What changed in Duke Energy CORP's 2023 10-K compared to 2022?

Across the narrative sections we track, Duke Energy CORP (DUKB) added 475 paragraphs, removed 446, and edited 371 between the 2022 and 2023 10-K filings. The biggest movers are Item 7. Management's Discussion & Analysis (+283/−258), Item 1. Business (+124/−124), Item 1A. Risk Factors (+49/−49).

Did Duke Energy CORP add new Risk Factors in the 2023 10-K?

Yes — Item 1A Risk Factors shows 49 new/edited paragraphs and 49 removed paragraphs versus the 2022 10-K.

What changed in Duke Energy CORP's MD&A (Item 7) in 2023?

Item 7 Management's Discussion & Analysis shows 283 new/edited paragraphs and 258 removed paragraphs year-over-year. Read the side-by-side diff to see exactly which revenue, margin, and outlook commentary was rewritten.

Where does this DUKB 10-K diff come from?

The source filings are Duke Energy CORP's official 2022 and 2023 Form 10-K annual reports from SEC EDGAR. 10q10k.net parses each filing, aligns paragraphs by section (Item 1, 1A, 1C, 2, 3, 7, 7A), and highlights every added, removed and edited sentence side-by-side.

What changed in Duke Energy CORP's 10-K — 2022 vs 2023

Paragraph-level year-over-year comparison of Duke Energy CORP's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+475 added−446 removedSource: 10-K (2024-02-23) vs 10-K (2023-02-27)

Top changes in Duke Energy CORP's 2023 10-K

475 paragraphs added · 446 removed · 371 edited across 5 sections

Item 7. Management's Discussion & Analysis+283 / −258 · 202 edited
Item 1. Business+124 / −124 · 110 edited
Item 1A. Risk Factors+49 / −49 · 45 edited
Item 2. Properties+16 / −12 · 11 edited
Item 5. Market for Registrant's Common Equity+3 / −3 · 3 edited

Item 1. Business

Business — how the company describes what it does

110 edited+14 added−14 removed97 unchanged

2022 filing

2023 filing

Biggest changeRegulatory Body Annual Increase (Decrease) (in millions) Return on Equity Equity Component of Capital Structure Effective Date Approved Rate Cases: Duke Energy Progress 2022 South Carolina Rate Case PSCSC $ 52 9.6 % 52.43 % 4/1/2023 Duke Energy Ohio 2021 Ohio Electric Rate Case PUCO 23 9.5 % 50.5 % 1/3/2023 Duke Energy Progress 2019 North Carolina Rate Case NCUC 178 9.6 % 52 % 6/1/2021 Duke Energy Carolinas 2019 North Carolina Rate Case NCUC 33 9.6 % 52 % 6/1/2021 Duke Energy Indiana 2019 Indiana Rate Case (a) IURC 146 9.7 % 54 % 7/30/2020 Duke Energy Kentucky 2019 Kentucky Electric Rate Case KPSC 24 9.25 % 48.23 % 5/1/2020 Pending Rate Cases: Duke Energy Carolinas 2023 North Carolina Rate Case (b) NCUC $ 823 10.4 % 53 % 1/1/2024 Duke Energy Kentucky 2022 Kentucky Electric Rate Case KPSC 75 10.35 % 52.5 % 7/15/2023 Duke Energy Progress 2022 North Carolina Rate Case (c) NCUC 615 10.4 % 53 % 10/1/2023 (a) Step 1 rates are approximately 75% of the total and became effective July 30, 2020.

Biggest changeRegulatory Body Annual Increase (Decrease) (in millions) Return on Equity Equity Component of Capital Structure Effective Date Approved Rate Cases: Duke Energy Carolinas 2023 North Carolina Rate Case (a) NCUC $ 768 10.1 % 53 % January 2024 Duke Energy Kentucky 2022 Kentucky Electric Rate Case (b) KPSC 48 9.75 % 52.145 % October 2023 Duke Energy Progress 2022 North Carolina Rate Case (c) NCUC 494 9.8 % 53 % October 2023 Duke Energy Progress 2022 South Carolina Rate Case PSCSC 52 9.6 % 52.43 % April 2023 Duke Energy Ohio 2021 Ohio Electric Rate Case PUCO 23 9.5 % 50.5 % January 2023 Duke Energy Progress 2019 North Carolina Rate Case NCUC 178 9.6 % 52 % June 2021 Duke Energy Carolinas 2019 North Carolina Rate Case NCUC 33 9.6 % 52 % June 2021 Pending Rate Cases: Duke Energy Carolinas 2024 South Carolina Rate Case PSCSC 239 10.5 % 53 % August 2024 (a) Of the total rate case increase, Year 1, 2 and 3 rates are approximately 57%, 22% and 21%, respectively.

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 produced from mines along the Ohio River in Illinois, Ohio, West Virginia and Pennsylvania.

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.

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 or make wholesale secondary market sales.

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. The company annually produces approximately 1 million metric tons each of MTBE and methanol and has the capacity to produce 50,000 metric tons of polyacetal.

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.

Among other efforts, the company has developed partnerships with community organizations, community colleges and historically Black colleges and universities to support our strategy of building a diverse and highly skilled talent pipeline. Operational Excellence The foundation for our growth and success is our continued focus on operational excellence, the leading indicator of which is safety.

Among other efforts, the Company has developed partnerships with community organizations, community colleges and historically Black colleges and universities (HBCUs) to support our strategy of building a diverse and highly skilled talent pipeline. Operational Excellence The foundation for our growth and success is our continued focus on operational excellence, the leading indicator of which is safety.

For information about Duke Energy Ohio's generating facilities, see Item 2, “Properties.” KO Transmission, a wholly owned subsidiary of Duke Energy Ohio, is an interstate pipeline company engaged in the business of transporting natural gas and is subject to the rules and regulations of FERC.

For information about Duke Energy Ohio's generating facilities and natural gas distribution facilities, see Item 2, “Properties.” KO Transmission, a wholly owned subsidiary of Duke Energy Ohio, is an interstate pipeline company engaged in the business of transporting natural gas and is subject to the rules and regulations of FERC.

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 its 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 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.

GU&I's primary product competition is with electricity for 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.

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.

The following table summarizes information related to the recently approved IMR filing. Cumulative Annual Effective (in millions) Investment Revenues Date Piedmont 2022 IMR Filing – North Carolina $ 213 $ 20 December 2022 In Ohio, GU&I has a Capital Expenditure Program Rider (CEP Rider) designed to recover costs between rate cases on PUCO approved capital expenditures.

The following table summarizes information related to the recently approved IMR filing. Cumulative Annual Effective (in millions) Investment Revenues Date Piedmont 2022 IMR Filing – North Carolina $ 213 $ 20 December 2022 In Ohio, GU&I has a CEP Rider designed to recover costs between rate cases on PUCO approved capital expenditures.

Duke Energy Progress’ service area covers approximately 29,000 square miles and supplies electric service to approximately 1.7 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.

Duke Energy Progress’ service area covers approximately 28,000 square miles and supplies electric service to approximately 1.7 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.

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 2.8 million residential, commercial and industrial customers.

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.

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 8.2 million customers within the Southeast and Midwest regions of the U.S.

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 8.4 million customers within the Southeast and Midwest regions of the U.S.

(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.

(b) Generating figures are net of output required to replenish pumped-storage facilities during off-peak periods. 11 BUSINESS 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.

Duke Energy Florida’s service area covers approximately 13,000 square miles and supplies electric service to approximately 1.9 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.

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.

For additional information, see Note 10 to the Consolidated Financial Statements, “Asset Retirement Obligations.” 13 BUSINESS 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.

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.

However, delays between the expenditure for fuel costs and recovery from customers can adversely impact the timing of cash flows of EU&I. 14 BUSINESS The table below reflects significant electric rate case applications approved and effective in the past three years and applications currently pending approval.

However, delays between the expenditure for fuel costs and recovery from customers can adversely impact the timing of cash flows of EU&I. The table below reflects significant electric rate case applications approved and effective in the past three years and applications currently pending approval.

Prior to that, he held the position of Executive Vice President and Chief Financial Officer from August 2013 through August 2022; Vice President, Chief Accounting Officer and Controller, assuming the role of Chief Accounting Officer in July 2012 and the role of Controller in December 2006. (a) The ages of the officers provided are as of January 31, 2023.

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 over 1.1 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 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.

The following map shows the service territory for EU&I as of December 31, 2022. 9 BUSINESS 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 map shows the service territory for EU&I as of December 31, 2023. 9 BUSINESS 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.

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 also has investments in various pipeline transmission projects, renewable natural gas projects and natural gas storage facilities. 16 BUSINESS 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.

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.

For more information on rate matters and other regulatory proceedings, see Note 4 to the Consolidated Financial Statements, “Regulatory Matters.” 18 BUSINESS Federal GU&I is subject to various federal regulations, including regulations that are particular to the natural gas industry.

Good 63 Chair, President and Chief Executive Officer. Ms. Good has served as Chair, President and Chief Executive Officer of Duke Energy since January 1, 2016, and was 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.

Good 64 Chair, President and Chief Executive Officer. Ms. Good has served as Chair, President and Chief Executive Officer of Duke Energy since January 1, 2016, and was 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.

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. • 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, 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.

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 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. • 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, 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.

Expiration dates for its long-term contracts, which may have various price adjustment provisions and market reopeners, range from 2023 to 2027 for Duke Energy Carolinas and Duke Energy Indiana, 2023 to 2024 for Duke Energy Progress and 2023 to 2025 for Duke Energy Florida and Duke Energy Ohio.

Expiration dates for its long-term contracts, which may have various price adjustment provisions and market reopeners, range from 2024 to 2027 for Duke Energy Carolinas, Duke Energy Progress and Duke Energy Indiana, 2024 to 2026 for Duke Energy Florida and 2024 to 2025 for Duke Energy Ohio.

Additionally, in January 2021, Duke Energy Florida filed a settlement agreement with the FPSC that will allow annual increases to its base rates, an agreed upon return on equity (“ROE”) and includes a base rate stay-out provision through 2024, among other provisions. The FPSC approved the 2021 Settlement on May 4, 2021, issuing an order on June 4, 2021.

Additionally, in January 2021, Duke Energy Florida filed the 2021 Settlement with the FPSC that will allow annual increases to its base rates, an agreed upon return on equity (ROE) and includes a base rate stay-out provision through 2024, among other provisions. The FPSC approved the 2021 Settlement on May 4, 2021, issuing an order on June 4, 2021.

KO Transmission's 90-mile pipeline supplies natural gas to Duke Energy Ohio and interconnects with the Columbia Gulf Transmission pipeline and Tennessee Gas Pipeline. An approximately 70-mile portion of KO Transmission's pipeline facilities is co-owned by Columbia Gas Transmission, LLC.

Prior to that, he served as Senior Vice President and Chief Distribution Officer since June 2018; 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.

Prior to that, he served as 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.

Duke Energy Indiana’s service area covers 23,000 square miles and supplies electric service to 890,000 residential, commercial and industrial customers. For information about Duke Energy Indiana's generating facilities, see Item 2, “Properties.” Duke Energy Indiana is subject to the regulatory provisions of the IURC and FERC.

Duke Energy Indiana’s service area covers approximately 23,000 square miles and supplies electric service to approximately 900,000 residential, commercial and industrial customers. For information about Duke Energy Indiana's generating facilities, see Item 2, “Properties.” Duke Energy Indiana is subject to the regulatory provisions of the IURC and FERC.

(b) For 2022, 2021 and 2020, these agreements include approximately 412 MW of firm capacity 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.

(b) For 2023, 2022 and 2021, these agreements include approximately 412 MW of firm capacity under contract by Duke Energy Florida with QFs. 12 BUSINESS 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.

Prior to that, he held the position of 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.

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.

(b) Decommissioning cost 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. (c) Duke Energy Carolinas' site-specific nuclear decommissioning cost study completed in 2018 was filed with the NCUC and PSCSC in 2019.

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 the Oconee Nuclear Station (ONS) with the U.S. Nuclear Regulatory Commission to renew ONS's operating license for an additional 20 years.

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 U.S. Nuclear Regulatory Commission to renew Oconee's operating license for an additional 20 years.

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 900,000 residential, commercial and industrial customers and provides transmission and distribution services for natural gas to approximately 550,000 customers.

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 910,000 residential, commercial and industrial customers and provides transmission and distribution services for natural gas to approximately 560,000 customers.

EU&I has entered into fuel contracts that cover 100% of its uranium concentrates through at least 2024, 100% of its conversion services through at least 2026, 100% of its enrichment services through at least 2026, and 100% of its fabrication services requirements for these plants through at least 2027.

EU&I has entered into fuel contracts that cover 100% of its uranium concentrates through at least 2027, 100% of its conversion services through at least 2029, 100% of its enrichment services through at least 2027, and 100% of its fabrication services requirements for these plants through at least 2027.

The following table represents the distribution of GWh billed sales by customer class for the year ended December 31, 2022.

The following table represents the distribution of GWh billed sales by customer class for the year ended December 31, 2023.

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.

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.

The service territory is approximately 92,000 square miles across six states with a total estimated population of 26 million. The operations include electricity sold wholesale to municipalities, electric cooperative utilities and other load-serving entities.

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.

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 49,870 MW of generation capacity.

The following table lists sources of electricity and fuel costs for the three years ended December 31, 2022.

The following table lists sources of electricity and fuel costs for the three years ended December 31, 2023.

Renjel served as Vice President of Strategic Infrastructure since 2009 for CSX Corp and as their Director of Environmental and Government Affairs from 2006 to 2008. Harry K. Sideris 52 Executive Vice President, Customer Experience, Solutions and Services. Mr. Sideris assumed his current position in October 2019.

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. Harry K. Sideris 53 Executive Vice President, Customer Experience, Solutions and Services. Mr. Sideris assumed his current position in October 2019.

The following map shows the service territory and investments in operating pipelines for GU&I as of December 31, 2022. 15 BUSINESS The number of residential, commercial and industrial customers within the GU&I service territory is expected to increase over time.

The following map shows the service territory and investments in operating pipelines for GU&I as of December 31, 2023. The number of residential, commercial and industrial customers within the GU&I service territory is expected to increase over time.

Employees On December 31, 2022, Duke Energy had a total of 27,859 full-time, part-time and temporary employees, the majority of which were full-time employees. The total includes 5,081 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.

Employees On December 31, 2023, Duke Energy had a total of 27,037 full-time, part-time and temporary employees, the majority of which were full-time employees. The total includes 5,054 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.

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 56 Vice President, Chief Accounting Officer and Controller. Ms. Lee assumed her role as Vice President, Chief Accounting Officer and Controller in May 2021.

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 57 Vice President, Chief Accounting Officer and Controller. Ms. Lee assumed her current position in May 2021.

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 $13.7 billion.

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 for further details.

As a result of volatility in natural gas prices and the associated impacts on coal-fired dispatch within the generation fleet, coal inventories will continue to fluctuate. EU&I continues to actively manage its portfolio and has worked with suppliers to obtain increased flexibility in its coal contracts.

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.

Our employees delivered strong safety results in 2022, consistent with our industry-leading performance levels from 2017 through 2021. 20 BUSINESS 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.

Our employees delivered strong safety results in 2023, consistent with our industry-leading performance levels since 2018. 20 BUSINESS 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.

Therefore, the license no longer authorizes operation of the reactor. For additional information on nuclear decommissioning activity, see Notes 4 and 10 to the Consolidated Financial Statements, "Regulatory Matters" and "Asset Retirement Obligations," respectively. Regulation State The state electric utility commissions approve rates for Duke Energy's retail electric service within their respective states.

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 electric utility commissions approve rates for Duke Energy's retail electric service within their respective states.

Kodwo Ghartey-Tagoe 59 Executive Vice President, Chief Legal Officer and Corporate Secretary . Mr. Ghartey-Tagoe assumed the position of Executive Vice President, Chief Legal Officer and Corporate Secretary in May 2020. He was appointed Executive Vice President and Chief Legal Officer in October 2019 after serving as President, South Carolina since 2017. Mr.

Kodwo Ghartey-Tagoe 60 Executive Vice President, Chief Legal Officer and Corporate Secretary. Mr. Ghartey-Tagoe assumed his current position in May 2020. He was appointed Executive Vice President and Chief Legal Officer in October 2019 after serving as President, South Carolina since 2017. Mr.

Cost of Delivered Fuel per Net Generation by Source Kilowatt-hour Generated (Cents) 2022 2021 2020 2022 2021 2020 Natural gas and fuel oil (a) 34.2 % 31.8 % 31.3 % 6.35 3.89 2.55 Nuclear (a) 26.6 % 29.8 % 29.6 % 0.58 0.58 0.58 Coal (a) 13.5 % 18.2 % 18.1 % 3.43 2.84 2.99 All fuels (cost based on weighted average) (a) 74.3 % 79.8 % 79.0 % 3.75 2.42 1.91 Hydroelectric and solar (b) 1.5 % 1.5 % 1.9 % Total generation 75.8 % 81.3 % 80.9 % Purchased power and net interchange 24.2 % 18.7 % 19.1 % 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.

Cost of Delivered Fuel per Net Generation by Source Kilowatt-hour Generated (Cents) 2023 2022 2021 2023 2022 2021 Natural gas and fuel oil (a) 33.3 % 34.2 % 31.8 % 3.81 6.35 3.89 Nuclear (a) 28.4 % 26.6 % 29.8 % 0.58 0.58 0.58 Coal (a) 12.8 % 13.5 % 18.2 % 4.07 3.43 2.84 All fuels (cost based on weighted average) (a) 74.5 % 74.3 % 79.8 % 2.63 3.75 2.42 Hydroelectric and solar (b) 1.8 % 1.5 % 1.5 % Total generation 76.3 % 75.8 % 81.3 % Purchased power and net interchange 23.7 % 24.2 % 18.7 % 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.

However, delays between the expenditure for natural gas and recovery from customers can adversely impact the timing of cash flows of GU&I. The following table summarizes certain components underlying recently approved and effective base rates or rate stabilization filings in the last three years and applications currently pending approval.

However, delays between the expenditure for natural gas and recovery from customers can adversely impact the timing of cash flows of GU&I. The following table summarizes certain components underlying significant recently approved and effective base rates or ARM filings in the last three years.

While it is not a business segment, Other primarily includes interest expense on holding company debt, unallocated corporate costs, amounts related to certain companywide initiatives and contributions made to the Duke Energy Foundation. Other also includes Bison and an investment in NMC.

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.

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.

Normal weather conditions are defined as the long-term average of actual historical weather conditions. 10 BUSINESS The estimated impact of weather on earnings is based on the temperature variances from a normal condition and customers’ historic usage patterns.

The current average sulfur content of coal purchased by Electric Utilities and Infrastructure is between 0.5% and 3.5% for Duke Energy Carolinas and Duke Energy Progress, and between 0.5% and 4% for Duke Energy Florida, Duke Energy Ohio and Duke Energy Indiana.

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% and 3.5% for Duke Energy Florida, and between 0.5% and 4.0% for Duke Energy Ohio and Duke Energy Indiana.

As of December 31, 2022, the inventory balance for EU&I was approximately $3.4 billion. For additional information on inventory, see Note 1 to the Consolidated Financial Statements, “Summary of Significant Accounting Policies.” 12 BUSINESS Ash Basin Management During 2015, EPA issued regulations related to the management of CCR from power plants.

As of December 31, 2023, the inventory balance for EU&I was approximately $4.1 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 CCR Rule.

The following table summarizes purchased power for the previous three years: 2022 2021 2020 Purchase obligations and leases (in millions of MWh) (a) 41.2 36.0 32.7 Purchase capacity under contract (in MW) (b) 4,028 4,259 4,716 (a) Represents approximately 16% of total system requirements for 2022, 14% for 2021 and 13% for 2020.

The following table summarizes purchased power for the previous three years: 2023 2022 2021 Purchase obligations and leases (in millions of MWh) (a) 37.6 41.2 36.0 Purchase capacity under contract (in MW) (b) 3,997 4,028 4,259 (a) Represents approximately 15% of total system requirements for 2023, 16% for 2022 and 14% for 2021.

Leaders and individual contributors also have the opportunity to participate in voluntary diversity and inclusion training programs and facilitated conversations on insightful topics offered to further our commitment to building and enabling an inclusive work environment. Our aspirational goals include achieving workforce representation of at least 25% female and 20% racial and ethnic diversity.

Leaders and individual contributors also have the opportunity to participate in voluntary diversity and inclusion training and facilitated conversations on insightful topics offered to further our commitment to building and enabling an inclusive work environment. In 2022, our aspirational goals included achieving workforce representation of at least 25% for women and 20% for people of color.

Duke Duke Duke Duke Duke Energy Energy Energy Energy Energy Carolinas Progress Florida Ohio Indiana Residential 33 % 26 % 47 % 38 % 30 % General service 33 % 22 % 34 % 38 % 27 % Industrial 23 % 16 % 8 % 22 % 28 % Total retail sales 89 % 64 % 89 % 98 % 85 % Wholesale and other sales 11 % 36 % 11 % 2 % 15 % Total sales 100 % 100 % 100 % 100 % 100 % The number of residential and general service customers within the EU&I service territory is expected to increase over time.

Duke Duke Duke Duke Duke Energy Energy Energy Energy Energy Carolinas Progress Florida Ohio Indiana Residential 32 % 26 % 50 % 37 % 28 % General service 34 % 22 % 36 % 38 % 26 % Industrial 23 % 15 % 8 % 23 % 31 % Total retail sales 89 % 63 % 94 % 98 % 85 % Wholesale and other sales 11 % 37 % 6 % 2 % 15 % Total sales 100 % 100 % 100 % 100 % 100 % The number of residential and general service customers within the EU&I service territory is expected to increase over time.

Ghartey-Tagoe joined Duke Energy in 2002, and has held numerous management positions in Duke Energy’s Legal Department, including Duke Energy's Senior Vice President of State and Federal Regulatory Legal Support. T. Preston Gillespie 60 Executive Vice President, Chief Generation Officer and Enterprise Operational Excellence. 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 61 Executive Vice President, Chief Generation Officer and Enterprise Operational Excellence. Mr. Gillespie assumed his current position in January 2023.

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.

EU&I has a 50% ownership interest in DATC, a partnership with American Transmission Company, formed to design, build and operate transmission infrastructure. DATC owns 72% of the transmission service rights to Path 15, an 84-mile transmission line in central California. EU&I also has a 50% ownership interest in Pioneer, which builds, owns and operates electric transmission facilities in North America.

EU&I is also a joint owner in certain electric transmission projects. EU&I has a 50% ownership interest in DATC, a partnership with American Transmission Company, formed to design, build and operate transmission infrastructure. DATC owns 72% of the transmission service rights to Path 15, an 84-mile transmission line in central California.

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. 18 BUSINESS Regulations of the FERC and the state gas utility commissions govern access to regulated natural gas and other data by nonregulated entities and services provided between regulated and nonregulated energy affiliates.

Prior to that, she served as Director, Investor Relations since June 2019 and in various roles within the Corporate Controller's organization after joining the Corporation and its affiliates in 2002. Ronald R. Reising 62 Senior Vice President and Chief Human Resources Officer. Mr. Reising assumed his current position in July 2020.

Prior to that, she served as Director, Investor Relations since June 2019 and in various roles within the Corporate Controller's organization after joining the Corporation and its affiliates in 2002. Ronald R. Reising 63 Adviser to the Chair, President, and Chief Executive Officer. Mr. Reising assumed his current position in January 2024.

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.

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 more information on inventory, see Note 1 to the Consolidated Financial Statements, "Summary of Significant Accounting Policies." 17 BUSINESS Regulation State The state gas utility commissions approve rates for Duke Energy's retail natural gas service within their respective states.

As of December 31, 2023, the inventory balance for GU&I was $129 million. For more information on inventory, see Note 1 to the Consolidated Financial Statements, "Summary of Significant Accounting Policies." Regulation State The state gas utility commissions approve rates for Duke Energy's retail natural gas service within their respective states.

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 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.

Revised customer rates became effective January 1, 2022, with subsequent base rate increases effective January 1, 2023, and January 1, 2024. For more information on rate matters and other regulatory proceedings, 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.

For more information on rate matters and other regulatory proceedings, 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.

Brian D. Savoy 47 Executive Vice President and Chief Financial Officer. Mr. Savoy assumed the position of Executive Vice President and Chief Financial Officer in September 2022.

Brian D. Savoy 48 Executive Vice President and Chief Financial Officer. Mr. Savoy assumed his current position in September 2022.

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, PSCSC and FPSC require Duke Energy to update their cost estimates for decommissioning their nuclear plants every five years.

Prior to that, he served as Senior Vice President of Federal Government and Corporate Affairs since 2019, and as Vice President, Federal Government Affairs and Strategic Policy since he joined Duke Energy in March 2017 until 2019. Prior to joining Duke Energy, Mr.

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 2019 to May 2021; and Vice President, Federal Government Affairs and Strategic Policy from March 2017 to 2019. Prior to joining Duke Energy, Mr.

EU&I earns retail margin in Ohio on the transmission and distribution of electricity, but not on the cost of the underlying energy.

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.

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.

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.

ERG-sponsored forums include networking events, mentoring, scholarship banquets for aspiring college students, and workshops on topics such as time management, stress reduction, career planning and work-life balance. Our ERGs are open to all employees.

They also serve as a resource to the Company for advocacy and community outreach and improving customer service through innovation. ERG-sponsored forums include networking events, mentoring, scholarship banquets for aspiring college students, and workshops on topics such as time management, stress reduction, career planning and work-life balance. Our ERGs are open to all employees.

Steven K. Young 64 Executive Vice President, Chief Strategy and Commercial Officer. Mr. Young assumed the position of Executive Vice President, Chief Strategy and Commercial Officer in September 2022.

Steven K. Young 65 Executive Vice President and Chief Commercial Officer. Mr. Young assumed his current position in September 2022.

NDTF (a) Decommissioning (in millions) December 31, 2022 December 31, 2021 Costs (a) Year of Cost Study Duke Energy $ 8,637 $ 10,401 $ 9,105 2018 or 2019 Duke Energy Carolinas (b)(c) 4,783 5,759 4,365 2018 Duke Energy Progress (d) 3,430 4,089 4,181 2019 Duke Energy Florida (e) 424 553 559 N/A (a) Amounts for Progress Energy equal the sum of Duke Energy Progress and Duke Energy Florida.

NDTF (a) Decommissioning (in millions) December 31, 2023 December 31, 2022 Costs (a) Year of Cost Study Duke Energy $ 10,143 $ 8,637 $ 8,814 2023 or 2019 Duke Energy Carolinas (b)(c) 5,686 4,783 4,439 2023 Duke Energy Progress (d) 4,075 3,430 4,181 2019 Duke Energy Florida (e) 382 424 194 N/A (a) Amounts for Progress Energy equal the sum of Duke Energy Progress and Duke Energy Florida.

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.

Gillespie assumed the position of Executive Vice President, Chief Generation Officer and Enterprise Operational Excellence in January 2023. Prior to that, Mr. Gillespie served as the Chief Generation Officer since 2020. R. Alexander Glenn 57 Senior Vice President and Chief Executive Officer, Duke Energy Florida and Midwest. Mr. Glenn assumed his current position in May 2021. Prior to that, Mr.

Prior to that, he served as the Chief Generation Officer since 2020. R. Alexander Glenn 58 Executive Vice President and Chief Executive Officer, Duke Energy Florida and Midwest. Mr. Glenn assumed his current position in March 2023.

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 general service customers are more impacted by weather than industrial customers.

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.

Duke Energy Ohio submits a filing each year for incremental investments to increase the revenue requirement up to the cap of approximately $7 million. The cumulative investment under the CEP Rider is $359 million with total annual revenue requirement of $70 million.

Duke Energy Ohio submits a filing each year for incremental investments to increase the revenue requirement up to the approved annual residential rate cap increase. The cumulative investment under the CEP Rider is $164 million with total annual revenue requirement of $17 million with rates effective November 1, 2023.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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2022 filing

2023 filing

Biggest changeIn 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.

Biggest changeFailure 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. 31 RISK FACTORS 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.

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 abnormally mild winter or summer weather that cause lower energy or natural gas usage for heating or cooling purposes, as applicable, and periods of low rainfall that decrease the ability to operate facilities in an economical manner; • supply of and demand for energy commodities; • transmission or transportation constraints or inefficiencies that impact nonregulated energy operations; • availability of purchased power; • availability of competitively priced alternative energy sources, which are preferred by some customers over electricity produced from coal, 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.

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 abnormally mild winter or summer weather that cause lower energy or natural gas usage for heating or cooling purposes, as applicable, and periods of low rainfall that decrease the ability to operate facilities in an economical manner; • supply of and demand for energy commodities; • 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, 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.

State regulators have 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.

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.

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 cyberattack from foreign or domestic sources and have been subject, and will likely continue to be subject, to attempts 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.

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.

Furthermore, destruction caused by severe weather events, such as hurricanes, flooding, tornadoes, severe thunderstorms, snow and ice storms, including from climate change, can result in lost operating revenues due to outages, property damage, including downed transmission and distribution lines, and additional and unexpected expenses to mitigate storm damage.

Furthermore, destruction caused by severe weather events, such as hurricanes, flooding, tornadoes, severe thunderstorms, snow and ice storms, including from climate change, can result in lost operating revenues due to outages, property damage, including downed transmission and distribution lines, reputational harm, and additional and unexpected expenses to mitigate storm damage.

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 at the full retail amount.

Increased regulation of GHG emissions 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.

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.

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 recover costs and an appropriate return on the significant infrastructure investments being made. 24 RISK FACTORS 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.

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. 24 RISK FACTORS 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.

Also, the market for cybersecurity insurance is relatively new and coverage available for cybersecurity events is evolving as the industry matures. 28 RISK FACTORS 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.

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.

If the COVID-19 pandemic or other health epidemics and outbreaks that may occur are 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, and the health and availability of our critical personnel and their ability to perform business functions.

If the COVID-19 pandemic or other health epidemics and outbreaks that may occur are 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.

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.

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. 30 RISK FACTORS The Duke Energy Registrants must meet credit quality standards and there is no assurance they will maintain investment grade credit ratings.

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.

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. 29 RISK FACTORS The Duke Energy Registrants are subject to risks associated with their ability to obtain adequate insurance at acceptable costs.

The EPA has enacted or proposed federal regulations governing the management of cooling water intake structures, wastewater and CO 2 emissions. New state legislation 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 EPA has issued or proposed federal regulations governing the management of cooling water intake structures, wastewater, CCR management units, and CO 2 emissions. New state legislation 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.

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. During 2015, EPA regulations were enacted related to the management of CCR from power plants.

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. 26 RISK FACTORS During 2015, EPA regulations were enacted related to the management of CCR from power plants.

As members of an RTO, Duke Energy Ohio and Duke Energy Indiana are subject to certain additional risks, including those associated with the allocation among RTO members, of losses caused by unreimbursed defaults of other participants in the RTO markets and those associated with complaint cases filed against an RTO that may seek refunds of revenues previously earned by RTO members.

As members of an RTO, Duke Energy Ohio and Duke Energy Indiana are subject to certain additional risks, including those associated with the 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 cost of storm restoration efforts may not be fully recoverable through the regulatory process. 27 RISK FACTORS The Duke Energy Registrants’ sales may decrease if they are unable to gain adequate, reliable and affordable access to transmission assets.

The cost of storm restoration efforts may not be fully recoverable through the regulatory process. The Duke Energy Registrants’ sales may decrease if they are unable to gain adequate, reliable and affordable access to transmission assets.

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.

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. 28 RISK FACTORS Cyberattacks and data security breaches could adversely affect the Duke Energy Registrants' businesses.

Failure to comply with environmental regulations may result in the imposition of fines, penalties and injunctive measures affecting operating assets. The steps the Duke Energy Registrants could be required to take to ensure their facilities are in compliance could be prohibitively expensive.

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.

Such events could impact the Duke Energy Registrants through 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.

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.

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; and uncertainties with respect to the technological and financial aspects of decommissioning nuclear plants at the end of their licensed lives.

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.

If regulators decided to discontinue the Duke Energy Registrants' use of tariff mechanisms, it would negatively impact results of operations, financial position and cash flows.

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 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.

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.

The EPA and state regulators have, and may adopt and implement, additional regulations to restrict emissions of GHGs to address global climate change. Certain local and state jurisdictions have also enacted laws to restrict or prevent new natural gas infrastructure.

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.

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 and customer demand.

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 and customer demand.

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.

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. 25 RISK FACTORS 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.

Ownership interests in and operation of nuclear stations by Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida subject them to various risks.

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.

While Duke Energy maintains insurance relating to cybersecurity events, such insurance is subject to a number of exclusions and may be insufficient to offset any losses, costs or damage experienced.

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.

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 clean energy transition. 27 RISK FACTORS 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.

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. 29 RISK FACTORS 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.

In addition, the timing for and amount of recovery of such costs could have a material adverse impact on Duke Energy's cash flows. 26 RISK FACTORS The Duke Energy Registrants have recognized significant AROs related to these CCR-related requirements.

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. Closure activities began in 2015 at the four sites specified as high priority by the Coal Ash Act and at the W.S.

To the degree Duke Energy Ohio and Duke Energy Indiana incur significant additional fees and increased costs to participate in an RTO, 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.

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.

Excavation at these sites involves movement of CCR materials to off-site locations for use as structural fill, to appropriately engineered off-site or on-site lined landfills or conversion of the ash for beneficial use. Duke Energy has completed excavation of coal ash at the four high-priority North Carolina sites.

Lee Steam Station site in South Carolina in connection with other legal requirements. Excavation at these sites involves movement of CCR materials to off-site locations for use as structural fill, to appropriately engineered off-site or on-site lined landfills or conversion of the ash for beneficial use.

At other sites, planning and closure methods have been studied and factored into the estimated retirement and management costs, and closure activities have commenced.

Duke Energy has completed excavation of coal ash at the four high-priority North Carolina sites. At other sites, planning and closure methods have been studied and factored into the estimated retirement and management costs, and closure activities have commenced.

In addition, new technologies that are not yet commercially available or are unproven at utility scale will likely be needed including 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.

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.

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.

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.

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. 25 RISK FACTORS 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.

If Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida are unable to successfully manage their NDTF assets, their results of operations, financial position and cash flows could be negatively affected.

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.

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.

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.

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.

These providers’ systems are susceptible to cybersecurity and data breaches, outages from fire, floods, power loss, telecommunications failures, break-ins and similar events.

In this case, costs, including costs for contractors to replace employees, productivity costs and safety costs, may increase.

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.

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.

Sustained downturns or sluggishness in the economy generally affect the markets in which the Duke Energy Registrants operate and negatively influence operations.

Failure to meet those covenants beyond applicable grace periods could result in accelerated due dates and/or termination of the agreements. 30 RISK FACTORS 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.

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.

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.

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.

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.

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.

Removed

Closure activities began in 2015 at the four sites specified as high priority by the Coal Ash Act and at the W.S. Lee Steam Station site in South Carolina in connection with other legal requirements.

Added

Removed

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.

Added

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.

Removed

The Duke Energy Registrants’ debt and credit agreements contain various financial and other covenants.

Added

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.

Removed

These increased costs could include additional physical plant security and security personnel or additional capability following a terrorist incident. 31 RISK FACTORS Failure to attract and retain an appropriately qualified workforce could unfavorably impact the Duke Energy Registrants’ results of operations.

Added

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.

Item 2. Properties

Properties — owned and leased real estate

11 edited+5 added−1 removed1 unchanged

2022 filing

2023 filing

Biggest changeSutton CT Fossil Gas/Oil NC 84 Blewett CT Fossil Oil NC 52 Walters Hydro Water NC 112 Other small facilities (3) Hydro Water NC 116 Distributed generation Renewable Solar NC 35 Asheville – Rock Hill Battery Renewable Storage NC 2 Hot Springs Microgrid Renewable Storage NC 1 Total Duke Energy Progress 12,464 33 PROPERTIES Owned MW Facility Plant Type Primary Fuel Location Capacity Duke Energy Florida Hines CC Fossil Gas/Oil FL 2,061 Citrus County CC Fossil Gas FL 1,610 Crystal River Fossil Coal FL 1,410 Bartow CC Fossil Gas/Oil FL 1,112 Anclote Fossil Gas FL 1,013 Intercession City CT Fossil Gas/Oil FL 940 Osprey CC Fossil Gas/Oil FL 576 DeBary CT Fossil Gas/Oil FL 524 Tiger Bay CC Fossil Gas/Oil FL 199 Bayboro CT Fossil Oil FL 171 Bartow CT Fossil Gas/Oil FL 168 Suwannee River CT Fossil Gas FL 145 University of Florida CoGen CT Fossil Gas FL 44 Distributed generation Renewable Solar FL 485 Trenton Battery Renewable Storage FL 11 Micanopy Energy Storage Renewable Storage FL 8 Jennings Battery Renewable Storage FL 5.5 Cape San Blas Battery Renewable Storage FL 5.5 Total Duke Energy Florida 10,488 Owned MW Facility Plant Type Primary Fuel Location Capacity Duke Energy Ohio East Bend Fossil Coal KY 600 Woodsdale CT Fossil Gas/Propane OH 476 Beckjord Battery Storage Renewable Storage OH 4 Total Duke Energy Ohio 1,080 Owned MW Facility Plant Type Primary Fuel Location Capacity Duke Energy Indiana Gibson (c) Fossil Coal IN 2,822 Cayuga (d) Fossil Coal/Oil IN 1,005 Edwardsport Fossil Coal IN 595 Madison CT Fossil Gas OH 566 Wheatland CT Fossil Gas IN 444 Vermillion CT (e) Fossil Gas IN 360 Noblesville CC Fossil Gas/Oil IN 264 Henry County CT Fossil Gas/Oil IN 126 Cayuga CT Fossil Gas/Oil IN 84 Purdue CHP Fossil Gas IN 12 Markland Hydro Water IN 54 Distributed generation Renewable Solar IN 11 Camp Atterbury Battery Renewable Storage IN 1 Nabb Battery Renewable Storage IN 1 Crane Battery Renewable Storage IN 1 Total Duke Energy Indiana 6,346 34 PROPERTIES Owned MW Totals by Type Capacity Total Electric Utilities 49,870 Totals by Plant Type Nuclear 8,908 Fossil 36,681 Hydro 3,639 Renewable 642 Total Electric Utilities 49,870 (a) Jointly owned with North Carolina Municipal Power Agency Number 1, NCEMC and PMPA.

Biggest changeSutton CT Fossil Gas/Oil NC 97 Blewett CT Fossil Oil NC 68 Walters Hydro Water NC 112 Other small facilities (3 plants) Hydro Water NC 116 Distributed generation Renewable Solar NC 141 Asheville – Rock Hill Battery Renewable Storage NC 9 Hot Springs Microgrid Renewable Storage NC 6 Total Duke Energy Progress 13,770 Owned MW Facility Plant Type Primary Fuel Location Capacity 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 Anclote Fossil Gas FL 1,035 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 226 Bartow CT Fossil Gas/Oil FL 212 Suwannee River CT Fossil Gas FL 194 University of Florida CoGen CT Fossil Gas FL 50 Lake Placid Battery (microgrid) Renewable Storage FL 17 Trenton Battery Renewable Storage FL 11 Micanopy Battery Renewable Storage FL 8 Jennings Battery Renewable Storage FL 6 Cape San Blas Battery Renewable Storage FL 6 Distributed generation Renewable Solar FL 1,186 Total Duke Energy Florida 12,303 Owned MW Facility Plant Type Primary Fuel Location Capacity 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 36 PROPERTIES Owned MW Facility Plant Type Primary Fuel Location Capacity 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 508 Vermillion CT (e) Fossil Gas IN 477 Noblesville CC Fossil Gas/Oil IN 310 Henry County CT (f) Fossil Gas/Oil IN 134 Cayuga CT Fossil Gas/Oil IN 105 Purdue CHP Fossil Gas IN 16 Markland Hydro Water IN 54 Distributed generation Renewable Solar IN 29 Camp Atterbury Battery Renewable Storage IN 5 Nabb Battery Renewable Storage IN 5 Crane Battery Renewable Storage IN 5 Total Duke Energy Indiana 6,790 Owned MW Totals by Type Capacity Total Electric Utilities 54,772 Totals by Plant Type Nuclear 9,322 Fossil 40,107 Hydro 3,722 Renewable 1,621 Total Electric Utilities 54,772 (a) Jointly owned with North Carolina Municipal Power Agency Number 1, NCEMC and PMPA.

(d) Includes Cayuga Internal Combustion. (e) Jointly owned with WVPA. Duke Energy Indiana's ownership is 62.5% of the facility. The following table provides information related to EU&I's electric transmission and distribution properties as of December 31, 2022.

(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, which are contracted to WVPA. The following table provides information related to EU&I's electric transmission and distribution properties as of December 31, 2023.

ITEM 2. PROPERTIES ELECTRIC UTILITIES AND INFRASTRUCTURE The following table provides information related to the EU&I's generation stations as of December 31, 2022. The MW displayed in the table below are based on summer capacity. Ownership interest in all facilities is 100% unless otherwise indicated.

ITEM 2. PROPERTIES ELECTRIC UTILITIES AND INFRASTRUCTURE The following table provides information related to the EU&I's generation stations as of December 31, 2023. 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.

Duke Duke Energy Energy Ohio Piedmont Miles of natural gas distribution and transmission pipelines 35,200 7,600 27,600 Miles of natural gas service lines 28,300 6,600 21,700 OTHER Duke Energy owns approximately 7.1 million square feet and leases approximately 2.7 million square feet of corporate, regional and district office space spread throughout its service territories.

Duke Duke Energy Energy Ohio Piedmont Miles of natural gas distribution and transmission pipelines 35,700 7,700 28,000 Miles of natural gas service lines 28,800 6,700 22,100 OTHER Duke Energy owns approximately 7.1 million square feet and leases approximately 2.5 million square feet of corporate, regional and district office space spread throughout its service territories.

The following table provides information related to GU&I's natural gas distribution.

The following table provides information related to GU&I's natural gas distribution as of December 31, 2023.

Lee CT Fossil Gas/Oil SC 84 Clemson CHP Fossil Gas SC 13 Bad Creek Hydro Water SC 1,520 Jocassee Hydro Water SC 780 Cowans Ford Hydro Water NC 324 Keowee Hydro Water SC 152 Other small facilities (19 plants) Hydro Water NC/SC 581 Distributed generation Renewable Solar NC 71 Total Duke Energy Carolinas 19,492 Owned MW Facility Plant Type Primary Fuel Location Capacity Duke Energy Progress Brunswick Nuclear Uranium NC 1,870 Harris Nuclear Uranium NC 964 Robinson Nuclear Uranium SC 759 Roxboro Fossil Coal NC 2,439 Smith CC Fossil Gas/Oil NC 1,083 H.F.

Lee CT Fossil Gas/Oil SC 96 Clemson CHP Fossil Gas SC 16 Bad Creek Hydro Water SC 1,600 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 178 Total Duke Energy Carolinas 20,736 35 PROPERTIES Owned MW Facility Plant Type Primary Fuel Location Capacity 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.

Owned MW Facility Plant Type Primary Fuel Location Capacity Duke Energy Carolinas Oconee Nuclear Uranium SC 2,554 McGuire Nuclear Uranium NC 2,316 Catawba (a) Nuclear Uranium SC 445 Belews Creek Fossil Coal/Gas NC 2,220 Marshall Fossil Coal/Gas NC 2,058 J.E.

Owned MW Facility Plant Type Primary Fuel Location 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 Combustion Turbine (CT) Fossil Gas/Oil NC 1,507 J.E.

See Note 11, "Property, Plant and Equipment," for further information. 35 LEGAL PROCEEDINGS AND MINE SAFETY DISCLOSURES

See Note 11, "Property, Plant and Equipment," for further information.

Rogers Fossil Coal/Gas NC 1,388 Lincoln Combustion Turbine (CT) Fossil Gas/Oil NC 1,161 Allen Fossil Coal NC 421 Rockingham CT Fossil Gas/Oil NC 825 W.S. Lee Combined Cycle (CC) (b) Fossil Gas SC 686 Buck CC Fossil Gas NC 668 Dan River CC Fossil Gas NC 662 Mill Creek CT Fossil Gas/Oil SC 563 W.S.

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 Combined Cycle (CC) (b) Fossil Gas SC 706 Allen Fossil Coal NC 426 W.S.

Duke Duke Duke Duke Duke Duke Energy Energy Energy Energy Energy Energy Carolinas Progress Florida Ohio 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 8,500 2,700 3,400 1,700 — 700 Miles of 100 to 161 kV 12,500 6,800 2,600 1,000 700 1,400 Miles of 13 to 69 kV 8,300 2,900 — 2,200 700 2,500 Total conductor miles of electric transmission lines 31,500 13,000 6,300 5,100 1,800 5,300 Electric Distribution Lines Miles of overhead lines 173,600 66,600 46,300 25,300 13,300 22,100 Miles of underground line 116,100 41,900 35,200 22,700 6,500 9,800 Total conductor miles of electric distribution lines 289,700 108,500 81,500 48,000 19,800 31,900 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.

Duke Duke Duke Duke Duke Duke Energy Energy Energy Energy Energy Energy Carolinas Progress Florida Ohio 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 8,500 2,700 3,400 1,700 — 700 Miles of 100 to 161 kV 12,600 6,900 2,600 1,000 700 1,400 Miles of 13 to 69 kV 8,100 2,800 — 2,200 600 2,500 Total conductor miles of electric transmission lines 31,400 13,000 6,300 5,100 1,700 5,300 Electric Distribution Lines Miles of overhead lines 171,100 66,600 44,300 25,000 13,300 21,900 Miles of underground line 111,800 43,600 28,900 22,900 6,500 9,900 Total conductor miles of electric distribution lines 282,900 110,200 73,200 47,900 19,800 31,800 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. 37 PROPERTIES 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.

Lee CC Fossil Gas/Oil NC 888 Wayne County CT Fossil Gas/Oil NC 822 Smith CT Fossil Gas/Oil NC 772 Mayo Fossil Coal NC 704 L.V. Sutton CC Fossil Gas/Oil NC 607 Asheville CC Fossil Gas/Oil NC 476 Asheville CT Fossil Gas/Oil NC 320 Darlington CT Fossil Gas/Oil SC 234 Weatherspoon CT Fossil Gas/Oil NC 124 L.V.

Lee CC Fossil Gas/Oil NC 1,054 Wayne County CT Fossil Gas/Oil NC 975 Smith CT Fossil Gas/Oil NC 960 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.

Removed

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.

Added

Prior to December 31, 2023, summer capacity was displayed for all EU&I generation stations in the table below.

Added

Certain registrants' IRPs, including those filed in North Carolina and South Carolina in 2023, currently use winter capacity for Fossil, Nuclear and Hydro stations as winter capacity is generally a more accurate representation of that stations' ability to support peak capacity requirements due to a higher risk of reliability challenges during the winter months in those jurisdictions.

Added

Additionally, analysis of resource adequacy across all jurisdictions demonstrates that as solar adoption increases, there is a higher risk of reliability challenges in the winter. As such, most of Duke Energy's IRPs are expected to shift toward winter planning. See Item 7, "Other Matters" for additional information on IRPs.

Added

Nameplate capacity is generally viewed as a transparent representation of the Renewable stations since their output varies by day, month, and real-time weather conditions, particularly with solar facilities, which may or may not be paired with battery storage depending on the location.

Added

The Owned MW Capacity based on summer capacity as of December 31, 2023, is 50,302 MW for all of EU&I.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

3 edited+0 added−0 removed4 unchanged

2022 filing

2023 filing

Biggest changeIssuer Purchases of Equity Securities for Fourth Quarter 2022 T here were no repurchases of e quity securities during the fourth quarter of 2022. Unregistered Sales of Equity Securities and Use of Proceeds None.

Biggest changeIssuer Purchases of Equity Securities for Fourth Quarter 2023 T here were no repurchases of e quity securities during the fourth quarter of 2023. Unregistered Sales of Equity Securities and Use of Proceeds None.

The graph assumes an initial investment of $100 on December 31, 2017, 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.

The graph assumes an initial investment of $100 on December 31, 2018, 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.

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, 2023, there w ere 127,329 Duke Energy common stockholders of record.

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, 2024, there w ere 121,476 Duke Energy common stockholders of record.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

202 edited+81 added−56 removed135 unchanged

2022 filing

2023 filing

Biggest changeThe variance was driven primarily by: • a $782 million increase in fuel revenues driven by higher fuel prices and higher volumes; • a $191 million increase in weather-normal retail sales volumes; • a $102 million increase in retail pricing due to base rate adjustments related to annual increases from the 2021 Settlement agreement and the solar base rate adjustment; 50 MD&A DUKE ENERGY FLORIDA • a $46 million increase in rider revenues primarily due to increased Storm Protection Plan rider revenue driven by higher debt and equity returns from increased capital expenditures in the current year; • a $33 million increase in wholesale power revenues, net of fuel, primarily due to higher capacity revenues and bulk power sales; and • a $16 million increase in retail sales due to favorable weather in the current year.

Biggest changeThe variance was driven primarily by: • a $363 million increase in storm revenues at Duke Energy Florida due to hurricanes Ian and Nicole collections; • a $254 million increase in fuel cost recovery from retail customers at Duke Energy Florida, partially offset by a decrease at Duke Energy Progress driven by lower JDA sales volumes at lower prices in the current year, partially offset by higher fuel cost recovery; • a $144 million increase due to higher pricing from the North Carolina and the South Carolina rate cases at Duke Energy Progress, and retail pricing due to base rate adjustments related to annual increases from the 2021 Settlement Agreement at Duke Energy Florida; • a $66 million increase in rider revenues at Duke Energy Florida primarily due to increased Storm Protection Plan rider and a decrease in the return of EDIT to customers compared to the prior year at Duke Energy Progress; and • a $23 million increase in franchise tax revenue primarily due to increased revenues over prior year at Duke Energy Florida. 51 MD&A PROGRESS ENERGY Partially offset by: • a $274 million decrease in wholesale revenues net of fuel due to decreased demand at Duke Energy Florida, partially offset by higher capacity rates net of lower volumes at Duke Energy Progress; • a $99 million decrease in weather-normal retail sales volumes at Duke Energy Progress and Duke Energy Florida; and • a $74 million decrease in retail sales due to unfavorable weather compared to prior year at Duke Energy Progress, partially offset by favorable weather in the current year at Duke Energy Florida.

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.

Duke Energy will continue to explore the use of currently available and commercially demonstrated technology to reduce CO 2 emissions, including 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 storage and advanced nuclear, in its efforts to achieve its net-zero goal as well as to comply with any future regulations.

Duke Energy will continue to explore the use of currently available and commercially demonstrated technology to reduce CO 2 emissions, including 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, in its efforts to achieve its net-zero goal as well as to comply with any future regulations.

Duke Energy plans to adjust to and incorporate evolving and innovative technologies in a way that balances the reliability and affordability while meeting regulatory requirements and customer demands. Under any future scenario involving mandatory CO 2 limitations, the Duke Energy Registrants would plan to seek recovery of their compliance costs through appropriate regulatory mechanisms.

Duke Energy plans to adjust to and incorporate 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 CO 2 limitations, the Duke Energy Registrants would plan to seek recovery of their compliance costs through appropriate regulatory mechanisms.

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 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+ 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.

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 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 Negative Stable Senior Unsecured Debt Baa1 BBB+ Piedmont Natural Gas Stable Stable Senior Unsecured A3 BBB+ 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.

In December, high winds and extreme cold from Winter Storm Elliott, customer demand that was higher than forecasted, and inability to import additional power from out of state, resulted in the need to temporarily interrupt service to about 500,000 customers to maintain overall grid reliability and prevent further potential disruptions in the Carolinas.

In December 2022, high winds and extreme cold from Winter Storm Elliott, customer demand that was higher than forecasted, and the inability to import additional power from out of state, resulted in the need to temporarily interrupt service to about 500,000 customers to maintain overall grid reliability and prevent further potential disruptions in the Carolinas.

In 2019, Duke Energy announced an updated climate strategy with new goals of at least 50% reduction in carbon emissions from 2005 levels from electric generation by 2030 and net-zero carbon emissions from electric generation by 2050.

In 2019, Duke Energy announced an updated climate strategy with new goals of at least a 50% reduction in carbon emissions from 2005 levels from electric generation by 2030 and net-zero carbon emissions from electric generation by 2050.

In 2021, the state of North Carolina passed HB 951, which among other things, directs the NCUC to develop and approve a carbon reduction plan by the end of 2022 that would target a 70% reduction in CO 2 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 2021, the state of North Carolina passed HB 951, which among other things, directed the NCUC to develop and approve a carbon reduction plan by the end of 2022 that would target a 70% reduction in CO 2 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.

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 2022 impairment tests, Duke Energy considered implied WACCs for certain peer companies in determining the appropriate WACC rates to use in its analysis.

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 2023 impairment tests, Duke Energy considered implied WACCs for certain peer companies in determining the appropriate WACC rates to use in its analysis.

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, 2022, 2021 and 2020. See "Item 7.

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, 2022. Additionally, Duke Energy monitors all relevant events and circumstances during the year to determine if an interim impairment test is required.

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, 2023. Additionally, Duke Energy monitors all relevant events and circumstances during the year to determine if an interim impairment test is required.

The weather normalization adjustment mechanisms mostly offset the impact of weather on bills rendered, but do not ensure full recovery of approved margin during periods when winter weather is significantly warmer or colder than normal. Year Ended December 31, 2022, as compared to 2021 Operating Revenues.

As we transition our business to cleaner sources of energy, we are focused on delivering sustainable value for our customers and shareholders by maintaining affordability and 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.

As we transition our business to cleaner sources of energy, we are focused on delivering sustainable value for our customers and shareholders by leveraging business transformation to exceed customer expectations, optimizing investments to drive attractive shareholder returns, and by providing new product offerings and solutions that deliver growth and customer value.

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, 2022, 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.

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, 2023, 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.

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, 2022, these funds were invested primarily in domestic and international equity securities, debt securities, cash and cash equivalents and short-term investments.

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, 2023, these funds were invested primarily in domestic and international equity securities, debt securities, cash and cash equivalents and short-term investments.

Coal Ash Act AROs recorded on the Duke Energy Carolinas and Duke Energy Progress Consolidated Balance Sheets at December 31, 2022, and December 31, 2021, 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 EPA CCR rule and other agreements.

Coal Ash Act AROs recorded on the Duke Energy Carolinas and Duke Energy Progress Consolidated Balance Sheets at December 31, 2023, and December 31, 2022, 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 EPA CCR rule and other agreements.

On April 1, 2019, NCDEQ issued a closure determination requiring Duke Energy Carolinas and Duke Energy Progress to excavate all remaining coal ash impoundments at the Allen, Belews Creek, Rogers, Marshall, Mayo and Roxboro facilities in North Carolina.

On April 1, 2019, NCDEQ issued a closure determination requiring Duke Energy Carolinas and Duke Energy Progress to excavate all remaining coal ash impoundments at the Allen, Belews Creek, J.E. Rogers, Marshall, Mayo and Roxboro facilities in North Carolina.

Modernization of the electric grid, including smart meters, storm hardening, self-healing and targeted undergrounding, helps to continue to ensure the system is better prepared for severe weather, improves the system's reliability and flexibility, and provides better information and services for customers.

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.

To achieve these major milestones, we are shaping the landscape by partnering with stakeholders, championing public policy that advances innovation, and advancing regulatory models that support carbon and methane emission reductions. 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.

To achieve these major milestones, we are shaping the landscape by partnering with stakeholders, championing public policy that advances innovation, and advancing regulatory models that support carbon and methane emission reductions. 43 MD&A DUKE ENERGY 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.

CO 2 Emissions Reductions The Duke Energy Registrants’ direct GHG emissions consist primarily of CO 2 that results primarily from operating a fleet of coal-fired and natural gas-fired power plants to serve its customers reliably and affordably.

EU&I CO 2 Emissions Reductions The Duke Energy Registrants’ direct GHG emissions consist primarily of CO 2 that results primarily from operating a fleet of coal-fired and natural gas-fired power plants to serve its customers reliably and affordably.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Risk Management Policies The Enterprise Risk Management policy framework at Duke Energy includes strategy, 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.

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.

At December 31, 2022, 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.

At December 31, 2023, 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 .

Between 2005 and 2022, the Duke Energy Registrants have collectively lowered the CO 2 emissions from their electricity generation by 44%. T imelines and initiatives, as well as implementation of new technologies, for future reductions of GHG emissions will vary in each state in which the company operates and will involve collaboration with regulators, customers and other stakeholders.

Between 2005 and 2023, the Duke Energy Registrants have collectively lowered the CO 2 emissions from their electricity generation by 48%. T imelines and initiatives, as well as implementation of new technologies, for future reductions of GHG emissions will vary in each state in which the Company operates and will involve collaboration with regulators, customers and other stakeholders.

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 seven of the nine remaining coal ash basins at these sites with ash moved to on-site lined landfills, including two at Allen, one at Belews Creek, one at Mayo, one at Roxboro, and two at Rogers.

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 at these sites with ash moved to on-site lined landfills, including two at Allen, one at Mayo, one at Roxboro, and two at Rogers.

CO 2 and Methane Emissions Reductions from the Natural Gas Distribution Business In addition to CO 2 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.

GU&I CO 2 and Methane Emissions Reductions In addition to CO 2 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.

Such events and circumstances include an adverse regulatory outcome, declining financial performance and deterioration of industry or market conditions. As of August 31, 2022, all of the reporting units' estimated fair value of equity substantially exceeded the carrying value of equity.

Such events and circumstances include an adverse regulatory outcome, declining financial performance and deterioration of industry or market conditions. As of August 31, 2023, all of the reporting units' estimated fair value of equity exceeded the carrying value of equity.

Additionally, certain other Duke Energy subsidiaries have other restrictions, such as minimum working capital and tangible net worth requirements pursuant to debt and other agreements that limit the amount of funds that can be transferred to Duke Energy.

Additionally, certain other Duke Energy subsidiaries have other restrictions, such as minimum working ca pital and tangible net worth requirements pursuant to debt and other agreements that limit the amount of funds that can be transferred to Duke Energy.

For more information on storm securitization in North Carolina and storm cost recovery in Florida, see Note 4 to the Consolidated Financial Statements, "Regulatory Matters." The Duke Energy Registrants routinely take steps to reduce the potential impact of severe weather events on their electric transmission and distribution systems and natural gas facilities.

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 reduce the potential impact of severe weather events on their electric transmission and distribution systems and natural gas facilities.

Our industry continues to experience an unprecedented level of change and 2022 was a dynamic year for our company as we navigated macroeconomic headwinds and continued to execute on our strategic priorities and deliver on our vision.

Our industry continues to experience an unprecedented level of change and 2023 was a dynamic year for our company as we navigated ongoing macroeconomic headwinds and continued to execute on our strategic priorities and deliver on our vision.

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. 59 MD&A LIQUIDITY AND CAPITAL RESOURCES Cash Flow Information The following table summarizes Duke Energy’s cash flows for the two most recently completed fiscal years.

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.

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, 2021, filed with the SEC on February 24, 2022, for a discussion of variance drivers for the year ended December 31, 2021, as compared to December 31, 2020.

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, 2022, filed with the SEC on February 27, 2023, for a discussion of variance drivers for the year ended December 31, 2022, as compared to December 31, 2021.

At the two remaining basins at Marshall and Roxboro, uncapped basin ash will be excavated and moved to lined landfills. Those portions of the basins at Marshall and Roxboro, which were previously filled with ash and on which permitted facilities were constructed, will not be disturbed and will be closed pursuant to other state regulations.

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 not be disturbed and will be closed pursuant to other state regulations.

These investments will drive substantial economic benefits for the communities we serve and reduce our customer’s exposure to fuel volatility. We’ve filed and refined comprehensive IRPs consistent with this strategy in multiple jurisdictions, allowing us to accelerate coal plant retirements, make needed grid investments to enable renewables and energy storage, and increase resiliency.

These investments will drive substantial economic benefits for the communities we serve 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.

The impact of a 100-basis point change in interest rates on pretax income is approximately $92 million at December 31, 2022. 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, 2022.

The impact of a 100-basis point change in interest rates on pretax income is approximately $80 million at December 31, 2023. 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, 2023.

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 Mix Planning Process The Duke Energy Registrants annually, biennially or triennially prepare lengthy, forward-looking IRPs.

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. 69 MD&A OTHER MATTERS Generation Mix Planning Process The Duke Energy Registrants annually, biennially or triennially prepare lengthy, forward-looking IRPs.

This year presented unique challenges to the grid in our service territories, including attacks on two substations in Moore County, North Carolina and extreme winter weather that forced us to take unprecedented measures to ensure the integrity of our systems in North Carolina.

Late 2022 presented unique challenges to the grid in our service territories, including attacks on two substations in Moore County, North Carolina, and extreme winter weather that forced us to take unprecedented measures to ensure the integrity of our systems in North Carolina.

DUKE ENERGY Duke Energy is an energy company headquartered in Charlotte, North Carolina. Duke Energy operates in the U.S. primarily through its direct and indirect subsidiaries, Duke Energy Carolinas, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont.

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.

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 in the Consolidated Financial Statements. Duke Energy's segment structure includes Electric Utilities and Infrastructure (EU&I) and Gas Utilities and Infrastructure (GU&I).

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 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 discount rates used for calculating the fair values as of August 31, 2022, for each of Duke Energy’s reporting units ranged from 6.6% to 6.9%. The underlying assumptions and estimates are made as of a point in time.

The discount rates used for calculating the fair values as of August 31, 2023, for each of Duke Energy’s reporting units ranged from 6.3% to 6.6%. The underlying assumptions and estimates are made as of a point in time.

Fuel Cost Recovery As a result of rapidly rising commodity costs, including natural gas, fuel and purchased power prices in excess of amounts included in fuel-related revenues has led to an increase in the undercollection of fuel costs from customers at certain jurisdictions including Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida.

Fuel Cost Recovery As a result of rapidly rising commodity costs during 2022, including natural gas, fuel and purchased power prices in excess of amounts included in fuel-related revenues led to an increase in the undercollection of fuel costs from customers in jurisdictions including Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida.

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.

The Duke Energy Registrants would plan to seek recovery of their compliance costs with any new regulations through the regulatory process. 70 MD&A OTHER MATTERS Physical Impacts of Climate Change The Duke Energy Registrants recognize that scientists associate severe weather events with increasing levels of GHGs in the atmosphere.

Increase (Decrease) over prior year 2022 Residential sales 0.5 % General service sales 4.0 % Industrial sales 1.0 % Wholesale power sales 1.3 % Joint dispatch sales 0.9 % Total sales 3.6 % Average number of customers 1.8 % Year Ended December 31, 2022, as compared to 2021 Operating Revenues.

Increase (Decrease) over prior year 2023 Residential sales (3.5) % General service sales 1.0 % Industrial sales (5.2) % Wholesale power sales 5.0 % Joint dispatch sales (10.9) % Total sales (3.6) % Average number of customers 1.8 % Year Ended December 31, 2023, as compared to 2022 Operating Revenues.

Electric Natural Gas Increase (Decrease) over prior year 2022 2022 Residential sales (0.5) % 13.7 % General service sales (2.1) % 1.3 % Industrial sales (6.8) % 0.7 % Wholesale electric power sales (11.0) % n/a Other natural gas sales n/a (3.6) % Total sales 0.6 % 4.9 % Average number of customers 1.3 % 0.6 % Year Ended December 31, 2022, as compared to 2021 Operating Revenues .

Electric Natural Gas Increase (Decrease) over prior year 2023 2023 Residential sales (4.8) % (13.5) % General service sales 1.5 % (19.7) % Industrial sales 4.9 % 3.8 % Wholesale electric power sales (19.3) % n/a Other natural gas sales n/a (0.7) % Total sales (4.0) % (10.8) % Average number of customers 0.9 % 0.6 % Year Ended December 31, 2023, as compared to 2022 Operating Revenues .

Duke Energy has received over 20 Emergency Response Awards since EEI began recognizing storm response in 1998 (including nine for assisting other utilities).

Duke Energy has received 20 Emergency Response Awards since EEI began recognizing storm response in 1998 (including 11 for assisting other utilities).

Dividend Payments In 2022, Duke Energy paid quarterly cash dividends for the 96th consecutive year and expects to continue its policy of paying regular cash dividends in the future.

Dividend Payments In 2023, Duke Energy paid quarterly cash dividends for the 97th consecutive year and expects to continue its policy of paying regular cash dividends in the future.

To support this effort, Duke Energy established a supply chain finance program (the “program”) in 2020, 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.

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.

Among other things, the Legislation requires the NCUC to: • develop an initial carbon plan that would target a 70% reduction in CO 2 emissions from public utilities' electric generation in the state by 2030 and carbon neutrality by 2050, considering all resource options and the latest technology; • adopt rules to implement the requirements of the Legislation authorizing PBR that includes MYRP with a maximum three-year term, performance incentive mechanisms to track utility performance, and revenue decoupling for the residential customer class; • establish rules to securitize costs associated with the early retirement of subcritical coal-fired electric generating facilities necessary to achieve the authorized carbon reduction goals at 50% of remaining net book value, with the remaining net book value recovered through normal cost-of-service basis; and • initiate a process for updating rates and terms of certain existing solar power purchase agreements executed under PURPA.

Among other things, HB 951 required the NCUC to: • develop a carbon plan that would target a 70% interim reduction in CO 2 emissions from public utilities' electric generation in the state on the least cost path to carbon neutrality by 2050, considering all resource options and the latest technology; • adopt rules to implement the requirements of the Legislation authorizing PBR that includes MYRP with a maximum three-year term, performance incentive mechanisms to track utility performance, and revenue decoupling for the residential customer class; 68 MD&A OTHER MATTERS • establish rules to securitize costs associated with the early retirement of subcritical coal-fired electric generating facilities necessary to achieve the authorized carbon reduction goals at 50% of remaining net book value, with the remaining net book value recovered through normal cost-of-service basis; and • initiate a process for updating rates and terms of certain existing solar PPAs executed under PURPA.

While customer satisfaction across our industry continues to be impacted by the macroeconomic environment and the impacts of higher fuel prices on customer bills, our work continues to be recognized by our customers, with incremental improvements in customer satisfaction scores at certain jurisdictions including Piedmont, which was ranked number one in customer satisfaction by J.D.

While customer satisfaction across our industry continues to be impacted by the macroeconomic environment and the impacts of inflationary pressures including higher fuel prices 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 number one in customer satisfaction by J.D.

Power for residential natural gas service in the south. 40 MD&A DUKE ENERGY Operational Excellence, Safety and Reliability . The reliable and safe operation of our power plants, 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.

Power for residential natural gas service in the south for the second year in a row. Operational Excellence, Safety and Reliability . The reliable and safe operation of our power plants, 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.

Duke Energy is one of the first utilities to address the totality of its impact – approximately 95% of the company's greenhouse gas emissions are now tied to a measurable net-zero goal. Over the next decade, we expect to deploy over $145 billion of capital into our regulated businesses, driven by clean energy transition investments.

Duke Energy was one of the first utilities to address the totality of its impact – approximately 95% of the Company's greenhouse gas emissions are tied to a measurable net zero goal. Over the next decade, we expect to deploy between approximately $170 and $180 billion of capital into our regulated businesses, driven by clean energy transition investments.

As of December 31, 2022, Duke Energy had approximately $409 million of cash on hand, $5.2 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.

As of December 31, 2023, Duke Energy had approximately $253 million of cash on hand, $4.9 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.

Duke Energy’s contractual cash obligations for fuel and purchased power as of December 31, 2022, are as follows: Payments Due by Period (in millions) Total Less than 1 year (2023) 2-3 years (2024 & 2025) 4-5 years (2026 & 2027) More than 5 years (2028 & beyond) Fuel and purchased power $ 23,255 $ 5,840 $ 7,277 $ 3,674 $ 6,464 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.

Duke Energy’s contractual cash obligations for fuel and purchased power as of December 31, 2023, are as follows: Payments Due by Period (in millions) Total Less than 1 year (2024) 2-3 years (2025 & 2026) 4-5 years (2027 & 2028) More than 5 years (2029 & beyond) Fuel and purchased power $ 19,726 $ 4,831 $ 6,116 $ 2,991 $ 5,788 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.

We also adopted a goal of reducing 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.

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.

These actions have been supplemented by a number of executive orders by President Biden and an indication by a number of regulatory agencies, including the EPA, that they would impose additional regulations on CO 2 and methane emissions to which Duke Energy will be subject.

These actions have been supplemented by a number of executive orders by President Biden and a number of proposed and final rules from federal regulatory agencies, including the EPA, that would impose additional regulations on CO 2 and methane emissions to which Duke Energy will be subject.

The increase in tax expense was primarily due to an increase in pretax income and a decrease in the amortization of excess deferred taxes.

The increase in tax expense was primarily due to an increase in pretax income and a decrease in the amortization of EDIT.

Increase (Decrease) over prior year 2022 Residential sales (0.8) % General service sales 7.5 % Industrial sales 18.1 % Wholesale power sales 2.5 % Joint dispatch sales 27.5 % Total sales 5.4 % Average number of customers 1.9 % Year Ended December 31, 2022, as compared to 2021 Operating Revenues.

Increase (Decrease) over prior year 2023 Residential sales (4.1) % General service sales (4.0) % Industrial sales (12.2) % Wholesale power sales (3.7) % Joint dispatch sales (1.1) % Total sales (5.3) % Average number of customers 1.7 % Year Ended December 31, 2023, as compared to 2022 Operating Revenues.

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.

Global Climate Change and Regulation of GHG Emissions In 2021, President Biden recommitted the United States to the Paris Agreement and announced a new target for the United States of 50% to 52% reduction in economywide net GHG emissions from 2005 levels by 2030.

The Duke Energy Registrants cannot predict the outcome of these matters. Global Climate Change and Regulation of GHG Emissions In 2021, President Biden recommitted the United States to the Paris Agreement and announced a new target for the United States of 50% to 52% reduction in economywide net GHG emissions from 2005 levels by 2030.

See Note 7 to the Consolidated Financial Statements, “Debt and Credit Facilities,” for additional discussion of the money pool arrangement. 57 MD&A LIQUIDITY AND CAPITAL RESOURCES 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.

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.

Increase (Decrease) over prior year 2022 Residential deliveries 5.0 % Commercial deliveries 8.5 % Industrial deliveries 1.2 % Power generation deliveries 23.3 % For resale (4.3) % Total throughput deliveries 15.7 % Secondary market volumes 18.9 % Average number of customers 1.4 % The margin decoupling mechanism adjusts for variations in residential and commercial use per customer, including those due to weather and conservation.

Increase (Decrease) over prior year 2023 Residential deliveries (14.3) % Commercial deliveries (9.4) % Industrial deliveries (2.4) % Power generation deliveries (10.0) % For resale (14.9) % Total throughput deliveries (9.3) % Secondary market volumes (26.6) % Average number of customers 1.5 % The margin decoupling mechanism adjusts for variations in residential and commercial use per customer, including those due to weather and conservation.

LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX Years Ended December 31, (in millions) 2022 2021 Variance Loss From Discontinued Operations, net of tax $ (1,323) $ (144) $ (1,179) Year Ended December 31, 2022, as compared to December 31, 2021 The variance was primarily driven by the estimated impairment on the sale of the Commercial Renewables Disposal Groups in the current year. 46 MD&A DUKE ENERGY CAROLINAS 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.

LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX Years Ended December 31, (in millions) 2023 2022 Variance Loss From Discontinued Operations, net of tax $ (1,455) $ (1,323) $ (132) Year Ended December 31, 2023, as compared to 2022 The variance was primarily driven by lower results from Duke Energy's Commercial Renewables Disposal Groups in the current year. 49 MD&A DUKE ENERGY CAROLINAS 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.

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.

Customer creditworthiness is assessed prior to entering into these transactions. Credit concentration related to these transactions exists for certain of these customers. 66 MD&A QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Duke Energy Carolinas has third-party insurance to cover certain losses related to asbestos-related injuries and damages above an aggregate self-insured retention.

Increase (Decrease) over prior year 2022 Residential sales 1.5 % General service sales 3.5 % Industrial sales 6.6 % Wholesale power sales 38.7 % Total sales 8.9 % Average number of customers 1.7 % Year Ended December 31, 2022, as compared to 2021 Operating Revenues.

Increase (Decrease) over prior year 2023 Residential sales 1.1 % General service sales 1.2 % Industrial sales (3.2) % Wholesale power sales (49.3) % Total sales (6.1) % Average number of customers 1.8 % Year Ended December 31, 2023, as compared to 2022 Operating Revenues.

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 bet ween 65% and 75%, bas ed upon adjusted EPS.

Amou nt 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 $12,095 million, with $11,118 million expected to be paid in the next 12 months.

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 $12,286 million, with $11,744 million expected to be paid in the next 12 m onths.

On December 31, 2019, Duke Energy submitted updated groundwater corrective action plans for six sites in North Carolina and site-specific coal ash impoundment closure plans for all 14 North Carolina sites to NCDEQ. In addition, from 2020 through 2023, Duke Energy submitted updated comprehensive site assessments and groundwater corrective action plans for the remaining North Carolina sites.

Future levels of GHG emissions by the Duke Energy Registrants will be influenced by variables that include capacity needs in the jurisdictions in which they operate, public policy, tax incentives, economic conditions that affect electricity demand, 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 renewables, and the existence of new technologies that can be deployed to generate the electricity necessary to meet customer demand. 65 MD&A OTHER MATTERS Currently, the Duke Energy Registrants do not purchase carbon credits or offsets for use in connection with the company's net-zero emissions goals.

Future levels of GHG 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, 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 renewables, and the existence of new technologies that can be deployed to generate the electricity necessary to meet customer demand.

Despite these recent challenges, our regulated generation fleet and nuclear sites had strong performance throughout the year and our electric distribution system performed well. The safety of our workforce is a core value. While our TICR was slightly above target, our employees continued to deliver strong safety results in 2022 and we remain an industry leader in personal safety.

Despite these recent challenges, our regulated generation fleet and nuclear sites had strong performance throughout the year and our electric distribution system performed well. The safety of our workforce is a core value and we remain an industry leader in personal safety.

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 increased the dividend by approximately 2% annually in both 2023 and 2022, and the Company remains committed to continued growth of the dividend. 61 MD&A LIQUIDITY AND CAPITAL RESOURCES 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.

The Duke Energy Registrants have reserved for these estimated losses in the allowance for doubtful account balance. See Notes 4 and 19 to the Consolidated Financial Statements, "Regulatory Matters" and "Revenue," respectively, for more information. Duke Energy Ohio and Duke Energy Indiana sell certain of their accounts receivable and related collections through CRC, a Duke Energy consolidated VIE.

See Notes 4 and 19 to the Consolidated Financial Statements, "Regulatory Matters" and "Revenue," respectively, for more information. Duke Energy Ohio and Duke Energy Indiana sell certain of their accounts receivable and related collections through CRC, a Duke Energy consolidated VIE.

The rule establishes requirements regarding landfill design, structural integrity design and assessment criteria for surface impoundments, groundwater monitoring, protection and remedial procedures and other operational and reporting procedures to ensure the safe disposal and management of CCR. In addition to the requirements of the federal CCR rule, CCR landfills and surface impoundments will continue to be regulated by the states.

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.

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.

Our ability to effectively handle all facets of the 2022 storm response efforts, including navigating ongoing macroeconomic challenges and supply chain constraints, is a testament to our team’s extensive preparation and coordination, applying lessons learned from previous storms, and to on-the-ground management throughout the restoration efforts.

Our ability to effectively handle all facets of the 2023 storm response efforts while making ongoing investments to enhance the reliability and physical security of the grid, mitigate ongoing macroeconomic challenges, and navigate supply chain constraints, is a testament to our team’s extensive preparation and coordination, applying lessons learned from previous storms, and to on-the-ground management throughout the restoration efforts.

Projected 2023 Actual 2022 Actual 2021 Equity 41 % 41 % 43 % Debt 59 % 59 % 57 % Restrictive Debt Covenants Duke Energy’s debt and credit agreements contain various financial and other covenants.

Projected 2024 Actual 2023 Actual 2022 Equity 38 % 39 % 41 % Debt 62 % 61 % 59 % Restrictive Debt Covenants Duke Energy’s debt and credit agreements contain various financial and other covenants.

Years Ended December 31, (in millions) 2022 2021 Cash flows provided by (used in): Operating activities $ 5,927 $ 8,290 Investing activities (11,973) (10,935) Financing activities 6,129 2,609 Net increase (decrease) in cash, cash equivalents and restricted cash 83 (36) Cash, cash equivalents and restricted cash at beginning of period 520 556 Cash, cash equivalents and restricted cash at end of period $ 603 $ 520 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) 2023 2022 Cash flows provided by (used in): Operating activities $ 9,878 $ 5,927 Investing activities (12,475) (11,973) Financing activities 2,351 6,129 Net (decrease) increase in cash, cash equivalents and restricted cash (246) 83 Cash, cash equivalents and restricted cash at beginning of period 603 520 Cash, cash equivalents and restricted cash at end of period $ 357 $ 603 63 MD&A LIQUIDITY AND CAPITAL RESOURCES OPERATING CASH FLOWS The following table summarizes key components of Duke Energy’s operating cash flows for the two most recently completed fiscal years.

As a result, the estimated total cost to permanently close all ash basins in North Carolina and South Carolina was estimated to be approximately $8 billion to $9 billion, of which approximat ely $3.5 billion has been spent through 2022. The majority of the remaining spend is expected to occur over the next 10 to 15 years.

The estimated total cost to permanently close all coal ash basins in North Carolina and South Carolina is estimated to be approximately $7 billion to $8 billion of which approximately $4 billion has been spent through 2023. The majority of the remaining spend is primarily expected to occur over the next 10 years.

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 h ad $9.2 billion of unhedged long- and short-term floating interest rate exposure at December 31, 2022.

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 Energ y had $8.0 billion of unhedged long- and short-term floating interest rate exposure at December 31, 2023.

Increase (Decrease) over prior year 2022 Residential sales (0.4) % General service sales 1.8 % Industrial sales (12.1) % Wholesale power sales 5.4 % Total sales 1.9 % Average number of customers 1.4 % Year Ended December 31, 2022, as compared to 2021 Operating Revenues.

Increase (Decrease) over prior year 2023 Residential sales (6.3) % General service sales (3.6) % Industrial sales 9.0 % Wholesale power sales (1.9) % Total sales (5.5) % Average number of customers 1.2 % 56 MD&A DUKE ENERGY INDIANA Year Ended December 31, 2023, as compared to 2022 Operating Revenues.

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Top changes in Duke Energy CORP's 2023 10-K

Item 1. Business

Item 1A. Risk Factors

Item 2. Properties

Item 5. Market for Registrant's Common Equity

Item 7. Management's Discussion & Analysis

Other DUKB 10-K year-over-year comparisons