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What changed in Duke Energy CORP's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Duke Energy CORP's 2024 and 2025 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 2025 report.

+591 added−536 removedSource: 10-K (2026-02-26) vs 10-K (2025-02-27)

Top changes in Duke Energy CORP's 2025 10-K

591 paragraphs added · 536 removed · 428 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

109 edited+26 added−20 removed86 unchanged
Biggest changeRegulatory Body Revenue Increase (Decrease) (in millions) Return on Equity Equity Component of Capital Structure Effective Date Approved Rate Cases: Duke Energy Indiana 2024 Rate Case IURC $ 385 9.75 % 53 % March 2025 Duke Energy Florida 2024 Rate Case (a) FPSC 203 10.3 % 53 % January 2025 Duke Energy Carolinas 2024 South Carolina Rate Case PSCSC 150 9.94 % 51.21 % August 2024 Duke Energy Carolinas 2023 North Carolina Rate Case (b) NCUC 768 10.1 % 53 % January 2024 Duke Energy Kentucky 2022 Kentucky Electric Rate Case (c) KPSC 48 9.75 % 52.145 % October 2023 Duke Energy Progress 2022 North Carolina Rate Case (d) NCUC 494 9.8 % 53 % October 2023 Duke Energy Progress 2022 South Carolina Rate Case PSCSC 36 9.6 % 52.43 % April 2023 Duke Energy Ohio 2021 Ohio Electric Rate Case PUCO 23 9.5 % 50.5 % January 2023 Duke Energy Florida 2021 Settlement agreement (e) FPSC 195 9.85 % 53 % January 2022 Pending Rate Cases: Duke Energy Kentucky 2024 Kentucky Electric Rate Case KPSC 70 10.85 % 52.728 % July 2025 (a) In Year 2, rates will increase by $59 million.
Biggest changeRegulatory Body Revenue Increase (Decrease) (in millions) Return on Equity Equity Component of Capital Structure Effective Date Approved Rate Cases: Duke Energy Carolinas 2025 South Carolina Rate Case (a) PSCSC $ 19 9.99 % 53 % March 2026 Duke Energy Progress 2025 South Carolina Rate Case (a) PSCSC 40 9.99 % 53 % February 2026 Duke Energy Kentucky 2024 Kentucky Electric Rate Case KPSC 44 9.8 % 52.73 % July 2025 Duke Energy Indiana 2024 Rate Case IURC 385 9.75 % 53 % March 2025 Duke Energy Florida 2024 Rate Case (b) FPSC 262 10.3 % 53 % January 2025 Duke Energy Carolinas 2024 South Carolina Rate Case PSCSC 150 9.94 % 51.21 % August 2024 Duke Energy Carolinas 2023 North Carolina Rate Case (c) NCUC 768 10.1 % 53 % January 2024 Duke Energy Kentucky 2022 Kentucky Electric Rate Case (d) KPSC 48 9.75 % 52.145 % October 2023 Duke Energy Progress 2022 North Carolina Rate Case (e) NCUC 494 9.8 % 53 % October 2023 Duke Energy Progress 2022 South Carolina Rate Case PSCSC 36 9.6 % 52.43 % April 2023 Duke Energy Ohio 2021 Ohio Electric Rate Case PUCO 23 9.5 % 50.5 % January 2023 Pending Rate Cases: Duke Energy Carolinas 2025 North Carolina Rate Case (f) NCUC 1,002 10.95 % 53 % January 2027 Duke Energy Progress 2025 North Carolina Rate Case (a)(f) NCUC 729 10.95 % 53 % January 2027 (a) Revenue increases are net of PTC flow backs to customers.
Owners and/or operators of air emission sources are responsible for obtaining permits and for annual compliance and reporting. • The Clean Water Act, which requires permits for facilities that discharge wastewaters into navigable waters. • The Comprehensive Environmental Response, Compensation and Liability Act, which can require any individual or entity that currently owns or in the past owned or operated a disposal site, as well as transporters or generators of hazardous substances sent to a disposal site, to share in remediation costs. • The National Environmental Policy Act, which requires federal agencies to consider potential environmental impacts in their permitting and licensing decisions, including siting approvals. • The 2015 and 2024 CCR Rules, EP A rules establishing national regulations to provide a comprehensive set of requirements for the management and disposal of CCR from coal-fired power plants. • The Coal Ash Act, as amended, which establishes requirements regarding the use and closure of existing ash basins, the disposal of ash at active coal plants and the handling of surface water and groundwater impacts from ash basins in North Carolina. • The Solid Waste Disposal Act, as amended by RCRA, which creates a framework for the proper management of hazardous and nonhazardous solid waste; classifies CCR as nonhazardous waste; and establishes standards for landfill and surface impoundment placement, design, 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. 20 BUSINESS • The 2015 and 2024 CCR Rules, EP A rules establishing national regulations to provide a comprehensive set of requirements for the management and disposal of CCR from coal-fired power plants. • The Coal Ash Act, as amended, which establishes requirements regarding the use and closure of existing ash basins, the disposal of ash at active coal plants and the handling of surface water and groundwater impacts from ash basins in North Carolina. • The Solid Waste Disposal Act, as amended by RCRA, which creates a framework for the proper management of hazardous and nonhazardous solid waste; classifies CCR as nonhazardous waste; and establishes standards for landfill and surface impoundment placement, design, 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.
The nuclear decommissioning liabilities are assessed and updated based on changes in cash flows provided in new studies as well as annual assessments to evaluate whether any indicators suggest a change in the estimate of the ARO is necessary. The following table summarizes the fair value of NDTF investments and the most recent site-specific nuclear decommissioning cost studies.
The nuclear decommissioning liabilities are assessed and updated based on changes in projected cash flows provided in new studies as well as annual assessments to evaluate whether any indicators suggest a change in the estimate of the ARO is necessary. The following table summarizes the fair value of NDTF investments and the most recent site-specific nuclear decommissioning cost studies.
Factors that could cause EU&I to purchase power for its customers may include, but are not limited to, generating plant outages, extreme weather conditions, generation reliability, demand growth and price. EU&I has interconnections and arrangements with its neighboring utilities to facilitate planning, emergency assistance, sale and purchase of capacity and energy and reliability of power supply.
Factors that could cause EU&I to purchase power for its customers may include, but are not limited to, generating plant outages, extreme weather conditions, generation reliability, demand growth and price. EU&I has interconnections and arrangements with its neighboring utilities to facilitate planning, emergency assistance, sale and purchase of capacity and energy and the reliability of power supply.
Our goals include attracting and retaining the talent needed and rewarding performance to enable us to reach our strategic objectives. In all events all employees are hired or promoted based on merit. Employee-led councils open to all employees are also embedded in departments across the Company and focus on driving engagement, inclusion and belonging deeper into the employee experience.
Our goals include attracting and retaining the talent needed and rewarding performance to enable us to reach our strategic objectives. In all events, all employees are hired or promoted based on merit. Employee-led councils open to all employees are also embedded in departments across the Company and focus on driving engagement and inclusion deeper into the employee experience.
For additional information regarding this business segment, including financial information, see Note 3 to the Consolidated Financial Statements, “Business Segments.” DUKE ENERGY OHIO Duke Energy Ohio is a regulated public utility primarily engaged in the transmission and distribution of electricity in portions of Ohio and Kentucky, in the generation and sale of electricity in portions of Kentucky and the transportation and sale of natural gas in portions of Ohio and Kentucky.
For additional information regarding this business segment, including financial information, see Note 3 to the Consolidated Financial Statements, “Business Segments.” 21 BUSINESS DUKE ENERGY OHIO Duke Energy Ohio is a regulated public utility primarily engaged in the transmission and distribution of electricity in portions of Ohio and Kentucky, in the generation and sale of electricity in portions of Kentucky and the transportation and sale of natural gas in portions of Ohio and Kentucky.
Prior to that, he served as the Chief Generation Officer since 2020, and has held various other roles of increasing responsibility since joining Duke Energy in 1986, including Senior Vice President of Nuclear Operations, Site Vice President and Plant Manager of Oconee Nuclear Station, and Site Operations Manager of Catawba Nuclear Station, among other leadership roles. R.
Prior to that, he served as the Chief Generation Officer since 2020, and has held various other roles of increasing responsibility since joining Duke Energy in 1986, including Senior Vice President of Nuclear Operations, Site Vice President and Plant Manager of Oconee Nuclear Station, and Site Operations Manager of Catawba Nuclear Station, among other leadership roles.
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.
Duke Energy Florida’s service area covers approximately 13,000 square miles and supplies electric service to approximately 2.1 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.
The state utility commissions, to varying degrees, have authority over the construction and operation of EU&I’s generating facilities. CPCNs issued by the state utility commissions, as applicable, authorize EU&I to construct and operate its electric facilities and to sell electricity to retail and wholesale customers.
The state utility commissions, to varying degrees, have authority over the construction and operation of EU&I’s generating facilities. CPCNs and CECPCNs issued by the state utility commissions, as applicable, authorize EU&I to construct and operate its electric facilities and to sell electricity to retail and wholesale customers.
EU&I has entered into fuel contracts that cover 100% of its uranium concentrates through at least 2029, 100% of its conversion services through at least 2034, 100% of its enrichment services through at least 2033, and 100% of its fabrication services requirements for these plants through at least 2027.
EU&I has entered into fuel contracts that cover 100% of its uranium concentrates through at least 2029, 100% of its conversion services through at least 2034, 100% of its enrichment services through at least 2033, and 100% of its fabrication services requirements for these plants through at least 2029.
The current average sulfur content of coal purchased by EU&I is between 0.5% and 3.5% for Duke Energy Carolinas and Duke Energy Progress, between 1.0% and 3.5% for Duke Energy Florida, between 1.5% and 4.0% for Duke Energy Ohio and between 1.0% and 4.0% for Duke Energy Indiana.
The current average sulfur content of coal purchased by EU&I is between 0.5% and 3.8% for Duke Energy Carolinas, between 0.5% and 3.5% for Duke Energy Progress, between 1.3% and 3.5% for Duke Energy Florida, between 1.8% and 3.8% for Duke Energy Ohio and between 0.5% and 4.0% for Duke Energy Indiana.
Prior to that, he served as Executive Vice President, Customer Experience, Solutions and Services from October 2019 to April 2024; Senior Vice President and Chief Distribution Officer from June 2018 to October 2019; State President, Florida from January 2017 to June 2018; Senior Vice President of Environmental Health and Safety from August 2014 to January 2017; and Vice President of Power Generations for the Company's Fossil/Hydro Operations in the western portions of North Carolina and South Carolina from July 2012 to August 2014.
Prior to that, he served as Executive Vice President, Customer Experience, Solutions and Services from October 2019 to April 2024; Senior Vice President and Chief Distribution Officer from June 2018 to October 2019; State President, Florida from January 2017 to June 2018; Senior Vice President of Environmental Health and Safety from August 2014 to January 2017; and Vice President of Power Generation for the Company's Fossil/Hydro Operations in the western portions of North Carolina and South Carolina from July 2012 to August 2014.
As an indication of our commitment to safety, we include safety metrics in both the short-term and long-term incentive plans based on the TICR for employees. Our employees delivered strong safety results in 2024, consistent with our industry-leading performance levels since 2018. Information about Our Executive Officers The following table sets forth the individuals who currently serve as executive officers.
As an indication of our commitment to safety, we include safety metrics in both the short-term and long-term incentive plans based on the TICR for employees. Our employees delivered strong safety results in 2025, consistent with our industry-leading performance levels since 2018. Information about Our Executive Officers The following table sets forth the individuals who currently serve as executive officers.
(b) These agreements include approximately 182 MW of firm capacity for 2024, and 412 MW of firm capacity for 2023 and 2022 under contract by Duke Energy Florida with QFs. 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.
(b) These agreements include approximately 182 MW of firm capacity for 2025 and 2024, and 412 MW of firm capacity for 2023 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 approval from the relevant state utility commission is required for GU&I to issue securities. The underlying concept of utility ratemaking is to set rates at a level that allows the utility to collect revenues equal to its cost of providing service plus a reasonable rate of return on its invested capital, including equity.
Prior approval from the relevant state utility commission is required for the entities within GU&I to issue securities. The underlying concept of utility ratemaking is to set rates at a level that allows the utility to collect revenues equal to its cost of providing service plus a reasonable rate of return on its invested capital, including equity.
Recently passed and potential future environmental statutes and regulations could have a significant impact on the Duke Energy Registrants’ results of operations, cash flows or financial position. However, if and when such statutes and regulations become effective, the Duke Energy Registrants will seek appropriate regulatory recovery of costs to comply within its regulated operations.
Recently passed and potential future environmental statutes and regulations could have a significant impact on the Duke Energy Registrants’ results of operations, cash flows or financial position. However, if and when such statutes and regulations become effective, the Duke Energy Registrants will seek appropriate regulatory recovery of costs to comply within their regulated operations.
Duke Energy Progress’ service area covers approximately 28,000 square miles and supplies electric service to approximately 1.8 million residential, commercial and industrial customers. 21 BUSINESS 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 1.8 million residential, commercial and industrial customers. For information about Duke Energy Progress’ generating facilities, see Item 2, “Properties.” Duke Energy Progress is subject to the regulatory provisions of the NCUC, PSCSC, NRC and FERC.
These regulations classify CCR as nonhazardous waste under RCRA and apply to electric generating sites with new and existing landfills and new and existing surface impoundments and establish requirements regarding design and operating criteria, groundwater monitoring and corrective action, closure requirements and post-closure care, and recordkeeping, notifications, and internet posting requirements for the disposal and management of CCR.
These regulations classify CCR as nonhazardous waste under RCRA and apply to electric generating sites with landfills and surface impoundments and establish requirements regarding design and operating criteria, groundwater monitoring and corrective action, closure requirements and post-closure care, and recordkeeping, notifications, and internet posting requirements for the disposal and management of CCR.
ELECTRIC UTILITIES AND INFRASTRUCTURE EU&I conducts operations primarily through the regulated public utilities of Duke Energy Carolinas, Duke Energy Progress, Duke Energy Florida, Duke Energy Indiana and Duke Energy Ohio. EU&I provides retail electric service through the generation, transmission, distribution and sale of electricity to approximately 8.6 million customers within the Southeast and Midwest regions of the U.S.
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 8.7 million customers within the Southeast and Midwest regions of the U.S.
Weather normalization adjustments occur from November through March in South Carolina, from October through April in Tennessee and from November through April in Kentucky. Duke Energy Ohio collects most of its non-fuel revenue through a fixed monthly charge that is not impacted by usage fluctuations that result from weather changes or conservation.
Weather normalization adjustments occur from November through March in South Carolina, from October through April in Tennessee and from November through April in Kentucky. Duke Energy Ohio collects most of its non-fuel revenue through a fixed monthly charge that is not impacted by usage fluctuations resulting from weather changes or conservation.
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.
Duke Energy Ohio is subject to the regulatory provisions of the PUCO, KPSC, PHMSA and FERC. Duke Energy Ohio’s service area covers approximately 3,000 square miles and supplies electric service to approximately 920,000 residential, commercial and industrial customers and provides transmission and distribution services for natural gas to approximately 560,000 customers.
Duke Energy Ohio is subject to the regulatory provisions of the PUCO, KPSC, PHMSA and FERC. Duke Energy Ohio’s service area covers approximately 3,000 square miles and supplies electric service to approximately 920,000 residential, commercial and industrial customers and provides transmission and distribution services for natural gas to approximately 565,000 customers.
Duke Energy Indiana’s service area covers approximately 23,000 square miles and supplies electric service to approximately 920,000 residential, commercial and industrial customers. For information about Duke Energy 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 930,000 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.
Ghartey-Tagoe joined Duke Energy in 2002 and has held numerous leadership positions in Duke Energy’s Legal Department, including Duke Energy's Senior Vice President of State and Federal Regulatory Legal Support. T. Preston Gillespie 62 Executive Vice President, Chief Generation Officer and Enterprise Operational Excellence. Mr.
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 63 Executive Vice President, Chief Generation Officer and Enterprise Operational Excellence. Mr.
Additionally, Duke Energy Carolinas' and Duke Energy Progress’ wholesale contracts were amended to include the recovery of expenditures related to AROs for the closure of coal ash basins. The amended contracts have retail disallowance parity or provisions limiting challenges to CCR cost recovery actions at FERC.
Additionally, Duke Energy Carolinas' and Duke Energy Progress’ wholesale contracts include the recovery of expenditures related to AROs for the closure of coal ash basins. The contracts have retail disallowance parity or provisions limiting challenges to CCR cost recovery actions at FERC.
Wholesale energy sales will be impacted by the extent to which additional generation is available to sell to the wholesale market and the ability of EU&I to attract new customers and to retain existing customers. Energy Capacity and Resources EU&I owns approximately 55,139 MW of generation capacity.
Wholesale energy sales will be impacted by the extent to which additional generation is available to sell to the wholesale market and the ability of EU&I to attract new customers and to retain existing customers. Energy Capacity and Resources EU&I owns approximately 55,713 MW of generation capacity.
In 2024, firm supply purchase commitment agreements provided for approximately 100% of the natural gas supply for both Piedmont and Duke Energy Ohio during the winter months and 100% of forecasted demand was under contract prior to the winter heating season.
In 2025, firm supply purchase commitment agreements provided for approximately 100% of the natural gas supply for both Piedmont and Duke Energy Ohio during the winter months and 100% of forecasted demand was under contract prior to the winter heating season.
Unit Year of Expiration Duke Energy Carolinas Catawba Units 1 and 2 2043 McGuire Unit 1 2041 McGuire Unit 2 2043 Oconee Units 1 and 2 2033 Oconee Unit 3 2034 Duke Energy Progress Brunswick Unit 1 2036 Brunswick Unit 2 2034 Harris 2046 Robinson 2030 The NRC has acknowledged permanent cessation of operation and permanent removal of fuel from the reactor vessel at Crystal River Unit 3.
Unit Year of Expiration Duke Energy Carolinas Catawba Units 1 and 2 2043 McGuire Unit 1 2041 McGuire Unit 2 2043 Oconee Units 1 and 2 2053 Oconee Unit 3 2054 Duke Energy Progress Brunswick Unit 1 2036 Brunswick Unit 2 2034 Harris 2046 Robinson 2030 The NRC has acknowledged permanent cessation of operation and permanent removal of fuel from the reactor vessel at Crystal River Unit 3.
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.
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 3 million residential, commercial and industrial customers.
The Price-Anderson Act requires plant owners to provide for public nuclear liability claims resulting from nuclear incidents to the maximum total financial protection liability, which is approximately $16.2 billion.
The Price-Anderson Act requires plant owners to provide for public nuclear liability claims resulting from nuclear incidents to the maximum total financial protection liability, which is approximately $16.3 billion.
This could result in slow or no customer growth for GU&I and could cause customers to reduce or cease using natural gas, thereby reducing GU&I's ability to make capital expenditures and otherwise grow its business, adversely affecting its earnings. Natural Gas Investments Duke Energy, through its GU&I segment, has a 7.5% equity ownership interest in Sabal Trail.
This could result in slow or no customer growth for GU&I and could cause customers to reduce or cease using natural gas, thereby reducing GU&I's ability to make capital expenditures and otherwise grow its business, adversely affecting its earnings. Natural Gas Investments Duke Energy has a 7.5% equity ownership interest in Sabal Trail reported within the GU&I segment.
GU&I has a 21.49% equity ownership interest in Cardinal, an intrastate pipeline located in North Carolina regulated by the NCUC, a 45% equity ownership in Pine Needle, an interstate liquefied natural gas storage facility located in North Carolina and a 50% equity ownership interest in Hardy Storage, an underground interstate natural gas storage facility located in Hardy and Hampshire counties in West Virginia.
Piedmont has a 21.49% equity ownership interest in Cardinal, an intrastate pipeline located in North Carolina and regulated by the NCUC, a 45% equity ownership in Pine Needle, an interstate liquefied natural gas storage facility located in North Carolina and a 50% equity ownership interest in Hardy Storage, an underground interstate natural gas storage facility located in Hardy and Hampshire counties in West Virginia.
The following table represents the distribution of GWh billed sales by customer class for the year ended December 31, 2024.
The following table represents the distribution of GWh billed sales by customer class for the year ended December 31, 2025.
Prior to that, he served as Senior Vice President and Chief Distribution Officer from November 2019 to March 2024; Regional Senior Vice President of Customer Delivery in North Carolina and South Carolina from October 2018 to November 2019; Senior Vice President of Nuclear Operations in South Carolina from September 2016 to October 2018; and various other roles of increasing responsibility since joining the Corporation in 1985.
Prior to that, he served as Senior Vice President and Chief Power Grid Officer from March 2024 to September 2025; Senior Vice President and Chief Distribution Officer from November 2019 to March 2024; Regional Senior Vice President of Customer Delivery in North Carolina and South Carolina from October 2018 to November 2019; Senior Vice President of Nuclear Operations in South Carolina from September 2016 to October 2018; and various other roles of increasing responsibility since joining the Company in 1985.
Prior to that, he served as Senior Vice President and President of the Corporation's natural gas business from October 2019 until April 2024; Senior Vice President and Chief Commercial Officer of the Corporation's natural gas business from November 2018 until October 2019; Senior Vice President of both Customer and Market Solutions from August 2014 until November 2019; and various other roles of increasing responsibility since joining the Corporation in 1999.
Prior to that, he served as Senior Vice President and Chief Customer Officer from April 2024 to September 2025; Senior Vice President and President of the Corporation's natural gas business from October 2019 to April 2024; Senior Vice President and Chief Commercial Officer of the Corporation's natural gas business from November 2018 to October 2019; Senior Vice President of both Customer and Market Solutions from August 2014 to November 2019; and various other roles of increasing responsibility since joining the Company in 1999.
The following table lists sources of electricity and fuel costs for the three years ended December 31, 2024.
The following table lists sources of electricity and fuel costs for the three years ended December 31, 2025.
Expiration dates for its long-term contracts, which may have various price adjustment provisions and market reopeners, range from 2025 to 2029 for Duke Energy Carolinas and Duke Energy Progress, 2025 to 2028 for Duke Energy Florida, 2025 to 2027 for Duke Energy Ohio and 2025 to 2030 for Duke Energy Indiana.
Expiration dates for its long-term contracts, which may have various price adjustment provisions and market reopeners, range from 2026 to 2030 for Duke Energy Carolinas, Duke Energy Progress and Duke Energy Indiana, and 2026 to 2028 for Duke Energy Florida and Duke Energy Ohio.
For additional information on each of these business segments, including financial and geographic information, see Note 3 to the Consolidated Financial Statements, “Business Segments.” The following sections describe the business and operations of each of Duke Energy’s business segments, as well as Other.
For additional information on these business segments, including financial and geographic information, see Note 3 to the Consolidated Financial Statements, “Business Segments.” The following sections describe the business and operations for the Duke Energy business segments, as well as Other.
(a) The ages of the officers provided are as of January 31, 2025. 20 BUSINESS There are no family relationships between any of the executive officers, nor any arrangement or understanding between any executive officer and any other person involved in officer selection.
(a) The ages of the officers provided are as of January 31, 2026. There are no family relationships between any of the executive officers, nor any arrangement or understanding between any executive officer and any other person involved in officer selection.
As of December 31, 2024, the inventory balance for EU&I was approximately $4.4 billion. For additional information on inventory, see Note 1 to the Consolidated Financial Statements, “Summary of Significant Accounting Policies.” Ash Basin Management The EPA has issued regulations related to the management of CCR from power plants, including the 2015 and 2024 CCR Rules.
As of December 31, 2025, the inventory balance for EU&I was approximately $4.4 billion. For additional information on inventory, see Note 1 to the Consolidated Financial Statements, “Summary of Significant Accounting Policies.” Ash Basin Management The EPA has issued regulations related to the management of CCR from power plants.
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.
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.
Cost of Delivered Fuel per Net Generation by Source Kilowatt-hour Generated (Cents) 2024 2023 2022 2024 2023 2022 Natural gas and fuel oil (a) 34.7 % 33.3 % 34.2 % 3.39 3.81 6.35 Nuclear (a) 27.5 % 28.4 % 26.6 % 0.58 0.58 0.58 Coal (a) 14.1 % 12.8 % 13.5 % 4.09 4.07 3.43 All fuels (cost based on weighted average) (a) 76.3 % 74.5 % 74.3 % 2.51 2.63 3.75 Hydroelectric and solar (b) 1.9 % 1.8 % 1.5 % Total generation 78.2 % 76.3 % 75.8 % Purchased power and net interchange 21.8 % 23.7 % 24.2 % Total sources of energy 100.0 % 100.0 % 100.0 % (a) Statistics related to all fuels reflect EU&I's public utility ownership interest in jointly owned generation facilities.
Cost of Delivered Fuel per Net Generation by Source Kilowatt-hour Generated (Cents) 2025 2024 2023 2025 2024 2023 Natural gas and fuel oil (a) 33.5 % 34.7 % 33.3 % 3.95 3.39 3.81 Nuclear (a) 27.5 % 27.5 % 28.4 % 0.58 0.58 0.58 Coal (a) 14.5 % 14.1 % 12.8 % 4.19 4.09 4.07 All fuels (cost based on weighted average) (a) 75.5 % 76.3 % 74.5 % 2.83 2.51 2.63 Hydroelectric and solar (b) 2.0 % 1.9 % 1.8 % Total generation 77.5 % 78.2 % 76.3 % Purchased power and net interchange 22.5 % 21.8 % 23.7 % 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.
Weather-normal sales volumes have shown growth in 2024 compared to 2023 due primarily to strong residential customer growth and strength in the commercial sector including data center usage. Industrial sales remained soft due to overall weakness across the class, including some manufacturing plant closings in certain jurisdictions, impacts of continued high interest rates, and difficulty hiring qualified labor.
Weather-normal sales volumes have shown growth in 2025 compared to 2024 due primarily to continued residential customer growth and strength in the commercial sector including data center usage. Industrial sales remained soft due to overall weakness across the class, including some manufacturing plant closings in certain jurisdictions and impacts of continued high interest rates.
The Company closely monitors the total incident case rate (TICR), which is a metric based on strict OSHA definitions that measures the number of occupational injuries and illnesses per 100 employees. This objective emphasizes our focus on achieving an event-free and injury-free workplace.
As such, the safety of our workforce remains our top priority. The Company closely monitors the total incident case rate (TICR), which is a metric based on strict OSHA definitions that measures the number of occupational injuries and illnesses per 100 employees. This objective emphasizes our focus on achieving an event-free and injury-free workplace.
For additional information regarding this business segment, including financial information, see Note 3 to the Consolidated Financial Statements, “Business Segments.” PROGRESS ENERGY Progress Energy is a public utility holding company primarily engaged in the regulated electric utility business and is subject to regulation by the FERC.
For additional information regarding this business segment, including financial information, see Note 3 to the Consolidated Financial Statements, “Business Segments.” PROGRESS ENERGY Progress Energy is a public utility holding company primarily engaged in the regulated electric utility business and is subject to regulation by the FERC. Progress Energy conducts operations through its subsidiaries, Duke Energy Progress and Duke Energy Florida.
Duke Energy Ohio has two reportable segments, EU&I and GU&I. For additional information on these business segments, including financial information, see Note 3 to the Consolidated Financial Statements, “Business Segments.” DUKE ENERGY INDIANA Duke Energy Indiana is a regulated public utility primarily engaged in the generation, transmission, distribution and sale of electricity in portions of Indiana.
For additional information on these business segments, including financial information, see Note 3 to the Consolidated Financial Statements, “Business Segments.” DUKE ENERGY INDIANA Duke Energy Indiana is a regulated public utility primarily engaged in the generation, transmission, distribution and sale of electricity in portions of Indiana.
EU&I may purchase additional shorter-term natural gas transportation and utilize natural gas interruptible transportation agreements to support generation needed for load requirements. The EU&I natural gas plants are served by various supply zones and multiple pipelines.
EU&I has firm interstate and intrastate natural gas transportation agreements and storage agreements in place to support generation needed for load requirements. EU&I may purchase additional shorter-term natural gas transportation and utilize natural gas interruptible transportation agreements to support generation needed for load requirements. The EU&I natural gas plants are served by various supply zones and multiple pipelines.
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.
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 regulations under development and potential impacts such legislation and regulation could have on Duke Energy’s operations. OTHER The remainder of Duke Energy’s operations is presented as Other.
Prior to that, he served as Senior Vice President, External Affairs and Communications from May 2021 to March 2023; Senior Vice President of Federal Government and Corporate Affairs from October 2019 to May 2021; and Vice President, Federal Government Affairs and Strategic Policy from March 2017 to October 2019 since joining the Company in 2017. Before joining Duke Energy, Mr.
Prior to that, he served as Executive Vice President and Chief Corporate Affairs Officer from March 2023 to July 2025; Senior Vice President, External Affairs and Communications from May 2021 to March 2023; Senior Vice President of Federal Government and Corporate Affairs from October 2019 to May 2021; and Vice President, Federal Government Affairs and Strategic Policy from March 2017 to October 2019 since joining the Company in 2017.
The following map shows the service territory for GU&I as of December 31, 2024. 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 for GU&I as of December 31, 2025. 15 BUSINESS The number of residential, commercial and industrial customers within the remaining GU&I service territory after the planned sale of Piedmont's Tennessee business is expected to increase over time.
In addition to the federal regulations, CCR landfills and surface impoundments (ash basins or impoundments) will continue to be regulated by existing state laws, regulations and permits, such as the North Carolina Coal Ash Management Act of 2014 (Coal Ash Act). EU&I has and will periodically submit to applicable authorities required site-specific coal ash impoundment remediation or closure plans.
In addition to the federal regulations, CCR landfills and surface impoundments (ash basins or impoundments) will continue to be regulated by existing state laws, regulations and permits, such as the Coal Ash Act. EU&I periodically submits site-specific remediation and closure plans for its coal ash impoundments to the applicable authorities as required.
These regulations affect the activities of nonregulated affiliates with EU&I. RTOs PJM and MISO are the ISOs and FERC-approved RTOs for the regions in which Duke Energy Ohio and Duke Energy Indiana operate. PJM and MISO operate energy, capacity and other markets, and control the day-to-day operations of bulk power systems through central dispatch.
RTOs PJM and MISO are the ISOs and FERC-approved RTOs for the regions in which Duke Energy Ohio and Duke Energy Indiana operate, respectively. PJM and MISO operate energy, capacity and other markets, and control the day-to-day operations of bulk power systems through central dispatch.
However, delays between the expenditure for natural gas and recovery from customers can adversely impact the timing of cash flows of GU&I.
However, delays between the expenditure for fuel costs and recovery from customers can adversely impact the timing of cash flows of EU&I.
Leaders and individual contributors also have the opportunity to participate in voluntary training and facilitated conversations on insightful topics offered to further our commitment to building and enabling an inclusive work environment. The Company also has 10 Employee Resource Groups (ERGs) open to all employees, with 38 chapters and more than 6,800 employees participating.
Leaders and individual contributors also have the opportunity to voluntarily participate in virtual webinars and facilitated in-person conversations on insightful topics offered to further our commitment to building and enabling an inclusive work environment. The Company also has eleven Employee Resource Groups (ERGs) open to all employees, with 40 chapters and more than 7,000 employees participating.
The 2015 and 2024 EPA CCR Rules and the Coal Ash Act leave the decision on cost recovery determinations related to closure of coal ash surface impoundments to the normal ratemaking processes before utility regulatory commissions. Duke Energy's electric utilities have included compliance costs associated with federal and state requirements in their respective rate proceedings.
Cost recovery determinations for the closure of coal ash surface impoundments remain subject to the normal ratemaking processes before utility regulatory commissions. Duke Energy's electric utilities have included compliance costs associated with federal and state requirements in their respective rate proceedings.
EU&I earns retail margin in Ohio on the transmission and distribution of electricity, but not on the cost of the underlying energy. Competition in the regulated electric distribution business is primarily from the development and deployment of alternative energy sources including on-site generation from industrial customers and distributed generation, such as private solar, at residential, commercial and/or industrial customer sites.
Competition in the regulated electric distribution business is primarily from the development and deployment of alternative energy sources including on-site generation from commercial or industrial customers and distributed generation, such as private solar, at residential, commercial and/or industrial customer sites.
The following table summarizes purchased power for the previous three years: 2024 2023 2022 Purchase obligations and leases (in millions of MWh) (a) 32.1 37.6 41.2 Purchase capacity under contract (in MW) (b) 3,202 3,997 4,028 (a) Represents approximately 12% of total system requirements for 2024, 15% for 2023 and 16% for 2022.
The following table summarizes purchased power for the previous three years: 2025 2024 2023 Purchase obligations and leases (in millions of MWh) (a) 34 32 38 Purchase capacity under contract (in MW) (b) 3,132 3,202 3,997 (a) Represents approximately 13% of total system requirements for 2025, 12% for 2024 and 15% for 2023.
Prior to that, he served as Senior Vice President and Chief Executive Officer, Duke Energy Florida and Midwest from May 2021 to March 2023; Senior Vice President, State and Federal Regulatory Legal Support from 2017 to May 2021; and State President of Duke Energy Florida's operations from 2012 to 2017. Julia S.
Prior to that, he served as Executive Vice President and Chief Executive Officer, Duke Energy Florida and Midwest from March 2023 to July 2025; Senior Vice President and Chief Executive Officer, Duke Energy Florida and Midwest from May 2021 to March 2023; Senior Vice President, State and Federal Regulatory Legal Support from 2017 to May 2021; and State President of Duke Energy Florida's operations from 2012 to 2017. 19 BUSINESS Kelvin Henderson 61 Senior Vice President, Chief Generation Officer and Enterprise Operational Excellence.
Prior to that, she served as Senior Vice President and Chief Information Officer from March 2020 through March 2024; and Vice President and Chief Information Officer from June 2019 through February 2020 since joining the Corporation in June 2019. Alexander J. "Sasha" Weintraub 54 Senior Vice President and Chief Customer Officer. Mr.
Prior to that, she served as Senior Vice President and Chief Administrative Officer from April 2024 to September 2025; Senior Vice President and Chief Information Officer from March 2020 through March 2024; and Vice President and Chief Information Officer from June 2019 through February 2020 since joining the Company in June 2019. Alexander J.
Higher natural gas costs or decreases in the price of other energy sources may allow competition from alternative energy sources for applications that have traditionally used natural gas, encouraging some customers to move away from natural gas-fired equipment to equipment fueled by other energy sources.
Higher natural gas costs or decreases in the price of other energy sources may result in more competition from alternative energy sources for applications that have traditionally used natural gas. Certain customers may choose equipment fueled by energy sources other than natural gas.
Regulatory Body Revenue Increase (Decrease) (in millions) Return on Equity Equity Component of Capital Structure Effective Date Approved Rate Cases: Piedmont 2024 North Carolina Rate Case (a) NCUC $ 88 9.8 % 52.30 % November 2024 Duke Energy Ohio 2022 Natural Gas Base Rate Case PUCO 32 9.6 % 52.32 % November 2023 Duke Energy Kentucky 2021 Natural Gas Base Rate Case (b) KPSC 9 9.375 % 51.344 % January 2022 (a) Year 2 and thereafter will include an additional $10 million in revenues.
Regulatory Body Revenue Increase (Decrease) (in millions) Return on Equity Equity Component of Capital Structure Effective Date Approved Rate Cases: Duke Energy Kentucky 2025 Natural Gas Base Rate Case (a) KPSC $ 22 9.8 % 52.649 % January 2026 Piedmont 2024 North Carolina Rate Case (b) NCUC 88 9.8 % 52.30 % November 2024 Duke Energy Ohio 2022 Natural Gas Base Rate Case PUCO 32 9.6 % 52.32 % November 2023 (a) An ROE of 9.7% for natural gas riders was approved.
Rate increases for new solar investments were also approved along with the 10.3% ROE midpoint. For more details, see Note 4 to the Consolidated Financial Statements, “Regulatory Matters.” (b) Of the total rate case increase, Year 1, 2 and 3 rates are approximately 57%, 22% and 21%, respectively. (c) An ROE of 9.65% for electric riders was approved.
For more detail, see Note 4 to the Consolidated Financial Statements, “Regulatory Matters.” (c) Rate increases in years 1, 2 and 3 of the MYRP are approximately 57%, 22% and 21% of the total increase, respectively. (d) An ROE of 9.65% for electric riders was approved.
GU&I serves residential, commercial, industrial and power generation natural gas customers, including customers served by municipalities who are wholesale customers. GU&I has over 1.7 million total customers, including approximately 1.2 million customers located in North Carolina, South Carolina and Tennessee, and an additional 560,000 customers located within southwestern Ohio and northern Kentucky.
GU&I serves residential, commercial, industrial and power generation natural gas customers, including customers served by municipalities who are wholesale customers. GU&I has approximately 1.8 million total customers, including 1 million customers in the Carolinas, 205,000 customers in Tennessee and 565,000 customers in southwestern Ohio and northern Kentucky.
(b) An ROE of 9.3% for natural gas riders was approved. For more information on rate matters and other regulatory proceedings, see Note 4 to the Consolidated Financial Statements, “Regulatory Matters.” Federal GU&I is subject to various federal regulations, including regulations that are particular to the natural gas industry.
(b) Year 2 and thereafter will include an additional $10 million in revenues. For more information on rate matters and other regulatory proceedings, see Note 4 to the Consolidated Financial Statements, “Regulatory Matters.” 17 BUSINESS Federal GU&I is subject to various federal regulations, including regulations that are particular to the natural gas industry.
Scott L. Batson 62 Senior Vice President and Chief Power Grid Officer. Mr. Batson has served as Senior Vice President and Chief Power Grid Officer since March 2024.
Scott L. Batson 63 Executive Vice President and Chief Power Grid Officer. Mr. Batson has served as Executive Vice President and Chief Power Grid Officer since September 2025.
Prior to that, she served as Vice President, Chief Accounting Officer and Controller from May 2021 to November 2024; Director of Investor Relations from June 2019 to May 2021; and in various roles within the Corporate Controller's organization after joining the Corporation and its affiliates in 2002. Louis E. Renjel 51 Executive Vice President and Chief Corporate Affairs Officer. Mr.
Prior to that, she served as Vice President, Chief Accounting Officer and Controller from May 2021 to November 2024; Director of Investor Relations from June 2019 to May 2021; and in various roles within the Corporate Controller's organization since joining the Company in 2002. On December 12, 2025, the Company announced that Ms.
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.
Delays between expenditures and cost recovery for restoration and rebuild activities after significant storms can also adversely impact the timing of cash flows of EU&I. 14 BUSINESS The table below reflects significant approved electric rate case applications in the past three years as well as applications pending approval.
Our Board of Directors provides oversight on certain human capital management matters, primarily through the Compensation and People Development Committee, which is responsible for reviewing strategies and policies related to human capital management, including employee engagement and talent development. 18 BUSINESS Employees On December 31, 2024, Duke Energy had a total of 26,413 full-time, part-time and temporary employees, the majority of which were full-time employees.
Our Board of Directors provides oversight on certain human capital management matters, primarily through the Compensation and People Development Committee, which is responsible for reviewing strategies and policies related to human capital management, including employee engagement and talent development.
Crystal River Unit 3 ceased operation in 2013 and was placed in a SAFSTOR condition in January 2018. As of January 2018, all spent fuel at Crystal River Unit 3 has been transferred from the spent fuel pool to dry storage at an on-site independent spent fuel storage installation.
As of January 2018, Crystal River Unit 3 had transferred all of its spent fuel from the spent fuel pool to dry storage at an on-site independent spent fuel storage installation.
As of December 31, 2024, the inventory balance for GU&I was $95 million. For more information on inventory, see Note 1 to the Consolidated Financial Statements, "Summary of Significant Accounting Policies." Regulation State The state utility commissions approve rates for Duke Energy's retail natural gas service within their respective states.
For more information on inventory and the sale of Piedmont's Tennessee Business, see Notes 1 and 2 to the Consolidated Financial Statements, "Summary of Significant Accounting Policies" and "Dispositions," respectively. Regulation State The state utility commissions approve rates for Duke Energy's retail natural gas service within their respective states.
The NCUC, PSCSC, FPSC and FERC have allowed EU&I to recover estimated decommissioning costs through retail and wholesale rates over the expected remaining service periods of their nuclear stations. EU&I believes the decommissioning costs being recovered through rates, when coupled with the existing fund balances and expected fund earnings, will be sufficient to provide for the cost of future decommissioning.
EU&I believes the decommissioning costs being recovered through rates, when coupled with the existing fund balances and expected fund earnings, will be sufficient to provide for the cost of future decommissioning.
Our compensation program is market driven and designed to link pay to performance with the goal of attracting and retaining talented employees, rewarding individual performance, and encouraging long-term commitment to our business. Our market competitive pay program includes short-term and long-term variable pay components that help to align the interests of Duke Energy to our customers and shareholders.
Our compensation program is market driven and designed to link pay to individual and company performance and encourage long-term commitment to our business. Our market competitive pay programs include short-term and long-term incentive pay components to align the interests of Duke Energy to our customers and shareholders.
See Notes 4, 13 and 18 to the Consolidated Financial Statements, "Regulatory Matters," "Investments in Unconsolidated Affiliates" and "Variable Interest Entities," respectively, for further information on Duke Energy's and GU&I's natural gas investments. Inventory GU&I must maintain adequate natural gas inventory in order to provide reliable delivery to customers.
Pine Needle and Hardy Storage are regulated by FERC. These investments are reported in the GU&I segment. See Notes 4, 13 and 18 to the Consolidated Financial Statements, "Regulatory Matters," "Investments in Unconsolidated Affiliates" and "Variable Interest Entities," respectively, for further information on Duke Energy's and GU&I's natural gas investments.
The following map shows the service territory for EU&I as of December 31, 2024. 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 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.
Kodwo Ghartey-Tagoe 61 Executive Vice President, Chief Legal Officer and Corporate Secretary. Mr. Ghartey-Tagoe has served as Executive Vice President, Chief Legal Officer and Corporate Secretary since May 2020. He was appointed Executive Vice President and Chief Legal Officer in October 2019 after serving as President, South Carolina since 2017. Mr.
Prior to that, he served as Executive Vice President, Chief Legal Officer since October 2019 and Corporate Secretary since May 2020, prior to which he served as President, South Carolina since 2017. Mr.
In 2021, Duke Energy executed an agreement providing for an investment in Duke Energy Indiana by GIC. The transaction was completed following two closings. For additional information, see Note 2 to the Consolidated Financial Statements, "Dispositions." Substantially all of Duke Energy Indiana’s operations are regulated and qualify for regulatory accounting. Duke Energy Indiana operates one reportable business segment, EU&I.
For additional information, see Note 2 to the Consolidated Financial Statements, "Dispositions." Substantially all of Progress Energy’s operations are regulated and qualify for regulatory accounting. Progress Energy operates one reportable business segment, EU&I.
Duke Duke Duke Duke Duke Energy Energy Energy Energy Energy Carolinas Progress Florida Ohio Indiana Residential 33 % 27 % 50 % 37 % 29 % Commercial 33 % 22 % 36 % 39 % 26 % Industrial 22 % 14 % 7 % 22 % 30 % Total retail sales 88 % 63 % 93 % 98 % 85 % Wholesale and other sales 12 % 37 % 7 % 2 % 15 % Total sales 100 % 100 % 100 % 100 % 100 % The number of retail customers within the EU&I service territory is expected to increase over time.
Duke Duke Duke Duke Duke Energy Energy Energy Energy Energy Carolinas Progress Florida Ohio Indiana Residential 33 % 27 % 51 % 38 % 30 % Commercial 33 % 22 % 37 % 40 % 27 % Industrial 21 % 13 % 8 % 19 % 28 % Total retail sales 87 % 62 % 96 % 97 % 85 % Wholesale and other sales 13 % 38 % 4 % 3 % 15 % Total sales 100 % 100 % 100 % 100 % 100 % The number of retail customers within the EU&I service territory is expected to increase over time.
Alexander Glenn 59 Executive Vice President and Chief Executive Officer, Duke Energy Florida and Midwest. Mr. Glenn has served as Executive Vice President and Chief Executive Officer, Duke Energy Florida and Midwest since March 2023.
Renjel 52 Executive Vice President, Chief Executive Officer, Duke Energy Florida and Midwest and Chief Corporate Affairs Officer. Mr. Renjel has served as Executive Vice President and Chief Executive Officer, Duke Energy Florida and Midwest and Chief Corporate Affairs Officer since July 2025.
In addition to competitive base pay, we provide eligible employees with compensation and benefits under a variety of plans and programs, including health care benefits, retirement savings, pension, health savings and flexible spending accounts, wellness, family leaves, employee assistance, as well as other benefits including a charitable matching donation program.
In addition to pay, we provide eligible employees with benefits under a variety of plans and programs, including health care and retirement benefits, health savings and flexible spending accounts, wellness, family leaves, employee assistance, as well as other benefits including a charitable matching donation program. 18 BUSINESS Duke Energy is committed to continuing to build a workforce that reflects the communities we serve while strengthening a culture of inclusion where all employees and customers feel respected and valued.
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.
Also see the “Other Matters” section of Item 7 Management's Discussion and Analysis for a discussion about regulations under development and potential impacts that such legislation and regulation could have on Duke Energy’s operations. GAS UTILITIES AND INFRASTRUCTURE GU&I conducts natural gas operations primarily through the regulated public utilities of Piedmont, Duke Energy Ohio and Duke Energy Kentucky.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeFactors that could impact sales volumes, generation of electricity and market prices at which the Duke Energy Registrants are able to sell electricity and natural gas are as follows: • weather conditions, including extreme winter or summer weather that could cause significantly lower or higher demand for energy or natural gas usage for heating or cooling purposes, as applicable, storm-related customer outages resulting in lower usage, or periods of low rainfall that decrease the ability to operate facilities in an economical manner; • supply of and demand for energy commodities, including potential usage of electricity by data centers; • transmission or transportation constraints or inefficiencies; • availability of purchased power; • availability of competitively priced alternative energy sources, which are preferred by some customers over electricity produced from coal, 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. 25 RISK FACTORS Natural disasters or operational accidents may adversely affect the Duke Energy Registrants’ operating results, financial position or cash flows.
Biggest changeFactors 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 include the following: • weather variability such as extreme seasonal conditions, storm-related outages, or drought impacting generation economics; • transmission or transportation constraints, purchased power availability and competitive alternative energy sources; • customer-owned generation, energy efficiency adoption and technological advances reducing demand; and • fuel procurement challenges for coal, natural gas, crude oil and uranium and capacity limitations for transmission services.
Federal and state regulations, laws, commercialization and reduction of costs and other efforts designed to promote and expand the use of EE measures and distributed generation technologies, such as private solar and battery storage, in Duke Energy service territories could reduce recovery of fixed costs in Duke Energy service territories or result in customers leaving the electric distribution system and an increase in customer net energy metering, which allows customers with private solar to receive bill credits for surplus power up to the full retail credit amount.
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 or an increase in customer net energy metering, which allows customers with private solar to receive bill credits for surplus power up to the full retail credit amount.
There can be no assurance that laws, regulations and policies, including tax incentives and credits, will not be changed in ways that result in material modifications of business models and objectives or affect returns on investment by restricting activities and products, subjecting them to escalating costs, causing delays, or prohibiting them outright, which could have a material effect on the Duke Energy Registrants' results of operations, financial position and cash flows.
There can be no assurance that laws, regulations and policies, including tax incentives and credits, will not be changed in ways that result in material modifications of business models and objectives or affect returns on investment by restricting activities and products, subjecting them to escalating costs, causing delays, or prohibiting them outright, which could have a material effect on the Duke Energy Registrants' results of operations, financial position or 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.
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 or cash flows.
The reputation and financial condition of the Duke Energy Registrants could be negatively impacted due to their obligations to comply with federal and state regulations, laws, and other legal requirements that govern the operations, assessments, storage, closure, remediation, disposal and monitoring relating to CCR, the high costs and new rate impacts associated with implementing these new CCR-related requirements and the strategies and methods necessary to implement these requirements in compliance with these legal obligations.
The reputation and financial condition of the Duke Energy Registrants could be negatively impacted due to their obligations to comply with federal and state regulations, laws, and other legal requirements that govern the operations, assessments, storage, closure, remediation, disposal and monitoring relating to CCR, the high costs and new rate impacts associated with implementing new CCR-related requirements and the strategies and methods necessary to implement these requirements in compliance with these legal obligations.
Failure to meet these increasing expectations or to adequately address the risks and external pressures from regulators, customers, investors and other stakeholders may impact Duke Energy’s reputation and affect its ability to achieve favorable outcomes in future rate cases and the results of operations for the Duke Energy Registrants.
Failure to meet these increasing expectations or to adequately address the risks and external pressures from regulators, customers, investors and other stakeholders may impact Duke Energy’s reputation, affect its ability to achieve favorable outcomes in future rate cases or impact the results of operations for the Duke Energy Registrants.
Furthermore, destruction caused by severe weather events, such as hurricanes, flooding, tornadoes, severe thunderstorms, snow and ice storms, droughts, extreme temperatures, and wild fires, including from climate change, can result in lost operating revenues due to outages, property damage or total loss, including downed transmission and distribution lines, personal injury, reputational harm, and additional and unexpected expenses to mitigate storm damage, including incremental financing costs.
Furthermore, destruction caused by severe weather events, such as hurricanes, flooding, tornadoes, severe thunderstorms, snow and ice storms, droughts, extreme temperatures, and wild fires, including from climate change, can result in lost operating revenues due to outages, property damage or total loss, including downed transmission and distribution lines, personal injury, reputational harm, and additional unexpected expenses to mitigate storm damage, including incremental financing costs.
Revised security and safety requirements promulgated by the NRC, which could be prompted by, among other things, events within or outside of the control of Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, such as a serious nuclear incident at a facility owned by a third party, could necessitate substantial capital and other expenditures, as well as assessments to cover third-party losses.
Revised security and safety requirements promulgated by the NRC, which could be prompted by, among other things, events within or outside of the control of Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, such as a serious nuclear incident at a facility owned by a third party, could necessitate substantial capital or other expenditures, as well as assessments to cover third-party losses.
All of these events would likely reduce the Duke Energy Registrants’ liquidity and profitability and could have a material effect on their results of operations, financial position and cash flows. Non-compliance with debt covenants or conditions could adversely affect the Duke Energy Registrants’ ability to execute future borrowings.
All of these events would likely reduce the Duke Energy Registrants’ liquidity and profitability and could have a material effect on their results of operations, financial position or cash flows. Non-compliance with debt covenants or conditions could adversely affect the Duke Energy Registrants’ ability to execute future borrowings.
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. 30 RISK FACTORS Poor investment performance of the Duke Energy pension plan holdings and other factors impacting pension plan costs could unfavorably impact the Duke Energy Registrants’ liquidity and results of operations.
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 or cash flows could be negatively affected. 30 RISK FACTORS Poor investment performance of the Duke Energy pension plan holdings and other factors impacting pension plan costs could unfavorably impact the Duke Energy Registrants’ liquidity and results of operations.
In addition to maintaining our current information technology systems, Duke Energy believes the digital transformation of its business is key to driving internal efficiencies as well as providing additional capabilities to customers. Duke Energy’s information technology systems are critical to cost-effective, reliable daily operations and our ability to effectively serve our customers.
In addition to maintaining our current information technology systems, Duke Energy believes the ongoing 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.
If we fail to successfully implement critical technology, or if it does not provide the anticipated benefits or meet customer demands, such failure could materially adversely affect our business strategy as well as impact the results of operations, financial position and cash flows of the Duke Energy Registrants.
If we fail to successfully implement critical technology, or if it does not provide the anticipated benefits or meet customer demands, such failure could materially adversely affect our business strategy as well as impact the results of operations, financial position or cash flows of the Duke Energy Registrants.
In addition, RTOs have been developing rules associated with the allocation and methodology of assigning costs associated with improved transmission reliability, reduced transmission congestion and firm transmission rights that may have a financial impact on the results of operations, financial position and cash flows of Duke Energy Ohio and Duke Energy Indiana.
In addition, RTOs have been developing rules associated with the allocation and methodology of assigning costs associated with improved transmission reliability, reduced transmission congestion and firm transmission rights that may have a financial impact on the results of operations, financial position or cash flows of Duke Energy Ohio and Duke Energy Indiana.
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.
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 or prospects of our business.
Any losses not covered by insurance, or any increases in the cost of applicable insurance as a result of such accident, could have a material adverse effect on the results of operations, financial position, cash flows and reputation of the Duke Energy Registrants.
Any losses not covered by insurance, or any increases in the cost of applicable insurance as a result of such accident, could have a material adverse effect on the results of operations, financial position, cash flows or reputation of the Duke Energy Registrants.
Such cash funding obligations, and the Subsidiary Registrants’ proportionate share of such cash funding obligations, could have a material adverse impact on the Duke Energy Registrants’ results of operations, financial position and cash flows. Duke Energy is a holding company and depends on the cash flows from its subsidiaries to meet its financial obligations.
Such cash funding obligations, and the Subsidiary Registrants’ proportionate share of such cash funding obligations, could have a material adverse impact on the Duke Energy Registrants’ results of operations, financial position or cash flows. Duke Energy is a holding company and depends on the cash flows from its subsidiaries to meet its financial obligations.
Such potential changes that may have adverse consequences could include no longer allowing tax incentives and credits currently provided for under the IRA, including the ability to record or sell related tax credits to third parties.
Such potential changes that may have adverse consequences could include no longer allowing tax incentives and credits currently provided for under the IRA and OBBBA, including the ability to record or sell related tax credits to third parties.
Failure to hire and adequately train replacement employees, including the transfer of significant internal historical knowledge and expertise to new employees, or future availability and cost of contract labor may adversely affect the ability to manage and operate the business, especially considering the workforce needs associated with nuclear generation facilities and new skills required to operate a modernized, technology-enabled power grid.
Failure to hire and adequately train replacement employees, including the transfer of significant internal historical knowledge and expertise to new employees, or future availability and cost of contract labor may adversely affect the ability to manage and operate the business, especially considering the workforce needs associated with new plant construction, nuclear generation facilities and new skills required to operate a modernized, technology-enabled power grid.
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, severe weather, 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 or cash flows of the Duke Energy Registrants.
Our nuclear fleet is central to our ability to meet these objectives and customer expectations. We are continuing to seek to renew the operating licenses of the 11 reactors we operate at six nuclear stations for an additional 20 years, extending their operating lives to and beyond midcentury.
Our nuclear fleet is central to our ability to meet these objectives and customer expectations. We are continuing our work to renew the operating licenses of the 11 reactors we operate at six nuclear stations for an additional 20 years, extending their operating lives to and beyond midcentury.
While the Duke Energy Registrants believe they are in compliance with, or, in the case of recent TSA security directives, are in the process of implementing such standards and regulations, the Duke Energy Registrants have from time to time been, and may in the future be, found to be in violation of such standards and regulations.
While the Duke Energy Registrants believe they are in compliance with, or, in the case of recent directives, are in the process of implementing such standards and regulations, the Duke Energy Registrants have from time to time been, and may in the future be, found to be in violation of such standards and regulations.
Meeting the evolving and growing energy needs of our customers will require continued operation of our existing carbon-free technologies including nuclear and renewables. The rapid transition to and expansion of certain low-carbon resources, such as renewables without cost-effective storage, may challenge our ability to meet customer expectations of reliability and affordability in a carbon constrained environment, particularly as demand increases.
Meeting the evolving and growing energy needs of our customers will require continued operation of our existing carbon-free technologies including nuclear and renewables. The transition to and expansion of certain low-carbon resources, such as renewables without cost-effective storage, may challenge our ability to meet customer expectations of reliability and value in a carbon constrained environment, particularly as demand increases.
The continued threat of terrorism and the impact of retaliatory military and other action by the U.S. and its allies may lead to increased political, economic and financial market instability and volatility in prices for natural gas and oil, which may have material adverse effects in ways the Duke Energy Registrants cannot predict at this time.
The continued threat of terrorism and the impact of retaliatory military and other action by the U.S. and its allies may lead to increased political, economic or financial market instability or volatility in prices for commodities including natural gas and oil, which may have material adverse effects in ways the Duke Energy Registrants cannot predict at this time.
The Duke Energy Registrants are subject to numerous environmental laws and regulations affecting many aspects of their present and future operations, including CCRs, air emissions, water quality, wastewater discharges, solid waste and hazardous waste.
The Duke Energy Registrants are subject to numerous environmental laws and regulations affecting many aspects of their present and future operations, including CCR, air emissions, water quality, wastewater discharges, solid waste and hazardous waste.
Those expectations are based in part on the core fundamentals of reliability and affordability but are also increasingly focused on our ability to meet rapidly changing demands for new and varied products, services and offerings.
Those expectations are based in part on the core fundamentals of reliability and value but are also increasingly focused on our ability to meet rapidly changing demands for new and varied products, services and offerings.
Disruption in the delivery of fuel, including disruptions as a result of, among other things, changing economic conditions, bankruptcies, transportation delays, weather, labor relations, force majeure events or environmental regulations affecting any of these fuel suppliers, could limit the Duke Energy Registrants' ability to operate their facilities.
Disruption in the delivery of fuel, including disruptions as a result of, among other things, changing economic conditions, bankruptcies, transportation delays, weather, labor relations, physical or cyber attack, force majeure events or environmental regulations affecting any of these fuel suppliers, could limit the Duke Energy Registrants' ability to operate their facilities.
Delays in obtaining any required environmental regulatory approvals, failure to obtain and comply with them or changes in 24 RISK FACTORS environmental laws or regulations to more stringent compliance levels could, and are likely to, result in additional costs of operation for existing facilities or development of new facilities being prevented, delayed or subject to additional costs.
Delays in obtaining any required environmental regulatory approvals, failure to obtain and comply with them or changes in environmental laws or regulations to more stringent compliance levels could, and are likely to, result in additional costs of operation for existing facilities or development of new facilities being prevented, delayed or subject to additional costs.
As a result, the overall operating results of the Duke Energy Registrants’ businesses may fluctuate substantially on a seasonal and quarterly basis and thus make period-to-period comparison less relevant.
As a result, the overall operating results of the Duke Energy Registrants’ businesses may fluctuate substantially on a seasonal and quarterly basis and thus makes period-to-period comparison less relevant.
We expect our customers to continue to demand more sophisticated technology-driven solutions and we must enhance or replace our information technology systems in response. This involves significant development and implementation costs to keep pace with changing technologies, including artificial intelligence, and customer demand.
We expect our customers to continue to demand more sophisticated technology-driven solutions and we must enhance or replace our information technology systems in response. This involves significant development and implementation costs to keep pace with changing technologies, including AI, and customer demand.
Additionally, the risks of global climate change continue to shape our customers’ sustainability goals and energy needs as well as the investment and financing criteria of investors.
Additionally, the risks of global climate change continue to shape our customers’ sustainability objectives and energy needs as well as the investment and financing criteria of investors.
Growth in customer accounts and growth of customer usage each directly influence demand for electricity and natural gas and the need for additional power generation and delivery facilities.
Growth and retention of customer accounts and growth of customer usage each directly influence demand for electricity and natural gas and the need for additional power generation and delivery facilities.
Furthermore, with this heightened emphasis on environmental, social, and governance concerns, and climate change in particular, there is an increased risk of litigation, activism, and legislation from groups both in support of and opposed to various environmental, social and governance initiatives, which could cause delays and increase the costs of our energy transition.
Furthermore, with a heightened emphasis on environmental, social, and governance concerns, and climate change in particular, there is an increased risk of litigation, activism, and legislation from groups both in support of and opposed to various environmental, social and governance initiatives, which could cause delays and increase the costs of our energy modernization.
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.
Failure to attract and retain an appropriately qualified workforce could unfavorably impact the Duke Energy Registrants’ results of operations. Certain events, such as an employee strike or work stoppage, an aging workforce, mismatch of skill set or complement to future needs, or unavailability of contract resources may lead to operating challenges or increased costs.
For example, Duke Energy anticipates that its nuclear stations in North Carolina and South Carolina will continue to qualify for significant tax incentives in the form of nuclear production tax credits under the IRA.
For example, Duke Energy anticipates that its nuclear stations in North Carolina and South Carolina will continue to qualify for significant tax incentives in the form of nuclear production tax credits as allowed under the IRA and OBBBA.
New state legislation in response to such regulations could impose carbon reduction goals that are more aggressive than the Company's plans. These regulations may require the Duke Energy Registrants to make additional capital expenditures and increase operating and maintenance costs.
Additionally, new state legislation in response to such regulations could impose carbon reduction objectives that are more aggressive than the Company's plans. These regulations may require the Duke Energy Registrants to make additional capital expenditures or increase operating and maintenance costs.
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.
Because of the critical nature of the infrastructure, increased connectivity to the internet, external networks, mandatory reliability and safety obligations, 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, nation-state 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.
Additionally, technological advances driven by federal laws mandating new levels of EE in end-use electric and natural gas devices or other improvements in or applications of technology could lead to declines in per capita energy consumption.
Such incentives, along with technological advances driven by federal laws mandating new levels of EE in end-use electric and natural gas devices or other improvements in or applications of technology, could lead to declines in per capita energy consumption.
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.
Though we would plan to seek cost recovery for investments related to GHG emission reductions through regulatory rate structures, changes in the regulatory climate could result in the delay or failure to fully recover costs and investments, including in generation.
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 net-zero carbon emissions from electricity generation by 2050 at a cost-effective price could be at risk.
Failure to receive approval from the NRC for the relicensing of any of these reactors could affect our ability to achieve a net-zero target by 2050. As a consequence, Duke Energy may not be able to fully implement or realize the anticipated results of its energy transition strategy, which may have an adverse effect on its financial condition.
Failure to receive approval from the NRC for the relicensing of any of these reactors could affect our ability to achieve net-zero carbon emissions from electricity generation by 2050. As a consequence, Duke Energy may not be able to fully implement or realize the anticipated results of its energy modernization, which may have an adverse effect on its financial condition.
If the Duke Energy Registrants are unable to successfully attract and retain an appropriately qualified workforce, their results of operations, financial position and cash flows could be negatively affected.
If the Duke Energy Registrants are unable to successfully attract and retain an appropriately qualified workforce, their results of operations, financial position or cash flows could be negatively affected. 31 UNRESOLVED STAFF COMMENTS
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.
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. 29 RISK FACTORS Ownership and operation of nuclear generation facilities requires compliance with licensing and safety-related requirements imposed by the NRC.
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.
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. 23 RISK FACTORS Increased competition and unrecovered costs could adversely affect the Duke Energy Registrants’ results of operations, financial position or cash flows and their utility businesses.
Such factors could affect actual results of operations and cause results to differ substantially from those currently expected or sought. Unless otherwise indicated, risk factors discussed below generally relate to risks associated with all of the Duke Energy Registrants.
Such factors could affect actual results of operations and cause results to differ substantially from those currently expected or sought. Unless otherwise indicated, risk factors discussed below generally relate to risks associated with all of the Duke Energy Registrants. Risks identified at the Subsidiary Registrant level are generally applicable to Duke Energy.
If another pandemic or health epidemic or outbreak occurs and is significantly prolonged, it could impact the Duke Energy Registrants' business strategy, results of operations, financial position and cash flows in the future as a result of delays in rate cases or other legal proceedings, an inability to obtain labor or equipment necessary for the construction of large capital projects, an inability to procure satisfactory levels of fuels or other necessary equipment for the continued production of electricity and delivery of natural gas, volatility in global equity securities markets, and the health and availability of our critical personnel and their ability to perform business functions. 28 RISK FACTORS Duke Energy Ohio’s and Duke Energy Indiana’s membership in an RTO presents risks that could have a material adverse effect on their results of operations, financial position and cash flows.
If another pandemic or health epidemic or outbreak occurs and is significantly prolonged, it could impact the Duke Energy Registrants' business strategy, results of operations, financial position or 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 or 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.
The Duke Energy Registrants that operate designated critical pipelines that transport natural gas are also subject to security directives issued by the Department of Homeland Security's Transportation Security Administration (TSA) requiring such registrants to implement specific cybersecurity mitigation measures.
The Duke Energy Registrants that operate designated critical pipelines that transport natural gas are also subject to security directives issued by the TSA requiring such registrants to implement specific cybersecurity mitigation measures.
Additionally, rapidly rising interest rates could impact the ability to affordably finance the capital plan or increase rates to customers and could have an impact on our ability to execute on our energy transition.
Additionally, rapidly rising interest rates could impact the ability to cost- effectively finance the capital plan or increase rates to customers and could have an impact on our ability to execute on our energy modernization.
These federal and state laws, regulations and other legal requirements may require or result in additional expenditures, including increased operating and maintenance costs, which could affect the results of operations, financial position and cash flows of the Duke Energy Registrants.
Federal and state laws, regulations and other legal requirements, including those related to the 2015 CCR Rule and 2024 CCR Rule, may require or result in additional expenditures, including increased operating and maintenance costs, which could affect the results of operations, financial position or cash flows of the Duke Energy Registrants.
In addition, regulatory authorities also review whether natural gas costs are prudently incurred and can disallow the recovery of a portion of natural gas costs that the Duke Energy Registrants seek to recover from customers, which would adversely impact earnings.
In addition, regulatory authorities also review whether fuel and purchased power costs are prudently incurred and can disallow the recovery of a portion of these costs that the Duke Energy Registrants seek to recover from customers, which would adversely impact earnings and cash flows.
Over time, customer adoption of these technologies could result in Duke Energy not being able to fully recover the costs and investment in generation. 23 RISK FACTORS State regulators have approved various mechanisms to stabilize natural gas utility margins, including margin decoupling in North Carolina and rate stabilization in South Carolina.
Over time, customer adoption of these technologies or adoption of net metering regulatory structures could result in Duke Energy not being able to fully recover the costs of its investments. State regulators have approved various mechanisms to stabilize natural gas utility margins, including margin decoupling in North Carolina and rate stabilization in South Carolina.
Some or all of these factors could result in a lack of growth or decline in customer demand for electricity or number of customers and may cause the failure of the Duke Energy Registrants to fully realize anticipated benefits from significant capital investments and expenditures, which could have a material adverse effect on their results of operations, financial position and cash flows. 26 RISK FACTORS Furthermore, the Duke Energy Registrants currently have EE riders in place to recover the cost of EE programs in North Carolina, South Carolina, Florida, Indiana, and Kentucky.
Some or all of these factors could result in a lack of growth or decline in customer demand for electricity or number of customers and may cause the failure of the Duke Energy Registrants to fully realize anticipated benefits from significant capital investments and expenditures, which could have a material adverse effect on their results of operations, financial position or cash flows.
Regulatory changes and/or uncertainty of applicability of such legislative and regulatory initiatives could also result in generation facilities to be retired earlier than planned to meet our net-zero 2050 goal.
Regulatory changes and/or uncertainty of applicability of such legislative and regulatory initiatives could also result in generation facilities to be retired earlier than planned to achieve net-zero carbon emissions from electricity generation by 2050.
The Duke Energy Registrants’ businesses are subject to extensive federal regulation and a wide variety of laws and governmental policies, including taxes and environmental regulations, that may change over time in ways that affect operations and costs.
These developments have the potential to materially and adversely affect the Duke Energy Registrants' results of operations, financial position or cash flows. The Duke Energy Registrants’ businesses are subject to extensive federal regulation and a wide variety of laws and governmental policies, including taxes and environmental regulations, that may change over time in ways that affect operations and costs.
The steps the Duke Energy Registrants could be required to take to ensure their facilities are in compliance could be prohibitively expensive. As a result, the Duke Energy Registrants may be required to shut down or alter the operation of their facilities, which may cause the Duke Energy Registrants to incur losses.
As a result, the Duke Energy Registrants may be required to shut down or alter the operation of their facilities, which may cause the Duke Energy Registrants to incur losses.
Also, the market for cybersecurity insurance is relatively new and coverage available for cybersecurity events is evolving as the industry matures. The Duke Energy Registrants are subject to standards enacted by the North American Electric Reliability Corporation and enforced by FERC regarding protection of the physical and cybersecurity of critical infrastructure assets required for operating North America's bulk electric system.
The Duke Energy Registrants are 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.
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.
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. 28 RISK FACTORS The Duke Energy Registrants have incurred, and may incur additional costs or delays in the construction of new plants or facilities and may not be able to recover their investments in whole or in part.
Duke Energy’s long-term strategy requires the construction of new projects, either wholly owned or partially owned, which involve a number of risks, including construction delays, delays in or failure to receive required regulatory approvals and/or sitting or environmental permits, nonperformance by equipment and other third-party suppliers, and increases in equipment and labor costs.
Duke Energy’s long-term strategy requires extensive capital investment in generation and transmission facilities. The construction of such projects involve a number of risks, including construction delays, delays in or failure to receive required regulatory approvals and/or siting or environmental permits, nonperformance by equipment and other third-party suppliers, and increases in equipment and labor costs beyond expectations.
Access to those markets can be adversely affected by a number of conditions, many of which are beyond the Duke Energy Registrants’ control. The Duke Energy Registrants’ businesses are significantly financed through issuances of debt and equity. The maturity and repayment profile of debt used to finance investments often does not correlate to cash flows from their assets.
The Duke Energy Registrants’ businesses are significantly financed through issuances of debt and equity. The maturity and repayment profile of debt used to finance investments often does not correlate to cash flows from their assets.
A CCR-related operational incident could have a material adverse impact on the reputation and results of operations, financial position and cash flows of the Duke Energy Registrants. The 2015 CCR Rule classifies CCR as nonhazardous waste and allows for beneficial use of CCR with some restrictions.
A CCR-related operational incident could have a material adverse impact on the reputation and results of operations, financial position or cash flows of the Duke Energy Registrants.
Ownership and operation of nuclear generation facilities requires compliance with licensing and safety-related requirements imposed by the NRC. In the event of non-compliance, the NRC may increase regulatory oversight, impose fines or shut down a unit depending upon its assessment of the severity of the situation.
In the event of non-compliance, the NRC may increase regulatory oversight, impose fines or shut down a unit depending upon its assessment of the severity of the situation.
These and other environmental laws and regulations can result in increased capital, operating and other costs. These laws and regulations generally require the Duke Energy Registrants to obtain and comply with a wide variety of environmental licenses, permits, inspections and other approvals.
These laws and regulations generally require the Duke Energy Registrants to obtain and comply with a wide variety of environmental licenses, permits, inspections and other approvals. Compliance with environmental laws and regulations can require significant expenditures, including expenditures for cleanup costs and damages arising from contaminated properties.
As it relates to electric generation, a diversified fleet with increasingly clean generation resources may facilitate more efficient financing and lower costs. Conversely, jurisdictions utilizing more carbon-intensive generation such as coal may experience difficulty attracting certain investors and obtaining the most economical financing terms available.
Conversely, jurisdictions utilizing more carbon-intensive generation such as coal may experience difficulty attracting certain investors and obtaining the most economical financing terms available.
Nuclear energy is a reliable and clean energy source and nuclear tax incentives allowed under the IRA, including nuclear production tax credits, are expected to reduce the cost of the energy transition for our customers. If such nuclear production tax credits were eliminated or reduced, it could negatively impact our ability to return the anticipated cost benefits to customers.
Nuclear energy is a reliable and clean energy source and nuclear tax incentives allowed, including nuclear production tax credits, are expected to reduce the cost of the energy transition for our customers.
Furthermore, the increasing use of social media and conflicting expectations and demands regarding environmental, social, and governance concerns, may accelerate and increase the potential scope of negative publicity we might receive and could increase the negative impact on our reputation, business, results of operations and financial condition.
Furthermore, the increasing use of social media and conflicting expectations and demands regarding environmental, social, and governance concerns, may accelerate and increase the potential scope of negative publicity we might receive and could increase the negative impact on our reputation, business, results of operations or financial condition. 26 RISK FACTORS As it relates to electric generation, a diversified fleet with increasingly clean generation resources may facilitate more efficient financing and lower costs.
The financial condition of some insurance companies, actual or threatened physical or cyberattacks, and natural disasters, among other things, could have disruptive effects on insurance markets.
The Duke Energy Registrants are subject to risks associated with their ability to obtain adequate insurance at acceptable costs. The financial condition of some insurance companies, actual or threatened physical or cyberattacks, and natural disasters, among other things, could have disruptive effects on insurance markets.
Duke Energy is subject to business, policy, regulatory, technology, economic and competitive uncertainties and contingencies, many of which are beyond its control and may make those goals difficult to achieve.
Duke Energy is working to meet growing and evolving customer energy needs while balancing reliability, costs and other priorities including the need to modernize its fleet and the regulatory constructs. Duke Energy is subject to business, policy, regulatory, technology, economic and competitive uncertainties and contingencies, many of which are beyond its control and may make those objectives difficult to achieve.
The Company may be constrained by the ability to procure resources or labor needed to build new generation at a reasonable price as well as to construct projects on time.
Further, the approval of our state regulators will be necessary for the Company to continue to retire existing carbon emitting assets or make investments in new generating capacity. The Company may be constrained by the ability to procure resources or labor needed to build new generation at a reasonable price as well as to construct projects on time.
Moreover, if additional natural gas infrastructure, including, but not limited to, exploration and drilling rigs and platforms, processing and gathering systems, offshore pipelines, interstate pipelines and storage, cannot be built at a pace that meets demand, then growth opportunities could be limited. 27 RISK FACTORS Fluctuations in commodity prices or availability may adversely affect various aspects of the Duke Energy Registrants’ operations as well as their results of operations, financial position and cash flows.
Moreover, if additional natural gas infrastructure, including, but not limited to, exploration and drilling rigs and platforms, processing and gathering systems, offshore pipelines, interstate pipelines and storage, cannot be built at a pace that meets demand, then growth opportunities could be limited.
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.
There is continued concern, and increasing and conflicting activism, both nationally and internationally, about global climate change. The EPA and state regulators have, and may adopt and implement, additional regulations to restrict emissions of GHGs to address global climate change, as well as reporting requirements regarding such emissions and related climate-goal claims.
Additionally, new EPA rules issued in April 2024 impose stringent GHG emission reduction standards, revised air toxic limits, and wastewater discharge limitations that may impact our carbon-reduction targets, and operational timeline and costs associated with certain new and existing generation.
If such nuclear production tax credits were eliminated or reduced, it could negatively impact our ability to return the anticipated cost benefits to customers. 22 RISK FACTORS Additionally, new EPA rules issued in April 2024 impose stringent GHG emission reduction standards, revised air toxic limits, and wastewater discharge limitations that may impact the achievement of carbon-reductions, and operational timeline and costs associated with certain new and existing generation.
Should counterparties fail to perform, the Duke Energy Registrants might be forced to replace the underlying commitment at prevailing market prices possibly resulting in losses in addition to the amounts, if any, already paid to the counterparties.
Should counterparties fail to perform, the Duke Energy Registrants might be forced to replace the underlying commitment at prevailing market prices possibly resulting in losses in addition to the amounts, if any, already paid to the counterparties. 27 RISK FACTORS Certain of the Duke Energy Registrants’ hedge agreements may result in the receipt of, or posting of, collateral with counterparties, depending on the daily market-based calculation of financial exposure of the derivative positions.
In addition, if a serious nuclear incident were to occur, it could have a material adverse effect on the results of operations, financial position, cash flows and reputation of the Duke Energy Registrants. 29 RISK FACTORS LIQUIDITY, CAPITAL REQUIREMENTS AND COMMON STOCK RISKS The Duke Energy Registrants rely on access to short-term borrowings and longer-term debt and equity markets to finance their capital requirements and support their liquidity needs.
In addition, if a serious nuclear incident were to occur, it could have a material adverse effect on the results of operations, financial position, cash flows or reputation of the Duke Energy Registrants.
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.
Fluctuations in commodity prices that lead to the return of collateral received and/or the posting of collateral with counterparties could negatively impact liquidity. Downgrades in the Duke Energy Registrants’ credit ratings could also lead to additional collateral posting requirements. The Duke Energy Registrants continually monitor derivative positions in relation to market price activity.
Cybersecurity risks have increased in recent years as a result of the proliferation of new technologies and the increased sophistication, magnitude and frequency of cyberattacks and data security breaches. Duke Energy relies on the continued operation of advanced digital information technology systems and network infrastructure, which are part of an interconnected regional grid.
Cyberattacks and data security breaches could adversely affect the Duke Energy Registrants' businesses. Cybersecurity risks have increased in recent years as a result of the proliferation of new technologies, and the increased sophistication, magnitude and frequency of cyberattacks and data security breaches.
Supportive policies may be needed to facilitate the siting and cost recovery of transmission and distribution upgrades needed to accommodate the build out of large volumes of renewables and energy storage. Further, the approval of our state regulators will be necessary for the Company to continue to retire existing carbon emitting assets or make investments in new generating capacity.
Supportive policies may be needed to facilitate the siting and cost recovery of transmission and distribution upgrades needed to accommodate the build out of new generation facilities, including large volumes of renewables and energy storage.
Such events can and in the past, have, negatively impacted sales volume such as in the case of storm-related customer outages resulting in lower usage, and costs to restore service and rebuild assets after such events may be, and in the case of hurricanes Helene and Milton experienced in 2024, have been, material and did impact the results of operations, financial position or cash flows of the Duke Energy Registrants, and such events may do so in the future, until complete and timely cost recovery is approved and occurs under existing relevant regulatory mechanisms across our jurisdictions.
Costs to restore service and rebuild assets after such events may be material and could impact the results of operations, financial position or cash flows of the Duke Energy Registrants, and such events may do so in the future, until complete and timely cost recovery is approved and occurs under existing relevant regulatory mechanisms across our jurisdictions. 25 RISK FACTORS The generation of electricity and the transportation and storage of natural gas involve inherent operating risks that may result in accidents involving serious injury or loss of life, environmental damage or property damage.
The rules governing the various regional power markets may change, which could affect Duke Energy Ohio’s and Duke Energy Indiana’s costs and/or revenues.
Duke Energy Ohio’s and Duke Energy Indiana’s membership in an RTO presents risks that could have a material adverse effect on their results of operations, financial position and cash flows. The rules governing the various regional power markets may change, which could affect Duke Energy Ohio’s and Duke Energy Indiana’s costs and/or revenues.
Compliance with environmental laws and regulations can require significant expenditures, including expenditures for cleanup costs and damages arising from contaminated properties. Failure to comply with environmental regulations may result in the imposition of fines, penalties and injunctive measures affecting operating assets, as well as reputational damage.
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.
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.
Fluctuations in commodity prices or availability may adversely affect various aspects of the Duke Energy Registrants’ operations as well as their results of operations, financial position and cash flows.
Potential legal challenges to such rules may not be successful, and adherence to these rules may increase the cost of compliance, impact generation resource mix and carbon-reduction targets, and negatively impact customer reliability and affordability due to such rules' imposition of stringent GHG emissions limitations and reliance on carbon capture technologies that are not yet adequately demonstrated at utility scale.
Potential legal challenges to such rules or actions to repeal or modify requirements may not be successful, and adherence to these rules may increase the cost of compliance, impact generation resource mix, force carbon reductions or negatively impact customer reliability and perceived value.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe relevant cybersecurity risk expertise of Duke Energy’s management who serve on the ECOG and/or senior management who lead the CIRT and EST is described below. • The CEO of Duke Energy has over 20 years of experience in the utilities industry, and has gained cybersecurity experience as CEO of one of America’s largest utility companies, and through service on the board of the Edison Electric Institute, the Institute of Nuclear Power Operations, the World Association of Nuclear Operators, and past service on the Department of Homeland Security Advisory Council. • The EVP and Chief Financial Officer of Duke Energy (CFO) previously served as the Company’s Chief Transformation and Administrative Officer and led the Company’s business transformation through digital innovation, new ways of working and process redesign.
Biggest changeThese management teams also oversee the integration of Duke Energy’s AI governance policies into the Company’s broader cybersecurity and technology‑risk management processes. • The CEO of Duke Energy has gained cybersecurity experience through focusing on transmission and the development of long-term grid strategies and solutions and through a prior role as Chief Distribution Officer, overseeing the safe, reliable, and efficient operation of Duke Energy’s electric distribution systems, and through serving on the board of the Association of Edison Illuminating Companies. • The EVP and Chief Financial Officer of Duke Energy (CFO) previously served as the Company’s Chief Transformation and Administrative Officer and led the Company’s business transformation through digital innovation, new ways of working and process redesign.
Duke Energy manages cybersecurity threats through its 24/7 Duke Energy Cybersecurity Operations Center (CSOC), which serves as the Company’s central command center for monitoring and coordinating responses to cyber-threats. The CSOC engages in daily information sharing within the utilities industry and with government partners and monitors incoming intelligence and cyber incident impacts.
Duke Energy manages cybersecurity threats through its 24/7 Duke Energy Cybersecurity Operations Center (CSOC), which serves as the Company’s central command center for monitoring and coordinating responses to cyberthreats. The CSOC engages in daily information sharing within the utilities industry and with government partners and monitors incoming intelligence and cyber incident impacts.
The CSISO holds a Secret Security clearance and is committed to strengthening U.S. critical infrastructure through active collaboration with federal partners at the Federal Bureau of Investigation, Department of Energy, Department of Homeland Security, and state partners including the national guard, law enforcement and universities. • The CAO of Duke Energy has over 25 years of experience in delivering secure information technology solutions across multiple industries, leading technology delivery for all core business functions.
The CSISO holds a Secret Security clearance and is committed to strengthening U.S. critical infrastructure through active collaboration with federal partners at the Federal Bureau of Investigation, Department of Energy, Department of Homeland Security, and state partners including the national guard, law enforcement and universities. • The CAO of Duke Energy has over 29 years of experience in delivering secure information technology solutions across multiple industries, leading technology delivery for all core business functions.
In 2024, the Audit Committee received three updates and the full Board of Directors received one update on cybersecurity. The Audit Committee also receives periodic updates on Duke Energy’s digital transformation and the operation of, and enhancements to, the Company’s financial systems and business and operational technical systems.
In 2025, the Audit Committee received three updates and the full Board of Directors received one update on cybersecurity. The Audit Committee also receives periodic updates on Duke Energy’s digital transformation and the operation of, and enhancements to, the Company’s financial systems and business and operational technical systems.
The Company’s Executive Cybersecurity Oversight Governance Committee (ECOG), comprised of the Company's Chair and Chief Executive Officer (CEO), President, Executive Vice President (EVP) and Chief Financial Officer, and EVP, Chief Generation Officer and Enterprise Operational Excellence, receives monthly updates from the CAO and CSISO and provides senior management throughout the Company informational technology and operational technology perspectives, oversight and governance on investments and priorities for the broader cybersecurity organization, in addition to providing final decision oversight on recommendations and response to the ever-challenging cybersecurity threat landscape.
The ECOG, comprised of the Company's Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Administrative Officer (CAO), Chief Legal Officer (CLO) and Chief Generation Officer (CGO) receives monthly updates from the CSISO and provides senior management throughout the Company informational technology and operational technology perspectives, oversight and governance on investments and priorities for the broader cybersecurity organization, in addition to providing final decision oversight on recommendations and response to the ever-challenging cybersecurity threat landscape.
In this role, the CFO gained an in-depth understanding of the Company's cybersecurity procedures and key threats, and was responsible for the enterprise business services and technology team, including the information and technology organization. • The EVP, Chief Generation Officer and Enterprise Operational Excellence of Duke Energy has gained cybersecurity experience through being responsible for the safe, efficient and reliable operation of Duke Energy's fleet of nuclear, natural gas, hydro, solar and coal units. • The President of Duke Energy has gained cybersecurity experience through focusing on transmission and the development of long-term grid strategies and solutions and through a prior role as Chief Distribution Officer, overseeing the safe, reliable, and efficient operation of Duke Energy’s electric distribution systems, and through serving on the board of the Association of Edison Illuminating Companies. • The CSISO of Duke Energy has over 25 years of experience building and leading security teams within multiple industries.
In this role, the CFO gained an in-depth understanding of the Company's cybersecurity procedures and key threats and was responsible for the enterprise business services and technology team, including the information and technology organization. • The EVP, Chief Generation Officer and Enterprise Operational Excellence of Duke Energy has gained cybersecurity experience through being responsible for the safe, efficient and reliable operation of Duke Energy's fleet of nuclear, natural gas, hydro, solar and coal units. • The CSISO of Duke Energy has over 25 years of experience building and leading security teams within multiple industries.
Duke Energy is not currently aware of any potential cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect the Company, including its business strategy, results of operations or financial condition, however, Duke Energy cannot provide assurance that it will not be materially affected in the future by cybersecurity risks or any future material incidents. 32 CYBERSECURITY Governance The Audit Committee has primary oversight of management’s efforts to mitigate cybersecurity and technology risk and respond to cyber incidents.
In addition to these internal audits, the Company is subject to a variety of external audits, performed periodically as required by the auditing entity, including external audits performed by the NERC under the Critical Infrastructure Protection framework (CIP), TSA Pipeline Security Directive and FERC Dam Security. 32 CYBERSECURITY Duke Energy is not currently aware of any potential cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect the Company, including its business strategy, results of operations or financial condition, however, Duke Energy cannot provide assurance that it will not be materially affected in the future by cybersecurity risks or any future material incidents.
Duke Energy’s first line of defense is the CIRT under the Office of the Chief Administrative Officer (CAO).
Our risk management program is flexible and allows us to pivot as threat actors evolve. Duke Energy’s first line of defense is the CIRT under the Office of the Chief Administrative Officer (CAO).
The ECOG also is leveraged to supply information and bring transparency to senior management throughout the Company on the increasing threat landscape and the actions, response and road map to combat the threats. Internal and external cybersecurity audits provide a third line of defense and independently provide assurance on how effectively the Company, as a whole, manages cybersecurity risk.
Internal and external cybersecurity audits provide a third line of defense and independently provide assurance on how effectively the Company, as a whole, manages cybersecurity risk.
The reviews presented to the Audit Committee are followed with an update to the full Board of Directors by the Chair of the Audit Committee.
These updates include, as appropriate, information regarding the Company’s AI governance practices and management’s evaluation of emerging AI‑related technology and cybersecurity risks. The reviews presented to the Audit Committee are followed with an update to the full Board of Directors by the Chair of the Audit Committee.
Removed
In addition to these internal audits, the Company is subject to a variety of external audits, performed periodically as required by the auditing entity, including external audits performed by the North American Electric Reliability Corporation under the Critical Infrastructure Protection framework (NERC CIP), Transportation & Security Administration Pipeline Security Directive and Federal Energy Regulatory Commission Dam Security.
Added
This framework also incorporates the identification and management of risks associated with the Company’s development and use of AI technologies, including AI‑related cybersecurity considerations. Duke Energy monitors the threat landscape to understand both how threat actors are operating currently and how they are developing capabilities using emerging technologies such as AI and quantum computing.
Added
As part of this process, the Company also evaluates the cybersecurity and data‑protection risks associated with third‑party AI tools and services.
Added
The EST also partners with relevant technology and compliance teams to assess controls relating to the Company’s internal use of AI technologies and to monitor emerging AI‑enabled cybersecurity threat vectors in alignment with Duke Energy’s internal AI governance policies.
Added
The ECOG also is leveraged to supply information and bring transparency to senior management throughout the Company on the increasing threat landscape and the actions, response and road map to combat the threats. In addition, the ECOG provides oversight of enterprise AI governance activities and reviews management’s integration of AI‑related risk considerations into the Company’s cybersecurity and technology‑risk oversight processes.
Added
Governance The Audit Committee has primary oversight of management’s efforts to mitigate cybersecurity and technology risk and respond to cyber incidents.
Added
The relevant cybersecurity risk expertise of Duke Energy’s management who serve on the ECOG and/or senior management who lead the CIRT and EST is described below.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeSutton CT Fossil Gas/Oil NC 97 Blewett CT Fossil Oil NC 68 Walters Hydro Water NC 112 Other small facilities (three plants) Hydro Water NC 116 Distributed generation Renewable Solar NC 146 Battery Storage Renewable Storage NC 45 Total Duke Energy Progress 13,845 34 PROPERTIES 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 1,025 DeBary CT Fossil Gas/Oil FL 661 Osprey CC Fossil Gas/Oil FL 611 Tiger Bay CC Fossil Gas/Oil FL 230 Bayboro CT Fossil Oil FL 193 Bartow CT Fossil Gas/Oil FL 212 Suwannee River CT Fossil Gas FL 194 University of Florida CoGen CT Fossil Gas FL 50 Distributed generation (19 sites) Renewable Solar FL 1,468 Battery Storage Renewable Storage FL 48 Total Duke Energy Florida 12,542 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 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 520 Vermillion CT (e) Fossil Gas IN 477 Noblesville CC Fossil Gas/Oil IN 310 Henry County CT (f) Fossil Gas/Oil IN 141 Cayuga CT Fossil Gas/Oil IN 110 Purdue CHP Fossil Gas IN 16 Markland Hydro Water IN 54 Distributed generation Renewable Solar IN 21 Battery Storage Renewable Storage IN 15 Total Duke Energy Indiana 6,806 35 PROPERTIES Owned MW Totals by Type Capacity Totals by Plant Type Nuclear 9,322 Fossil 40,104 Hydro 3,762 Renewable 1,951 Total Electric Utilities 55,139 (a) Jointly owned with North Carolina Municipal Power Agency Number 1, NCEMC and PMPA.
Biggest changeSutton CT Fossil Gas/Oil NC 97 Blewett CT Fossil Oil NC 68 Walters Hydro Water NC 112 Other small facilities (three plants) Hydro Water NC 116 Utility-Scale Solar (six sites) Renewable Solar NC 226 Battery Storage (four sites) Renewable Storage NC 165 Total Duke Energy Progress 14,068 34 PROPERTIES Owned MW Facility Plant Type Primary Fuel Location Capacity Duke Energy Florida Hines CC Fossil Gas/Oil FL 2,168 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 1,126 Anclote Fossil Gas FL 1,025 DeBary CT Fossil Gas/Oil FL 661 Osprey CC Fossil Gas/Oil FL 638 Tiger Bay CC Fossil Gas/Oil FL 230 Bartow CT Fossil Gas/Oil FL 212 Suwannee River CT Fossil Gas FL 194 Bayboro CT Fossil Oil FL 139 University of Florida CoGen CT Fossil Gas FL 50 Utility-Scale Solar (30 sites) Renewable Solar FL 1,712 Battery Storage (seven sites) Renewable Storage FL 55 Total Duke Energy Florida 12,765 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 (four sites) Renewable Solar KY 9 Total Duke Energy Ohio 1,173 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 520 Vermillion CT (e) Fossil Gas IN 477 Noblesville CC Fossil Gas/Oil IN 310 Henry County CT Fossil Gas/Oil IN 141 Cayuga CT Fossil Gas/Oil IN 110 Purdue CHP Fossil Gas IN 16 Markland Hydro Water IN 54 Distributed generation (six sites) Renewable Solar IN 21 Battery Storage (three sites) Renewable Storage IN 15 Total Duke Energy Indiana 6,806 35 PROPERTIES Owned MW Totals by Type Capacity Totals by Plant Type Nuclear 9,404 Fossil 40,099 Hydro 3,762 Renewable 2,448 Total Electric Utilities 55,713 (a) Jointly owned with North Carolina Municipal Power Agency Number 1, NCEMC and PMPA.
ITEM 2. PROPERTIES ELECTRIC UTILITIES AND INFRASTRUCTURE The following table provides information related to the EU&I's generation stations as of December 31, 2024. The MW displayed in the table below are based on winter capacity for Fossil, Nuclear and Hydro generation stations, and nameplate capacity for Renewable generation stations. Ownership interest in all facilities is 100% unless otherwise indicated.
ITEM 2. PROPERTIES ELECTRIC UTILITIES AND INFRASTRUCTURE The following table provides information related to the EU&I's generation stations as of December 31, 2025. 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.
Rogers Fossil Coal/Gas NC 1,395 Rockingham CT Fossil Gas/Oil NC 895 Mill Creek CT Fossil Gas/Oil SC 751 Buck CC Fossil Gas NC 718 Dan River CC Fossil Gas NC 718 W.S. Lee CC (b) Fossil Gas SC 706 W.S.
Rogers Fossil Coal/Gas NC 1,395 Rockingham CT Fossil Gas/Oil NC 895 Mill Creek CT Fossil Gas/Oil SC 751 Buck CC Fossil Gas NC 718 Dan River CC Fossil Gas NC 718 W.S. Lee CC (b) Fossil Gas SC 709 W.S.
The following table provides information related to GU&I's natural gas distribution as of December 31, 2024.
The following table provides information related to GU&I's natural gas distribution as of December 31, 2025.
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 CT Fossil Gas/Oil NC 1,909 J.E.
Owned MW Facility Plant Type Primary Fuel Location Capacity Duke Energy Carolinas Oconee Nuclear Uranium SC 2,688 McGuire Nuclear Uranium NC 2,386 Catawba (a) Nuclear Uranium SC 600 Belews Creek Fossil Coal/Gas NC 2,220 Marshall Fossil Coal/Gas NC 2,078 Lincoln CT Fossil Gas/Oil NC 1,907 J.E.
(d) Includes Cayuga Internal Combustion. (e) Jointly owned with WVPA. Duke Energy Indiana's ownership is 62.5% of the facility. (f) Includes 50 MW contracted to WVPA. The following table provides information related to EU&I's electric transmission and distribution properties as of December 31, 2024.
(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, 2025.
Duke Duke Energy Energy Ohio Piedmont Miles of natural gas distribution and transmission pipelines 36,300 7,600 28,700 Miles of natural gas service lines 29,700 6,800 22,900 OTHER Duke Energy owns approximately 7.2 million square feet and leases approximately 2 million square feet of corporate, regional and district office space spread throughout its service territories.
Duke Duke Energy Energy Ohio Piedmont Miles of natural gas distribution and transmission pipelines 36,400 7,700 28,700 Miles of natural gas service lines 29,800 6,900 22,900 OTHER Duke Energy owns approximately 7.5 million square feet and leases approximately 1.8 million square feet of corporate, regional and district office space spread throughout its service territories.
Lee CT Fossil Gas/Oil SC 96 Clemson CHP Fossil Gas SC 16 Bad Creek Hydro Water SC 1,640 Jocassee Hydro Water SC 780 Cowans Ford Hydro Water NC 324 Keowee Hydro Water SC 152 Other small facilities (18 plants) Hydro Water NC/SC 584 Distributed generation Renewable Solar NC 174 Battery Storage Renewable Storage NC 25 Total Duke Energy Carolinas 20,773 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.
Lee CT Fossil Gas/Oil SC 96 Clemson CHP Fossil Gas SC 15 Bad Creek Hydro Water SC 1,640 Jocassee Hydro Water SC 780 Cowans Ford Hydro Water NC 324 Keowee Hydro Water SC 152 Other small facilities (18 plants) Hydro Water NC/SC 584 Utility-Scale Solar (seven sites) Renewable Solar NC 170 Battery Storage (two sites) Renewable Storage NC 75 Total Duke Energy Carolinas 20,901 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.
Lee CC Fossil Gas/Oil NC 1,054 Smith CT Fossil Gas/Oil NC 1,000 Wayne County CT Fossil Gas/Oil NC 975 L.V. Sutton CC Fossil Gas/Oil NC 719 Mayo Fossil Coal NC 713 Asheville CC Fossil Gas/Oil NC 560 Asheville CT Fossil Gas/Oil NC 370 Darlington CT Fossil Gas/Oil SC 264 Weatherspoon CT Fossil Gas/Oil NC 164 L.V.
Lee CC Fossil Gas/Oil NC 1,054 Smith CT Fossil Gas/Oil NC 1,000 Wayne County CT Fossil Gas/Oil NC 975 Mayo Fossil Coal NC 713 L.V. Sutton CC Fossil Gas/Oil NC 709 Asheville CC Fossil Gas/Oil NC 595 Asheville CT Fossil Gas/Oil NC 370 Darlington CT Fossil Gas/Oil SC 262 Weatherspoon CT Fossil Gas/Oil NC 164 L.V.
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 8,600 2,700 3,400 1,800 — 700 Miles of 100 to 161 kV 12,700 6,900 2,600 1,100 700 1,400 Miles of 13 to 69 kV 8,200 2,800 — 2,300 600 2,500 Total conductor miles of electric transmission lines 31,700 13,000 6,300 5,400 1,700 5,300 Electric Distribution Lines Miles of overhead lines 171,700 66,700 44,500 25,100 13,300 22,100 Miles of underground line 114,900 44,500 30,100 23,600 6,600 10,100 Total conductor miles of electric distribution lines 286,600 111,200 74,600 48,700 19,900 32,200 Number of electric transmission and distribution substations 3,000 1,200 500 500 300 500 Substantially all of EU&I's electric plant in service is mortgaged under indentures relating to Duke Energy Carolinas’, Duke Energy Progress', Duke Energy Florida's, Duke Energy Ohio’s and Duke Energy Indiana’s various series of First Mortgage Bonds.
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 8,700 2,700 3,400 1,900 — 700 Miles of 100 to 161 kV 12,700 6,900 2,600 1,100 700 1,400 Miles of 13 to 69 kV 8,300 2,900 — 2,300 600 2,500 Total conductor miles of electric transmission lines 31,900 13,100 6,300 5,500 1,700 5,300 Electric Distribution Lines Miles of overhead lines 169,600 65,300 44,000 25,200 13,300 21,800 Miles of underground line 118,500 45,700 31,400 24,500 6,700 10,200 Total conductor miles of electric distribution lines 288,100 111,000 75,400 49,700 20,000 32,000 Number of electric transmission and distribution substations 3,000 1,300 500 400 300 500 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.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeIn addition, from time to time, the Duke Energy Registrants are parties to various legal, environmental or other regulatory proceedings, including in the ordinary course of business.
Biggest changeIn light of the dismissal, the court denied the motion to dismiss for failure to state a claim as moot. Other Proceedings In addition, from time to time, the Duke Energy Registrants are parties to various legal, environmental or other regulatory proceedings, including in the ordinary course of business.
SEC regulations require disclosure of certain environmental matters when a governmental authority is a party to the proceedings and such proceedings involve potential monetary sanctions that the Duke Energy Registrants reasonably believe will exceed a specified threshold. Pursuant to the SEC regulations, the Duke Energy Registrants use a threshold of $1 million for such proceedings.
Further, SEC regulations require disclosure of certain environmental matters when a governmental authority is a party to the proceedings and such proceedings involve potential monetary sanctions that the Duke Energy Registrants reasonably believe will exceed a specified threshold. Pursuant to the SEC regulations, the Duke Energy Registrants use a threshold of $1 million for such proceedings.
ITEM 3. LEGAL PROCEEDINGS MTBE Litigation In December 2017, the state of Maryland filed suit in Baltimore City Circuit Court against Duke Energy Merchants and other defendants alleging contamination of state waters by MTBE leaking from gasoline storage tanks and is seeking an unspecified amount of monetary damages.
MTBE Litigation In December 2017, the state of Maryland filed suit in Baltimore City Circuit Court against Duke Energy Merchants and other defendants alleging contamination of state waters by MTBE leaking from gasoline storage tanks and is seeking an unspecified amount of monetary damages.
See Note 4, “Regulatory Matters,” and Note 5, “Commitments and Contingencies,” to the Consolidated Financial Statements, which information is incorporated herein by reference, for discussion of certain legal, environmental and other regulatory proceedings to which the Duke Energy Registrants are a party.
See Note 4, “Regulatory Matters,” and Note 5, “Commitments and Contingencies,” to the Consolidated Financial Statements, for discussion of certain other legal, environmental and other regulatory proceedings to which the Duke Energy Registrants are a party.
The lawsuit asserts state-law claims for public nuisance, private nuisance, trespass, negligence, and gross negligence, and is seeking an unspecified amount of monetary damages. The case has been transferred to the North Carolina Business Court. Duke Energy cannot predict the outcome of this matter.
The lawsuit asserts state-law claims for public nuisance, private nuisance, trespass, negligence, and gross negligence, and is seeking an unspecified amount of monetary damages. The case has been transferred to the North Carolina Business Court.
MTBE is a gasoline additive intended to increase the oxygen levels in gasoline and make it burn cleaner. The case was removed from Baltimore City Circuit Court to federal District Court. Initial motions to dismiss filed by the defendants were denied by the court in September 2019, and the matter is now in discovery.
MTBE is a gasoline additive intended to increase the oxygen levels in gasoline and make it burn cleaner. The case was removed from Baltimore City Circuit Court to federal District Court. In December 2020, the plaintiff and defendants selected 50 focus sites, none of which had any ties to Duke Energy Merchants.
Removed
In December 2020, the plaintiff and defendants selected 50 focus sites, none of which have any ties to Duke Energy Merchants. Discovery will be specific to those sites. At this time, Duke Energy Merchants has not engaged in settlement negotiations with the plaintiff and the plaintiff has not reached a settlement agreement with any defendant.
Added
ITEM 3. LEGAL PROCEEDINGS The litigation matter of NTE Carolinas II, LLC Litigation included in Part 2, Item 8 of this Annual Report on Form 10-K, within Note 5, "Commitments and Contingencies" of the Consolidated Financial Statements, is incorporated herein by reference. For open litigation, unless otherwise noted, Duke Energy cannot predict the outcome or ultimate resolution of these matters.
Removed
Duke Energy cannot predict the outcome of this matter.
Added
In November 2025, Duke Energy Merchants entered into a settlement agreement with the state of Maryland, which included the payment of an immaterial amount to resolve the litigation. Once this matter is dismissed, it will be fully resolved.
Added
Duke Energy filed a motion to dismiss the litigation based on lack of subject-matter jurisdiction on March 17, 2025, and filed a motion to dismiss based on failure to state a claim on which relief can be granted on May 9, 2025. Oral argument regarding Duke Energy's motions to dismiss was held on September 25, 2025.
Added
As requested by the court, supplemental briefing addressing various aspects of causation, including traceability and proximate cause, was filed on October 25, 2025. On February 12, 2026, the court granted Duke Energy's motion to dismiss the litigation based on lack of subject-matter jurisdiction.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

6 edited+0 added−0 removed1 unchanged
Biggest changeIssuer Purchases of Equity Securities for Fourth Quarter 2024 T here were no repurchases of e quity securities during the fourth quarter of 2024. Unregistered Sales of Equity Securities and Use of Proceeds None.
Biggest changeSecurities Authorized for Issuance Under Equity Compensation Plans See Item 12 of Part III within this Annual Report for information regarding Securities Authorized for Issuance Under Equity Compensation Plans. Issuer Purchases of Equity Securities for Fourth Quarter 2025 T here were no repurchases of e quity securities during the fourth quarter of 2025.
The graph assumes an initial investment of $100 on December 31, 2019, in Duke Energy common stock, in the S&P 500 and in the Philadelphia Utility Index and that all dividends were reinvested. The stockholder return shown below for the five-year historical period may not be indicative of future performance.
The graph assumes an initial investment of $100 on December 31, 2020, 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, 2025, there w ere 114,684 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, 2026, there w ere 106,127 Duke Energy common stockholders of record.
For information on dividends, see the "Dividend Payments" section of Management's Discuss ion and Analysis. There is no market for the common equity securities of the Subsidiary Registrants, all of which are directly or indirectly owned by Duke Energy.
For information on dividends, see the "Dividend Payments" section of Management's Discuss ion and Analysis. There is no market for the common equity securities of the Subsidiary Registrants, all of which are directly or indirectly owned by Duke Energy. Duke Energy owns 80.1% of Duke Energy Indiana Holdco, LLC, the holding company of Duke Energy Indiana.
Stock Performance Graph The following performance graph compares the cumulative TSR from Duke Energy Corporation common stock, as compared with the Standard & Poor's 500 Stock Index (S&P 500) and the Philadelphia Utility Index for the past five years.
Unregistered Sales of Equity Securities and Use of Proceeds None. Stock Performance Graph The following performance graph compares the cumulative TSR from Duke Energy Corporation common stock, as compared with the Standard & Poor's 500 Stock Index (S&P 500) and the Philadelphia Utility Index for the past five years.
See Note 2, "Dispositions," to the Consolidated Financial Statements for information on the investment of a minority interest in Duke Energy Indiana. Securities Authorized for Issuance Under Equity Compensation Plans See Item 12 of Part III within this Annual Report for information regarding Securities Authorized for Issuance Under Equity Compensation Plans.
The remaining 19.9% minority interest investment is owned by GIC. See Note 2, "Dispositions," to the Consolidated Financial Statements for information on the investment of a minority interest in Duke Energy Florida.

Item 7. Management's Discussion & Analysis

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

205 edited+102 added−70 removed131 unchanged
Biggest changeThe variance was driven primarily by: • a $198 million increase due to higher pricing from the North Carolina and South Carolina rate cases at Duke Energy Progress and the 2021 Settlement at Duke Energy Florida; • a $111 million increase in weather-normal retail sales volumes at Duke Energy Progress; • a $95 million increase in retail sales due to improved weather compared to prior year, including the impacts of decoupling, at D uke Energy Progress and Duke Energy Florida; • a $92 million increase in higher transmission revenues, higher Clean Energy Connection subscription revenues and higher residential fixed bill program revenues at Duke Energy Florida; and • a $56 million increase in rider revenues primarily due to higher rates for the SPP, Energy Conservation Cost Recovery and Environmental Cost Recovery at Duke Energy Florida.
Biggest changeThe variance was driven primarily by: • a $753 million increase in storm recovery revenues at Duke Energy Florida; • a $343 million increase due to higher pricing from the 2024 Duke Energy Florida rate case and Duke Energy Progress impacts of new rate years implemented for the North Carolina MYRP; • an $88 million increase in rider revenues primarily due to higher rates for the SPP at Duke Energy Florida; • a $70 million increase in other revenues due to higher transmission revenues at Duke Energy Florida and Duke Energy Progress and higher Clean Energy Connection subscription revenues at Duke Energy Florida; and • a $51 million increase in weather-normal retail sales volumes.
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.
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.
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.
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.
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.
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.
The steps include modernizing the electric grid through smart meters, storm hardening, self-healing systems and targeted undergrounding and applying lessons learned from previous storms to restoration efforts. The Duke Energy Registrants’ electric generating facilities and natural gas facilities are designed to withstand extreme weather events without significant damage.
The steps include modernizing the electric grid through smart meters, storm hardening, self-healing systems, targeted undergrounding and applying lessons learned from previous storms to restoration efforts. The Duke Energy Registrants’ electric generating facilities and natural gas facilities are designed to withstand extreme weather events without significant damage.
EPA Rule 111 requires existing coal-fired power plants expected to operate in 2039 and beyond to reduce GHG emissions by 90% through the use of carbon capture and sequestration starting in 2032, subject to certain modifications for coal plants that retire sooner and co-fire natural gas.
EPA Rule 111 requires existing coal-fired power plants expected to operate in 2039 and beyond to reduce GHG emissions by 90% through the use of carbon capture and sequestration starting in 2032, subject to certain modifications for coal plants that retire sooner or co-fire natural gas.
Our ability to effectively handle all facets of the 2024 storm response efforts while making ongoing investments to enhance the reliability and physical security of the grid is a testament to our team’s extensive preparation and coordination, applying lessons learned from previous storms, and on-the-ground management throughout the restoration efforts.
Our ability to effectively handle all facets of storm response efforts while making ongoing investments to enhance the reliability and physical security of the grid is a testament to our team’s extensive preparation and coordination, applying lessons learned from previous storms, and on-the-ground management throughout the restoration efforts.
For additional information, see Note 18 to the Consolidated Financial Statements, "Variable Interest Entities." Cash and Liquidity The Subsidiary Registrants generally maintain minimal cash balances and use short-term borrowings to meet their working capital needs and other cash requirements.
For additional information, also see Note 18 to the Consolidated Financial Statements, "Variable Interest Entities." Cash and Liquidity The Subsidiary Registrants generally maintain minimal cash balances and use short-term borrowings to meet their working capital needs and other cash requirements.
Timelines and initiatives, as well as implementation of new technologies, for future reductions of upstream methane emissions will vary in each state in which the Company’s natural gas distribution business operates and will involve collaboration with regulators, customers and other stakeholders.
Timelines and initiatives, as well as implementation of new technologies, for future reductions of methane emissions will vary in each state in which the Company’s natural gas distribution business operates and will involve collaboration with regulators, customers and other stakeholders.
Adjusted EPS is also used as a basis for employee incentive bonuses. The most directly comparable GAAP measures for adjusted earnings and adjusted EPS are GAAP Reported Earnings and EPS Available to Duke Energy Corporation common stockholders (GAAP Reported EPS), respectively.
Adjusted EPS is also used as a basis to determine employee incentive bonuses. The most directly comparable GAAP measures for adjusted earnings and adjusted EPS are GAAP Reported Earnings and EPS Available to Duke Energy Corporation common stockholders (GAAP Reported EPS), respectively.
However, none of the registrants make any representation as to information related solely to Duke Energy or the subsidiary registrants of Duke Energy other than itself. Management’s Discussion and Analysis should be read in conjunction with the Consolidated Financial Statements and Notes for the years ended December 31, 2024, 2023 and 2022. See "Item 7.
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, 2025, 2024 and 2023. 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, 2024. 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, 2025. Additionally, Duke Energy monitors relevant events and circumstances during the year to determine if an interim impairment test is required.
Currently, the Duke Energy Registrants do not purchase carbon credits or offsets for use in connection with the Company's net-zero CO 2 emissions goals. Though they may purchase carbon credits or offsets for such uses in the future, the amount or cost of which is not expected to be material at this time.
Currently, the Duke Energy Registrants do not purchase carbon credits or offsets for use in connection with the Company's path to net-zero CO 2 emissions. 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.
The Duke Energy Registrants were in compliance with all other covenants related to their debt agreements as of December 31, 2024. I n addition, some credit agreements may allow for acceleration of payments or termination of the agreements due to nonpayment, or acceleration of other significant indebtedness of the borrower or some of its subsidiaries.
The Duke Energy Registrants were in compliance with all other covenants related to their debt agreements as of December 31, 2025. I n addition, some credit agreements may allow for acceleration of payments or termination of the agreements due to nonpayment, or acceleration of other significant indebtedness of the borrower or some of its subsidiaries.
The estimated total cost to permanently close all coal ash basins in North Carolina and South Carolina is estimated to be approximately $8 billion to $9 billion of which approximately $4.4 billion has been spent through 2024. The majority of the remaining spend is primarily expected to occur over the next 10 years.
The estimated total cost to permanently close all coal ash basins in North Carolina and South Carolina is estimated to be approximately $8 billion to $9 billion of which approximately $4.8 billion has been spent through 2025. The majority of the remaining spend is primarily expected to occur over the next 10 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, 2024, 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, 2025, these funds were invested primarily in domestic and international equity securities, debt securities, cash and cash equivalents and short-term investments.
The Duke Energy Registrants are monitoring these matters and any potential changes in commitments, regulations or additional executive actions as a result of the new presidential administration and cannot predict the outcome, however, there could be a material impact on our energy transition.
The Duke Energy Registrants are monitoring these matters and any potential changes in commitments, regulations or additional executive actions as a result of the new presidential administration and cannot predict the outcome, however, there could be a material impact on our energy modernization.
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.
Further modernization of the electric grid, including smart meters, storm hardening, self-healing and targeted undergrounding, also 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.
Duke Energy's goals and actions taken to reduce CO 2 emissions potentially lower the exposure to any future mandatory CO 2 emission reduction requirements, whether as a result of federal legislation, EPA regulation, state regulation or other as yet unknown emission reduction requirements.
Duke Energy's actions taken to reduce CO 2 emissions potentially lower the exposure to any future mandatory CO 2 emission reduction requirements, whether as a result of federal legislation, EPA regulation, state regulation or other as yet unknown emission reduction requirements.
The increase in tax expense was primarily due to an increase in pretax income, partially offset by an increase in PTCs.
The increase in tax expense was primarily due to an increase in pretax income, partially offset by an increase in solar PTCs.
Such events and circumstances include an adverse regulatory outcome, declining financial performance and deterioration of industry or market conditions. As of August 31, 2024, all of the reporting units' estimated fair value of equity exceeded the carrying value of equity.
Such events and circumstances include an adverse regulatory outcome, declining financial performance and deterioration of industry or market conditions. As of August 31, 2025, all of the reporting units' estimated fair value of equity exceeded the carrying value of equity.
At December 31, 2024, the amount of restricted net assets of subsidiaries of Duke Energy that may not be distributed to Duke Energy in the form of a loan or dividend does not exceed a material amount of Duke Energy’s net assets .
At December 31, 2025, 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 .
Duke Energy’s capital requirements arise primarily from capital and investment expenditures, repaying long-term debt and paying dividends to shareholders. Additionally, due to its existing tax attributes and projected tax credits to be generated relating to the IRA, Duke Energy does not expect to be a significant federal cash taxpayer until around 2030.
Duke Energy’s capital requirements arise primarily from capital and investment expenditures, repaying long-term debt and paying dividends to shareholders. Additionally, due to its existing tax attributes and projected tax credits to be generated, Duke Energy does not expect to be a significant federal cash taxpayer until around 2030.
The primary use of cash related to investing activities is typically capital, investment and acquisition expenditures, net of return of investment capital, detailed by reportable business segment in the following table.
The primary use of cash related to investing activities is typically capital, investment and acquisition expenditures, net of return of investment capital. This investing activity is detailed by reportable business segment in the following table.
In 2021, the state of North Carolina passed HB 951, which among other things, directed the NCUC to develop and approve a carbon reduction plan that would target a 70% reduction in 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.
State Legislation HB951 In 2021, the state of North Carolina passed HB951, which among other things, directed the NCUC to develop and approve a carbon reduction plan that would target a 70% reduction in 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.
Goodwill The Duke Energy Registrants performed their annual goodwill impairment tests as of August 31, 2024, as described in Note 12 to the Consolidated Financial Statements, "Goodwill and Intangible Assets." As of this date, all of the Duke Energy Registrants' reporting units' estimated fair values materially exceeded the carrying values except for the GU&I reporting unit of Duke Energy Ohio.
Goodwill The Duke Energy Registrants performed their annual goodwill impairment tests as of August 31, 2025, as described in Note 12 to the Consolidated Financial Statements, "Goodwill and Intangible Assets." As of that date, all of the Duke Energy Registrants' reporting units' estimated fair values materially exceeded the carrying values except for the GU&I reporting unit of Duke Energy Ohio.
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.
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.
Duke Energy has completed excavation of all coal ash at the Riverbend, Dan River, Asheville and Sutton plants. For further information on coal ash basins and recovery, see Notes 4 and 10 to the Consolidated Financial Statements, "Regulatory Matters" and “Asset Retirement Obligations,” respectively.
Du ke Energy has completed excavation of all coal ash at the Riverbend, Dan River, Asheville, Sutton and Robinson plants. For further information on coal ash basins and recovery, see Notes 4 and 10 to the Consolidated Financial Statements, "Regulatory Matters" and “Asset Retirement Obligations,” respectively.
Management's Discussion and Analysis of Financial Condition and Results of Operations," in Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 23, 2024, for a discussion of variance drivers for the year ended December 31, 2023, as compared to December 31, 2022.
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, 2024, filed with the SEC on February 27, 2025, for a discussion of variance drivers for the year ended December 31, 2024, as compared to December 31, 2023.
The impact of a 100-basis point change in interest rates on pretax income is approximately $70 million at December 31, 2024. This amount was estimated by considering the impact of the hypothetical interest rates on variable-rate securities outstanding, adjusted for interest rate hedges as of December 31, 2024.
The impact of a 100-basis point change in interest rates on pretax income is approximately $64 million at December 31, 2025. 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, 2025.
On February 5, 2025, the EPA requested the Court to withhold issuing an opinion and place the case in a 60-day abeyance to allow time for new EPA leadership to review the issues and EPA Rule 111 and determine how they wish to proceed.
On February 5, 2025, the EPA requested the Court to withhold issuing an opinion and place the case in a 60-day abeyance to allow time for new EPA leadership to review the issues and EPA Rule 111 and determine how they wish to proceed. On February 19, 2025, the Court granted EPA’s request.
The discount rates used for calculating the fair values as of August 31, 2024, for each of Duke Energy’s reporting units ranged from 6.3% to 6.5%. The underlying assumptions and estimates are made as of a point in time.
The discount rates used for calculating the fair values as of August 31, 2025, for each of Duke Energy’s reporting units ranged from 6.5% to 6.8%. The underlying assumptions and estimates are made as of a point in time.
See Note 7 to the Consolidated Financial Statements, “Debt and Credit Facilities,” for information regarding the Duke Energy Registrants' long-term debt at December 31, 2024, the weighted average interest rate applicable to each long-term debt category and a schedule of long-term debt maturities over the next five years.
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, 2025, the weighted average interest rate applicable to each long-term debt category, a schedule of long-term debt maturities over the next five years and information on executed term loans.
Investments in integrity management of our natural gas infrastructure continue to be of importance to ensure reliable, safe, and increasingly clean delivery of natural gas to our customers. In our LDC business, we remain focused on reducing methane emissions, leveraging our partnerships, emissions platform, sensors and other technologies to find and fix leaks in near real time.
Investments in integrity management of our natural gas infrastructure continue to be important to ensure reliable, safe and increasingly clean delivery of natural gas to our customers. Our LDC business remains focused on reducing methane emissions, leveraging our partnerships, emissions platform, sensors and other technologies to find and fix leaks in near real time.
Other than the guarantee arrangements discussed in Note 8 and off-balance sheet debt related to non-consolidated VIEs, Duke Energy does not have any material off-balance sheet financing entities or structures.
Other than the guarantee arrangements discussed in Note 8, the equity forward contracts discussed in Note 20 and off-balance sheet debt related to non-consolidated VIEs, Duke Energy does not have any material off-balance sheet financing entities or structures.
This preference is the result of generally higher credit ratings for first mortgage bonds and secured debt, which typically result in lower interest costs. Duke Energy Corporation primarily issues unsecured debt. In 2025, Duke Energy anticipates issuing additional securities of $12.2 billion through debt capital markets.
This preference is the result of generally higher credit ratings for first mortgage bonds and secured debt, which typically result in lower interest costs. Duke Energy Corporation primarily issues unsecured debt. In 2026, Duke Energy anticipates issuing additional securities of $9 billion through debt capital markets.
Duke Energy has $10.0 billion and $9.2 billion of AROs as of December 31, 2024, and 2023, respectively. See Note 10, "Asset Retirement Obligations," for further details including a rollforward of related liabilities.
Duke Energy has $9.6 billion and $10.0 billion of AROs as of December 31, 2025, and 2024, respectively. See Note 10, "Asset Retirement Obligations," for further details including a rollforward of related liabilities.
Recent macroeconomic headwinds aside, the level of economic development success and growth experienced in our service territories is significantly above what we have experienced over the last two decades.
Recent macroeconomic headwinds aside, the level of economic development success and growth experienced in our service territories continues to be significantly above what we have experienced over the last two decades.
(e) Net of $11 million tax benefit. $69 million recorded within Equity in (losses) earnings of unconsolidated affiliates and $4 million recorded within Gains on sales of other assets and other, net. (f) Net of $5 million tax benefit. $23 million recorded within Operations, maintenance and other.
(d) Net of $11 million tax benefit. $69 million recorded within Equity in (losses) earnings of unconsolidated affiliates and $4 million recorded within Gains on sales of other assets and other, net. (e) Net of $5 million tax benefit. $23 million recorded within Operation, maintenance and other.
Increase (Decrease) over prior year 2024 Residential deliveries 10.1 % Commercial deliveries 6.9 % Industrial deliveries (0.3) % Power generation deliveries 10.5 % For resale (0.6) % Total throughput deliveries 8.2 % Secondary market volumes (4.4) % Average number of customers 1.6 % Year Ended December 31, 2024, as compared to 2023 Operating Revenues.
Increase (Decrease) over prior year 2025 Residential deliveries 5.0 % Commercial deliveries 6.4 % Industrial deliveries 1.8 % Power generation deliveries (2.7) % For resale 10.4 % Total throughput deliveries (0.4) % Secondary market volumes 70.0 % Average number of customers 1.7 % Year Ended December 31, 2025, as compared to 2024 Operating Revenues.
Increase (Decrease) over prior year 2024 Residential sales 4.4 % Commercial sales 4.6 % Industrial sales (0.2) % Wholesale power sales (7.7) % Total sales 1.5 % Average number of customers 1.7 % Year Ended December 31, 2024, as compared to 2023 Operating Revenues.
Increase (Decrease) over prior year 2025 Residential sales 6.0 % Commercial sales 5.0 % Industrial sales (2.3) % Wholesale power sales 15.2 % Total sales 5.5 % Average number of customers 1.4 % Year Ended December 31, 2025, as compared to 2024 Operating Revenues.
The implied market multiples used for calculating the fair values as of August 31, 2024, for each of Duke Energy's reporting units ranged from 9.1 to 11.7. Duke Energy primarily operates in environments that are rate-regulated. In such environments, revenue requirements are adjusted periodically by regulators based on factors including levels of costs, sales volumes and costs of capital.
The implied market multiples used for calculating the fair values as of August 31, 2025, for each of Duke Energy's reporting units ranged from 9.3 to 12.4. Duke Energy primarily operates in environments that are rate-regulated. In such environments, revenue requirements are adjusted periodically by regulators based on factors including levels of costs, sales volumes and costs of capital.
(c) Net of tax benefit of $5 million. $17 million recorded within Operating Revenues, $1 million recorded within Operations, maintenance and other, and $3 million recorded within Other income and expenses. (d) Recorded within Preferred Redemption Costs.
(b) Net of tax benefit of $5 million. $17 million recorded within Operating Revenues, $1 million recorded within Operation, maintenance and other, and $3 million recorded within Other income and expenses. (c) Recorded within Preferred Redemption Costs.
As we transition our business to meet anticipated increased long-term demand while delivering more efficient sources of energy, we are focused on creating sustainable value for our customers and shareholders by leveraging business transformation to exceed customer expectations, optimizing investments to drive attractive shareholder returns and providing new product offerings and solutions that deliver growth and customer value.
As we transition our business to meet anticipated increased long-term demand, we are also focused on creating sustainable value for our customers and shareholders by leveraging business transformation to exceed customer expectations, optimizing investments to drive attractive shareholder returns and providing new product offerings and solutions that deliver growth and customer value.
Preparation, sound execution, and a comprehensive communication strategy helped us respond quickly and build stakeholder loyalty and support as we continue the important work of rebuilding our communities, including power infrastructure in the hardest-hit areas of our service territories.
Our preparation, sound execution and a comprehensive communication strategy helped us to respond quickly and build stakeholder support as we completed the important work of rebuilding power infrastructure in the hardest-hit areas of our service territories.
The increase in tax expense was primarily due to an increase in pretax income, partially offset by an increase in the amortization of EDIT and PTCs. The ETRs for the years ended December 31, 2024, and 2023, were 14.4% and 14.7%, respectively.
The increase in tax expense was primarily due to an increase in pretax income, partially offset by an increase in the amortization of EDIT and nuclear PTCs. The ETRs for the years ending December 31, 2025, and 2024, were 13.7% and 14.4%, respectively.
Management continually assesses whether recorded regulatory assets are probable of future recovery by considering factors such as: • applicable regulatory environment changes; • historical regulatory treatment for similar costs in Duke Energy’s jurisdictions; 57 MD&A CRITICAL ACCOUNTING POLICIES AND ESTIMATES • litigation of rate orders; • recent rate orders to other regulated entities; • levels of actual return on equity compared to approved rates of return on equity; and • the status of any pending or potential deregulation legislation.
Management continually assesses whether recorded regulatory assets are probable of future recovery by considering factors such as: • applicable regulatory environment changes; • historical regulatory treatment for similar costs in Duke Energy’s jurisdictions; • litigation of rate orders; • recent rate orders to other regulated entities; • levels of actual return on equity compared to approved rates of return on equity; and • the status of any pending or potential deregulation legislation. 56 MD&A CRITICAL ACCOUNTING POLICIES AND ESTIMATES If future recovery of costs ceases to be probable, asset write-offs would be recognized in operating income.
While there may be a delay in timing between when these costs are incurred and when they are recovered through rates, changes from year to year generally do not have a material impact on operating results of these regulated operations.
While there may be a delay in timing between when these costs are incurred and when they are recovered through rates and there may be adverse impacts on the timing of cash flows as a result, changes from year to year generally do not have a material impact on operating results of these regulated operations.
Duke Energy’s contractual cash obligations for fuel and purchased power as of December 31, 2024, are as follows: Payments Due by Period (in millions) Total Less than 1 year (2025) 2-3 years (2026 & 2027) 4-5 years (2028 & 2029) More than 5 years (2030 & beyond) Fuel and purchased power $ 21,695 $ 5,080 $ 6,706 $ 3,062 $ 6,847 Other Purchase Obligations Other purchase obligations includes contracts for software, telephone, data and consulting or advisory services, contractual obligations for Engineering, Procurement, and Construction agreement costs for new generation plants, solar facilities, plant refurbishments, maintenance and day-to-day contract work and commitments to buy certain products.
Duke Energy’s contractual cash obligations for fuel and purchased power as of December 31, 2025, are as follows: Payments Due by Period (in millions) Total Less than 1 year (2026) 2-3 years (2027 & 2028) 4-5 years (2029 & 2030) More than 5 years (2031 & beyond) Fuel and purchased power $ 23,457 $ 5,772 $ 6,856 $ 3,692 $ 7,137 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.
Increase (Decrease) over prior year 2024 Residential sales 4.6 % Commercial sales 2.1 % Industrial sales 0.5 % Wholesale power sales 14.0 % Joint dispatch sales (3.2) % Total sales 3.9 % Average number of customers 2.2 % Year Ended December 31, 2024, as compared to 2023 Operating Revenues.
Increase (Decrease) over prior year 2025 Residential sales 3.7 % Commercial sales 0.4 % Industrial sales (1.1) % Wholesale power sales 2.9 % Joint dispatch sales 27.0 % Total sales 2.0 % Average number of customers 1.9 % Year Ended December 31, 2025, as compared to 2024 Operating Revenues.
These items represent income from continuing operations available to Duke Energy common stockholders in dollar and per share amounts, adjusted for the dollar and per share impact of special items. As discussed below, special items include certain charges and credits, which management believes are not indicative of Duke Energy's ongoing performance.
Adjusted earnings and adjusted EPS represent income from continuing operations available to Duke Energy common stockholders in dollar and basic per share amounts, adjusted for the dollar and per share impact of special items. Special items represent certain charges and credits, which management believes are not indicative of Duke Energy's ongoing performance.
These technologies include EE, wind, solar and storage, as well as evolving technologies like carbon capture, utilization and storage, the use of hydrogen and other low-carbon fuels, long-duration energy storage and advanced nuclear.
These technologies include efficient new natural gas power plants, EE, wind, solar and storage, as well as evolving technologies like carbon capture, utilization and storage, the use of hydrogen and other low-carbon fuels, long-duration energy storage and advanced nuclear.
Duke Energy has $19.3 billion in Goodwill at both December 31, 2024, and 2023.
Duke Energy has $19 billion in Goodwill at both December 31, 2025, and 2024.
None of the debt or credit agreements contain material adverse change clauses. Credit Ratings Moody’s Investors Service, Inc. and S&P provide credit ratings for various Duke Energy Registrants. The following table includes Duke Energy and certain subsidiaries’ credit ratings and ratings outlook as of February 2025.
None of the debt or credit agreements contain material adverse change clauses. 60 MD&A LIQUIDITY AND CAPITAL RESOURCES Credit Ratings Moody’s Investors Service, Inc. and S&P provide credit ratings for various Duke Energy Registrants. The following table includes Duke Energy and certain subsidiaries’ credit ratings and ratings outlook as of February 2026.
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.
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.
Our operations teams worked diligently, restoring power to approximately 5.5 million customers. We've also seen the benefits of ongoing grid hardening investments, leveraging self-healing technologies and remote restoration capabilities to automate the rerouting of power, more effectively deploy resources, and reduce the frequency or duration of outages for many of our customers during severe weather events.
We've seen the benefits of ongoing grid hardening investments, leveraging self-healing technologies and remote restoration capabilities to automate the rerouting of power, more effectively deploy resources and reduce the frequency or duration of outages for many of our customers during severe weather events.
(g) Recorded in Income (Loss) from Discontinued Operations, net of tax, and Net Income (Loss) Attributable to NCI. Year Ended December 31, 2024, as compared to 2023 GAAP Reported EPS was $5.71 for the year ended December 31, 2024, compared to $3.54 for the year ended December 31, 2023.
(f) Recorded in Income (Loss) from Discontinued Operations, net of tax, and Net Income Attributable to NCI. Year Ended December 31, 2025, as compared to 2024 GAAP Reported EPS was $6.31 for the year ended December 31, 2025, compared to $5.71 for the year ended December 31, 2024.
The WACC takes into account both the after-tax cost of debt and cost of equity. A major component of the cost of equity is the current risk-free rate on 20-year U.S. Treasury bonds. In the 2024 impairment tests, Duke Energy considered implied WACCs for certain peer companies in determining the appropriate WACC rates to use in its analysis.
A major component of the cost of equity is the current risk-free rate on 20-year U.S. Treasury bonds. In the 2025 impairment tests, Duke Energy considered implied WACCs for certain peer companies in determining the appropriate WACC rates to use in its analysis.
The Duke Energy Registrants' frequently require guarantees or letters of credit from suppliers to mitigate this credit risk. Credit risk associated with the Duke Energy Registrants’ service to residential, commercial and industrial customers is generally limited to outstanding accounts receivable.
The Duke Energy Registrants' frequently require guarantees or letters of credit from suppliers to mitigate this credit risk. 64 MD&A QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Credit risk associated with the Duke Energy Registrants’ service to residential, commercial and industrial customers is generally limited to outstanding accounts receivable.
Issuance of these guarantee arrangements is not required for the majority of Duke Energy’s operations. Thus, if Duke Energy discontinued issuing these guarantees, there would not be a material impact to the consolidated results of operations, cash flows or financial position.
Issuance of these guarantee arrangements is not required for the majority of Duke Energy’s operations. Thus, if Duke Energy discontinued issuing these guarantees, there would not be a material impact to the consolidated results of operations, cash flows or financial position. In 2025, Duke Energy executed ATM equity issuances pursuant to forward contracts.
(b) Net of tax benefits of $15 million and $20 million for the years ended December 31, 2024 and 2023, respectively. $42 million recorded within Impairment of assets and other charges, $29 million recorded within Operating revenues, $2 million within Operations, maintenance and other, $11 million reduction recorded within Interest Expense, and a $4 million reduction within NCI for the year ended December 31, 2024. $68 million within Impairment of assets and other charges and $16 million within Operations, maintenance and other for the year ended December 31, 2023.
(a) Net of tax benefits of $15 million. $42 million recorded within Impairment of assets and other charges, $29 million recorded within Operating revenues, $2 million within Operation, maintenance and other, $11 million reduction recorded within Interest Expense, and a $4 million reduction within NCI for the year ended December 31, 2024.
To achieve these objectives, we are partnering with stakeholders, championing public policy that advances innovation and continuing to leverage regulatory models that support the delivery of reliable energy, timely cost recovery and affordable customer rates.
To achieve these objectives, we are partnering with stakeholders, championing public policy that advances innovation, and continuing to leverage regulatory models that support the delivery of reliable energy, ensure timely cost recovery and promote cost stability for customers.
The increase in tax expense was primarily due to an increase in pretax income, partially offset by an increase in the amortization of EDIT.
The decrease in tax expense was primarily due to an increase in the amortization of nuclear PTCs, ITCs and EDIT partially offset by an increase in pretax income.
Years Ended December 31, 2024 2023 (in millions, except per share amounts) Earnings EPS Earnings EPS GAAP Reported Earnings/EPS $ 4,402 $ 5.71 $ 2,735 $ 3.54 Adjustments to Reported: Organizational Optimization (a) — — 95 0.13 Regulatory Matters (b) 43 0.06 64 0.08 System Post-Implementation Costs (c) 16 0.02 — — Preferred Redemption Costs (d) 16 0.02 — — Noncore Asset Sales and Net Impairments (e) 54 0.07 — — Captive Storm Deductible (f) 18 0.02 — — Discontinued Operations (g) (7) (0.01) 1,391 1.81 Adjusted Earnings/Adjusted EPS $ 4,542 $ 5.90 $ 4,285 $ 5.56 Note: Total EPS may not foot due to rounding.
Years Ended December 31, 2025 2024 (in millions, except per share amounts) Earnings EPS Earnings EPS GAAP Reported Earnings/EPS $ 4,912 $ 6.31 $ 4,402 $ 5.71 Adjustments to Reported: Regulatory Matters (a) — — 43 0.06 System Post-Implementation Costs (b) — — 16 0.02 Preferred Redemption Costs (c) — — 16 0.02 Noncore Asset Sales and Net Impairments (d) — — 54 0.07 Captive Storm Deductible (e) — — 18 0.02 Discontinued Operations (f) (1) — (7) (0.01) Adjusted Earnings/Adjusted EPS $ 4,911 $ 6.31 $ 4,542 $ 5.90 Note: Total EPS may not foot due to rounding.
Duke Energy’s capitalization is balanced between debt and equity as shown in the table below. Projected 2025 Actual 2024 Actual 2023 Equity 38 % 38 % 39 % Debt 62 % 62 % 61 % 61 MD&A LIQUIDITY AND CAPITAL RESOURCES Restrictive Debt Covenants Duke Energy’s debt and credit agreements contain various financial and other covenants.
Duke Energy’s capitalization is balanced between debt and equity as shown in the table below. Projected 2026 Actual 2025 Actual 2024 Equity 39 % 37 % 38 % Debt 61 % 63 % 62 % Restrictive Debt Covenants Duke Energy’s debt and credit agreements contain various financial and other covenants.
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 ar e $13,336 million, with $13,015 million exp ected to be paid in the next 12 m onths.
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 $16,547 million, with $16,338 million ex p ected to be paid in the next 12 m onths.
Significant assumptions used are growth rates, future rates of return expected to result from ongoing rate regulation and discount rates. Management determines the appropriate discount rate for each of its reporting units based on the Weighted Average Cost of Capital (WACC) for each individual reporting unit.
Significant assumptions used are growth rates, future rates of return expected to result from ongoing rate regulation and discount rates. Management determines the appropriate discount rate for each of its reporting units based on the WACC for each individual reporting unit. The WACC takes into account both the after-tax cost of debt and cost of equity.
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 2025 and 2024, and the Company remains committed to continued growth of the dividend. 59 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.
Years Ended December 31, (in millions) 2024 2023 Cash flows provided by (used in): Operating activities $ 12,328 $ 9,878 Investing activities (13,123) (12,475) Financing activities 859 2,351 Net increase (decrease) in cash, cash equivalents and restricted cash 64 (246) Cash, cash equivalents and restricted cash at beginning of period 357 603 Cash, cash equivalents and restricted cash at end of period $ 421 $ 357 62 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.
Years Ended December 31, (in millions) 2025 2024 Cash flows provided by (used in): Operating activities $ 12,330 $ 12,328 Investing activities (14,338) (13,123) Financing activities 1,950 859 Net (decrease) increase in cash, cash equivalents and restricted cash (58) 64 Cash, cash equivalents and restricted cash at beginning of period 421 357 Cash, cash equivalents and restricted cash at end of period $ 363 $ 421 61 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.
Management believes the presentation of adjusted earnings and adjusted EPS provides useful information to investors, as it provides them with an additional relevant comparison of Duke Energy’s performance across periods. Management uses these non-GAAP financial measures for planning and forecasting, and for reporting financial results to the Board of Directors, employees, stockholders, analysts and investors.
However, management believes the presentation of adjusted earnings and adjusted EPS provides useful information to investors as an additional relevant comparison of Duke Energy’s performance across periods. Management uses adjusted earnings and adjusted EPS for planning, forecasting and to report financial results to the Duke Energy Board of Directors, employees, and stockholders, as well as analysts and investors.
Duke Energy Carolinas and Duke Energy Progress are working with the state utility commissions on the appropriate regulatory process to pass the net realizable value back to customers over time. See Note 24 to the Consolidated Financial Statements, "Income Taxes," for more information.
Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida are monetizing tax credits in the transferability markets established by the IRA and are working with the state utility commissions on the appropriate regulatory process to pass the net realizable value back to customers over time. See Note 24 to the Consolidated Financial Statements, "Income Taxes," for further information.
The increase in tax expense was primarily due to an increase in pretax income. CRITICAL ACCOUNTING POLICIES AND ESTIMATES Preparation of financial statements requires the application of accounting policies, judgments, assumptions and estimates that can significantly affect the reported results of operations, cash flows or the amounts of assets and liabilities recognized in the financial statements.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES Preparation of financial statements requires the application of accounting policies, judgments, assumptions and estimates that can significantly affect the reported results of operations, cash flows or the amounts of assets and liabilities recognized in the financial statements.
The increase was driven primarily by higher outstanding debt balances and interest rates. Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income.
Interest Expense. The increase is primarily due to higher outstanding debt balances and interest rates. Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income, partially offset by an increase in the amortization of EDIT.
As of December 31, 2024, Duke Energy had approximate ly $314 million of cash on hand, $5.8 billion available u nder 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, 2025, Duke Energy had $245 million of cash on hand and $7.8 billion available under its Master Credit Facility. Duke Energy expects to have sufficient liquidity in the form of cash on hand, cash from operations and available credit capacity to support its funding needs.
Increase (Decrease) over prior year 2024 Residential sales 1.3 % Commercial sales 0.8 % Industrial sales (3.2) % Wholesale power sales 3.9 % Total sales 1.1 % Average number of customers 2.1 % Year Ended December 31, 2024, as compared to 2023 Operating Revenues.
Increase (Decrease) over prior year 2025 Residential sales — % Commercial sales 0.3 % Industrial sales (0.8) % Wholesale power sales (30.1) % Total sales (1.9) % Average number of customers 1.4 % 52 MD&A DUKE ENERGY FLORIDA Year Ended December 31, 2025, as compared to 2024 Operating Revenues.
See “Results of Operations” below for a detailed discussion of the consolidated results of operations and a detailed discussion of financial results for each of Duke Energy’s reportable business segments, as well as Other. 2024 Areas of Focus and Accomplishments Hurricane Response and Operational Excellence .
See “Results of Operations” below for a detailed discussion of the consolidated results of operations and the financial results for each of Duke Energy’s reportable business segments, as well as Other. 2025 Areas of Focus and Accomplishments Acting on Investment Opportunities.
Increase (Decrease) over prior year 2024 Residential sales 3.9 % Commercial sales 3.5 % Industrial sales (3.3) % Wholesale power sales 3.8 % Joint dispatch sales 3.4 % Total sales 3.4 % Average number of customers 2.1 % Year Ended December 31, 2024, as compared to 2023 Operating Revenues.
Increase (Decrease) over prior year 2025 Residential sales 5.0 % Commercial sales 2.2 % Industrial sales 1.6 % Wholesale power sales 5.0 % Joint dispatch sales 4.2 % Total sales 3.4 % Average number of customers 1.6 % 51 MD&A DUKE ENERGY PROGRESS Year Ended December 31, 2025, as compared to 2024 Operating Revenues.
Electric Natural Gas Increase (Decrease) over prior year 2024 2024 Residential sales 4.5 % (6.0) % Commercial sales 4.1 % (4.0) % Industrial sales (3.8) % 20.2 % Wholesale electric power sales 16.6 % n/a Other natural gas sales n/a (1.1) % Total sales 2.9 % (2.0) % Average number of customers 1.1 % 0.8 % 54 MD&A DUKE ENERGY OHIO Year Ended December 31, 2024, as compared to 2023 Operating Revenues .
Electric Natural Gas Increase (Decrease) over prior year 2025 2025 Residential sales 3.4 % 28.5 % Commercial sales 5.5 % 22.1 % Industrial sales (11.5) % 3.4 % Wholesale electric power sales 19.0 % n/a Other natural gas sales n/a (2.5) % Total sales 1.6 % 16.3 % Average number of customers 0.7 % 0.4 % Year Ended December 31, 2025, as compared to 2024 Operating Revenues .
Special items included in the periods presented include the following, which management believes do not reflect ongoing costs: • Organizational Optimization repres ents costs associated with strategic repositioning to a fully regulated utility. • Regulatory Matters primarily represents net impairment charges related to Duke Energy Carolinas' and Duke Energy Progress' North Carolina and South Carolina rate case orders and Duke Energy Carolinas' North Carolina rate case settlement, and charges related to Duke Energy Indiana post-retirement benefits. • System Post-Implementation Costs represents the net impact of charges related to nonrecurring customer billing adjustments as a result of implementation of a new customer system. • Preferred Redemption Costs represents charges related to the redemption of Series B Preferred Stock. • Noncore Asset Sales and Net Impairments primarily represents charges related to certain joint venture electric transmission projects and certain renewable natural gas investments. • Captive Storm Deductible represents charges related to an insurance deductible for Hurricane Helene property losses.
Special items included within the financial statement periods presented, which management does not believe are reflective of ongoing costs, are described below: • Regulatory Matters primarily represents net impairment charges related to Duke Energy Carolinas' and Duke Energy Progress' 2024 South Carolina rate case orders and charges related to Duke Energy Indiana post-retirement benefits. • System Post-Implementation Costs represents the net impact of charges related to nonrecurring customer billing adjustments as a result of implementation of a new customer system. • Preferred Redemption Costs represents charges related to the redemption of Series B Preferred Stock. • Noncore Asset Sales and Net Impairments primarily represents charges related to certain joint venture electric transmission projects and certain renewable natural gas investments. • Captive Storm Deductible represents charges related to an insurance deductible for Hurricane Helene property losses.
Cost recovery for future expenditures will be pursued through the normal ratemaking process with federal and state utility commissions, which permit recovery of reasonable and prudently incurred costs associated with Duke Energy’s regulated operations. Duke Energy is participating in legal challenges to the final rules.
Cost recovery for future expenditures will be pursued through the normal ratemaking process with federal and state utility commissions and via wholesale contracts, which permit recovery of reasonable and prudently incurred costs associated with Duke Energy’s regulated operations.

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