Q2 2024 Duke Energy Corp Earnings Call

August 6, 2024

Felicia: Hello, everyone, and welcome to Duke Energy second quarter 2024 earnings call. My name is Felicia and I'll be your operator today. Following today's presentation, there will be a Q&A session. You may register for questions by pressing star followed by one on your telephone keypad.

Operator: or Earnings Call. My name is Felicia, and I'll be your operator today. Following today's presentation, there will be a Q&A session. You may register for questions by pressing a star, followed by one on your telephone keypad. I will now hand you over to your host, Abby Motsinger, Vice President of Investor Relations at Duke Energy. Please go ahead, Abby.

Felicia: My name is Felicia, and I'll be your operator today. Following today's presentation, there will be a Q&A session. You may register for questions by pressing. Car, followed by one on your telephone keypad.

Abby Motsinger: I will now hand you over to your host, Abby Motsinger, by President of Investor Relations at Duke Energy. Please go ahead, Abby.

Abby Motsinger: I will now hand you over to your host, Abby Motsinger, Vice President of Investor Relations at Duke Energy. Please go ahead, Abby.

Lynn Good: Thank you, Felicia, and good morning, everyone. Welcome to Duke Energy, Second Quarter 2024 Earnings Review and Business Update. Leading our call today is Lynn Good, Chair and CEO, along with Harry Sideris, President, and Brian Savoy, CFO.

Abby Motsinger: Thank you, Felicia. And good morning, everyone.

Abby Motsinger: Thank you, Felicia, and good morning, everyone. Welcome to Duke Energy's second quarter 2024 earnings review and business update. Leading our call today is Lynn Good, Chair and CEO, along with Harry Sideris, President, and Brian Savoy, CFO.

Abby Motsinger: Welcome to Duke Energy's second quarter 2024 earnings review and business update. Leading our call today is Lynn Good, Chair and CEO, along with Harry Sideris, President, and Brian Savoy, CFO. Today's discussion will include the use of non-GAAP financial measures and forward-looking information. However, actual results may differ from forward-looking statements due to factors disclosed in today's materials and in Duke Energy's SEC filings. The appendix of today's presentation includes supplemental information along with a reconciliation of non-GAAP financial measures. With that, let me turn the call over to Lynn. Anything?

Lynn Good: Today's discussion will include the use of non-DAP financial measures and forward-looking information. Actual results may differ from forward-looking statements due to factors disclosed in today's materials and in Duke Energy's SEC filings. The appendix of today's presentation includes supplemental information, along with a reconciliation of non-GAAP financial measures.

Speaker Change: Today's discussion will include the use of non-GAAP financial measures and forward-looking information.

Speaker Change: Actual results may differ from forward-looking statements due to factors disclosed in today's materials and in Duke Energy's SEC filings.

Speaker Change: The appendix of today's presentation includes supplemental information along with a reconciliation of non-GAAP financial measures.

Lynn Good: With that, let me turn the call over to Lynn.

Lynn Good: Abby, thank you. Thank you, everyone.

Lynn Good: Abby, thank you, and good morning everyone. Before I begin, I'd like to take a moment and recognize the work of our team responding to Hurricane Debbie. The storm made landfall in Florida yesterday morning and caused outages for about 330,000 customers. We had crews and physicians over the weekend, and our teams are working around the clock to restore power. As of this morning, we've restored 90% of our impacted customers. Based on its current track, we expect the storm to impact the eastern and central parts of the Carolinas later this week. Along with tropical storm force winds, the system is bringing heavy rains.

Speaker Change: With that, let me turn the call over to Lynn.

Lynn Good: Before I begin, I'd like to take a moment and recognize the work of our team responding to Hurricane Debbie. The storm made landfall in Florida yesterday morning and clogged outages for about 330,000 customers. We had crews in position over the weekend, and our teams are working around the clock to restore power. As of this morning, we've restored 90 percent of our impacted customers. Based on this current track, we expect the storm to impact the eastern and central parts of the Carolinas later this week. Along with tropical storm-force winds, the system is bringing heavy rains. We're staging crews and implementing flood mitigation plans to be able to safely and quickly respond to expected customer outages.

Speaker Change: Abby, thank you, and good morning everyone.

Lynn: Before we begin, I'd like to take a moment and recognize the work of our team responding to Hurricane Debbie.

Speaker Change: The storm made landfall in Florida yesterday morning and caused outages for about 330,000 customers.

Lynn: We had crews in position over the weekend, and our teams are working around the clock to restore power. As of this morning, we've restored 90% of our impacted customers.

Lynn: Based on its current track, we expect the storm to impact the eastern and central parts of the Carolinas later this week.

Lynn: Along with tropical storm force winds, the system is bringing heavy rains. We're staging crews and implementing flood mitigation plans to be able to safely and quickly respond to expected customer outages.

Lynn Good: We're staging crews and implementing flood mitigation plans to be able to safely and quickly respond to expected customer outages. Now, let me turn to our second quarter results and the significant progress we're making across the company. Our simplified, fully regulated portfolio of Southeast and Midwestern utilities, combined with our strong track record of constructive regulatory outcomes, positions us well to deliver long-term value for shareholders. We have clear growth visibility driven by our $73 billion capital plan, which is focused on grid and generation investments to support the growing communities we serve.

Lynn Good: Now, let me turn to our second quarter results and the significant progress we're making across the company. Our simplified, fully regulated portfolio of Southeast and Midwestern utilities combined with our strong track record of constructive regulatory outcomes. Physicians us well to deliver long-term value for shareholders. We have clear growth visibility driven by our 73 billion dollar capital plan, which is focused on grid and generation investments to support the growing communities we serve.

Speaker Change: Now let me turn to our second quarter results and the significant progress we're making across the company.

Speaker Change: are Simplified Fully Regulated Portfolio.

Speaker Change: of Southeast and Midwestern Utilities combined with our strong track record of constructive regulatory outcomes positions us well to deliver long-term value for shareholders.

Speaker Change: We have clear growth visibility driven by our $73 billion capital plan, which is focused on grid and generation investments to support the growing communities we serve.

Lynn Good: In a moment, Harry will provide an update on recent regulatory activity and operational highlights from across the business, and later in the call, Brian will walk through detailed financial results and our long-term sales outlook. But let me begin with the results for the quarter. Turning to slide five, today we announced adjusted earnings per share of $1.18, building on our strong start to the year. These results are $0.27 above last year, driven by growth across our electric utilities and improved weather.

Lynn Good: In a moment, Harry will provide an update on recent regulatory activity and operational highlights from across the business. And later in the call, Brian will walk through detailed financial results and our long-term sales outlook.

Speaker Change: In a moment, Harry will provide an update on recent regulatory activity and operational highlights from across the business.

Speaker Change: And later in the call, Brian will walk through detailed financial results and our long-term sales outlook. But let me begin with the results for the quarter.

Lynn Good: But let me begin with a results for the quarter. Turning to flight five today, we announced adjusted earnings per share of a dollar 18, building on our strong start to the year. These results are 27 cents above last year, driven by growth across our electric utilities and improved weather. We continue to deliver consistent outcomes, carrying positive momentum into the back half of the year. We are reaffirming our 2024 guidance range of 585 to 610. We are also reaffirming our long-term EPS growth rate of 5 to 7% through 2028, based off a 598 midpoint for 2024.

Brian: Turning to slide 5, today we announced adjusted earnings per share of $1.18, building on our strong start to the year. These results are 27 cents above last year, driven by growth across our electric utilities and improved weather.

Lynn Good: We continue to deliver consistent outcomes, carrying positive momentum into the back half of the year. We are reaffirming our 2024 guidance range of 585 to 610. We are also reaffirming our long-term EPS growth rate of 5 to 7% through 2028, based on a 598 midpoint for 2024. With that, I'd like to hand the call over to Harry.

Brian: We continue to deliver consistent outcomes, carrying positive momentum into the back half of the year.

Brian: We are reaffirming our 2024 guidance range of 585 to 610. We are also reaffirming our long-term EPS growth rate of 5% to 7% through 2028, based off a 598 midpoint for 2024.

Harry Sideris: With that, I'd like to hand the call over to Harry. Thank you, Lynn. Starting on slide six, we have a long history of working with stakeholders to achieve constructive regulatory outcomes that benefit our customers and deliver returns for our shareholders. Since the start of 2023, we've continued to build on this track record with approximately $75 billion of rate-based investments approved or settled across seven rate cases. I'm proud of the teams across the company that contributed to these impressive results. The outcomes support essential critical infrastructure investments, acknowledge the rising cost of capital through higher ROEs, and allow us to meet our customers' demands for affordable, reliable, and increasingly clean energy now and into the future.

Harry Sideris: Starting on slide six, we have a long history of working with stakeholders to achieve constructive regulatory outcomes that benefit our customers and deliver returns for our shareholders. Since the start of 2023, we've continued to build on this track record with approximately $75 billion of rate-based investments approved or settled across seven rate cases. I'm proud of the teams across the company that contributed to these impressive results.

Brian: With that, I'd like to hand the call over to Harry.

Harry: Thank you, Lynn. Starting on slide six, we have a long history of working with stakeholders to achieve constructive regulatory outcomes that benefit our customers and deliver returns for our shareholders.

Harry: Since the start of 2023, we've continued to build on this track record, with approximately $75 billion of rate-based investments approved or settled across seven rate cases.

Harry: I'm proud of the teams across the company that contributed to these impressive results.

Harry Sideris: The outcomes support essential, critical infrastructure investments, acknowledge the rising cost of capital through higher ROEs, and allow us to meet our customers' demands for affordable, reliable, and increasingly clean energy now and into the future. Just last month, we received a final order in our DEC South Carolina rate case, and rates were updated August 1st. The order supports our efforts to increase system diversity and reliability and enhance the customer experience.

Harry: The outcomes support essential, critical infrastructure investments, acknowledge the rising cost of capital through higher ROEs, and allow us to meet our customers' demands for affordable, reliable, and increasingly clean energy, now and into the future.

Harry Sideris: Just last month, we received a final order in our DEC South Carolina rate case, and rates were updated August 1st. The order supports our efforts to increase system diversity and reliability and enhance the customer experience. We also filed a comprehensive settlement in our Florida rate case in July. The Florida settlement reflects a three-year multi-year rate plan with rates effective in January. It focuses on continued grid modernization to serve population growth and harden the system, as well as investments in renewables. Hearings are scheduled to begin later this month, and an order is expected by the end of the year.

Harry Sideris: We also filed a comprehensive settlement in our Florida raid case in July. The Florida settlement reflects a three-year, multi-year rate plan with rates effective in January. It focuses on continued grid modernization to serve population growth and harden the system, as well as investments in renewable energy. Hearings are scheduled to begin later this month, and an order is expected by the end of the year. Importantly, the outcomes in South Carolina and Florida demonstrate our commitment to affordability and continued focus on finding creative solutions to maintain low rates, including utilizing tax benefits to moderate increases. With solutions like these, we expect customer rates to remain below the national average. Turning to slide seven.

Harry Sideris: Importantly, the outcomes in South Carolina and Florida demonstrate our commitment to affordability and continued focus on finding creative solutions to maintain low rates, including utilizing tax benefits to moderate increases. With solutions like these, we expect customer rates to remain below the national average.

Harry Sideris: Turning to slide seven, we continue to collaborate with stakeholders across our jurisdictions. In the Carolinas, the IRP process is advancing in both states. Our plans cause for a diverse and increasingly clean energy mix that serves our growing customer base while preserving reliability and affordability. In mid July, we were pleased to reach a constructive settlement in North Carolina with the Public Staff, Walmart, and CCB. Importantly, the settlement adopts our near-term action plan, including renewables and natural gas investments, as well as early development activities for long lead time resources. Hearings concluded in North Carolina yesterday, and South Carolina hearings will start in mid-September.

Harry Sideris: We continue to collaborate with stakeholders across our jurisdiction. In the Carolinas, the IRP process is advancing in both states. Our plans call for a diverse and increasingly clean energy mix that serves our growing customer base while preserving reliability and affordability. In mid-July, we were pleased to reach a constructive settlement in North Carolina with the public staff, Wal-Mart, and CCBus.

Harry: Turning to slide 7, we continue to collaborate with stakeholders across our jurisdictions.

Harry Sideris: Importantly, the settlement adopts our near-term action plan, including renewables and natural gas investments, as well as early development activities for long-lead time resources. Hearings concluded in North Carolina yesterday, and South Carolina hearings will start in mid-September. We expect orders in both states by year-end. CPCN hearings will begin today in North Carolina on our request to construct more than 2 gigawatts of natural gas generation. These advanced class units will be located at existing coal plants slated for retirement, ensuring continued reliability and complementing our significant investments in renewables.

Harry: In the Carolinas, the IRP process is advancing in both states.

Harry Sideris: We expect CPCN orders from the NCUC by the year-end, and pending approvals, construction is planned to start in 2026 with all units operational by 2028. Moving to Florida, we placed three new solar facilities in service through June. This keeps us on track to have 1,500 megawatts of solar on the Florida system by the end of the year. Looking ahead, we plan to build 12 solar plants between 2025 and 2027, adding another 900 megawatts of clean energy to the Florida grid. We also have two additional rate case hearings this quarter. In Indiana, hearings begin later this month, and in North Carolina, our Piedmont natural gas hearing begins in mid-September.

Harry: Hearings concluded in North Carolina yesterday and South Carolina hearings will start in mid-September. We expect orders in both states by year-end.

Harry Sideris: We expect orders in both states by year end. CPCN hearings will begin today in North Carolina on our request to construct more than two gigawatts of natural gas generation. These advanced class units will be located existing coal plants slated for retirement, ensuring continued reliability and complementing our significant investments in renewables. We expect CPCN orders from the NCUC by the year end. In pending approvals, construction is planned to start in 2026, with all units operational by 2028. Moving to Florida, we place three new solar facilities in service through June. This keeps us on track to have 1,500 megawatts of solar on the Florida system by the end of the year.

Harry: CPCN hearings will begin today in North Carolina on our request to construct more than 2 gigawatts of natural gas generation.

Harry: We expect CPCN orders from the NCEUC by the year-end, and pending approvals, construction is planned to start in 2026 with all units operational by 2028.

Harry Sideris: Director. Looking ahead, we plan to build 12 solar plants between 2025 and 2027, adding another 900 megawatts of clean energy to the Florida grid. We also have two additional rate case hearings this quarter. In Indiana, hearings begin later this month, and in North Carolina, our Piedmont Natural Gas hearing begins in mid-September. Both cases are based on investments we've made to serve our customers and strengthen our system over the last several years.

Harry: We also have two additional rate case hearings this quarter. In Indiana, hearings begin later this month, and in North Carolina, our Piedmont natural gas hearing begins in mid-September.

Harry Sideris: Both cases are based on investments we've made to serve our customers and strengthen our system over the last several years. Before I turn it over to Brian, I wanted to commend all our teammates for their unwavering focus on operational excellence, ensuring reliable and affordable energy for our customers every day. As Lynn mentioned, many of our teammates are actively working to restore power to our Florida customers impacted by Hurricane Debbie. Restoration efforts are well underway, and we are committed to restoring power to all customers as quickly and safely as possible.

Harry Sideris: Before I turn it over to Brian, I wanted to commend all our teammates for their unwavering focus on operational excellence, ensuring reliable and affordable energy to our customers every day. As Lynn mentioned, many of our teammates are actively working to restore power to our Florida customers impacted by Hurricane Debbie. Restoration efforts are well underway, and we are committed to restoring powered all customers as quickly and safely as possible. In addition to responding to storms, this summer, we experienced extreme heat across our jurisdictions. In fact, the Carolinas reached two new record summer peaks in a matter of weeks.

Speaker Change: Before I turn it over to Brian, I wanted to commend all our teammates for their unwavering focus on operational excellence.

Speaker Change: ensuring reliable and affordable energy to our customers every day.

Brian: As Lynn mentioned, many of our teammates are actively working to restore power to our Florida customers impacted by Hurricane Debbie.

Brian: Restoration efforts are well underway and we are committed to restoring power to all customers as quickly and safely as possible.

Harry Sideris: In addition to responding to storms, this summer we experienced extreme heat across our jurisdictions. In fact, the Carolinas reached two new record summer peaks in a matter of weeks. Our team showed incredible preparation and collaboration across the company. I'm pleased to share that the grid and fleet performed well, and our employees met the needs of our customers and communities during these critical times. With that, I'll turn the call over to Brian.

Speaker Change: In addition to responding to storms, this summer we experienced extreme heat across our jurisdictions. In fact, the Carolinas reached two new record summer peaks in a matter of weeks.

Harry Sideris: Our teams showed incredible preparation and collaboration across the company. I'm pleased to share that the grid and fleet performed well in our employees met the needs of our customers and communities during these critical times.

Speaker Change: Our team showed incredible preparation and collaboration across the company.

Brian Savoy: With that, let me turn the call over to Brian. Thank you, Harry, and good morning, everyone. Turning to slide 8, we had a strong second quarter. We've reported an adjusted earnings per share of $1.13 and $1.18, respectively. This is up from an adjusted earnings per share of 91 cents in the second quarter last year. Within the segments, electric utilities and infrastructure was up 34 cents. Growth was driven by rate increases in riders, higher sales volumes, and warmer than normal weather across our service territories, which is a complete reversal of the extremely mild weather in the second quarter of 2023.

Brian Savoy: Thanks, Harry, and good morning, everyone. Turning to slide 8, we had a strong second quarter. We've reported an adjusted earnings per share of $1.13 and $1.18, respectively. This is up from an adjusted earnings per share of 91 cents in the second quarter last year. Within the segments, electric utilities and infrastructure were up 34%. Growth was driven by rate increases in riders, higher sales volumes, and warmer than normal weather across our service territories, which is a complete reversal of the extremely mild weather in the second quarter of 2023, partially offsetting these items or higher interest expense and depreciation.

Speaker Change: Thanks, Harry, and good morning, everyone.

Brian Savoy: Partsly offsetting these items were higher interest expense and depreciation. Moving to gas utilities and infrastructure results were down to cents compared to last year, as favorable rider revenue was offset by higher interest expense and depreciation. And finally, the other segment was down 5 cents, primarily due to higher interest expense.

Brian Savoy: Moving to gas utilities and infrastructure, results were down two cents compared to last year as favorable rider revenue was offset by higher interest expense and depreciation. And finally, the other segment was down $0.05, primarily due to higher interest.

Speaker Change: And finally, the other segment was down 5 cents, primarily due to higher interest expense.

Brian Savoy: Turning to slide 9, I'd like to take a moment to discuss our earnings profile for the remainder of the year. As a reminder, last year had an atypical earnings shape, with record mild weather in the first half of the year, which was mitigated with agility measures in the second half. With that in mind, the strong performance we've demonstrated so far this year is aligned with our planning assumptions. I'm incredibly proud for the team for delivering an impressive first half, and we are on track to achieve full-year results within our guidance range. Turning to slide 10, we were pleased to see whether normal volumes increased 1.9 percent versus last year, in line with our full-year projection.

Brian Savoy: Turning to slide nine, I'd like to take a moment to discuss our earnings profile for the remainder of the year. As a reminder, last year had an atypical earnings shape, with record mild weather in the first half of the year, which was mitigated with agility measures in the second half. With that in mind, the strong performance we've demonstrated so far this year is aligned with our planning assumptions. I'm incredibly proud of the team for delivering an impressive first half, and we are on track to achieve full year results within our guidance. Turning to slide 10.

Speaker Change: Turning to slide 9, I'd like to take a moment to discuss our earnings profile for the remainder of the year.

Speaker Change: As a reminder, last year had an atypical earning shape, with record mild weather in the first half of the year, which was mitigated with agility measures in the second half.

Speaker Change: With that in mind, the strong performance we've demonstrated so far this year is aligned with our planning assumptions.

Brian Savoy: We were pleased to see weather normal volumes increase 1.9% versus last year, in line with our full year projection. Customer growth remains robust, led by the Carolinas and Florida, which grew 2.4% through the first half of the year. We're also encouraged to see improving residential usage across our jurisdiction. Commercial and industrial volumes were up over 1% versus last year, driven by strength in the commercial sector. Commercial sales volumes have exceeded our projections through the first half, offsetting a slower rebound in industrial sales.

Speaker Change: Turning to slide 10.

Brian Savoy: Customer growth remains robust, led by the Carolinas and Florida, which grew 2.4 percent through the first half of the year. We're also encouraged to see improving residential usage across our jurisdictions. Commercial and industrial volumes were up over 1 percent versus last year, driven by strength in the commercial sector.

Brian Savoy: Collector. Commercial sales volumes have exceeded our projections through the first half, offsetting a slower rebound in industrial sales. As economic development projects continue to come online throughout the second half of the year, we expect CNI load growth to accelerate. We operate in some of the most attractive jurisdictions for both economic development and customer migration, which provide conviction in our 2% load growth forecast in 2024, and 1.5 to 2% load growth cater over the five-year planning horizon.

Speaker Change: Commercial sales volumes have exceeded our projections through the first half, offsetting a slower rebound in industrial sales.

Brian Savoy: As economic development projects continue to come online throughout the second half of the year, we expect C&I load growth to accelerate. We operate in some of the most attractive jurisdictions for both economic development and customer migration, which provide conviction in our 2% low growth forecast in 2024 and 1.5% to 2% load growth CAGR over the five-year planning horizon. Turning to slide 11.

Speaker Change: As economic development projects continue to come online throughout the second half of the year, we expect C&I load growth to accelerate.

Speaker Change: We operate in some of the most attractive jurisdictions for both economic development and customer migration, which provide conviction in our 2% low growth forecast in 2024.

Speaker Change: and 1.5% to 2% load growth CAGR over the five-year planning horizon.

Brian Savoy: Turning to slide 11, we're forecasting unprecedented growth and power demand from advanced manufacturing projects across multiple sectors, as well as data centers. As we evaluate which economic development opportunities to include in our forecast, it's important to remember that we take a risk-adjusted approach. We utilize discrete project level analysis to evaluate and probability weight potential opportunities, resulting in a subset of projects being included in our current projections. We have a robust pipeline of projects that continue to progress, and will be reflected in our plans when the projects mature. This pipeline provides a runway for growth well into the future.

Brian Savoy: We are forecasting unprecedented growth in power demand from advanced manufacturing projects across multiple sectors, as well as data centers. As we evaluate which economic development opportunities to include in our forecast, it's important to remember that we take a risk-adjusted approach. We utilize discrete project-level analysis to evaluate and probability weight potential opportunities, resulting in a subset of projects being included in our current projection. We have a robust pipeline of projects that continue to progress and will be reflected in our plans when they mature.

Speaker Change: We are forecasting unprecedented growth in power demand from advanced manufacturing projects across multiple sectors, as well as data centers.

Speaker Change: As we evaluate which economic development opportunities to include in our forecast, it's important to remember that we take a risk-adjusted approach.

Speaker Change: We utilize discrete project-level analysis to evaluate and probability weight potential opportunities, resulting in a subset of projects being included in our current projections.

Speaker Change: We have a robust pipeline of projects that continue to progress, and will be reflected in our plans when the projects mature.

Brian Savoy: This pipeline provides a runway for growth well into the future. We're committed to serving this new load in a way that prioritizes reliability and affordability for all our customers. To that end, we recently executed MOUs with Google, Microsoft, Nucor, and Amazon to explore tailored solutions to meet large-scale energy needs and develop rate structures to lower the long-term cost of investing in clean energy technology. These voluntary programs, which are subject to commission approval, would be open to any large customer and would include protections for non-participating customers. We look forward to continued collaboration with all stakeholders as we work to meet the accelerating demand for our services. Turning to slide 12.

Speaker Change: This pipeline provides a runway for growth well into the future.

Brian Savoy: We are committed to serving this new load in a way that prioritizes reliability and affordability for all our customers. To that end, we recently executed MOUs with Google, Microsoft, NewCore, and Amazon to explore tailored solutions to meet large-scale energy needs and develop rate structures to lower the long-term costs of investing in clean energy technologies. These voluntary programs, which were subject to commission approval, would be open to any large customer and would include protections for non-participating customers. We look forward to continued collaboration with all stakeholders as we work to meet the accelerating demand in our service territories.

Speaker Change: We are committed to serving this new load in a way that prioritizes reliability and affordability for all our customers.

Speaker Change: To that end, we recently executed MOUs with Google, Microsoft, Nucor, and Amazon to explore tailored solutions to meet large-scale energy needs.

Speaker Change: and develop rate structures to lower the long-term cost of investing in clean energy technologies.

Speaker Change: These voluntary programs, which are subject to commission approval, would be open to any large customer.

Speaker Change: and would include protections for non-participating customers.

Speaker Change: We look forward to continued collaboration with all stakeholders as we work to meet the accelerating demand in our service territories.

Brian Savoy: Turning to slide 12, we recognize the importance of a strong balance gene as we advance our strategic priorities and fund investments that will be foundational to our growth. We are on track to achieve 14% FFO to debt by the end of this year, which represents 100 basis points of cushion to our Moody's downgrade threshold. Our constructive regulatory outcomes combine with the collection of remaining deferred fuel balances, monetization of tax credits, and programmatic equity issuances provide clear line of sight to achieving our target. As disclosed in February, we expect to issue 500 million of common equity annually over the five-year plan via our DRIP and ATM programs. We've completed over half of our 500 million target, having priced 285 million year to date.

Brian Savoy: We recognize the importance of a strong balance sheet as we advance our strategic priorities and fund investments that will be foundational to our growth. We are on track to achieve 14% FFO to debt by the end of this year, which represents 100 basis points of cushion to our Moody's downgrade threshold. Our constructive regulatory outcomes, combined with the collection of the remaining deferred fuel balance, Monetization of the Tax Credit, and Programmatic Equity Issues, provide a clear line of sight to achieving our target.

Speaker Change: Turning to slide 12, we recognize the importance of a strong balance sheet as we advance our strategic priorities and fund investments that will be foundational to our growth.

Speaker Change: We are on track to achieve 14% FFO to debt by the end of this year, which represents 100 basis points of cushion to our Moody's downgrade threshold.

Speaker Change: Our constructive regulatory outcomes combine with the collection of remaining deferred fuel balances.

Speaker Change: monetization of tax credits and programmatic equity issuances provide clear line-of-sight to achieving our target.

Brian Savoy: As disclosed in February, we expect to issue $500 million of common equity annually over the five-year plan via our DRIP and ATM programs. We've completed over half of our $500 million target, having priced $285 million year-to-date.

Speaker Change: As disclosed in February, we expect to issue $500 million of common equity annually over the five-year plan via our DRIP and ATM programs.

Speaker Change: We've completed over half of our $500 million target, having priced $285 million year-to-date.

Brian Savoy: We've also completed approximately 80% of our planned long-term debt issuances for 2024. As we've demonstrated over many years, our commitment to our current credit ratings and a strong balance sheet is unwavering and will continue to be a top priority as we execute our growth objectives.

Speaker Change: We've also completed approximately 80% of our planned long-term debt issuances for 2024.

Speaker Change: As we've demonstrated over many years,

Speaker Change: Our commitment to our current credit ratings and a strong balance sheet is unwavering and will continue to be a top priority as we execute our growth objectives.

Brian Savoy: Moving to slide 13, we remain confident in delivering our 2024 earnings guidance range of 585-610 and growth of 5-7% through 2028. We operate in constructive, growing jurisdictions, and the fundamentals of our business are stronger than now.

Brian Savoy: We remain confident in delivering our 2024 earnings guidance range of 585 to 610 and growth of 5 to 7% through 2028. We operate in constructive, growing jurisdictions, and the fundamentals of our business are stronger than ever. We are well positioned to achieve our growth target, which combined with our attractive dividend yield provides a compelling risk-adjusted return for shareholders. With that, we'll open the line for your questions.

Speaker Change: Moving to slide 13, we remain confident in delivering our 2024 earnings guidance range of 585 to 610 and growth of 5 to 7 percent through 2028.

Speaker Change: We operate in constructive, growing jurisdictions, and the fundamentals of our business are stronger than ever.

Brian Savoy: River. We are well positioned to achieve our growth targets, which, combined with our attractive dividend yield, provide a compelling, risk-adjusted return for shareholders.

Speaker Change: We are well positioned to achieve our growth targets, which combined with our attractive dividend yield, provide a compelling risk-adjusted return for shareholders.

Felicia: With that, we'll open the line for your questions. Thank you. If you'd like to ask a question, please press star followed by one on your telephone keypad.

Speaker Change: With that, we'll open the line for your questions.

Operator: Thank you. If you'd like to ask a question, please press star followed by one on your telephone keypad. The first question comes from Shahriar Pourreza from Guggenheim Partners. Your line is now open.

Speaker Change: Thank you. If you'd like to ask a question, please press star followed by 1 on your telephone keypad.

Shahr Pourreza: The first question comes from Shahr Pourreza, from Guggenheim Partners. Your line is open. Please go ahead.

Speaker Change: The first question comes from Char Pereza from Guggenheim Partners. Your line is open, please go ahead.

Constantine: Hi, good morning, team. It's actually a constant team here for Shahr. Thanks for taking the question. Good morning. Good morning, Constantine. Good morning.

Shahriar Pourreza: Hi, good morning team. It's actually Constantine here for SHARD.

Speaker Change: Hi, good morning, team. It's actually Constantine here, for sure. Thanks for taking the question.

Operator: Thanks for taking the question. Morning. Morning, Constance.

Constantine: Good morning, you highlighted economic development and growth, and the geography is obviously favorable for data center activities, but you're still running on that one and a half to 2% growth projection. At what point do you feel you can reassess these assumptions and what could that mean for the capital plan? Can you see some out-of-cycle updates going towards the tail end of the year?

Speaker Change: Morning. Morning, Constance. Do you have a highlight of economics?

Constantine: You highlighted the economic development and growth, and the geography is obviously favorable for data center activities, but you're still running on that one and a half to present load growth projections.

Speaker Change: Good morning. You highlighted the economic development and growth, and the geography is obviously favorable for data center activities, but you're still running on that 1.5 to 2% load growth projection.

Constantine: At what point do you feel you can reassess of the assumptions, and what could that mean to the capital plan to achieve some out-of-cycle updates going towards the tail end of the year? Thanks, Constantine. It's a great question, and one that we continue to be encouraged about. So, you know, if we dial the clock back, a year ago we were projecting a half percent load growth Keger over our planning horizon, and then economic development opportunities began to surface and continued to show up. And we moved to one and a half to two percent. And, you know, on a base of sales of over 200,000 gigawatt hours a year at Duke Energy, that one and a half to two percent Keger, which is quite impressive.

Speaker Change: At what point do you feel you can reassess these assumptions, and what could that mean for the capital plan? Can you see some out-of-cycle updates going towards the tail end of the year?

Brian Savoy: Thanks, Constantine. It's a great question and one that we continue to be encouraged about. So, you know, if we dial the clock back, we were, a year ago, we were projecting a half percent load growth CAGR over our planning horizon. And then economic development opportunities began to surface and continue to show up. And we moved to one and a half to two percent. And, you know, on a base of sales of over 200,000 gigawatt hours a year at Duke Energy, that one and a half to two percent CAGR is quite impressive. We're very pleased to see that kind of growth. I would say that.

Speaker Change: Thanks, Constantine. It's a great question and one that we continue to be encouraged about.

Speaker Change: If we dial the clock back, a year ago we were projecting a half percent load growth CAGR over our planning horizon, and then economic development opportunities began to surface and continue to show up, and we moved to one and a half to two percent. On a base of sales of over 200,000 gigawatt hours a year at Duke Energy, that one and a half to two percent CAGR is quite impressive, and we were very pleased to see that kind

Constantine: We're very pleased to see that kind of growth. And I would say that with the economic development pipeline we're looking at today, we're turning to the high end of that one and a half to two percent.

Brian Savoy: With the economic development pipeline we're looking at today, we're trending to the high end of that one and a half to two percent. And as we look at our plans... We're forecasting to update the full financial plan with the load growth and the capital supported, along with the earnings per share outcome from those elements in February, which is our normal cadence. We will definitely keep you updated along the way as the economic development pipeline progresses, but I will say that we continue to be encouraged, and every time we look at our load update, it gets deeper as far as the load growth outlook is concerned. And most of that growth is later in the decade, so it kind of coincides with as we roll the plan to 2029, it will make more sense to show that load growth.

Speaker Change: And I would say that with the economic development pipeline we're looking at today, we're trending to the high end of that one and a half to two percent. And as we look at our plans,

Constantine: And as we look at our plans, we're forecasting to update the full financial plan with the load growth and the capital supported, along with the earnings per share outcome from those elements in February, which is our normal cadence. We will definitely keep you updated along the way as the economic development pipeline progresses. But I will say that we continue to be encouraged. And every time we look at our load update, it deepens as far as the load growth outlook. And most of that growth is later in the decade. So, it can kind of go coincides with, as we roll the plan to 2029, it will make more sense to show that load growth over time.

Speaker Change: We're forecasting to update the full financial plan with the load growth and the capital supported along with the earnings per share outcome from those elements in February, which is our normal cadence.

Speaker Change: We will definitely keep you updated along the way as the economic development pipeline progresses, but I will say that we continue to be encouraged and every time we look at our load update, it deepens as far as the load growth outlook. And most of that growth is later in the decade.

Speaker Change: So it kind of coincides with as we roll the plane to 2029, it will make more sense to show that load growth over time.

Lynn Good: This is Lynn. The only thing I would just emphasize that Brian touched upon is that we have continued to see economic development growth. I know the chart that we've shared with you is consistent with the first quarter, but we are continuing to see growth in that economic development pipeline. And so our thought is that we will provide a comprehensive update, both on load and capital, in February that will continue to give you a sense of economic development progress over the balance of the year. So the bottom line is we have a wealth of growth opportunities and feel like we're really well-positioned to take advantage of them.

Constantine: Thank you.

Lynn Good: This is Lynn. The only thing I would just emphasize that Brian touched upon is we have continued to see economic development growth. I know the chart that we've shared with you is consistent with the first quarter, but we are continuing to see growth in that economic development pipeline.

Speaker Change: This is Lynn. The only thing I would just emphasize that Brian touched upon is we have continued to see economic development growth.

Speaker Change: I know the chart that we've shared with you is consistent with first quarter, but we are continuing to see growth in that economic development pipeline, and so our thought is

Lynn Good: And so our quad is that we will provide a comprehensive update, both on load and capital, and February that continue to give you a sense of economic development progress over the balance of the year. So the bottom line is we have a wealth of growth opportunities and feel like we're really well positioned to take advantage of them.

Speaker Change: That we will provide a comprehensive update both on load and capital in February that continue to give you a sense of Economic development progress over the balance of the year So the bottom line is we have a wealth of growth opportunities and feel like we're really well positioned to take advantage of them

Constantine: Yep, sounds great, totally understood.

Constantine: Yep, sounds great. Totally understood. And maybe separately, we will get an update on nuclear PTCs from just the timing and monetization perspective, given some of the importance that they play toward credit metric targets and any other pieces we should be mindful of.

Constantine: And maybe separately, we did an update on nuclear PTCs from just the timing and monetization perspective, given some of the importance that they placed were her credit metric targets and any other pieces we should be mindful of.

Speaker Change: Yep, sounds great. Totally understood. And maybe separately, can we get an update on nuclear PTCs from just the timing and monetization perspective, given some of the importance that they play toward credit metric targets, and any other pieces we should be mindful of?

Brian Savoy: No, thanks, Constanelle. I'll take that as well.

Brian Savoy: Thanks, Constantine. I'll take that as well. This is Brian.

Brian Savoy: This is Brian. On the nuclear PTCs, we were hoping to see guidance by mid-year, and that obviously has not transpired. The Treasury continues to actively issue guidance on elements of the IRA. We see that weekend, and we gout, and we still expect the formal guidance for the nuclear PTCs by the end of this year. But I will say that we operate 11 very low-cost new nuclear plants that have delivered extremely well over the first half of the year. These plants have earned about 250 million of nuclear PTCs through June. That's recorded in our financial statements.

Brian Savoy: On the nuclear PTCs, we were hoping to see guidance by mid-year, and that obviously has not transpired. However, the Treasury continues to actively issue guidance on elements of the IRA. We see that week in and week out.

Brian: Thanks, Constantine. I'll take that as well. This is Brian. On the nuclear PTCs, we were hoping to see guidance by mid-year, and that obviously has not transpired. The Treasury continues to actively issue guidance on elements of the IRA. We see that week in and week out. And we still expect the formal guidance for the nuclear PTCs by the end of this year.

Brian Savoy: And we still expect the formal guidance for the nuclear PTCs by the end of this year. But I will say that we operate 11 very low-cost, remarkable nuclear plants that have delivered extremely well over the first half of this year. And these plants have earned about 250 million nuclear PTCs through June. That's recorded in our financial statements. And, you know, our plans are to test the market on monetizing these PTCs in the third quarter. So you can expect us to report on that later in the year. But we don't feel like the delay in the guidance from our early expectations will have any impact on our credit in 2020.

Speaker Change: But I will say that we operate 11 very low-cost...

Speaker Change: These are remarkable new nuclear plants that have delivered extremely well over the first half of the year. And these plants have earned about $250 million of nuclear PTCs through June. That's recorded in our financial statements.

Constantine: Our plans are to test the market on monetizing these PTCs in the third quarter. So you could expect us to report on that later in the year. But we don't feel like the delay in the guidance from our early expectations will have any impact on our credit in 2024. Okay, it's perfect. That's very helpful. I will come back and give. Appreciate the question.

Speaker Change: And, you know, our plans are to test the market on monetizing these PTCs.

Speaker Change: in the third quarter. So you can expect us to report on that later in the year.

Speaker Change: But we don't feel like the delay in the guidance from our early expectations will have any impact on our credit in 2024.

Constantine: Okay, perfect. That's very helpful. I will come back in two. I appreciate the question. Thank you.

Speaker Change: Okay, perfect. That's very helpful. I will come back in two. Appreciate the question.

Felicia: Thank you.

Nick Campanella: The next question comes from Nick Campanella from Barthly. Please go ahead.

Speaker Change: Thank you.

Operator: The next question comes from Nick Campanella from Barclays. Please go ahead. Your line is open.

Speaker Change: The next question comes from Nick Campanella from Barclays. Please go ahead, your line is open.

Nick Campanella: Your line is open. Hey, good morning. Hey, good morning, Morning.

Nicholas Campanella: Brian. Brian. Hey, morning, morning. Well, hey, good to see the settlement in Florida. I was just wondering about DEI, with evidentiary hearings at the end of this month, do you think you can settle that case ahead of those hearings? And how should we think about that potential?

Nick Campanella: Hey, good morning.

Operator: Thanks.

Nick Campanella: Morning, Nick. Morning.

Nick Campanella: Hey, good to see the settlement in Florida.

Nick Campanella: Hey, good to see the settlement in Florida. I was just wondering on DEI with evidentiary hearings at the end of this month, do you think you can settle that case ahead of those hearings and how should we think about that potential?

Harry Sideris: I was just wondering on DEI with evidentiary hearing that the end of this month, do you think you can settle that case ahead of those hearings and how should we think about that potential? Thanks. Thanks for that question, Nick.

Harry Sideris: Thanks for that question, Nick. This is Harry.

Harry Sideris: This is Harry. We're always open to settlement discussions. You know, that hearing is later this month. As we get closer, that hearing will continue to look for opportunities to have those discussions. But we also feel very strong about the case that we've put together strong customer benefits, the investments for the growth in Indiana and the economic development in Indiana. So we feel comfortable either path on a constructive outcome. So we'll keep informed, Nick, that we need to get closer to sharing. But, as Harry indicated, a strong case and an interest to move through this process in Indiana.

Harry Sideris: We're always open to settlement discussions. You know, that hearing is later this month. As we get closer to that hearing, we'll continue to look for opportunities to have those discussions. But we also feel very strong about the case that we've put together, strong customer benefits, investments for growth in Indiana, and economic development in Indiana. So we feel comfortable with either path to a constructive outcome.

Lynn Good: So we'll keep you informed, Nick, as we get closer to the hearing, but, as Harry indicated, a strong case and anxious to move through this process in Indiana.

Nick Campanella: That's great. We'll be watching this.

Nicholas Campanella: That's great; we'll be watching it. And then I guess just when I think about your role going forward, which I know is not until the fourth quarter. You know, just kind of wondering how you're kind of tracking within this kind of five to 7% EPS glide path. You know, when I try to kind of conceptualize some of your sensitivities that you laid out on slide 22, you know, interest rates are down. You did mention some pressure higher on the one to 2% load growth assumption, and the stock's also up, which helps the accretion of your equity program. Just, you know, where are you tracking in the five to seven? And then like, what headwinds should we be kind of considering versus what I outlined?

Nick Campanella: And then I guess just when I think about your role forward, which I know is not to the fourth quarter, you know, just kind of wondering how you're kind of tracking within this kind of 5 to 7 percent EPS glide path. You know, when I try to kind of conceptualize some of your sensitivities that you laid out on slide 22, you know, interest rates are down. You didn't mention some pressure higher on the one to 2 percent load growth assumption. And you know, the stock's also up, which helps the accretion of your equity program. Just, you know, where are you tracking in the 5 to 7?

Speaker Change: That's great, we'll be watching it. And then I guess just when I think about your role forward, which I know is not till the fourth quarter.

Nick Campanella: And then, like, what headwind should we be kind of considering versus what I outlined right there?

Brian Savoy: No, thanks, Nick. This is Brian again. So as we look through our five-year plan, we definitely see more tailwinds than headwinds, right? This accelerating load growth that, you know, pointed more towards the back end of the plan, clearly provide the tailwind, consistent investment in critical infrastructure across our jurisdictions that are supported and approved by multi-erate plans or grid riders for multiple years to come, provide that transparent growth, and a stabilizing interest rate environment. Frankly, those three things give us a high degree of confidence in the 5 to 7 percent, had a minimum extending that, but also presents the opportunity to earn at the top end of that range later in the plan.

Brian Savoy: Thanks, Nick. This is Brian again.

Brian Savoy: As we look through our five-year plan, we definitely see more tailwinds than headwinds, right? This accelerating load growth that's, you know, pointed more towards the back end of the plan clearly provides a tailwind. Consistent investment in critical infrastructure across our jurisdictions that are supported and approved by multi-year rate plans or grid riders for multiple years to come provides that transparent growth and a stabilizing interest rate environment. Frankly, those three things give us a high degree of confidence in the five to seven percent, at a minimum, extending that, but it also presents the opportunity to earn at the top end of that range later in the period. I will say that the thing to watch would be an economic downturn, right? That affects any utility.

Speaker Change: You know pointed more towards the back end of the plan clearly provide the tailwind Consistent investment in in critical infrastructure across our jurisdictions that are supported and approved by multi-year rate plans or grid riders for multiple years to come provide that transparent growth

Speaker Change: and a stabilizing interest rate environment, frankly. Those three things give us a high degree of confidence in the 5 to 7 percent. At a minimum, extending that, but also presents the opportunity to earn at the top end of that range later in the period.

Brian Savoy: Period. I will say that the things to watch would be an economic downturn, right? That affects any utility; it would affect our communities that we serve, and it would affect our customer demand. So that's something that we definitely can keep our finger on the pulse with our customers, understanding where they are and what pressures they're seeing. But that probably, Lynn, I don't think we are comfortably positioned within the five to seven percent. And Felix, it's strongly positioned when you look at this economic development for a sustained period, with giving you five to seven through twenty-eight.

Brian Savoy: It would affect the communities that we serve, and it would affect our customer demand. So that's something that we definitely can keep our finger on the pulse with our customers, understanding where they are and what pressures they're seeing. But that probably would... Lynn, I don't know if you would add anything to that.

Lynn: But that probably, Lynn, I don't know if you would add anything to that. You know, Nick, I would say we are comfortably positioned within the 5 to 7 percent and feel like it's strongly positioned when you look at this economic development for, you know, a sustained period of giving you 5 to 7 through 28.

Lynn Good: Well, you know, Nick, I would say we are comfortably positioned within the 5% to 7% and feel like it's strongly positioned when you look at this economic development for, you know, a sustained period. We've given you 5% to 7% through 28%. As Brian indicated, we see a lot of growth in that 27-28% period with the economic development pipeline. So that gives us the opportunity to earn at the higher end of the range if those projects mature at the pace we expect and if we continue to add them, which, you know, certainly has been our experience here in 2024.

Lynn Good: As Brian indicated, we see a lot of growth in that twenty-seven, twenty-eight periods with the economic development pipeline. So that gives us the opportunity to earn at the higher end of the range of those projects, mature at the pace we expect, and if we continue to add, which certainly has been our experience here in 2024.

Lynn: As Brian indicated, we see a lot of growth in that 27-28 period with the economic development pipeline. So that gives us the opportunity to earn at the higher end of the range if those projects mature at the pace we expect.

Speaker Change: and if we continue to add them, which has certainly been our experience here in 2024.

Lynn Good: So we'll continue to update you every step of the way, and are anxious to provide an update in February that will not only capture this economic development we've seen in 24, but also give us a chance to update capital. We produced a lot of cash flow that balance sheet is strengthening in 2024 as well. So we're very optimistic about the future.

Lynn Good: So we'll continue to update you every step of the way and are anxious to provide an update in February that will not only capture this economic development we've seen in 24 but also give us a chance to update capital. We've produced a lot of cash flow that the balance sheet is strengthening in 2024 as well, so we're very optimistic about that.

Speaker Change: So, we'll continue to update you every step of the way and are anxious to provide an update in February that will not only capture this economic development we've seen in 24, but also give us a chance to update capital. We've produced a lot of cash flow that Balance Sheet is strengthening in 2024 as well, so we're very optimistic about the future.

Nick Campanella: Hey, thanks for all those thoughts. Appreciate the time.

Nicholas Campanella: Hey, thanks for all those thoughts. I appreciate the time.

Felicia: Thank you, Nick.

Speaker Change: Hey, thanks for all those thoughts. Appreciate the time.

Julian Dumoulin-Smith: The next question comes from Julian Dumoulin-Smith from Jeff Raid. Please go ahead, Julian.

Operator: The next question comes from Julien Dumoulin-Smith of Jeffrey. Please go ahead, Julien. Your line is open.

Speaker Change: The next question comes from Julian Dumoulin-Smith from Jeffrey. Please go ahead, Julian. Your line is open.

Julian Dumoulin-Smith: Your night is open. Thank you. Good morning, team. Thank you guys for the time. Hi, Julian. Welcome back. Hey, thank you so much. Appreciate it.

Julien Dumoulin: Hey, good morning team. Thank you guys for your time.

Operator: Good morning. Welcome back.

Julian Dumoulin-Smith: Hey, good morning team. Thank you guys for the time.

Julian Dumoulin-Smith: Good morning. Welcome back.

Julian Dumoulin-Smith: Hey, maybe just following up on this focus on industrial growth. I mean, you guys outlined these MOUs here.

Julian Dumoulin-Smith: Hey, thank you so much. Appreciate it. Hey, maybe just following up on this focus on industrial growth. I mean,

Julien Dumoulin: growth. I mean, you guys outlined this, these MOUs here. Can you comment on the extent to which that is incremental versus, you know, reflected in that projection of low growth in 27-28? I imagine it's pretty substantively excluded.

Julian Dumoulin-Smith: Can you comment to the expense of which that is incremental versus reflected in that projection on low growth in 2017-28? I imagine it's very substantively excluded. And then how do you think about the remaining timeline on reaching this MOU finality, if you will? And how do you think about the risk sharing within that?

Speaker Change: You guys outlined these MOUs here. Can you comment to the extent to which that is incremental versus reflected in that projection on low growth in 27, 28?

Speaker Change: I imagine it's pretty substantively excluded.

Julien Dumoulin: And then how do you think about the remaining timeline on reaching this MOU, you know, finality, if you will? And how do you think about the risk sharing within that, right? I mean, I know you mentioned Nucor here, but presumably, there's some sort of ability to leverage an SMR directly with some of these counterparties. How do you think about what that structure would look like for you guys, just to clarify that ahead of time on your risk tolerance relative to ensuring that there's appropriate risk sharing?

Speaker Change: And then how do you think about the remaining timeline on reaching this MOU finality, if you will?

Julian Dumoulin-Smith: I know you mentioned new core here. Presumably, there's some sort of ability to leverage NSR directly with some of these counterparties. How do you think about what that structure would look like for you guys, just to clarify that ahead of time on your risk tolerance relative to ensuring that there's appropriate risk sharing?

Speaker Change: And how do you think about the risk-sharing within that, right? I know you mentioned Nucor here. Presumably, there's some sort of ability to leverage an SMR directly with...

Speaker Change: Some of these counterparties. How do you think about what that structure would look like for you guys just to clarify that ahead of time on your risk tolerance relative to ensuring that there's appropriate risk sharing?

Lynn Good: Julian, thanks.

Lynn Good: Julien, thanks. Let me take a shot.

Lynn Good: Let me take a shot. I'm sure hearing Brian will have something to add to it. So, as we think about the economic development pipeline over the period that we've shared with you, through 28 data centers, represent about 25% of that pipeline. But as we get out to 2030 and beyond, that 25% grows. And so we already see a lot of growth in the economic development pipeline for data centers moving into 2030 and beyond. So I think about this MOU is not only further catalyzing how we might serve customers in the pipeline, but our hope also is that those customers will have an interest in expanding in our service territories as we find a way to continue to meet their needs on sustainability, but also bringing resources on.

Lynn Good: I'm sure Harry and Brian will have something to add to that. So as we think about this economic development pipeline, over the period that we've shared with you through 28, data centers represent about 25% of that pipeline. But as we get out to 2030 and beyond, that 25% grows. And so we already see a lot of growth in the economic development pipeline for data centers moving into 2030 and beyond. So I would think about this MOU as not only further catalyzing how we might serve customers that are in the pipeline, but our hope also is that those customers will have an interest in expanding our service territories as we find a way to continue to meet their needs for sustainability but also bring resources on.

Lynn Good: So the discussions are early, but I think there's a clear understanding that we are trying to do a couple of things here. We're trying to meet the load. We're trying to meet their sustainability goals. We're trying to do so in a way that protects retail customers. We're trying to meet their timelines.

Harry Sideris: So the discussions are early. I think there's a clear understanding that we are trying to do a couple of things here. We're trying to meet the load. We're trying to meet their sustainability goals. We're trying to do so in a way that protects retail customers. We're trying to meet their timelines. And I would say the discussion is very constructive. And the notion of risk sharing is something that we're very clear on and have lots of experience in talking with customers about. And so I think that element of the discussion is going well as well.

Lynn Good: And I would say the discussion is very constructive, and the notion of risk sharing is something that we're very clear on and have lots of experience talking with customers about. And so I think that element of the discussion is going well as well. So we'll keep you informed as we start to mature some of these agreements into something that's more definitive. There will be disclosure, and we'll continue to update you on the economic development pipeline as we go.

Speaker Change: And I would say the discussion is very constructive and the notion of risk sharing is something that we're very clear on and have lots of experience in talking with customers about.

Speaker Change: And so I think that element of the discussion is going well as well. So we'll keep you informed as we start to mature some of these agreements into something that's more definitive.

Harry Sideris: So we'll keep you informed as we start to mature some of these agreements into something that's more definitive. There will be disclosure, and we'll continue to update you on the economic development pipeline as we go.

Lynn Good: So I'll pause there and see if Harry or Brian have anything they'd like to add. No, I would just add, Julien, the MOU has really amplified the constructiveness of our discussions with these customers and there is a lot of excitement on their end for these ACE tariffs, the clean energy piece of it. So I think this is going to pay dividends as we work with them closer in the future.

Harry Sideris: So I'll pause there and see if Harry or Brian has anything we'd like to ask. I would just add, Julien, you know, the MOU has really amped up the constructiveness of our discussions with these customers and ruled a lot of excitement on their end for these ACE tariffs, the clean energy piece of it. So I think this is going to pay dividends as we work with them closer into the future.

Speaker Change: So I'll pause there and see if Harry or Brian has anything they'd like to add. No, I would just add Julian, you know, the MOU has really Amped up the constructiveness of our discussions with these customers and real a lot of excitement on their end for for these ACE tariffs The clean energy piece of it

Speaker Change: So I think this is going to pay dividends as we work with them closer into the future.

Julian Dumoulin-Smith: Got it. And the idea here of being selecting either some kind of SMR off-take or some kind of clean energy off-take, that would specifically not impact on the customers just when you think about what the MOU comprises. Yeah, so Julien, when you talk about nuclear, there are a number of structures that we're talking about. They have an interest, obviously, in carbon regeneration, and nuclear represents an around-the-clock option, but we all recognize we're in the early stages of development.

Harry Sideris: Got it. And the idea here of selecting either some kind of SMR offtake or some kind of clean energy offtake that would specifically not impact other customers when you think about what the MOU comprises. Yeah, so.

Speaker Change: Got it. And the idea here being selecting either some kind of SMR offtake or some kind of clean energy offtake that would specifically not impact other customers?

Julien Dumoulin: Yeah, so, Julien, when you talk about nuclear energy, there are a number of structures that we're talking about. They have an interest, obviously, in carbon-free generation, and nuclear energy represents an around-the-clock option.

Speaker Change: Yeah, so, Julian, when you talk about nuclear, there are a number of structures that we're talking about. They have an interest, obviously, in carbon free generation, and nuclear represents an around-the-clock option.

Lynn Good: But we all recognize we're in the early stages of development. So is there a structure, is there premium pricing, is there some method of equity investment, is there some structure that would encourage the development at perhaps a more rapid pace or sooner because of the partnership? So all of that is being explored as we talk with them, and we're anxious to continue to develop it. You know, I think the other thing I would note, which Julien, of course, you're aware of this; this generation plan is moving through the Carolinas.

Lynn Good: So is there a structure? Is there premium pricing? Is there some method of equity investment? Is there some structure that would encourage the development at a perhaps a more rapid pace or sooner because of the partnership? So all of that is being explored as we talk with them, and for anxious to continue to develop it.

Speaker Change: But we all recognize we're in the early stages of development, so is there a structure, is there premium pricing, is there some method of equity investment, is there some structure that would encourage the development at perhaps a more rapid pace or sooner?

Lynn Good: You know, I think the other thing I would know, which Julien, of course, you're aware of, this generation plan is moving through the Carolina's, a lot of discussion already on carbon-free generation like the SMRs. We would also expect that every element of the agreements that we would reach with the tech companies or new core would also go through a commission process to make sure that they're comfortable with the structure, but they have been very, very positive on the fact that we're exploring these discussions because it's a win-win for economic development for bringing clean energy to the states and also for doing so in a way that reflects protection of retail customers.

Jillian: You know, I think the other thing I would note, which Jillian, of course, you're aware of, this generation plan is moving through the Carolinas.

Lynn Good: There is already a lot of discussion on carbon-free generation like the SMRs. We would also expect that every element of the agreements that we would reach with the tech companies or Nucor would also go through a commission process to make sure that they're comfortable with the structure, but they have been very positive about the fact that we're exploring these discussions because it's a win-win for economic development, for bringing clean energy to the states, and also for doing so in a way that protects retail customers.

Speaker Change: A lot of discussion already on carbon free generation like the SMRs. We would also expect that every element of the agreements that we would reach with the tech companies or Nucor would also go through a commission process.

Julian Dumoulin-Smith: Wonderful. I'll leave it there.

Julien Dumoulin: Beautiful. I'll leave it there. Best of luck, guys.

Julian Dumoulin-Smith: Best of luck, guys.

Jillian: Wonderful. I'll leave it there. Best of luck, guys.

Julian Dumoulin-Smith: Thank you, Julien.

Jeremy Tonet: The next question comes from Jeremy Tonan from J.T. Morgan.

Operator: The next question comes from Jeremy Tonet from J.P. Morgan. Please go ahead, Jeremy. Your line is open.

Jordan: Thank you, Jordan.

Speaker Change: The next question comes from Jeremy Tonek from J.T. Morgan. Please go ahead, Jeremy, your line is open.

Jeremy Tonet: Please go ahead, Jeremy. Your line is open. What?

Jeremy Tonet: Morning. Hi, good morning. I just wanted to dive back in, I guess, on the load trends as you laid out in the prepared remarks and how commercial and industrial are tracking versus expectations here today and just what you're seeing on the ground as far as trends over the back half of the year.

Jeremy Tonet: Hi, good morning.

Jeremy Tonet: Just wanted to just dive back in, I guess, on the load trends as you laid out in the prepared remarks and how commercial and industrial tracking versus expectations here today and just what you're seeing on the ground as far as trends over the back half of the year there. Yeah, Jeremy. So, you know, we got into 2% load growth in 2024, and we're tracking on top of that. The residential growth has been robust. We've added more customers in the first half than in any first half. We've looked at in any kind of recent years about 80,000 retail customers added to our system in the first half of the year, which just put residential kind of right in line with our 1.5 to 2% growth for 2024.

Jeremy Tonek: Good morning. Hi, good morning.

Jeremy Tonek: Just wanted to dive back in, I guess, on the low trends as you laid out in the prepared remarks and how commercial and industrial tracking versus expectations here today and just what you're seeing on the ground as far as trends over the past half of the year there.

Brian Savoy: Yeah, Jeremy. So, you know, we got into 2% load growth in 2024, and we're tracking on top of that. Residential growth has been robust. We've added more customers in the first half than in any previous half. We've looked at, in any kind of recent years, about 80,000 retail customers added to our system in the first half of the year, which is putting residential right in line with our 1.5% to 2% growth for 2024.

Speaker Change: Yeah, Jeremy, so, you know, we got into 2% load growth in 2024, and we're tracking on top of that. The residential growth has been robust.

Speaker Change: We've added more customers in the first half than any first half we've looked at in any kind of recent years, about 80,000 retail customers added to our system in the first half of the year, which is putting residential kind of right in line with our 1.5% to 2%.

Brian Savoy: Commercial has been higher than our expectations, and we came into the year thinking a modest growth in commercial, but we've seen much more in the commercial sector. And this is a combination of, you know, data center usage, healthcare, universities, just a broad mix of commercial companies that have higher demands and largely supporting this higher population that are in our region.

Brian Savoy: Commercial has been higher than our expectations, and we came into the year thinking about a modest growth in commercial, but we've seen much more in the commercial sector. And this is a combination of, you know, data center usage, health care, universities, just a broad mix of commercial companies that have higher demands and largely support this higher population that is in our region. The industrial sector has not rebounded as fast as we anticipated, but we continue to be in dialogue with our industrial customers.

Speaker Change: growth for 2024. Commercial has been higher than our expectations and we came into the year thinking a modest growth in commercial but we've seen much more in the commercial sector and this is a combination of.

Speaker Change: Data center usage, healthcare, universities, just a broad mix of commercial companies that have higher demands and largely supporting this higher population that are in our region.

Brian Savoy: and the industrial sector has not rebounded as fast as we anticipated. We continue to be in dialogue with our industrial customers, and they're just taking a cautionary stance. The sphere of recessions out there, you don't want to get overextended. The labor market has been tight, so there's been a challenge to get all the shifts staffed appropriately. Some of our customers have taken the opportunity just to pull back a little bit. They're still signaling, you know, a rebound later in '24 or maybe early '25, but we feel like the come the mix might be a little different, but the growth in '24 is on top or better than our expectations.

Speaker Change: The industrial sector has not rebounded as fast as we anticipated. We continue to be in dialogue with our industrial customers.

Brian Savoy: And they're just taking a cautionary stance. With the fear of recessions out there, you don't want to get overextended. The labor market has been tight, so it's been a challenge to get all the shifts staffed appropriately. So some of our customers are taking the opportunity just to pull back a little bit, but they're still signaling, you know, a rebound later in 24, or maybe early 25. But we feel like the mix might be a little different, but the growth in 24 is on top of or better than our expectations.

Speaker Change: And, you know, they're just taking a cautionary stance, and, you know, the fear of recessions out there, you don't want to get overextended. The labor market has been tight, so there's been, you know, a challenge to get all the shifts staffed appropriately. So some of our customers are taking the opportunity just to pull back a little bit.

Speaker Change: They're still signaling, you know, a rebound later in 24 or maybe early 25, but we feel like the mix might be a little different, but the growth in 24 is on top or better than our expectations.

Lynn Good: Jeremy the only thing I would add to that is this industrial rebound kind of pushing into later 24-25 has also been influenced by interest rates it's what we're hearing from customers and it's primarily what I would call our legacy industries of textile and paper that are feeling the pressure and we continue to track with all of that industrial volume we're expecting from economic development that is exactly on track so it's a little bit of a old industry new industry story that we're seeing in the Carolinas in particular and a little bit in Indiana but overall we're we're tracking to the growth for the year and as we've said many times feel bullish on the economic development pipeline

Brian Savoy: Jeremy, the only thing I would add to that is this industrial rebound kind of pushing into later 24, 25 has also been influenced by interest rates, is what we're hearing from customers. And it's primarily what I would call our legacy industries of textile and paper that are feeling the pressure, and we continue to track with all of that industrial volume we're expecting from economic development. That is exactly on track.

Chairman: Chairman, the only thing I would say

Speaker Change: Jeremy, the only thing I would add to that is this industrial rebound kind of pushing into later 24-25 has also been influenced by interest rates. It's what we're hearing from customers.

Jeremy Tonek: And it's primarily what I would call our legacy industries of textile and paper.

Speaker Change: that are feeling the pressure and we continue to track with all of that industrial volume we're expecting from economic development. That is exactly on track. So it's a little bit of a old industry, new industry story that we're seeing in the Carolinas in particular and a little bit in Indiana.

Jeremy Tonet: So it's a little bit of an old industry new industry story that we're seeing in the Carolinas in particular, in a little bit in Indiana, but overall we're tracking to the growth for the year and, as we've said many times, feel bullish on the economic development pipeline. Got it. That's helpful there.

Speaker Change: But overall, we're tracking through the growth for the year, and as we've said many times, feel bullish on the economic development pipeline.

Jeremy Tonet: Thank you for that.

Jeremy Tonet: Got it, that's helpful there, thank you for that. And then, just wanted to go to November here; we have elections coming up, North Carolina has a gubernatorial race, and just wondering. Any thoughts you could share with regards to whether different outcomes could impact the IRP, or just there's a lot of stakeholder agreement here, and so you wouldn't expect too much.

Jeremy Tonet: And then just wanted to go to November. Here we have elections coming up. North Carolina has a territorial race and just wondering any thoughts you could share with regards to if different outcomes could impact the IRP or just there's a lot of stakeholder agreement here and so you wouldn't expect too much change. Jeremy, no matter what happens in December, our objective is the same, which is to keep serving our customers well with reliable, affordable, and increasing the clean energy. We don't expect that election to have an impact on the rulings we received, and the Carolinas were in Indiana or Piedmont case, and you should know, and just reaffirming that we believe a bipartisan approach working on both sides of the aisle for energy policy has served our company.

Speaker Change: Got it, that's helpful there, thank you for that. And then, just wanted to go to November here, we have elections coming up, North Carolina has a gubernatorial race, and just wondering...

Speaker Change: Any thoughts you could share with regards to if different outcomes could impact the IRP or just there's a lot of stakeholder agreement here and so you wouldn't expect too much change?

Lynn Good: You know, Jeremy, no matter what happens in November, our objective is the same, which is to keep serving our customers well with reliable, affordable, and increasingly clean energy. We don't expect that election to have an impact on the rulings we would receive in the Carolinas or in Indiana or Piedmont. And you should know, and I'm just reaffirming that we believe a bipartisan approach, working on both sides of the aisle for energy policy, has served our companies well, every utility well over time, and that'll continue to be our posture as we move into this election. So, Harry, did you add anything on IRP progress? Yeah, you know, we've wrapped it.

Speaker Change: So, you know, Jeremy, no matter what happens in November, our objective is the same, which is to keep serving our customers well with reliable, affordable, and increasingly clean energy. We don't expect that election to have an impact on the rulings we would receive in the Carolinas or in Indiana or Piedmont case.

Speaker Change: And you should know, and just reaffirming, that we believe a bipartisan approach working on both sides of the aisle for energy policy has served our companies well, every utility well over time, and that will continue to be our posture as we move into this election.

Lynn Good: It's well, every utility well over time, and that will continue to be our postures as we move into this election.

Harry Sideris: So, here, did you add anything on IRP progress? Yeah, you know, we wrapped up the Carolinas IRP yesterday in July. We entered into a very constructive settlement with public staff and some other intervening parties, and I hope I think that helped speed the process up. It was very efficient. I got to spend some time there last week, and the commission was very engaged in providing this energy transition affordably and reliably to our customers, which aligns to what we're doing. So we feel like our plan that we set forth meets the needs of our customers in North Carolina and we'll work to see an order later this year on that.

Harry: So, Harry, would you add anything on IRP progress?

Harry Sideris: Yeah, you know, we wrapped up the Carolinas IRP yesterday. In July, we entered into a very constructive settlement with public staff and some other intervening parties, and I think that helped speed the process up. It was very efficient. I got to spend some time there last week, and the Commission was very engaged in providing this energy transition affordably and reliably to our customers, which aligns to what we're doing, so we feel like our plan that we set forth meets the needs of our customers in North Carolina, and we'll work to see an order later this year on that.

Harry: Yeah, you know, we wrapped up the Carolinas IRP yesterday. In July we entered into a very constructive settlement with public staff and some other intervening parties.

Harry: I think that helped speed the process up, it was very efficient, I got to spend some time there last week and the commission was very engaged in providing this energy transition affordably and reliably to our customers, which aligns to what we're doing so we feel like we're doing a good job.

Harry: Our plan that we set forth meets the needs of our customers in North Carolina and we'll work to see an order later this year on that.

Jeremy Tonet: Got it. That makes sense. That's helpful. Thank you.

Jeremy Tonet: Got it, that makes sense. That's helpful.

Speaker Change: Got it. That makes sense. That's helpful. Thank you.

Anthony Crowdell: The next question comes from Anthony Crowdell from Nietzsche. Please go ahead; your line is open. Good morning.

Operator: The next question comes from Anthony Crowdell from Mizuho. Please go ahead; your line is open. Good morning. Hey, good morning, team.

Speaker Change: Thank you.

Speaker Change: The next question comes from Anthony Crowdell from Mizuho. Please go ahead, your line is open.

Anthony Crowdell: Good morning, team. Hey, just a couple questions. I guess you laid it out nice on slide six; Harry went over it on the regulatory execution. I'm just curious; you know, very impressive there.

Anthony Crowdell: Hey, just a couple questions. I guess you laid it out nice on slide six; Harry went over it in the regulatory execution. I'm just curious, very impressive there. Just curious, has there been a change in a company's regulatory strategy over maybe the last five years, given how strong the outcomes have, you know, been the last two years? Or is it, you know, just it's a great track record. I'll leave it there.

Speaker Change: Good morning. Hey, good morning, Keith. Good morning, Anthony.

Anthony Crowdell: Hey, just a couple questions. I guess you laid it out nice on slide six, Harry went over it on the regulatory execution. I'm just curious, you know, very impressive there. Just curious, has there been a change in a company's regulatory strategy over maybe the last five years, given like how strong the outcomes have been?

Harry Sideris: Just curious, has there been a change in the company's regulatory strategy over maybe the last five years, given like how strong the outcomes have been the last two years, or is it, you know, just it, it's a great track record. I'll leave it there. You know, Anthony, thank you for appreciating that. You know, when I think about regulatory outcomes, it is an absolutely everyday assignment at Duke Energy, because it includes operational excellence that we serve our customers while reliably, affordably. It also includes work and the legislature to make sure that energy policy is clear and that we have an expectation of how to go in the future.

Anthony Crowdell: you know, been in the last two years, or is it, you know, just, it's a great track record and I'll leave it there.

Lynn Good: You know, Anthony, thank you for appreciating that. You know, when I think about regulatory outcomes, it is an absolutely everyday assignment at Duke Energy because it includes operational excellence, serving our customers well, reliably, and affordably. It also includes work in the legislature to make sure that energy policy is clear and that we have an expectation of how it will go in the future. It's stakeholder engagement. That includes customers, that includes policymakers, that includes community leaders, et cetera.

Speaker Change: You know, Anthony, thank you for appreciating that.

Anthony Crowdell: You know, when I think about regulatory outcomes, it is an absolutely everyday assignment at Duke Energy because it includes operational excellence, that we serve our customers well, reliably, and affordably.

Anthony Crowdell: It also includes work in the legislature to make sure that energy policy is clear and that we have an expectation of how to go in the future. It's stakeholder engagement. That includes customers, that includes policy makers, that includes community leaders, etc.

Lynn Good: It's stakeholder engagement. That includes customers, that includes policy makers, that includes community leaders, et cetera. So I think you saw us undergo a bit of an organizational change a few years ago where we put CEOs of the Carolinas and CEOs of Midwest and Florida, Alex and Julie, in place to really continue to fine-tune our approach around stakeholder engagement and clarity around roles, responsibilities in the regulatory area. And it's been a long-standing history at Duke Energy, but appreciating this complex and often polarized environment, we think that additional focus has been helpful to us. And we take the responsibility of serving customers well every day very seriously, and that's the first job at Duke Energy.

Lynn Good: So I think you saw us undergo a bit of an organizational change a few years ago where we put CEOs of the Carolinas and CEOs of Midwest and Florida, Alex and Julie, in place to really continue to fine-tune our approach around stakeholder engagement and clarity around roles and responsibilities in the regulatory area. And it's been a long-standing tradition at Duke Energy, but appreciating this complex and often polarized environment, we think that additional focus has been helpful to us.

Speaker Change: So, I think you saw us undergo a bit of an organizational change a few years ago where we put CEOs of the Carolinas and CEOs of Midwest and Florida, Alex and Julie, in place.

Lynn Good: And we take the responsibility of serving customers well every day very seriously. And that's the first job at Duke Energy. And if we do that well... We believe the company will be treated fairly and constructively in the regulatory environment, and we have the deepest respect for the oversight of our commissions and policymakers and work hard every day to serve our customers well and to please those that have that awesome responsibility to keep energy policy moving in our state.

Lynn Good: And if we do that well, we believe the company will be treated fairly and constructively in the regulatory environment. And we have the deepest respect for the oversight of our commissions and policymakers and work hard every day to serve our customers well. And please, those that have that awesome responsibility to keep energy policy moving in our state.

Lynn Good: Great. And then on load growth, I mean, obviously you guys talk about it, and I appreciate the language, Brian. Instead of moving it, giving it Duke footprint of one and a half to two percent. Given the load growth and the long live asset and planning cycle that's required, does the company believe you're starting to more frequent IRP filings that whether on a two or three year cycle, that that may have the condense given the changes that the system is seeing right now? You know, it's a good question, Anthony. We have a pretty frequent cadence already on IRPs, which in the Carolina that's every other year, Florida, every year in a 10-year site plan.

Anthony Crowdell: Great. And then on load growth, I mean, obviously, you guys talk about it. I appreciate the language, Brian, instead of moving it, given the Duke footprint of one and a half to 2%. Given the load growth and the long-lived asset and planning cycle that's required, does the company believe you'll start seeing the more frequent IRP filings that whether you're on a two or three-year cycle that may have to condense given the changes that the system is seeing right now?

Speaker Change: Great, and then on load growth, I mean, obviously, you guys talk about it, and I appreciate the language, Brian, you said of moving it, giving the Duke footprint of 1.5% to 2%. Given the load growth and the long-lived asset and planning cycle that's required,

Speaker Change: Does the company believe you'll start seeing the more frequent IRP filings, that whether you're on a two or three year cycle, that that may have to condense given the changes that the system is seeing right now?

Harry Sideris: You know, it's a good question, Anthony. We have a pretty frequent cadence already on IRPs, which in the Carolinas, it's every other year. Florida, it's every year on a 10-year site plan. And then in the Midwest, there are various time horizons that are pretty frequent as well. I think that what we did in Carolinas this year, we had an August filing, and we updated it in January because we saw increasing load growth, and we felt the commissions needed to see this in real time.

Lynn Good: And then in the Midwest, there's various time horizons that are pretty frequent as well. I think that what we did like in Carolina this year, we had an August filing, we updated it in January because we saw increasing load growth, and we felt the commissions need to see this in real time. So maybe not a full IRP filing each and every year, but we could see more frequent updates as we learn more about the load load growth over time to plan the appropriate resources. Because you do need plenty of lead time to gear up these generation plans and access.

Speaker Change: I think that what we did like in Carolina this year, we had an August filing, we updated it in January because we saw increasing load growth and we felt the commissions need to see this in real time. So maybe not a full IRP filing each and every year.

Harry Sideris: So maybe not a full IRP filing each and every year, but we could see more frequent updates as we learn more about load growth over time to plan the appropriate resources because you do need plenty of lead time to gear up these generation plans and execute them.

Lynn Good: Thank you. The only thing I would add on that notion of updating the IRP is, we work very closely with the state's economic development. So it's a partnership between Duke Energy and the economic development engines of each state, and there's a lot of understanding of a part of the state of what's coming. That gives us an opportunity to have on-the-ground discussions about what's needed with transmission and generation, and then the IRP, so like the regulatory files that follow that. So we intend to continue to stay really closely linked with our states as we go forward.

Harry Sideris: The only thing I would add... Great, thanks for taking my questions.

Anthony Crowdell: The only other thing I would add on the notion of updating the IRPs is that we work very closely with the states on economic development. So it's a partnership between Duke Energy and the economic development engines of each state. And so there's a lot of understanding on the part of the state of what's coming, and that gives us an opportunity to have on-the-ground discussions about what's needed with transmission and generation. And then the IRPs are like the regulatory filings that follow that. So we intend to continue to stay really closely linked with our states as we go forward.

Carly Davenport: The next question comes from Carly Davenport from Goldman Sachs. Please go ahead. Hey, good morning.

Operator: The next question comes from Carly Davenport of Goldman Sachs. Please go ahead.

Speaker Change: The next question comes from Carly Devenport from Goldman Sachs. Please go ahead.

Carly Davenport: Hey, good morning. Thanks so much for taking my question. Maybe to quickly follow up on the... Hi, thanks so much. Just wanted to quickly follow up on a couple of the previous comments on the Carolinas IRP. Appreciate all the color on the North Carolina process. I guess just as you look towards the South Carolina piece with hearings starting next month, is there any potential for settlement there as well?

Carly Davenport: Thanks so much for taking my question. Maybe we need to quickly follow up on the, I think so much. Just wanted to quickly follow up on a couple of the previous comments on the Carolina's IRP. Appreciate all the color on the North Carolina process. I guess just as you look towards the South Carolina piece with hearing starting next month. Is there any potential for settlement there as well?

Carly Devenport: Hey, good morning. Thanks so much for taking my question. Maybe to quickly follow up on the.

Carly Devenport: Hi, thanks so much. Just wanted to quickly follow up on a couple of the previous comments on the Carolinas IRP. Appreciate all the color on the North Carolina process. I guess just as you look towards the South Carolina piece with hearings starting next month, is there any potential for settlement there as well?

Lynn Good: You know, Carly, I appreciate that question. But I think it's a little early to tell.

Lynn Good: Carly, I appreciate that question. I think it's a little early to tell; we're still in the middle of a procedural schedule in South Carolina, where rebuttal testimony is due in a week or so. There's a surrebuttal process that goes on in South Carolina, and then hearings occur in mid-September. And as Harry indicated, we believe the plan that we put forward in both states meets the requirements of the objectives that both states have set out. And as we've said many times, our objective is to give both states the opportunity to put their fingerprints on this plan in a way that serves their needs and continues to deliver the benefits of scale that Duke Energy has offered to customers over a long period of time.

Lynn Good: We're still in the middle of a procedural schedule in South Carolina where rebuttal testimony is due in a week or so. There's a CERN rebuttal process that goes on in South Carolina, and then hearings occur in mid-September. And as Harry indicated, we believe the plan that we've put forward in both states meets the requirements of the objectives that both states have set out. As we've said many times, our objective is to give both states the opportunity to put their fingerprints on this plan in a way that serves their needs and continues to deliver the benefits of scale that Duke Energy has offered to customers over a long period of time. So we'll keep you informed as we get deeper into the procedural process, but South Carolina is lagging a bit.

Speaker Change: in mid-September.

Harry: And as Harry indicated, we believe the plan that we've put forward in both states meet the requirements of the objectives that both states have set out. And as we've said many times, our objective is to give both states the opportunity to put their fingerprints on this plan in a way that serves their needs and continues to deliver the benefits of scale that Duke Energy has offered to customers over a long period of time.

Carly Davenport: So we'll keep you informed as we get deeper into the procedural process, but South Carolina is lacking a bit. Got it. Okay.

Carly Davenport: Got it. Okay, appreciate that. And then the follow-up was just on the nuclear side. I know you guys made some comments on nuclear before, but could you just refresh us sort of on your latest thoughts on the technology and the timing for new nuclear power to potentially have a place in the resource planning process?

Carly Davenport: I appreciate that. And then the follow-up is just on the nuclear side. I know you guys made some comments on nuclear before, but could you just refresh us sort of on your latest thoughts on the technology and the timing for new nuclear to potentially have a place in the resource planning process? Carly, the SMR is included.

Speaker Change: Got it. Okay, appreciate that. And then the follow-up was just on the nuclear side. I know you guys made some comments on nuclear before, but could you just refresh us sort of on your latest thoughts on the technology and the timing for new nuclear to potentially have a place in the resource planning process?

Carly Davenport: Carly, the SMR is included. Harry, do you wanna talk a little bit about how we approached it with the IRP? Yeah.

Harry Sideris: Harry, do you want to talk a little bit about how we approach it with the IRP? Yeah, absolutely. In North Carolina, we have included that in our near term action plans for these long lead item projects like SMRs. We have it slated in our IRP to come online 600 megawatts in 2035 at our Belize Creek station. So we're waiting for approval from the commission to move forward with those actions to continue the development as we work through technology selection, as well as other construction needs. But we have a site selected and we're working through that process.

Harry: Carly, the SMR is included. Harry, do you want to talk a little bit about how we approached it with the IRP? Yeah, absolutely. In North Carolina, we have included that in our near-term action plans for these long lead item.

Harry Sideris: Yeah, absolutely. In North Carolina, we have included that in our near-term action plans for these long-lead item projects like SMRs. We have it slated in our IRP to come online, 600 megawatts in 2035 at our Blues Creek station. So we're waiting for approval from the commission to move forward with those actions to continue the development as we work through technology selection, as well as other construction needs. But we have a site selected, and we're working through that process, and this IRP filing has all that in it, and the public staff in the settlement has agreed to those items.

Harry: projects like SMRs. We have it slated in our IRP to come online 600 megawatts in 2035 at our Blues Creek station.

Speaker Change: So, we're waiting for approval from the Commission to move forward with those actions to continue the development as we work through technology selection, as well as other construction needs, but we have a site selected and we're working through that process.

Lynn Good: And this IRP filing has all that in there; in the public staff and the settlement has agreed to those items. Carly, I would just say I think you appreciate that Duke has a longstanding nuclear history here in the Carolina 11 units. We also have customers in both states that are interested in a sustainable future. We have states who appreciate the economic development that nuclear investment has represented for the communities. So we will work through this in a thoughtful way, but do believe that continued expansion of nuclear here in the Carolina could make sense as we get into the 2030s and beyond.

Speaker Change: And this IRP filing has all that in there, and the public staff in the settlement has agreed to those items.

Lynn Good: Carly, I would just add that Duke has a long-standing nuclear history here in the Carolinas, 11 units. We also have customers in both states that are interested in a sustainable future. We have states who appreciate the economic development that nuclear investment has represented for the communities. So we will work through this in a thoughtful way but do believe that continued expansion of nuclear power here in the Carolinas could make sense as we get into the 2030s and beyond.

Carly Devenport: Carly, I would just add, I think you appreciate that Duke has a long-standing nuclear history here in the Carolinas, 11 units.

Speaker Change: We also have...

Carly Davenport: And frankly, we're hearing some conversation in Indiana as well, whether nuclear at some point could fit into that program. That I would say is probably lagging a little bit on timing, but I think there's a recognition that nuclear could be a part of the future, and we'll manage it in a very disciplined way. Great. Thank you so much for the comments. Thank you.

Lynn Good: And frankly, we're hearing some conversation in Indiana as well on whether nuclear power at some point could fit into that program. That, I would say, is probably lagging a little bit on timing, but I think there's a recognition that nuclear power could be a part of the future, and we'll manage it in a very disciplined way.

Speaker Change: as we get into the 2030s and beyond. And frankly, we're hearing some conversation in Indiana as well.

Speaker Change: on whether nuclear at some point could fit into that program. That, I would say, is probably lagging a little bit on timing, but I think there's a recognition that nuclear could be a part of the future and we'll manage it in a very disciplined way.

Carly Davenport: Great. Thank you so much for the comments.

Speaker Change: Great. Thank you so much for the comments.

Lynn Good: We have now started a question, so I'll turn the call back to Lynn Good for closing remarks. Well, thank you, and thanks to everyone for your questions today for your investment in Duke Energy. We're available industrial relations and members of the team for questions. If there's any follow-up that we can provide, and really appreciate the engagement today and appreciate, as I said, your investment in Duke Energy. Thanks so much.

Lynn Good: We have no further questions, so I'll turn the call back to Lynn Good for her closing remarks.

Speaker Change: Thank you.

Speaker Change: We have no further questions, so I'll turn the call back to Lynn Good for closing remarks.

Lynn Good: Well, thank you and thanks to everyone for your questions today, for your investment in Duke Energy. We're available, investor relations and members of the team, for questions if there's any follow-up that we can provide, and we really appreciate the engagement today and appreciate, as I said, your investment in Duke Energy. Thanks so much.

Lynn Good: Well, thank you and thanks everyone for your questions today, for your investment in Duke Energy.

Lynn Good: We're available, investor relations and members of the team, for questions, if there's any follow-up that we can provide. And really appreciate the engagement today and appreciate, as I said, your investment in Duke Energy. Thanks so much.

Felicia: This concludes today's call. Thank you all for attending. You may now disconnect your.

Operator: This concludes today's call. Thank you all for attending. You may now disconnect your line.

Speaker Change: This concludes today's call. Thank you all for attending. You may now disconnect your line.

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