compared to September 30, 2024
The variance was primarily driven by prior year operating results related to the Commercial Renewables Disposal Groups.
DUKE ENERGY CAROLINAS
Results of Operations
| Nine Months Ended September 30, | |||||||||||||||||
| (in millions) | 2025 | 2024 | Variance | ||||||||||||||
| Operating Revenues | $ | 7,387 | $ | 7,411 | $ | (24) | |||||||||||
| Operating Expenses | |||||||||||||||||
| Fuel used in electric generation and purchased power | 2,080 | 2,531 | (451) | ||||||||||||||
| Operation, maintenance and other | 1,471 | 1,358 | 113 | ||||||||||||||
| Depreciation and amortization | 1,402 | 1,306 | 96 | ||||||||||||||
| Property and other taxes | 283 | 271 | 12 | ||||||||||||||
| Impairment of assets and other charges | - | 32 | (32) | ||||||||||||||
| Total operating expenses | 5,236 | 5,498 | (262) | ||||||||||||||
| Gains on Sales of Other Assets and Other, net | 6 | 1 | 5 | ||||||||||||||
| Operating Income | 2,157 | 1,914 | 243 | ||||||||||||||
| Other Income and Expenses, net | 187 | 181 | 6 | ||||||||||||||
| Interest Expense | 584 | 537 | 47 | ||||||||||||||
| Income Before Income Taxes | 1,760 | 1,558 | 202 | ||||||||||||||
| Income Tax Expense | 138 | 153 | (15) | ||||||||||||||
| Net Income | $ | 1,622 | $ | 1,405 | $ | 217 | |||||||||||
The following table shows the percent changes in GWh sales and average number of customers. The 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 | 2025 | ||||
| Residential sales | 3.3 | % | |||
|
Commercial sales
|
- | % | |||
| Industrial sales | (1.2) | % | |||
| Wholesale power sales | 3.5 | % | |||
| Joint dispatch sales | 23.0 | % | |||
| Total sales | 1.9 | % | |||
| Average number of customers | 1.9 | % | |||
Nine Months Ended September 30, 2025, as compared to September 30, 2024
Operating Revenues. The variance was driven primarily by:
•a $462 million decrease in fuel revenues due to lower fuel rates, partially offset by higher volumes, including JDA sales.
Partially offset by:
•a $279 million increase due to higher pricing from the 2024 South Carolina rate case and Year 2 of the North Carolina MYRP;
•a $107 million increase in weather-normal retail sales volumes;
•a $29 million increase in retail sales due to improved weather compared to prior year; and
•an $11 million increase in transmission revenues due to network demand and rates.
Operating Expenses.The variance was driven primarily by:
•a $451 million decrease in fuel used in electric generation and purchased power primarily due to the increased recovery of fuel cost in the prior year, partially offset by higher purchased power costs, including JDA, natural gas prices and volumes; and
•a $32 million decrease in impairment of assets and other charges primarily related to the 2024 South Carolina rate case order in the prior year.
| MD&A | DUKE ENERGY CAROLINAS | ||||
Partially offset by:
•a $113 million increase in operation, maintenance and other primarily due to increased costs related to customer products and services programs, litigation and environmental costs and higher employee-related expenses, partially offset by lower storm costs in the current year; and
•a $96 million increase in depreciation and amortization primarily due to higher net amortizations and depreciation rates driven by the 2024 South Carolina rate case and Year 2 of the North Carolina MYRP.
Interest Expense. The increase was primarily due to higher outstanding debt balances, current year return on deferred nuclear production tax credit liability and absence of prior year return on deferred South Carolina grid costs, partially offset by current year return on deferred storm costs.
Income Tax Expense.The decrease in tax expense was primarily due to an increase in the amortization of nuclear PTCs, investment tax credits and EDIT, partially offset by an increase inpretax income.
PROGRESS ENERGY
Results of Operations
| Nine Months Ended September 30, | |||||||||||||||||
| (in millions) | 2025 | 2024 | Variance | ||||||||||||||
| Operating Revenues | $ | 11,110 | $ | 10,445 | $ | 665 | |||||||||||
| Operating Expenses | |||||||||||||||||
| Fuel used in electric generation and purchased power | 3,306 | 3,729 | (423) | ||||||||||||||
| Operation, maintenance and other | 2,475 | 1,869 | 606 | ||||||||||||||
| Depreciation and amortization | 1,910 | 1,795 | 115 | ||||||||||||||
| Property and other taxes | 548 | 494 | 54 | ||||||||||||||
| Impairment of assets and other charges | (2) | 6 | (8) | ||||||||||||||
| Total operating expenses | 8,237 | 7,893 | 344 | ||||||||||||||
| Gains on Sales of Other Assets and Other, net | 19 | 20 | (1) | ||||||||||||||
| Operating Income | 2,892 | 2,572 | 320 | ||||||||||||||
| Other Income and Expenses, net | 209 | 178 | 31 | ||||||||||||||
| Interest Expense | 830 | 796 | 34 | ||||||||||||||
| Income Before Income Taxes | 2,271 | 1,954 | 317 | ||||||||||||||
| Income Tax Expense | 361 | 320 | 41 | ||||||||||||||
| Net Income | $ | 1,910 | $ | 1,634 | $ | 276 | |||||||||||
Nine Months Ended September 30, 2025, as compared to September 30, 2024
Operating Revenues. The variance was driven primarily by:
•a $550 million increase in storm recovery revenues at Duke Energy Florida;
•a $253 million increase due to higher pricing from the 2024 Duke Energy Florida rate case and Duke Energy Progress Year 2 of the North Carolina MYRP;
•a $90 million increase in rider revenues primarily due to higher rates for the SPP at Duke Energy Florida and NCEMPA rider at Duke Energy Progress;
•an $83 million increase in weather-normal retail sales volumes; and
•a $61 million increase in other revenues due to higher transmission revenues at Duke Energy Florida and Duke Energy Progress and higher Clean Energy Connection subscription revenues at Duke Energy Florida.
Partially offset by:
•a $422 million decrease in fuel revenues primarily due to lower fuel and capacity rates billed to retail customers at Duke Energy Florida and lower retail fuel rates at Duke Energy Progress, partially offset by an increase in fuel volumes at Duke Energy Progress.
| MD&A | PROGRESS ENERGY | ||||
Operating Expenses. The variance was driven primarily by:
•a $606 million increase in operation, maintenance and other primarily due to higher storm amortization at Duke Energy Florida and increased costs related to customer products and services and higher employee-related expenses, partially offset by lower storm costs in the current year at Duke Energy Progress;
•a $115 million increase in depreciation and amortization due to higher depreciable base at Duke Energy Florida and Duke Energy Progress and Year 2 of the North Carolina MYRP at Duke Energy Progress; and
•a $54 million increase in property and other taxes primarily due to higher base upon which property taxes are levied at Duke Energy Florida and Duke Energy Progress.
Partially offset by:
•a $423 million decrease in fuel used in electric generation and purchased power primarily due to lower fuel cost recovery and lower purchased power costs driven by the expiration of contracts in the prior year at Duke Energy Florida and increased recovery of fuel cost in the prior year at Duke Energy Progress, partially offset by higher volumes and higher natural gas prices.
Other Income and expenses, net. The increase was primarily due to higher AFUDC equity rate and base compared to the prior year and intercompany interest income at Duke Energy Progress.
Interest Expense. The increase was primarily due to higher outstanding debt balances at Duke Energy Progress and Duke Energy Florida, partially offset by lower intercompany interest expense and current year return on deferred storm costs at Duke Energy Progress.
Income Tax Expense.The increase in tax expense was primarily due to an increase in pretax income, partially offset by an increase in solar PTCs.
DUKE ENERGY PROGRESS
Results of Operations
| Nine Months Ended September 30, | |||||||||||||||||
| (in millions) | 2025 | 2024 | Variance | ||||||||||||||
| Operating Revenues | $ | 5,612 | $ | 5,338 | $ | 274 | |||||||||||
| Operating Expenses | |||||||||||||||||
| Fuel used in electric generation and purchased power | 1,928 | 1,896 | 32 | ||||||||||||||
| Operation, maintenance and other | 1,100 | 1,077 | 23 | ||||||||||||||
| Depreciation and amortization | 1,049 | 999 | 50 | ||||||||||||||
| Property and other taxes | 159 | 144 | 15 | ||||||||||||||
| Impairment of assets and other charges | (2) | 6 | (8) | ||||||||||||||
| Total operating expenses | 4,234 | 4,122 | 112 | ||||||||||||||
| Gains on Sales of Other Assets and Other, net | 1 | 2 | (1) | ||||||||||||||
| Operating Income | 1,379 | 1,218 | 161 | ||||||||||||||
| Other Income and Expenses, net | 142 | 107 | 35 | ||||||||||||||
| Interest Expense | 392 | 370 | 22 | ||||||||||||||
| Income Before Income Taxes | 1,129 | 955 | 174 | ||||||||||||||
| Income Tax Expense | 151 | 135 | 16 | ||||||||||||||
|
Net Income
|
$ | 978 | $ | 820 | $ | 158 | |||||||||||
The following table shows the percent changes in GWh sales and average number of customers. The 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 period | 2025 | ||||
| Residential sales | 5.1 | % | |||
|
Commercial sales
|
2.0 | % | |||
| Industrial sales | 1.8 | % | |||
| Wholesale power sales | 4.9 | % | |||
| Joint dispatch sales | 0.4 | % | |||
| Total sales | 3.1 | % | |||
| Average number of customers | 1.7 | % | |||
| MD&A | DUKE ENERGY PROGRESS | ||||
Nine Months Ended September 30, 2025, as compared to September 30, 2024
Operating Revenues. The variance was driven primarily by:
•a $94 million increase due to higher pricing from Year 2 of the North Carolina MYRP;
•a $60 million increase in weather-normal retail sales volumes;
•a $26 million increase in rider revenues primarily due to the NCEMPA rider;
•a $26 million increase in fuel revenues due to higher fuel volumes, partially offset by lower retail fuel rates;
•a $21 million increase in wholesale revenues, net of fuel, due to higher capacity volumes; and
•a $15 million increase due to transmission revenues from higher network demand and rates.
Operating Expenses. The variance was driven primarily by:
•a $50 million increase in depreciation and amortization primarily due to Year 2 of the North Carolina MYRP and higher depreciable base;
•a $32 million increase in fuel used in electric generation and purchased power primarily due to higher volumes, including JDA purchases, and natural gas prices, partially offset by increased recovery of fuel cost in the prior year; and
•a $23 million increase in operation, maintenance and other primarily due to increased costs related to customer products and services and higher employee-related expenses, partially offset by lower storm costs in the current year.
Other Income and expenses, net. The increase was primarily due to higher AFUDC equity rate and base compared to the prior year and intercompany interest income.
Interest Expense. The increase was primarily due to higher outstanding debt balances, partially offset by lower intercompany interest expense and the current year return on deferred storm costs.
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 higher AFUDC equity.
DUKE ENERGY FLORIDA
Results of Operations
| Nine Months Ended September 30, | |||||||||||||||||
| (in millions) | 2025 | 2024 | Variance | ||||||||||||||
| Operating Revenues | $ | 5,486 | $ | 5,092 | $ | 394 | |||||||||||
| Operating Expenses | |||||||||||||||||
| Fuel used in electric generation and purchased power | 1,378 | 1,833 | (455) | ||||||||||||||
| Operation, maintenance and other | 1,365 | 779 | 586 | ||||||||||||||
| Depreciation and amortization | 861 | 796 | 65 | ||||||||||||||
| Property and other taxes | 389 | 350 | 39 | ||||||||||||||
| Total operating expenses | 3,993 | 3,758 | 235 | ||||||||||||||
| Gains on Sales of Other Assets and Other, net | 2 | 2 | - | ||||||||||||||
| Operating Income | 1,495 | 1,336 | 159 | ||||||||||||||
| Other Income and Expenses, net | 67 | 67 | - | ||||||||||||||
| Interest Expense | 352 | 339 | 13 | ||||||||||||||
| Income Before Income Taxes | 1,210 | 1,064 | 146 | ||||||||||||||
| Income Tax Expense | 235 | 212 | 23 | ||||||||||||||
| Net Income | $ | 975 | $ | 852 | $ | 123 | |||||||||||
The following table shows the percent changes in GWh sales and average number of customers. The 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 period | 2025 | ||||
| Residential sales | 1.4 | % | |||
|
Commercial sales
|
0.4 | % | |||
| Industrial sales | (3.0) | % | |||
| Wholesale power sales | (21.2) | % | |||
| Total sales | (0.9) | % | |||
| Average number of customers | 1.4 | % | |||
| MD&A | DUKE ENERGY FLORIDA | ||||
Nine Months Ended September 30, 2025, as compared to September 30, 2024
Operating Revenues. The variance was driven primarily by:
•a $550 million increase in storm recovery revenues;
•a $159 million increase due to higher pricing from the 2024 Florida rate case;
•a $64 million increase in rider revenues primarily due to higher rates for the SPP;
•a $46 million increase in other revenues due to higher transmission revenues primarily from higher demand and rates and Clean Energy Connection subscription revenues; and
•a $23 million increase in weather-normal retail sales volumes.
Partially offset by:
•a $448 million decrease in fuel revenues primarily due to lower fuel and capacity rates; and
•a $25 million decrease in wholesale base revenues primarily due to lower capacity volumes.
Operating Expenses. The variance was driven primarily by:
•a $586 million increase in operation, maintenance and other primarily due to higher storm amortization;
•a $65 million increase in depreciation and amortization primarily due to higher depreciable base; and
•a $39 million increase in property and other taxes primarily due to higher base upon which property taxes are levied and higher gross receipts tax driven by higher revenues.
Partially offset by:
•a $455 million decrease in fuel used in electric generation and purchased power primarily due to lower fuel cost recovery and lower purchased power costs driven by the expiration of contracts in the prior year, partially offset by higher fuel costs driven by higher natural gas prices.
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 solar PTCs.
DUKE ENERGY OHIO
Results of Operations
| Nine Months Ended September 30, | |||||||||||||||||
| (in millions) | 2025 | 2024 | Variance | ||||||||||||||
| Operating Revenues | |||||||||||||||||
| Regulated electric | $ | 1,546 | $ | 1,431 | $ | 115 | |||||||||||
| Regulated natural gas | 553 | 460 | 93 | ||||||||||||||
| Total operating revenues | 2,099 | 1,891 | 208 | ||||||||||||||
| Operating Expenses | |||||||||||||||||
| Fuel used in electric generation and purchased power | 485 | 416 | 69 | ||||||||||||||
| Cost of natural gas | 148 | 100 | 48 | ||||||||||||||
| Operation, maintenance and other | 366 | 378 | (12) | ||||||||||||||
| Depreciation and amortization | 353 | 297 | 56 | ||||||||||||||
| Property and other taxes | 326 | 303 | 23 | ||||||||||||||
| Total operating expenses | 1,678 | 1,494 | 184 | ||||||||||||||
| Operating Income | 421 | 397 | 24 | ||||||||||||||
| Other Income and Expenses, net | 18 | 12 | 6 | ||||||||||||||
| Interest Expense | 150 | 144 | 6 | ||||||||||||||
| Income Before Income Taxes | 289 | 265 | 24 | ||||||||||||||
|
Income Tax Expense
|
47 | 42 | 5 | ||||||||||||||
| Net Income | $ | 242 | $ | 223 | $ | 19 | |||||||||||
| MD&A | DUKE ENERGY OHIO | ||||
The following table shows the percent changes in GWh sales of electricity, dekatherms of natural gas delivered and average number of electric and natural gas customers. The 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 | 2025 | 2025 | ||||||
| Residential sales | 2.7 | % | 24.5 | % | ||||
|
Commercial sales
|
5.2 | % | 19.8 | % | ||||
| Industrial sales | (10.7) | % | 4.6 | % | ||||
| Wholesale electric power sales | 3.6 | % | n/a | |||||
| Other natural gas sales | n/a | (1.0) | % | |||||
| Total sales | 1.3 | % | 14.5 | % | ||||
| Average number of customers | 0.7 | % | 0.3 | % | ||||
Nine Months Ended September 30, 2025, as compared to September 30, 2024
Operating Revenues. The variance was driven primarily by:
•a $102 million increase in fuel-related revenues primarily due to higher natural gas costs passed through to customers and higher full-service retail sales volumes;
•a $33 million increase in retail revenue riders primarily due to the Distribution Capital Investment Rider, Uncollectible Expense Riders and Ohio CEP Rider, partially offset by a decrease in the Distribution Storm Rider;
•a $23 million increase in revenues related to higher OVEC rider collections and OVEC sales into PJM;
•a $20 million increase in weather-normal retail sales volumes; and
•a $13 million increase primarily due to higher pricing from the 2024 Duke Energy Kentucky electric rate case.
Operating Expenses. The variance was driven primarily by:
•a $117 million increase in fuel expense primarily driven by higher retail prices for natural gas and purchased power;
•a $56 million increase in depreciation and amortization primarily driven by an increase in distribution plant in service and higher amortization related to the increased collections of the Uncollectible Expense Riders; and
•a $23 million increase in property and other taxes primarily due to a higher base upon which property taxes are levied and higher franchise taxes.
Partially offset by:
•a $12 million decrease in operation, maintenance and other expense primarily due to lower customer charge-offs.
DUKE ENERGY INDIANA
Results of Operations
| Nine Months Ended September 30, | |||||||||||||||||
| (in millions) | 2025 | 2024 | Variance | ||||||||||||||
| Operating Revenues | $ | 2,671 | $ | 2,342 | $ | 329 | |||||||||||
| Operating Expenses | |||||||||||||||||
| Fuel used in electric generation and purchased power | 803 | 761 | 42 | ||||||||||||||
| Operation, maintenance and other | 601 | 510 | 91 | ||||||||||||||
| Depreciation and amortization | 617 | 507 | 110 | ||||||||||||||
| Property and other taxes | 44 | 37 | 7 | ||||||||||||||
| Total operating expenses | 2,065 | 1,815 | 250 | ||||||||||||||
| Operating Income | 606 | 527 | 79 | ||||||||||||||
| Other Income and Expenses, net | 46 | 44 | 2 | ||||||||||||||
| Interest Expense | 182 | 173 | 9 | ||||||||||||||
| Income Before Income Taxes | 470 | 398 | 72 | ||||||||||||||
|
Income Tax Expense
|
60 | 65 | (5) | ||||||||||||||
| Net Income | $ | 410 | $ | 333 | $ | 77 | |||||||||||
| MD&A | DUKE ENERGY INDIANA | ||||
The following table shows the percent changes in GWh sales and average number of customers. The 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 | 2025 | ||||
| Residential sales | 5.5 | % | |||
|
Commercial sales
|
5.3 | % | |||
| Industrial sales | (4.4) | % | |||
| Wholesale power sales | 9.9 | % | |||
| Total sales | 4.4 | % | |||
| Average number of customers | 1.5 | % | |||
Nine Months Ended September 30, 2025, as compared to September 30, 2024
Operating Revenues. The variance was driven primarily by:
•a $193 million increase primarily due to higher pricing from the 2024 Indiana rate case, net of certain rider revenues moving to base;
•a $61 million increase in fuel revenues primarily due to higher retail fuel rates and non-firm revenues;
•a $38 million increase in weather-normal retail sales volumes; and
•a $14 million increase in retail sales due to improved weather compared to prior year.
Operating Expenses. The variance was driven primarily by:
•a $110 million increase in depreciation and amortization primarily due to higher depreciation rates from the 2024 Indiana rate case;
•a $91 million increase in operation, maintenance and other primarily due to an increase in the amortization of riders, plant maintenance and higher employee-related expenses; and
•a $42 million increase in fuel used in electric generation and purchased power primarily due to higher natural gas costs and purchased power expense, partially offset by lower coal costs.
Income Tax Expense. The decrease in tax expense was primarily due to an increase in the amortization of EDIT, mostly offset by an increase in pretax income.
PIEDMONT
Results of Operations
| Nine Months Ended September 30, | |||||||||||||||||
| (in millions) | 2025 | 2024 | Variance | ||||||||||||||
| Operating Revenues | $ | 1,463 | $ | 1,139 | $ | 324 | |||||||||||
| Operating Expenses | |||||||||||||||||
| Cost of natural gas | 494 | 280 | 214 | ||||||||||||||
| Operation, maintenance and other | 301 | 267 | 34 | ||||||||||||||
| Depreciation and amortization | 210 | 191 | 19 | ||||||||||||||
| Property and other taxes | 56 | 47 | 9 | ||||||||||||||
| Total operating expenses | 1,061 | 785 | 276 | ||||||||||||||
| Operating Income | 402 | 354 | 48 | ||||||||||||||
| Other Income and Expenses, net | 40 | 48 | (8) | ||||||||||||||
| Interest Expense | 143 | 135 | 8 | ||||||||||||||
| Income Before Income Taxes | 299 | 267 | 32 | ||||||||||||||
| Income Tax Expense | 56 | 49 | 7 | ||||||||||||||
| Net Income | $ | 243 | $ | 218 | $ | 25 | |||||||||||
| MD&A | PIEDMONT | ||||
The following table shows the percent changes in dekatherms 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 | 2025 | ||||
| Residential deliveries | 5.2 | % | |||
| Commercial deliveries | 6.2 | % | |||
| Industrial deliveries | 1.2 | % | |||
| Power generation deliveries | (0.4) | % | |||
| For resale | 10.7 | % | |||
| Total throughput deliveries | 0.9 | % | |||
| Secondary market volumes | 77.1 | % | |||
| Average number of customers | 1.7 | % | |||
Nine Months Ended September 30, 2025, as compared to September 30, 2024
Operating Revenues. The variance was driven primarily by:
•a $214 million increase in cost of natural gas revenues primarily due to higher commodity prices; and
•a $92 million increase due to higher pricing from the 2024 North Carolina rate case.
Operating Expenses. The variance was driven primarily by:
•a $214 million increase in the cost of natural gas primarily due to higher commodity prices;
•a $34 million increase in operations, maintenance and other primarily due to higher customer IT system costs, employee-related expenses and Tennessee divestitures fees; and
•a $19 million increase in depreciation and amortization due to higher depreciable base and higher rates due to 2024 North Carolina rate case, partially offset by lower Tennessee depreciation due to assets meeting the held for sale criteria.
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. In 2024, Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida began monetizing tax credits in the transferability markets established by the IRA and 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 17 to the Condensed Consolidated Financial Statements, "Income Taxes," for further information. Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2024, included a summary and detailed discussion of projected primary sources and uses of cash for 2025 to 2027.
In 2025, Duke Energy executed several equity forward sales agreements as part of the ATM program. Settlement of the forward sales agreements is expected to occur by December 31, 2026. See Note 15 to the Condensed Consolidated Financial Statements, "Stockholders' Equity" for further details.
In March 2025, Duke Energy extended the termination date of its existing Master Credit Facility to March 2030 and increased its capacity from $9 billion to $10 billion. As of September 30, 2025, Duke Energy had $688 million of cash on hand and $7.5 billion available under its 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.
See Note 2 to the Condensed Consolidated Financial Statements, "Dispositions," for the timing and use of final proceeds received in April 2025 from the sale of certain Commercial Renewables assets to affiliates of Brookfield.
In July, Piedmont entered into an agreement with Spire Inc., to sell Piedmont's Tennessee business for $2.48 billion. Piedmont expects to complete the sale on March 31, 2026, and proceeds are expected to be used for debt reduction at Piedmont and to efficiently fund Duke Energy's capital plan, primarily by displacing the issuance of common equity in the near term. See Note 2 to the Condensed Consolidated Financial Statements, "Dispositions," for further details.
In August 2025, Duke Energy, Progress Energy and Florida Progress entered into an investment agreement for Florida Progress to receive $6 billion in exchange for a 19.7% indirect investment in Duke Energy Florida. The transaction is expected to be completed through a series of closings through June 30, 2028. Proceeds from the minority interest investment are expected to be used to efficiently fund Duke Energy's growing capital and investment expenditures plan, primarily by displacing certain previously planned issuances of long-term debt and common equity through 2029. See Note 2 to the Condensed Consolidated Financial Statements, "Dispositions," for information on the timing and use of proceeds related to the transaction.
Debt
As discussed in Note 13 to the Condensed Consolidated Financial Statements, "Variable Interest Entities," Duke Energy Carolinas terminated and repaid DERF in January 2025 and Duke Energy Progress terminated and repaid DEPR in March 2025. As a result of these repayments, DERF and DEPR have ceased operations.
| MD&A | LIQUIDITY AND CAPITAL RESOURCES | ||||
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 Condensed 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 have resulted in incremental financing needs until cost recovery occurs. See "Matters Impacting Future Results" for further details and Note 6 to the Condensed Consolidated Financial Statements, "Debt and Credit Facilities," for information regarding term loans executed in response to these major storm events and storm recovery bonds issued in September 2025.
Additionally, see Note 6for information related to the Duke Energy (Parent) and Piedmont term loans executed in the third quarter of 2025.
Cash Flow Information
The following table summarizes Duke Energy's cash flows.
| Nine Months Ended | ||||||||||||||
| September 30, | ||||||||||||||
| (in millions) | 2025 | 2024 | ||||||||||||
| Cash flows provided by (used in): | ||||||||||||||
| Operating activities | $ | 8,672 | $ | 8,951 | ||||||||||
| Investing activities | (9,976) | (9,851) | ||||||||||||
| Financing activities | 1,622 | 990 | ||||||||||||
|
Net increase in cash, cash equivalents and restricted cash
|
318 | 90 | ||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 421 | 357 | ||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 739 | $ | 447 | ||||||||||
OPERATING CASH FLOWS
The following table summarizes key components of Duke Energy's operating cash flows.
| Nine Months Ended | ||||||||||||||||||||
| September 30, | ||||||||||||||||||||
| (in millions) | 2025 | 2024 | Variance | |||||||||||||||||
| Net income | $ | 3,865 | $ | 3,387 | $ | 478 | ||||||||||||||
| Non-cash adjustments to net income | 6,380 | 4,971 | 1,409 | |||||||||||||||||
| Contributions to qualified pension plans | - | (100) | 100 | |||||||||||||||||
| Payments for asset retirement obligations | (374) | (417) | 43 | |||||||||||||||||
| Working capital | (1,595) | 720 | (2,315) | |||||||||||||||||
| Other assets and Other liabilities | 396 | 390 | 6 | |||||||||||||||||
| Net cash provided by operating activities | $ | 8,672 | $ | 8,951 | $ | (279) | ||||||||||||||
The variance is primarily driven by:
•a $2,315 million decrease in net working capital amounts, primarily due to lower recovery of fuel costs and the timing of accruals and payments, including payments related to restoration activities from the 2024 storm season.
Partially offset by:
•a $1,887 million increase in net income, after adjustment for non-cash items, primarily due to theimplementation of new rates and riders including Duke Energy Florida's storm recovery surcharge, along with higher retail sales volumes, partially offset by higher interest expense, operation and maintenance expense and property taxes; and
•a $100 million increase due to contributions to qualified pension plans in the prior year.
| MD&A | LIQUIDITY AND CAPITAL RESOURCES | ||||
INVESTING CASH FLOWS
The following table summarizes key components of Duke Energy's investing cash flows.
| Nine Months Ended | ||||||||||||||||||||
| September 30, | ||||||||||||||||||||
| (in millions) | 2025 | 2024 | Variance | |||||||||||||||||
| Capital, investment and acquisition expenditures | $ | (9,881) | $ | (9,199) | $ | (682) | ||||||||||||||
|
Proceeds from the sales of Commercial Renewables Disposal Groups and other assets
|
559 | - | 559 | |||||||||||||||||
| Other investing items | (654) | (652) | (2) | |||||||||||||||||
| Net cash used in investing activities | $ | (9,976) | $ | (9,851) | $ | (125) | ||||||||||||||
The variance is primarily due to higher capital expenditures within the EU&I segment in the current year, partially offset by proceeds received from the sales of the Commercial Renewables Disposal Groups.
FINANCING CASH FLOWS
The following table summarizes key components of Duke Energy's financing cash flows.
| Nine Months Ended | ||||||||||||||||||||
| September 30, | ||||||||||||||||||||
| (in millions) | 2025 | 2024 | Variance | |||||||||||||||||
| Issuances of long-term debt, net | $ | 4,806 | $ | 4,927 | $ | (121) | ||||||||||||||
| Issuances of common stock | 16 | 26 | (10) | |||||||||||||||||
|
Redemption of preferred stock
|
- | (1,000) | 1,000 | |||||||||||||||||
| Notes payable, commercial paper and other short-term borrowings | (824) | (515) | (309) | |||||||||||||||||
| Dividends paid | (2,455) | (2,411) | (44) | |||||||||||||||||
| Contributions from noncontrolling interests | - | 47 | (47) | |||||||||||||||||
| Other financing items | 79 | (84) | 163 | |||||||||||||||||
| Net cash provided by financing activities | $ | 1,622 | $ | 990 | $ | 632 | ||||||||||||||
The variance is primarily due to:
•a $1 billion increase due to the redemption of Series B preferred stock in the prior year.
Partially offset by:
•a $309 million decrease in net borrowings from notes payable and commercial paper.
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. Refer to Note 4, "Regulatory Matters," in Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2024, for more information regarding potential plant retirements and Note 4, "Regulatory Matters," to the Condensed Consolidated Financial Statements, for further information regarding 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. 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 to determine how they wish to proceed. On February 19, 2025, the Court granted the EPA's request. On April 21, 2025, the EPA filed a motion with the Court requesting a continuing abeyance while it conducts a new notice-and-comment rulemaking to reconsider the challenged EPA Rule 111. As part of this request, the EPA indicated it intended to issue a final rule by December 2025. On April 25, 2025, the Court granted the EPA's motion and ordered that the litigation continue to remain in abeyance pending further order of the Court. On June 17, 2025, the EPA published a proposed rule to repeal EPA Rule 111 based on a finding that fossil fuel-fired power plants "do not contribute significantly to dangerous air pollution" under the meaning of section 111 of the Clean Air Act. The EPA also published an alternative proposal to repeal a narrower set of requirements leaving in place only GHG emission standards for new and reconstructed stationary combustion turbine electric generating units. Comments on the proposed rule were due by August 7, 2025.
| MD&A | OTHER MATTERS | ||||
Coal Combustion Residuals
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). 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 to 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. On June 13, 2025, the EPA requested, and the Court granted, a 60-day extension of the abeyance to give the agency time to "decide the full scope of reconsideration." On August 11, 2025, the EPA filed a motion to govern further proceedings in the legacy CCR surface impoundments rule litigation, and on August 13, 2025, the Court granted an abeyance in the case until December 15, 2025.
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.
South Carolina Energy Security Act
Act 41, also referred to as the South Carolina Energy Security Act, was signed into law on May 12, 2025. The law promotes evaluating new generation resources, including hydro pumped storage, hydrogen-capable natural gas, and advanced nuclear, while streamlining siting, permitting and construction of certain new resources located in South Carolina. Act 41 establishes a new process for evaluating new potential generation projects over 75 MW located in North Carolina that are planned to serve South Carolina retail customers. This legislation also establishes an electric rate stabilization mechanism for electric utilities to elect into a framework that provides for annual adjustments to base rates, including for CWIPand other cost categories. Electric utilities electing the mechanism must file a general rate case at least every five years.
North Carolina Power Bill Reduction Act
In 2021, the state of North Carolina passed HB951, which among other things, directed the NCUC to develop and approve a carbon reduction plan that would target a 70% reduction in CO2emissions 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, while balancing affordability and reliability for customers. On July 29, 2025, North Carolina Senate Bill 266, or the Power Bill Reduction Act (SB266), was passed into law which retained HB951's 2050 carbon neutrality goal but eliminated the state's interim 2030 carbon reduction target and implemented other actions designed to reduce electricity costs for customers including enhanced cost recovery mechanisms for baseload generation by establishing an annual CWIP recovery for baseload generation and a construction project monitoring process. SB266 also provides more timely recovery of fuel costs, allows for the recovery of CTs in MYRP proceedings and authorizes the prudent continued use of securitization for certain costs and investments serving North Carolina retail electric customers, including increasing the eligible securitization amounts for sub-critical coal assets up to 100% of their respective net book value upon retirement.
Carolinas Resource Plan
On October 1, 2025, Duke Energy Carolinas and Duke Energy Progress filed their systemwide 2025 Carolinas Resource Plan (the 2025 Plan) with the NCUC, which builds upon the approved 2023 Carolinas Resource Plan, outlines development and procurement activities related to a diverse set of generation assets and presents an updated execution strategy to meet growing energy demands reliably and cost-effectively in the coming decades. A hearing is anticipated in the second quarter of 2026, and an order from the NCUC is expected to be issued by December 31, 2026. The 2025 Plan is expected to be filed with the PSCSC in November 2025.
Duke Energy Corporation published this content on November 07, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on November 07, 2025 at 17:15 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]