Duke Energy Q4 2025 Duke Energy Corp Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Duke Energy Corp Earnings Call
Speaker #1: Hello everyone, and thank you for joining the Duke Energy fourth quarter and year-end 2025 earnings conference call. My name is Harry, and I'll be coordinating your call today.
Operator: Hello, everyone, and thank you for joining the Duke Energy Fourth Quarter and Year-End 2025 Earnings Conference Call. My name is Harry, and I'll be coordinating your call today. All lines will remain in listen-only mode for the presentation portion of the call, and there will be an opportunity for questions and answers at the end. During the presentation, you can enter the queue for questions by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two to exit the queue. I will now hand the call over to Abby Motsinger, Vice President of Investor Relations. Please go ahead.
Operator: Hello, everyone, and thank you for joining the Duke Energy Fourth Quarter and Year-End 2025 Earnings Conference Call. My name is Harry, and I'll be coordinating your call today. All lines will remain in listen-only mode for the presentation portion of the call, and there will be an opportunity for questions and answers at the end. During the presentation, you can enter the queue for questions by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two to exit the queue. I will now hand the call over to Abby Motsinger, Vice President of Investor Relations. Please go ahead.
Speaker #1: All lines will remain in listen-only mode for the presentation portion of the call, and there'll be an opportunity for questions and answers at the end.
Speaker #1: During the presentation, you can enter the queue for questions by pressing star followed by 1 on your telephone keypad. If you change your mind, please press star followed by 2 to exit the queue.
Speaker #1: I will now hand the call over to Abby Motsinger, Vice President of Investor Relations. Please go
Speaker #1: ahead. Thank you,
Abby Motsinger: Thank you, Harry, and good morning, everyone. Welcome to Duke Energy's Q4 2025 earnings review and business update. Leading our call today is Harry Sideris, President and CEO, along with Brian Savoy, Executive Vice President and CFO. Today's discussion will include the use of non-GAAP 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. With that, let me turn the call over to Harry Sideris.
Abby Motsinger: Thank you, Harry, and good morning, everyone. Welcome to Duke Energy's Q4 2025 earnings review and business update. Leading our call today is Harry Sideris, President and CEO, along with Brian Savoy, Executive Vice President and CFO. Today's discussion will include the use of non-GAAP 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. With that, let me turn the call over to Harry Sideris.
Speaker #2: Harry. And good morning, everyone. Welcome to Duke Energy's fourth quarter 2025 earnings review and business update. Leading our call today is Harry Sideris, President and CEO, along with Brian Savoy, Executive Vice President and CFO.
Speaker #2: Today's discussion will include the use of non-gap 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.
Speaker #2: The appendix of today's presentation includes supplemental information along with a reconciliation of non-gap financial measures. With that, let me turn the call over to Harry
Speaker #2: Sideris. Thank you, Abby, and
Harry Sideris: Thank you, Abby, and good morning, everyone. Let me begin by acknowledging our teammates for their incredible response to the recent winter storms that impacted our states. We were prepared, and our system performed well, which is a testament to the efforts of our team and the benefits of our grid hardening investments. Moving to financial results, today, we announced 2025 earnings per share of $6.31, representing 7% growth over 2024 and above the midpoint of our guidance range for the year. I'm proud to say we executed on all fronts. Our performance reflects the strength of our regulated utilities, our teammates' unwavering focus on operational excellence, and our commitment to generating sustainable shareholder and customer value. Looking ahead, we're introducing 2026 earnings guidance of $6.55 to $6.80.
Harry Sideris: Thank you, Abby, and good morning, everyone. Let me begin by acknowledging our teammates for their incredible response to the recent winter storms that impacted our states. We were prepared, and our system performed well, which is a testament to the efforts of our team and the benefits of our grid hardening investments. Moving to financial results, today, we announced 2025 earnings per share of $6.31, representing 7% growth over 2024 and above the midpoint of our guidance range for the year. I'm proud to say we executed on all fronts. Our performance reflects the strength of our regulated utilities, our teammates' unwavering focus on operational excellence, and our commitment to generating sustainable shareholder and customer value. Looking ahead, we're introducing 2026 earnings guidance of $6.55 to $6.80.
Speaker #3: good morning, everyone. Let me begin by acknowledging our teammates for their incredible response to the recent winter storms that impacted our states. We were prepared and our system performed well, which is a testament to the efforts of our team and the benefits of our grid-hardening investments.
Speaker #3: Moving to financial results, today we announced 2025 earnings per share of $631, representing 7% growth over 2024 and above the midpoint of our guidance range for the year.
Speaker #3: I'm proud to say we executed on all fronts. Our performance reflects the strength of our regulated utilities, our teammates' unwavering focus on operational excellence, and our commitment to generating sustainable shareholder and customer value.
Speaker #3: Looking ahead, we're introducing 2026 earnings guidance of $655 to $680. We're also extending our 5 to 7% long-term EPS growth rate through 2030, off the original 2025 guidance midpoint of $630.
Harry Sideris: We're also extending our 5 to 7% long-term EPS growth rate through 2030 off the original 2025 guidance midpoint of $6.30. And I am more confident than ever in our ability to deliver in the top half of the range, beginning in 2028, as load growth accelerates. Our earnings profile is underpinned by a $16 billion increase in our five-year capital plan to $103 billion. Our capital plan will drive 9.6% earnings-based growth and is the largest fully regulated capital plan in the industry, focused on critical energy infrastructure investments that strengthen the system and serve increasing load. As the investment needs of our utilities accelerate, I want to emphasize that the cost of energy has been and will remain a key focus for Duke Energy.
Harry Sideris: We're also extending our 5 to 7% long-term EPS growth rate through 2030 off the original 2025 guidance midpoint of $6.30. And I am more confident than ever in our ability to deliver in the top half of the range, beginning in 2028, as load growth accelerates. Our earnings profile is underpinned by a $16 billion increase in our five-year capital plan to $103 billion. Our capital plan will drive 9.6% earnings-based growth and is the largest fully regulated capital plan in the industry, focused on critical energy infrastructure investments that strengthen the system and serve increasing load. As the investment needs of our utilities accelerate, I want to emphasize that the cost of energy has been and will remain a key focus for Duke Energy.
Speaker #3: And I am more confident than ever in our ability to deliver in the top half of the range beginning in 2028, as load growth accelerates.
Speaker #3: Our earnings profile is underpinned by a $16 billion increase in our five-year capital plan to $103 billion. Our capital plan will drive $9.6% earnings-based growth and is the largest fully regulated capital plan in the industry.
Speaker #3: Focused on critical energy infrastructure investments that strengthen the system and serve increasing load. As the investment needs of our utilities accelerate, I want to emphasize that the cost of energy has been and will remain a key focus for Duke Energy.
Speaker #3: I'm proud that we have kept rate changes below the rate of inflation on average over the last decade, supported by our continuous improvement culture, as well as sensible federal and state energy policies.
Harry Sideris: I'm proud that we have kept rate changes below the rate of inflation on average over the last decade, supported by our continuous improvement culture, as well as sensible federal and state energy policies. Before I turn our focus areas for the year ahead, I want to reflect on the significant financial accomplishments in 2025, as outlined on slide 5. It was a tremendous year of execution. We delivered strong, reported, and adjusted earnings above our guidance midpoint. We also announced two strategic transactions at premium valuations that position the company for growth, and our credit profile continued to strengthen. Over the last 12 months, we worked with regulators and other stakeholders to recover and securitize nearly $3 billion of storm costs, which was key to achieving 14.8% FFO to debt in 2025.
Harry Sideris: I'm proud that we have kept rate changes below the rate of inflation on average over the last decade, supported by our continuous improvement culture, as well as sensible federal and state energy policies. Before I turn our focus areas for the year ahead, I want to reflect on the significant financial accomplishments in 2025, as outlined on slide 5. It was a tremendous year of execution. We delivered strong, reported, and adjusted earnings above our guidance midpoint. We also announced two strategic transactions at premium valuations that position the company for growth, and our credit profile continued to strengthen. Over the last 12 months, we worked with regulators and other stakeholders to recover and securitize nearly $3 billion of storm costs, which was key to achieving 14.8% FFO to debt in 2025.
Speaker #3: Before I turn our focus areas for the year ahead, I want to reflect on the significant financial accomplishments in 2025 as outlined on slide 5.
Speaker #3: It was a tremendous year of execution. We delivered strong reported and adjusted earnings above our guidance midpoint. We also announced two strategic transactions at premium valuations that positioned the company for growth.
Speaker #3: And our credit profile continued to strengthen. Over the last 12 months, we worked with regulators and other stakeholders to recover and secure nearly $3 billion of storm costs.
Speaker #3: Which was key to achieving 14.8% FFO to debt in 2025. We also advanced our all of the above generation strategy, adding capacity to our system across a diverse mix of resources.
Harry Sideris: We also advanced our all-of-the-above generation strategy, adding capacity to our system across a diverse mix of resources. This includes a 100-megawatt battery storage system we installed in North Carolina, the largest on our system to date. We also broke ground on 5 gigawatts of new natural gas generation in the Carolinas and Indiana. Importantly, we put contracts in place to secure the long lead time equipment and workforce needed to support this new dispatchable generation. While we build for the growth of tomorrow, we remain focused on adding value for our stakeholders today by providing safe, reliable power at the lowest possible cost. ... Moving to slide six, this year will be defined by continued execution in four core areas: delivering value for our customers, advancing construction on new generation, converting our economic development pipeline into firm projects, and building on our demonstrated track record of constructive regulatory outcomes.
Harry Sideris: We also advanced our all-of-the-above generation strategy, adding capacity to our system across a diverse mix of resources. This includes a 100-megawatt battery storage system we installed in North Carolina, the largest on our system to date. We also broke ground on 5 gigawatts of new natural gas generation in the Carolinas and Indiana. Importantly, we put contracts in place to secure the long lead time equipment and workforce needed to support this new dispatchable generation. While we build for the growth of tomorrow, we remain focused on adding value for our stakeholders today by providing safe, reliable power at the lowest possible cost. ... Moving to slide six, this year will be defined by continued execution in four core areas: delivering value for our customers, advancing construction on new generation, converting our economic development pipeline into firm projects, and building on our demonstrated track record of constructive regulatory outcomes.
Speaker #3: This includes 100-megawatt battery storage system we installed in North Carolina, the largest on our system to date. We also broke ground on 5 gigawatts of new natural gas generation in the Carolinas and Indiana.
Speaker #3: Importantly, we put contracts in place to secure the long lead time equipment and workforce needed to support this new dispatchable generation. While we build for the growth of tomorrow, we remain focused on adding value for our stakeholders today.
Speaker #3: By providing safe, reliable power at the lowest possible cost. Moving to slide 6, this year will be defined by continued execution in four core areas.
Speaker #3: Delivering value for our customers, advancing construction on new generation, converting our economic development pipeline into firm projects, and building on our demonstrated track record of constructive regulatory outcomes.
Speaker #3: Our customers remain our top priority, and we will never waver on our commitment to value and affordability. We'll continue to utilize every tool available to keep rates as low as possible.
Harry Sideris: Our customers remain our top priority, and we will never waver on our commitment to value and affordability. We'll continue to utilize every tool available to keep rates as low as possible, including managing costs, leveraging tax credits, and minimizing financing costs through regulatory mechanisms like securitization and CWIP and rate base. In 2026, we'll also move forward through the process to combine our Carolinas utilities, which, if approved, will save customers more than $1 billion through 2038. These are some of the many solutions we'll employ as we continue to challenge ourselves to find new ways to deliver affordable energy for our customers. We're also protecting existing customers from costs associated with new large load projects through tariff structures and contract provisions. This is important as we continue to convert economic development prospects into firm projects.
Harry Sideris: Our customers remain our top priority, and we will never waver on our commitment to value and affordability. We'll continue to utilize every tool available to keep rates as low as possible, including managing costs, leveraging tax credits, and minimizing financing costs through regulatory mechanisms like securitization and CWIP and rate base. In 2026, we'll also move forward through the process to combine our Carolinas utilities, which, if approved, will save customers more than $1 billion through 2038. These are some of the many solutions we'll employ as we continue to challenge ourselves to find new ways to deliver affordable energy for our customers. We're also protecting existing customers from costs associated with new large load projects through tariff structures and contract provisions. This is important as we continue to convert economic development prospects into firm projects.
Speaker #3: Including managing costs, leveraging tax credits, and minimizing financing costs through regulatory mechanisms like securitization and CWIP and rate base. In 2026, we'll also move forward through the process to combine our Carolinas utilities, which if approved, will save customers more than $1 billion through 2038.
Speaker #3: These are some of the many solutions we'll employ as we continue to challenge ourselves to find new ways to deliver affordable energy for our customers.
Speaker #3: We're also protecting existing customers from costs associated with new large load projects through tariff structures and contract provisions. This is important as we continue to convert economic development prospects into firm projects.
Speaker #3: Since the third quarter call, we signed electric service agreements for another 1.5 gigawatts of new data centers. These projects form industry clusters that create value for communities for years to come and benefit our existing customers as fixed costs of the system are spread across a larger base.
Harry Sideris: Since the Q3 call, we signed electric service agreements for another 1.5GW of new data centers. These projects form industry clusters that create value for communities for years to come and benefit our existing customers as fixed costs of the system are spread across a larger base. Finally, we will build on our established track record of delivering constructive regulatory outcomes, which includes our recent South Carolina rate case orders. As a reminder, we reached comprehensive settlements in both cases last year, which were fully approved by the commission in December. In North Carolina, we're progressing our request for new multi-year rate plans, which would take effect 1 January 2027.
Harry Sideris: Since the Q3 call, we signed electric service agreements for another 1.5GW of new data centers. These projects form industry clusters that create value for communities for years to come and benefit our existing customers as fixed costs of the system are spread across a larger base. Finally, we will build on our established track record of delivering constructive regulatory outcomes, which includes our recent South Carolina rate case orders. As a reminder, we reached comprehensive settlements in both cases last year, which were fully approved by the commission in December. In North Carolina, we're progressing our request for new multi-year rate plans, which would take effect 1 January 2027.
Speaker #3: Finally, we will build on our established track record of delivering constructive regulatory outcomes, which includes our recent South Carolina rate case orders. As a reminder, we reached comprehensive settlements in both cases last year, which were fully approved by the commission in December.
Speaker #3: In North Carolina, we're progressing our requests for new multi-year rate plans, which would take effect January 1st of 2027. These requests cover investments to strengthen the grid and upgrade our fleet, and importantly, reflect cost control initiatives that have allowed us to maintain flat O&M cost structure despite inflationary pressures and a growing asset base.
Harry Sideris: These requests cover investments to strengthen the grid and upgrade our fleet, and importantly, reflect cost control initiatives that have allowed us to maintain flat O&M cost structure despite inflationary pressures and a growing asset base. We know there's never a good time for energy bills to go up. Families and businesses feel every increase, and affordability matters. That's why our focus is straightforward: keep costs as low as possible while maintaining reliability. Moving to slide seven. Providing the reliable power our customers expect requires us to add every available megawatt to the grid and increase speed to power as we build for economic growth. We are adding approximately 14 gigawatts of incremental generation over the next five years, which demonstrates our commitment to meet the accelerated growth in front of us by maximizing our current fleet as we add new generation.
Harry Sideris: These requests cover investments to strengthen the grid and upgrade our fleet, and importantly, reflect cost control initiatives that have allowed us to maintain flat O&M cost structure despite inflationary pressures and a growing asset base. We know there's never a good time for energy bills to go up. Families and businesses feel every increase, and affordability matters. That's why our focus is straightforward: keep costs as low as possible while maintaining reliability. Moving to slide seven. Providing the reliable power our customers expect requires us to add every available megawatt to the grid and increase speed to power as we build for economic growth. We are adding approximately 14 gigawatts of incremental generation over the next five years, which demonstrates our commitment to meet the accelerated growth in front of us by maximizing our current fleet as we add new generation.
Speaker #3: We know there's never a good time for energy bills to go up. Families and businesses feel every increase in affordability matters. That's why our focus is straightforward.
Speaker #3: Keep costs as low as possible while maintaining reliability. Moving to slide 7, providing the reliable power our customers expect requires us to add every available megawatt to the grid and increase speed to power as we build for economic growth.
Speaker #3: We are adding approximately 14 gigawatts of incremental generation over the next five years, which demonstrates our commitment to meet the accelerated growth in front of us by maximizing our current fleet as we add new generation.
Speaker #3: As I mentioned earlier, we already have agreements in place for the supply chain and workforce to support this incredible build. Including provisions with EPC contractors to create efficiencies over time, and a framework agreement with GE Vernova on turbine procurement.
Harry Sideris: As I mentioned earlier, we already have agreements in place for the supply chain and workforce to support this incredible build, including provisions with EPC contractors to create efficiencies over time, and a framework agreement with GE Vernova on turbine procurement. With over $1 billion of capital deployed every single month, Duke Energy's scope and scale uniquely positions us to lead this record generation build. We have extensive experience from building nearly 4 gigawatts of gas generation across our fleet over the last decade, and we've been actively preparing for this next build cycle for more than 3 years, giving us full confidence in our ability to execute the work ahead. Consistent with our all-of-the-above strategy, we will also continue to add battery and solar projects at a steady pace.
Harry Sideris: As I mentioned earlier, we already have agreements in place for the supply chain and workforce to support this incredible build, including provisions with EPC contractors to create efficiencies over time, and a framework agreement with GE Vernova on turbine procurement. With over $1 billion of capital deployed every single month, Duke Energy's scope and scale uniquely positions us to lead this record generation build. We have extensive experience from building nearly 4 gigawatts of gas generation across our fleet over the last decade, and we've been actively preparing for this next build cycle for more than 3 years, giving us full confidence in our ability to execute the work ahead. Consistent with our all-of-the-above strategy, we will also continue to add battery and solar projects at a steady pace.
Speaker #3: With over $1 billion of capital deployed every single month, Duke Energy's scope and scale uniquely positions us to lead this record generation build. We have extensive experience from building nearly 4 gigawatts of gas generation across our fleet, over the last decade.
Speaker #3: And we've been actively preparing for this next build cycle for more than three years, giving us full confidence in our ability to execute the work ahead.
Speaker #3: Consistent with our all of the above strategy, we will also continue to add battery and solar projects at a steady pace. Our battery deployment in particular will ramp significantly through the five-year plan, with approximately 4.5 gigawatts of additions through 2031.
Harry Sideris: Our battery deployment, in particular, will ramp significantly through the five-year plan, with approximately 4.5 gigawatts of additions through 2031. Finally, we continue to evaluate the potential for new nuclear, maintaining optionality for future development. In December, we submitted an early site permit for a potential SMR at our Belews Creek site in North Carolina. We're taking a disciplined approach to do nuclear, sharing our operational expertise and advancing limiting licensing activities while reducing supply chain risks and allowing technologies to mature. We also continue to seek solutions that mitigate financial risk for customers and investors before we make a decision to move forward with any new nuclear development. Investing in our existing fleet, advancing new generation, and evaluating emerging technologies are critical to ensure we can support our growing communities. We enter 2026 with incredible momentum and are poised to deliver.
Harry Sideris: Our battery deployment, in particular, will ramp significantly through the five-year plan, with approximately 4.5 gigawatts of additions through 2031. Finally, we continue to evaluate the potential for new nuclear, maintaining optionality for future development. In December, we submitted an early site permit for a potential SMR at our Belews Creek site in North Carolina. We're taking a disciplined approach to do nuclear, sharing our operational expertise and advancing limiting licensing activities while reducing supply chain risks and allowing technologies to mature. We also continue to seek solutions that mitigate financial risk for customers and investors before we make a decision to move forward with any new nuclear development. Investing in our existing fleet, advancing new generation, and evaluating emerging technologies are critical to ensure we can support our growing communities. We enter 2026 with incredible momentum and are poised to deliver.
Speaker #3: Finally, we continue to evaluate the potential for new nuclear, maintaining optionality for future development. In December, we submitted an early site permit for a potential SMR at our Belews Creek site in North Carolina.
Speaker #3: We're taking a disciplined approach to do nuclear. Sharing our operational expertise and advancing limiting licensing activities while reducing supply chain risks and allowing technologies to mature.
Speaker #3: We also continue to seek solutions that mitigate financial risk for customers and investors before we make a decision to move forward with any new nuclear development.
Speaker #3: Investing in our existing fleet, advancing new generation, and evaluating emerging technologies are critical to ensure we can support our growing communities. We enter 2026 with incredible momentum and are poised to deliver.
Speaker #3: We're executing our strategy, and creating meaningful value for our shareholders and customers. With that, I will now turn over the call to Brian.
Harry Sideris: We're executing our strategy and creating meaningful value for our shareholders and customers. With that, I will now turn over the call to Brian.
Harry Sideris: We're executing our strategy and creating meaningful value for our shareholders and customers. With that, I will now turn over the call to Brian.
Speaker #4: Thanks, Harry. And good morning, everyone. As shown on slide 8, we delivered 2025 reported and adjusted earnings per share of $631, a 7% increase year over year.
Brian Savoy: Thanks, Harry, and good morning, everyone. As shown on slide 8, we delivered 2025 reported and adjusted earnings per share of 6.31, a 7% increase year-over-year. Results reflect strong execution of our financial plan, including top-line growth from efficient regulatory constructs in place across our growing states. These drivers will continue in 2026, and we've set our adjusted EPS guidance range at 6.55 to 6.80. The electric segment will continue to drive most of the growth in 2026 as we move into year 3 of our multi-year rate plans in North Carolina, year 2 in Florida, and implement phase two rates in Indiana. New rates from constructive rate case orders in South Carolina will be effective in Q1, and we also expect to see steady growth from grid riders in the Midwest and Florida.
Brian Savoy: Thanks, Harry, and good morning, everyone. As shown on slide 8, we delivered 2025 reported and adjusted earnings per share of 6.31, a 7% increase year-over-year. Results reflect strong execution of our financial plan, including top-line growth from efficient regulatory constructs in place across our growing states. These drivers will continue in 2026, and we've set our adjusted EPS guidance range at 6.55 to 6.80. The electric segment will continue to drive most of the growth in 2026 as we move into year 3 of our multi-year rate plans in North Carolina, year 2 in Florida, and implement phase two rates in Indiana. New rates from constructive rate case orders in South Carolina will be effective in Q1, and we also expect to see steady growth from grid riders in the Midwest and Florida.
Speaker #4: Results reflect strong execution of our financial plan, including top-line growth from efficient regulatory constructs in place across our growing states. These drivers will continue in 2026.
Speaker #4: And we've set our adjusted EPS guidance range at $655 to $680. The electric segment will continue to drive most of the growth in 2026, as we move into year three of our multi-year rate plans in North Carolina.
Speaker #4: Year two in Florida, and implement phase two rates in Indiana. New rates from constructive rate case orders in South Carolina will be effective in the first quarter, and we also expect to see steady growth from grid riders in the Midwest and Florida.
Speaker #4: In addition, our plan assumes normal weather, and retail sales growth of 1.5% to 2% in 2026. In the gas segment, we will see growth from Piedmont Integrity Management riders, and new rates at Duke Energy Kentucky.
Brian Savoy: In addition, our plan assumes normal weather and retail sales growth of 1.5 to 2% in 2026. In the gas segment, we will see growth from Piedmont Integrity Management riders and new rates at Duke Energy Kentucky. Finally, higher financing costs will drive results in the other segment. Consistent with prior guidance, we expect the Tennessee and Florida transactions to be earnings neutral, with interest savings at the holding company fully offsetting lower earnings at Piedmont and Duke Energy Florida. I'm proud of the results we delivered in 2025, and I'm bullish about the future. We are well-positioned to execute our investment plan to serve our growing jurisdictions. Turning to slide 9. Our economic development pipeline continues to progress, increasing confidence in our growth profile.
Brian Savoy: In addition, our plan assumes normal weather and retail sales growth of 1.5 to 2% in 2026. In the gas segment, we will see growth from Piedmont Integrity Management riders and new rates at Duke Energy Kentucky. Finally, higher financing costs will drive results in the other segment. Consistent with prior guidance, we expect the Tennessee and Florida transactions to be earnings neutral, with interest savings at the holding company fully offsetting lower earnings at Piedmont and Duke Energy Florida. I'm proud of the results we delivered in 2025, and I'm bullish about the future. We are well-positioned to execute our investment plan to serve our growing jurisdictions. Turning to slide 9. Our economic development pipeline continues to progress, increasing confidence in our growth profile.
Speaker #4: Finally, higher cost power financing costs will drive results in the other segment. Consistent with prior guidance, we expect the Tennessee and Florida transactions to be earnings neutral.
Speaker #4: With interest savings at the holding company, fully offsetting lower earnings at Piedmont and Duke Energy, Florida. I'm proud of the results we delivered in 2025, and I'm bullish about the future.
Speaker #4: We are well-positioned to execute our investment plan to serve our growing jurisdictions. Turning to slide 9, our economic development pipeline continues to progress, increasing confidence in our growth profile.
Speaker #4: Since the third quarter earnings call, we signed an additional 1.5 gigawatts of electric service agreements with data center customers, including Microsoft and Compass. And now have approximately 4.5 gigawatts of data center load secured under ESAs.
Brian Savoy: Since the Q3 earnings call, we signed an additional 1.5GW of electric service agreements with data center customers, including Microsoft and Compass Datacenters, and now have approximately 4.5GW of data center load secured under ESAs. Our success underscores the attractiveness of our service territories to prospective large load customers. Duke Energy is a one-stop shop, providing significant speed to power advantages. We work with customers in our communities to optimize siting, which ensures we can connect new load quickly while minimizing system upgrade costs. As we execute our ambitious generation build cycle, we will grow together as customers ramp into their full energy demand. We are partnering with our states to attract hyperscale customers to our service territories and remain laser-focused on meeting their energy needs in a way that protects our existing customer base.
Brian Savoy: Since the Q3 earnings call, we signed an additional 1.5GW of electric service agreements with data center customers, including Microsoft and Compass Datacenters, and now have approximately 4.5GW of data center load secured under ESAs. Our success underscores the attractiveness of our service territories to prospective large load customers. Duke Energy is a one-stop shop, providing significant speed to power advantages. We work with customers in our communities to optimize siting, which ensures we can connect new load quickly while minimizing system upgrade costs. As we execute our ambitious generation build cycle, we will grow together as customers ramp into their full energy demand. We are partnering with our states to attract hyperscale customers to our service territories and remain laser-focused on meeting their energy needs in a way that protects our existing customer base.
Speaker #4: Our success underscores the attractiveness of our service territories to prospective large load customers. Duke Energy is a one-stop shop, providing significant speed-to-power advantages.
Speaker #4: We work with customers in our communities to optimize siting, which ensures we can connect new load quickly while minimizing system upgrade costs. And as we execute our ambitious generation build cycle, we will grow together as customers ramp into their full energy demand.
Speaker #4: We are partnering with our states to attract hyperscale customers to our service territories, and remain laser-focused on meeting their energy needs in a way that protects our existing customer base.
Speaker #4: These incremental volumes will support affordability over the life of the contract, as system costs are spread over our larger base. And the ESA contract provisions, including minimum billing requirements, termination charges, and refundable capital advances, ensure new large load customers pay their fair share of overall system costs.
Brian Savoy: These incremental volumes will support affordability over the life of the contract as system costs are spread over a larger base. And the ESA contract provisions, including minimum billing demand, minimum billing requirements, termination charges, and refundable capital advances, ensure new large load customers pay their fair share of overall system costs. As a reminder, we've consistently taken a risk-adjusted approach to evaluate which projects to include in our load forecast. I'm proud of the work we've done to streamline processes across the organization to accelerate projects through the pipeline, which is yielding results. This allows us to focus our resources and efforts on high-confidence projects, supporting speed to power. With signed ESAs that lock in ramp schedules and minimum demand, we have high confidence in the load forecast underpinning our broader financial plan.
Brian Savoy: These incremental volumes will support affordability over the life of the contract as system costs are spread over a larger base. And the ESA contract provisions, including minimum billing demand, minimum billing requirements, termination charges, and refundable capital advances, ensure new large load customers pay their fair share of overall system costs. As a reminder, we've consistently taken a risk-adjusted approach to evaluate which projects to include in our load forecast. I'm proud of the work we've done to streamline processes across the organization to accelerate projects through the pipeline, which is yielding results. This allows us to focus our resources and efforts on high-confidence projects, supporting speed to power. With signed ESAs that lock in ramp schedules and minimum demand, we have high confidence in the load forecast underpinning our broader financial plan.
Speaker #4: As a reminder, we've consistently taken a risk-adjusted approach to evaluate which projects to include in our load forecast. I'm proud of the work we've done to streamline processes across the organization to accelerate projects through the pipeline, which is yielding results.
Speaker #4: This allows us to focus our resources and efforts on high-confidence projects, supporting speed to power. With signed ESAs that lock in ramp schedules and minimum demand, we have high confidence in the load forecast underpinning our broader financial plan.
Speaker #4: On slide 10, our 103 billion capital plan is the largest among regulated utilities. And represents an increase of 18% versus our prior plan. Our capital plan has increasing as we progress further into the generation build cycle, and invest in fuel security infrastructure to support future combined cycle plants in the Carolinas as outlined in the IRP.
Brian Savoy: On Slide 10, our $103 billion capital plan is the largest among regulated utilities and represents an increase of 18% versus our prior plan. Our capital plan is increasing as we progress further into the generation build cycle and invest in fuel security infrastructure to support future combined cycle plants in the Carolinas, as outlined in the IRP. Beyond generation, we continue to strengthen the grid to improve reliability and resiliency, delivering value for customers. Our industry-leading capital plan drives 9.6% earnings base growth through 2030, up over 150 basis points versus the prior plan. This accelerated earnings base growth, combined with efficient recovery mechanisms across our utilities, underpin our confidence in delivering sustainable long-term growth.
Brian Savoy: On Slide 10, our $103 billion capital plan is the largest among regulated utilities and represents an increase of 18% versus our prior plan. Our capital plan is increasing as we progress further into the generation build cycle and invest in fuel security infrastructure to support future combined cycle plants in the Carolinas, as outlined in the IRP. Beyond generation, we continue to strengthen the grid to improve reliability and resiliency, delivering value for customers. Our industry-leading capital plan drives 9.6% earnings base growth through 2030, up over 150 basis points versus the prior plan. This accelerated earnings base growth, combined with efficient recovery mechanisms across our utilities, underpin our confidence in delivering sustainable long-term growth.
Speaker #4: Beyond generation, we continue to strengthen the grid to improve reliability and resiliency, delivering value for customers. Our industry-leading capital plan drives 9.6% earnings base growth through 2030, up over 150 basis points versus the prior plan.
Speaker #4: This accelerated earnings base growth, combined with efficient recovery mechanisms across our utilities, underpin our confidence in delivering sustainable, long-term growth. Beyond the five-year plan, we see a long runway of capital investment opportunities as our generation modernization strategy advances well into the next decade.
Brian Savoy: Beyond the 5-year plan, we see a long runway of capital investment opportunities as our generation modernization strategy advances well into the next decade. As the investment plans of our utilities accelerate, we remain committed to customer value and affordability. We are focused on making the right investments at the right time in a way that enhances reliability and affordability. Turning to the balance sheet on slide 11, we reported 14.8% FFO to debt in 2025. The significant improvement over 2024 reflects timely storm recovery and improving operating cash flows from continued regulatory execution. We are forecasting 2026 FFO to debt of approximately 14.5% and remain well positioned to achieve our long-term target of 15% as proceeds from the Tennessee and Florida transactions are received.
Brian Savoy: Beyond the 5-year plan, we see a long runway of capital investment opportunities as our generation modernization strategy advances well into the next decade. As the investment plans of our utilities accelerate, we remain committed to customer value and affordability. We are focused on making the right investments at the right time in a way that enhances reliability and affordability. Turning to the balance sheet on slide 11, we reported 14.8% FFO to debt in 2025. The significant improvement over 2024 reflects timely storm recovery and improving operating cash flows from continued regulatory execution. We are forecasting 2026 FFO to debt of approximately 14.5% and remain well positioned to achieve our long-term target of 15% as proceeds from the Tennessee and Florida transactions are received.
Speaker #4: As the investment plans of our utilities accelerate, we remain committed to customer value and affordability. We are focused on making the right investments at the right time, in a way that enhances reliability and affordability.
Speaker #4: Turning to the balance sheet on slide 11, we reported $14.8% FFO to debt in 2025. The significant improvement over 2024 reflects timely storm recovery, and improving operating cash flows from continued regulatory execution.
Speaker #4: We are forecasting 2026 FFO to debt of approximately $14.5%, and remain well positioned to achieve our long-term target of 15% as proceeds from the Tennessee and Florida transactions are received.
Speaker #4: Our financing plan includes $10 billion of equity in the 2027 to 2030 timeframe to fund accretive growth. This represents approximately 35% equity funding of the capital plan increase.
Brian Savoy: Our financing plan includes $10 billion of equity in the 2027 to 2030 time frame to fund accretive growth. This represents approximately 35% equity funding of the capital plan increase and demonstrates our ongoing commitment to balance sheet strength. While our base plan assumes common equity issuances through our DRIP and ATM programs, we'll also evaluate hybrids and other equity content securities to fund a portion of our equity needs over the planning horizon. Brookfield's minority interest investment in Duke Energy Florida, and the sale of our Piedmont Tennessee business to Spire will further strengthen our credit profile and satisfy our 2026 equity needs. We remain on track to close the Tennessee sale by the end of Q1 and the first tranche of the DEF investment in early 2026.
Brian Savoy: Our financing plan includes $10 billion of equity in the 2027 to 2030 time frame to fund accretive growth. This represents approximately 35% equity funding of the capital plan increase and demonstrates our ongoing commitment to balance sheet strength. While our base plan assumes common equity issuances through our DRIP and ATM programs, we'll also evaluate hybrids and other equity content securities to fund a portion of our equity needs over the planning horizon. Brookfield's minority interest investment in Duke Energy Florida, and the sale of our Piedmont Tennessee business to Spire will further strengthen our credit profile and satisfy our 2026 equity needs. We remain on track to close the Tennessee sale by the end of Q1 and the first tranche of the DEF investment in early 2026.
Speaker #4: And demonstrates our ongoing commitment to balance sheet strength. While our base plan assumes common equity issuances through our DRIP and ATM programs, we'll also evaluate hybrids and other equity-content securities to fund a portion of our equity needs over the planning horizon.
Speaker #4: Brookfield's minority interest investment in Duke Energy Florida, and the sale of our Piedmont Tennessee business to Spire, will further strengthen our credit profile and satisfy our 2026 equity needs.
Speaker #4: We remain on track to close the Tennessee sale by the end of the first quarter, and the first tranche of the DEF investment in early 2026.
Speaker #4: With efficient recovery mechanisms in place, a disciplined focus on capital deployment, and a balanced funding approach, we are positioned for sustainable, long-term growth. Let me close with slide 12.
Brian Savoy: With efficient recovery mechanisms in place, a disciplined focus on capital deployment, and a balanced funding approach, we are positioned for sustainable long-term growth. Let me close with slide 12. I'm proud of the work of our employees in 2025 to deliver on our commitments. It takes all of us executing at a high level to succeed in this dynamic environment, and we will continue to build on this momentum. As load growth and capital investment accelerate, we are more confident than ever in our ability to earn the top half of the 5 to 7% EPS range beginning in 2028, combined with our attractive dividend yield, our growth targets provide a compelling risk-adjusted return for shareholders. Before we move to questions, I'd like to recognize Abby's exceptional work, leading our investor relations function for more than 3 years.
Brian Savoy: With efficient recovery mechanisms in place, a disciplined focus on capital deployment, and a balanced funding approach, we are positioned for sustainable long-term growth. Let me close with slide 12. I'm proud of the work of our employees in 2025 to deliver on our commitments. It takes all of us executing at a high level to succeed in this dynamic environment, and we will continue to build on this momentum. As load growth and capital investment accelerate, we are more confident than ever in our ability to earn the top half of the 5 to 7% EPS range beginning in 2028, combined with our attractive dividend yield, our growth targets provide a compelling risk-adjusted return for shareholders. Before we move to questions, I'd like to recognize Abby's exceptional work, leading our investor relations function for more than 3 years.
Speaker #4: I'm proud of the work of our employees in 2025 to deliver on our commitments. It takes all of us executing at a high level to succeed in this dynamic environment, and we will continue to build on this momentum.
Speaker #4: As load growth and capital investment accelerate, we are more confident than ever in our ability to earn the top half of the 5 to 7 percent EPS range beginning in 2028.
Speaker #4: Combined with our attractive dividend yield, our growth targets provide a compelling, risk-adjusted return for shareholders. Before we move to questions, I'd like to recognize Abby's exceptional work leading our investor relations function for more than three years.
Speaker #4: She has set the model of excellence for the industry, and we wish her continued success in her next chapter as she becomes our chief accounting officer and controller on March
Brian Savoy: She has set the model of excellence for the industry, and we wish her continued success in her next chapter as she becomes our Chief Accounting Officer and Controller on 1 March. I also want to congratulate Mike Switzer, who will succeed Abby as our head of investor relations, in addition to continuing to oversee corporate development. I know many of you are familiar with Mike's leadership from our strategic transactions this year, and we look forward to the opportunity for you to work more closely with him in the coming weeks and months ahead. With that, we'll open the line for your questions.
Brian Savoy: She has set the model of excellence for the industry, and we wish her continued success in her next chapter as she becomes our Chief Accounting Officer and Controller on 1 March. I also want to congratulate Mike Switzer, who will succeed Abby as our head of investor relations, in addition to continuing to oversee corporate development. I know many of you are familiar with Mike's leadership from our strategic transactions this year, and we look forward to the opportunity for you to work more closely with him in the coming weeks and months ahead. With that, we'll open the line for your questions.
Speaker #4: 1. I also want to congratulate Mike
Speaker #5: Switzer, who will succeed Abby as our head of investor relations, in addition to continuing to oversee corporate development. I know many of you are familiar with Mike's leadership from our strategic transactions this year, and we look forward to the opportunity for you to work more closely with him in the coming weeks and months ahead.
Speaker #5: With that, we'll open the line for your
Speaker #5: questions. Thank you, Brian.
Speaker #6: To ask a question, please press star followed by one on your telephone keypad. If you change your mind, please press star followed by two to exit the queue.
Operator: Thank you, Brian. To ask a question, please press star followed by one on your telephone keypad. If you change your mind, please press star followed by two to exit the queue. Finally, when preparing to ask your question, please ensure that your device is unmuted locally. Our first question will be from the line of Nicholas Campanella with Barclays. Please go ahead. Your line is open.
Operator: Thank you, Brian. To ask a question, please press star followed by one on your telephone keypad. If you change your mind, please press star followed by two to exit the queue. Finally, when preparing to ask your question, please ensure that your device is unmuted locally. Our first question will be from the line of Nicholas Campanella with Barclays. Please go ahead. Your line is open.
Speaker #6: And finally, when preparing to ask your question, please ensure that your device is unmuted locally. Our first question will be from the line of Nicholas Campanella with Barclays.
Speaker #6: Please go ahead. Your line is
Speaker #6: open. Hey, good morning.
Speaker #7: Thanks for all the updates. I appreciate it.
Nicholas Campanella: Hey, good morning. Thanks for, thanks for all the updates. Appreciate it.
Nicholas Campanella: Hey, good morning. Thanks for, thanks for all the updates. Appreciate it.
Speaker #8: Good morning, Nicholas.
Speaker #7: ask hey, morning. You brought up the storms and your prepared remarks and the response just any costs or impacts from that that you could disclose?
Brian Savoy: Good morning, Nick.
Brian Savoy: Good morning, Nick.
Nicholas Campanella: I just wanted to ask. Hey, morning. You brought up the you know the storms in your prepared remarks and the response, just any costs or impacts from that that you could disclose? And is that already kind of embedded in the midpoint view of the 6.68, if you could just confirm that? From this quarter, specifically in Q1. Thank you.
Nicholas Campanella: I just wanted to ask. Hey, morning. You brought up the you know the storms in your prepared remarks and the response, just any costs or impacts from that that you could disclose? And is that already kind of embedded in the midpoint view of the 6.68, if you could just confirm that? From this quarter, specifically in Q1. Thank you.
Speaker #7: And is that already kind of embedded in the midpoint view of the 668 if you could just confirm that? From this quarter specifically, in one queue.
Speaker #7: Thank you.
Speaker #8: Yeah. We're still compiling those costs. But I'm really proud of the response the company had there. We had 200,000 outages we restored over 95% of those within 24 hours, and really a testament to the team and their preparation as well as our grid strengthening that we've done over the years.
Harry Sideris: We're still compiling those costs, but I'm really proud of the response the company had there. We had 200,000 outages. We restored over 95% of those within 24 hours, and really a testament to the team and their preparation, as well as our grid strengthening that we've done over the years. We do have mechanisms in the Carolinas for recovery of those costs, so we'll be finalizing that, but we don't anticipate any impacts to our guidance for this year.
Harry Sideris: We're still compiling those costs, but I'm really proud of the response the company had there. We had 200,000 outages. We restored over 95% of those within 24 hours, and really a testament to the team and their preparation, as well as our grid strengthening that we've done over the years. We do have mechanisms in the Carolinas for recovery of those costs, so we'll be finalizing that, but we don't anticipate any impacts to our guidance for this year.
Speaker #8: We do have mechanisms in the Carolinas for recovery of those costs, so we'll be finalizing that. But we don't anticipate any impacts to our guidance for this
Speaker #8: year. Nick, I
Speaker #5: would add to that. Great.
Speaker #7: Thanks.
Speaker #5: Yeah. Nick, this is Brian. I would just add, we budget for storms. This might affect the shaping in some of the expenses throughout the year because sometimes the storms come more in Q3 when hurricanes have impacted our regions.
Brian Savoy: Nick, I would add-
Brian Savoy: Nick, I would add-
Nicholas Campanella: Great, thanks.
Nicholas Campanella: Great, thanks.
Brian Savoy: Yeah. Nick, this is Brian. I would just add, we budget for storms. This might affect the shaping and some of the expenses throughout the year, because sometimes the storms come more in Q3 when hurricanes have impacted our regions. But we budget for storms, and we have really good recovery mechanisms in place that allow us to defer costs for future recovery that are above a certain deductible level. So, no impact to the guidance for 2026.
Brian Savoy: Yeah. Nick, this is Brian. I would just add, we budget for storms. This might affect the shaping and some of the expenses throughout the year, because sometimes the storms come more in Q3 when hurricanes have impacted our regions. But we budget for storms, and we have really good recovery mechanisms in place that allow us to defer costs for future recovery that are above a certain deductible level. So, no impact to the guidance for 2026.
Speaker #5: But we budget for storms, and we have really good recovery mechanisms in place that allow us to defer costs for future recovery that are above a certain deductible level.
Speaker #5: So, no impact to the guidance for 2026.
Speaker #7: Great. Thanks. Appreciate that. And then on the North Carolina rate case, the Carolinas rate case specifically, you brought up affordability in your comments. Obviously, a lot of stakeholders are kind of watching the case.
Nicholas Campanella: Great, thanks. Appreciate that. And then, you know, on the North Carolina rate case, the Carolinas rate case specifically, you brought up affordability in your comments. Obviously, a lot of stakeholders are kind of watching the case. And, you know, since it is a larger case with the, with the merger being a big item, just curious on how you're viewing the strategy of do you need to kind of go the full distance here? Or do you think that you can, you know, constructively get to an agreement to settle it like you have in, in prior cases? And I recognize it's early in the process, but just kind of understanding how you're viewing that potential.
Nicholas Campanella: Great, thanks. Appreciate that. And then, you know, on the North Carolina rate case, the Carolinas rate case specifically, you brought up affordability in your comments. Obviously, a lot of stakeholders are kind of watching the case. And, you know, since it is a larger case with the, with the merger being a big item, just curious on how you're viewing the strategy of do you need to kind of go the full distance here? Or do you think that you can, you know, constructively get to an agreement to settle it like you have in, in prior cases? And I recognize it's early in the process, but just kind of understanding how you're viewing that potential.
Speaker #7: And since it is a larger case with the merger, being a big item, just curious on how you're viewing the strategy of do you need to kind of go the full distance here?
Speaker #7: Or do you think that you can constructively get to an agreement to settle it like you have in prior cases? And I recognize it's early in the process, but just kind of understanding how you're viewing that
Speaker #7: potential. Well, yeah,
Speaker #5: Nick, we don't take rate cases lightly, especially in this environment of affordability. I know our customers are struggling with housing costs, insurance costs, healthcare costs, as well as food prices.
Harry Sideris: Yeah, Nick, you know, we don't take rate cases lightly, especially in this environment of affordability. I know our customers are struggling with housing costs, insurance costs, healthcare costs, as well as food prices. But we're really focused on delivering reliable and affordable energy, which is, which is what our commission and our legislators want as well, so we're aligned there. We have a lot of tools in our bag with tax credits or, or one utility merger that you mentioned. These are all things that are going to help mitigate some of those increases. We have a good case that shows a lot of value for our investments going forward.
Harry Sideris: Yeah, Nick, you know, we don't take rate cases lightly, especially in this environment of affordability. I know our customers are struggling with housing costs, insurance costs, healthcare costs, as well as food prices. But we're really focused on delivering reliable and affordable energy, which is, which is what our commission and our legislators want as well, so we're aligned there. We have a lot of tools in our bag with tax credits or, or one utility merger that you mentioned. These are all things that are going to help mitigate some of those increases. We have a good case that shows a lot of value for our investments going forward.
Speaker #5: But we're really focused on delivering reliable and affordable energy, which is what our commission and our legislators want as well. So we're aligned there.
Speaker #5: We have a lot of tools in our bag with tax credits, our one utility merger that you mentioned. These are all things that are going to help mitigate some of those increases.
Speaker #5: We have a good case that shows a lot of value for our investments, going forward. So we feel we have a good case if we get to litigation.
Speaker #5: But in the past, we've always tried to settle or settle portions and have a constructive track record again but again, we're just focused on making sure that our customers in the Carolinas get reliable and affordable energy from us.
Harry Sideris: So we feel we have a good case if we get to litigation, but in the past, we've always tried to settle or settle portions and have a constructive track record of doing that, and we'll look to do that again. But again, we're just focused on making sure that our customers in the Carolinas get reliable and affordable energy from us.
Harry Sideris: So we feel we have a good case if we get to litigation, but in the past, we've always tried to settle or settle portions and have a constructive track record of doing that, and we'll look to do that again. But again, we're just focused on making sure that our customers in the Carolinas get reliable and affordable energy from us.
Speaker #7: Thank
Speaker #7: you.
Speaker #8: Thanks, Thank you.
Speaker #8: Nick. The next question will be from the line of
Nicholas Campanella: Thank you.
Nicholas Campanella: Thank you.
Harry Sideris: Thank you.
Harry Sideris: Thank you.
Brian Savoy: Thanks, Nick.
Brian Savoy: Thanks, Nick.
Speaker #6: Shah Pureza with Wells Fargo, please go ahead. Your line is open.
Operator: The next question will be from the line of Shar Pourreza with Wells Fargo. Please go ahead, your line is open.
Operator: The next question will be from the line of Shar Pourreza with Wells Fargo. Please go ahead, your line is open.
Speaker #9: Hey, good morning, everyone. It's actually Alex on for Shah. Thanks for taking our
Speaker #9: Hey, good morning, everyone. It's actually Alex on for Shah. Thanks for taking our questions.
Shahriar Pourreza: Hey, good morning, everyone. It's actually Alex on for Shar. Thanks for taking our questions.
Shar Pourreza: Hey, good morning, everyone. It's actually Alex on for Shar. Thanks for taking our questions.
Speaker #8: Good morning, Alex. Good morning,
Speaker #9: Good morning. Alex.
Speaker #11: Good
Brian Savoy: Morning, Alex.
Brian Savoy: Morning, Alex.
Speaker #9: So just on the morning. CapEx outlook and the drivers behind it, obviously, a healthy number you put out there. Can you help us think about the incremental data center opportunities you're seeing on the slides?
Harry Sideris: Morning, Alex.
Harry Sideris: Morning, Alex.
Shahriar Pourreza: Good morning. Good morning. So just on the CapEx outlook and the drivers behind it, obviously, a healthy number you put out there. Can you help us think about the incremental data center opportunities you're seeing on the slides? And can you just talk about your level of confidence in rolling that into plan? We've seen data centers pull out of other states despite signing ESAs. So at what point does this move the needle for you? And how do you think about customer protections in lieu of having a blanket large load tariff? Thanks.
Shar Pourreza: Good morning. Good morning. So just on the CapEx outlook and the drivers behind it, obviously, a healthy number you put out there. Can you help us think about the incremental data center opportunities you're seeing on the slides? And can you just talk about your level of confidence in rolling that into plan? We've seen data centers pull out of other states despite signing ESAs. So at what point does this move the needle for you? And how do you think about customer protections in lieu of having a blanket large load tariff? Thanks.
Speaker #9: And can you just talk about your level of confidence in rolling that into plan? We've seen data centers pull out of other states despite signing ESAs.
Speaker #9: So at what point does this move the needle for you? And how do you think about customer protections in lieu of having a blanket large load tariff?
Speaker #9: Thanks.
Speaker #10: Yeah. I'll start off, and then Brian can add some color. But we're very confident in our 5 to 7 percent growth rate as well as our capital plan that supports that.
Harry Sideris: Yeah, I'll start off, and then Brian can add some color. But we're very confident in our 5 to 7% growth rate, as well as our capital plan that supports that. The ESAs that we've signed, all of those are under construction. They're turning dirt. They have zoning in hand, so we don't anticipate any of those backing out. And then we have a robust pipeline that we continue to work, so we feel very confident with our projections of 5 to 7 through the period, as well as in the top half, starting in 2028, as some of those loads come online. So a very durable plan, consistent with what we've been talking about the last several times. Brian, I don't know if you want to add anything.
Harry Sideris: Yeah, I'll start off, and then Brian can add some color. But we're very confident in our 5 to 7% growth rate, as well as our capital plan that supports that. The ESAs that we've signed, all of those are under construction. They're turning dirt. They have zoning in hand, so we don't anticipate any of those backing out. And then we have a robust pipeline that we continue to work, so we feel very confident with our projections of 5 to 7 through the period, as well as in the top half, starting in 2028, as some of those loads come online. So a very durable plan, consistent with what we've been talking about the last several times. Brian, I don't know if you want to add anything.
Speaker #10: The ESAs that we've signed, all of those are under construction. They're turning dirt. They have zoning in hand. So we don't anticipate any of those backing out.
Speaker #10: And then we have a robust pipeline that we continue to work. So we feel very confident with our projections of 5 to 7 through the period, as well as in the top half starting in '28 as some of those loads come online.
Speaker #10: So, very durable plan, consistent with what we've been talking about the last several times. So, Brian,
Speaker #10: I don't know if you want to add anything.
Speaker #5: Yeah. I would just say
Speaker #5: That signing these ESAs, Alex, gives us high confidence in the growth outlook of Duke Energy. Because we're risk-adjusting our load forecasts, basically to the minimum billing demands of these contracts, which clearly gives us high confidence in a revenue profile as these projects come online.
Brian Savoy: Yeah, I'll just say that, you know, signing these ESAs, Alex, give us high confidence in the growth outlook of Duke Energy. Because we're, you know, we're risk-adjusting our load forecasts, basically to the minimum billing demands of these contracts, which clearly gives us high confidence in our revenue profile as these projects come online. And, you know, we've got 4.5GW of ESAs signed. You think about those, those will start coming online in late 2027 and really ramp in 2028. That's why we're pointing to 2028 as an inflection point in earnings. And our pipeline in the late stage, the ones that are moving through the funnel at pace, is about double that.
Brian Savoy: Yeah, I'll just say that, you know, signing these ESAs, Alex, give us high confidence in the growth outlook of Duke Energy. Because we're, you know, we're risk-adjusting our load forecasts, basically to the minimum billing demands of these contracts, which clearly gives us high confidence in our revenue profile as these projects come online. And, you know, we've got 4.5GW of ESAs signed. You think about those, those will start coming online in late 2027 and really ramp in 2028. That's why we're pointing to 2028 as an inflection point in earnings. And our pipeline in the late stage, the ones that are moving through the funnel at pace, is about double that. So you think about 9 gigawatts is what we're working through, and you should expect new announcements over the course of 2026 as we progress the pipeline in a very expedient manner.
Speaker #5: And we've got four and a half gigawatts of ESAs signed. You think about those will start coming online in late '27 and really ramp in '28.
Speaker #5: That's why we're pointing to 2028 as an inflection point in earnings. And our pipeline in the late stage, the ones that are moving through the funnel at pace, is about double that.
Speaker #5: So, you think about nine gigawatts is what we're working through. And you should expect new announcements over the course of '26 as we progress the pipeline in a very expedient manner.
Brian Savoy: So you think about 9 gigawatts is what we're working through, and you should expect new announcements over the course of 2026 as we progress the pipeline in a very expedient manner.
Speaker #9: Great. That's very helpful. Thank you. And just on the long-term growth rate outlook, so you raised the rate base to about 9.6 CAGR, and you reiterated the top half of that 5 to 7 by '28.
Shahriar Pourreza: Great, that's very helpful. Thank you. And just on the long-term growth rate outlook, so you raised the rate base to about 9.6 CAGR, and you reiterated the top half of that 5 to 7 by 2028. Can you just walk us through what's driving the delta between the two? You're obviously seeing a lot of growth and investment opportunities, especially in the Carolinas. Do you see an opportunity for that delta to narrow between rate base and EPS prior to 2028, or is that just based on timing of load ramp? Thanks.
Shar Pourreza: Great, that's very helpful. Thank you. And just on the long-term growth rate outlook, so you raised the rate base to about 9.6 CAGR, and you reiterated the top half of that 5 to 7 by 2028. Can you just walk us through what's driving the delta between the two? You're obviously seeing a lot of growth and investment opportunities, especially in the Carolinas. Do you see an opportunity for that delta to narrow between rate base and EPS prior to 2028, or is that just based on timing of load ramp? Thanks.
Speaker #9: Can you just walk us through what's driving the delta between the two? You're obviously seeing a lot of growth and investment opportunities, especially in the Carolinas.
Speaker #9: Do you see an opportunity for that delta to narrow between rate base and EPS prior to '28? Or is that just based on timing of load ramp?
Speaker #9: Thanks.
Speaker #8: Yeah,
Speaker #8: Alex. The delta between the earnings-based CAGR and EPS CAGR, there's always a difference, right? And we have our holding company. We're funding these investments with partially with equity, partially with debt.
Brian Savoy: Yeah, Alex, you know, the delta between the earnings base CAGR and EPS CAGR, there's always a difference, right? And we have our holding company. We're funding these investments with partially with equity, partially with debt. There is a drag there that we would see, but I would point to the revenues are accelerating into that 2028 time frame, because that's when these customers will start taking energy. And we are locking in these ramp schedules, so we have high confidence in this revenue acceleration. Our earnings outlook is robust. We're pointing to the top half, which is, you know, the 6 to 7% of the 5 to 7% CAGR, and we see a very robust plan in front of us.
Brian Savoy: Yeah, Alex, you know, the delta between the earnings base CAGR and EPS CAGR, there's always a difference, right? And we have our holding company. We're funding these investments with partially with equity, partially with debt. There is a drag there that we would see, but I would point to the revenues are accelerating into that 2028 time frame, because that's when these customers will start taking energy. And we are locking in these ramp schedules, so we have high confidence in this revenue acceleration. Our earnings outlook is robust. We're pointing to the top half, which is, you know, the 6 to 7% of the 5 to 7% CAGR, and we see a very robust plan in front of us.
Speaker #8: There is a drag there that we would see. But I would point to the revenues are accelerating into that 2028 timeframe because that's when these customers will start taking energy.
Speaker #8: And have high confidence in this revenue acceleration. Our earnings outlook is robust. We're pointing to the top half, which is the 6 to 7 percent of the 5 to 7 percent CAGR.
Speaker #8: And we see a very robust plan in front of us.
Speaker #9: Great. That's all I had. I'll leave it there. Thank
Speaker #9: you. Thank
Shahriar Pourreza: Great. That's all I had. I'll leave it there. Thank you.
Shar Pourreza: Great. That's all I had. I'll leave it there. Thank you.
Speaker #6: The next question today will be from the you. line of Julian de Moulin-Smith with Jefferies. Please go ahead. Your line is
Harry Sideris: Thank you.
Harry Sideris: Thank you.
Operator: The next question today will be from the line of Julien Dumoulin-Smith with Jefferies. Please go ahead. Your line is open.
Operator: The next question today will be from the line of Julien Dumoulin-Smith with Jefferies. Please go ahead. Your line is open.
Speaker #6: open. Hi, guys.
Speaker #11: We've got James Ward here on for Julian. How are you this morning?
Julien Dumoulin-Smith: Hi, guys. You've got Jamieson Ward here on for Julien. How are you this morning?
Julien Dumoulin-Smith: Hi, guys. You've got Jamieson Ward here on for Julien. How are you this morning?
Speaker #8: Hi, James. We're
Speaker #8: good. Hey.
Speaker #11: Awesome. I'm going to ask just a little bit differently. So in November, you reaffirmed the 5 to 7 through '29. You've extended through 2030.
Brian Savoy: Hey, James, we're good.
Brian Savoy: Hey, James, we're good.
Julien Dumoulin-Smith: Hey, awesome. I'm gonna ask just a little bit differently. So in November, you reaffirmed the 5 to 7 through 2029, you've extended to 2030, you've got the 9.6 of earnings-based growth. Assuming about 2.5% dilution from financing, what has to go right to deliver the top half performance beginning in 2028 in terms of earned ROEs and so on?
Julien Dumoulin-Smith: Hey, awesome. I'm gonna ask just a little bit differently. So in November, you reaffirmed the 5 to 7 through 2029, you've extended to 2030, you've got the 9.6 of earnings-based growth. Assuming about 2.5% dilution from financing, what has to go right to deliver the top half performance beginning in 2028 in terms of earned ROEs and so on?
Speaker #11: You've got the 9.6 of earnings-based growth. Assuming about two and a half percent dilution from financing, what has to go right to deliver the top-half performance beginning in 2028 in terms of earned ROEs and so on?
Speaker #11: You've got the 9.6 of earnings-based growth. Assuming about two and a half percent dilution from financing, what has to go right to deliver the top-half performance beginning in 2028 in terms of earned ROEs and so on?
Speaker #10: Yeah. James, we feel very confident in our plan that we laid out. 2028, like Brian mentioned, is an inflection point for our load, late '27.
Harry Sideris: Yeah, we-- James, we feel very confident in our plan that we laid out. You know, 2028, like Brian mentioned, is an inflection point for our load, late 2027 and 2028, as those data centers start ramping up. So that's what's driving our confidence in that, that upper end of the 5 to 7%. And we see that extending out as those ramp rates continue in 2029 and 2030 and beyond. So we feel like our plan is very durable. We're very confident in our regulatory outcomes that we have a very strong track record of. Again, providing value and showing that value to our customers and our regulators is important. And then the tools I mentioned earlier, how are we gonna use one utility to offset some of these costs?
Harry Sideris: Yeah, we-- James, we feel very confident in our plan that we laid out. You know, 2028, like Brian mentioned, is an inflection point for our load, late 2027 and 2028, as those data centers start ramping up. So that's what's driving our confidence in that, that upper end of the 5 to 7%. And we see that extending out as those ramp rates continue in 2029 and 2030 and beyond. So we feel like our plan is very durable. We're very confident in our regulatory outcomes that we have a very strong track record of. Again, providing value and showing that value to our customers and our regulators is important. And then the tools I mentioned earlier, how are we gonna use one utility to offset some of these costs?
Speaker #10: In '28, as those data centers start ramping up. So that's what's driving our confidence in that upper end of the 5 to 7 percent.
Speaker #10: And we see that extending out as those ramp rates continue in '29 and '30 and beyond. So we feel like our plan is very durable.
Speaker #10: We're very confident in our regulatory outcomes, which we have a very strong track record of. Again, providing value and showing that value to our customers and our regulators is important.
Speaker #10: And then the tools I mentioned earlier, how are we going to use one utility to offset some of these costs? How the data centers are paying for their fair share?
Speaker #10: And then over time, reducing the cost to the customers as we spread out the cost, our fixed cost over a broader base. So we feel very confident that we'll continue to have constructive outcomes, regulatorily, and that our shaping of the load that we've laid out and our contracts will deliver that upper half of the range starting in
Harry Sideris: How the data centers are paying for their fair share, and then over time, reducing the cost to the customers as we spread out the cost, our fixed cost over a broader base. So we feel very confident that we'll continue to have constructive outcomes regulatorily, and that our shaping of the load that we've laid out and our contracts will deliver that upper half of the range starting in 2028.
Harry Sideris: How the data centers are paying for their fair share, and then over time, reducing the cost to the customers as we spread out the cost, our fixed cost over a broader base. So we feel very confident that we'll continue to have constructive outcomes regulatorily, and that our shaping of the load that we've laid out and our contracts will deliver that upper half of the range starting in 2028.
Speaker #10: '28. Got it.
Speaker #6: Thank you for that. And then second question was on FFO to debt. You're obviously achieved 14.8 percent '25. You're targeting 14 and a half in '26, 15 longer term.
Julien Dumoulin-Smith: Got it. Thank you for that. And then second question was on FFO to debt. You obviously achieved 14.8% in 2025. You're targeting 14.5 in 2026, 15% longer term. With the larger capital plan, what are the key assumptions that keep you within those guardrails, timing of Tennessee and Florida proceeds, you spoke to already, but thinking on regulatory cash flow mechanisms, dividend payout, and what would cause you to adjust the funding mix?
Julien Dumoulin-Smith: Got it. Thank you for that. And then second question was on FFO to debt. You obviously achieved 14.8% in 2025. You're targeting 14.5 in 2026, 15% longer term. With the larger capital plan, what are the key assumptions that keep you within those guardrails, timing of Tennessee and Florida proceeds, you spoke to already, but thinking on regulatory cash flow mechanisms, dividend payout, and what would cause you to adjust the funding mix?
Speaker #6: With the larger capital plan, what are the key assumptions that keep you within those guardrails? Timing of tendency in Florida proceeds. You spoke to already but thinking on regulatory cash flow mechanisms, dividend payout, and what would cause you to adjust the funding
Speaker #6: mix? Yeah.
Speaker #8: James, first, I'm incredibly proud of the improvement in our cash flow profile that we made in 2025 and will continue into the future. So it's underpinned by improving operating cash flows.
Brian Savoy: Yeah, James, I'm incredibly proud of the improvement in our cash flow profile that we made in 2025, and we'll continue into the future. So it's underpinned by improving operating cash flows. So the great work we've done with our regulators and policymakers over the last several years is paying dividends because recovering our investments for customers in a timely way is a way to support the balance sheet and keep rates low for customers. So we're seeing that. So what has to happen to get to the 15%? Basically, the fundamentals are in place. We don't need a change in regulatory policy. We don't need a law passed. We need to continue to execute the plan we have and support our capital investments with some equity funding.
Brian Savoy: Yeah, James, I'm incredibly proud of the improvement in our cash flow profile that we made in 2025, and we'll continue into the future. So it's underpinned by improving operating cash flows. So the great work we've done with our regulators and policymakers over the last several years is paying dividends because recovering our investments for customers in a timely way is a way to support the balance sheet and keep rates low for customers. So we're seeing that. So what has to happen to get to the 15%? Basically, the fundamentals are in place. We don't need a change in regulatory policy. We don't need a law passed. We need to continue to execute the plan we have and support our capital investments with some equity funding.
Speaker #8: So the great work we've done with our regulators and policymakers over the last several years is paying dividends because recovering our investments for customers on a timely way is a way to support the balance sheet and keep rates low for customers.
Speaker #8: So we're seeing that. So what has to happen to get to the 15 percent? Basically, the fundamentals are in place. We don't need a change in regulatory policy.
Speaker #8: We don't need a law passed. We need to continue to execute the plan we have. And support our capital investments with some equity funding.
Speaker #8: You'll see that the increase in capital we funded with 35% equity that's a good gauge of where we might be to maintain that 15% FFO to debt once we're in 2028 and
Brian Savoy: You'll see that, you know, the increase in capital we funded with 35% equity, you know, that's a, that's a good gauge of, of where we might be to, to maintain that 15%, FFO to debt once, we're in 2028 and beyond.
Brian Savoy: You'll see that, you know, the increase in capital we funded with 35% equity, you know, that's a, that's a good gauge of, of where we might be to, to maintain that 15%, FFO to debt once, we're in 2028 and beyond.
Speaker #8: beyond. Yeah.
Speaker #10: No, I would add a lot of the regulatory work we've already accomplished with some of the multi-year rate plans that we have in place.
Harry Sideris: Yeah, I would, I would add a lot of the regulatory work we've already accomplished with some of the multi-year rate plans that we have in place, and we'll be looking at multi-year rate plan in Ohio. Those help, as well as CCWIP recovery, that helps with our customer costs, but also helps with our cash position. So that, that was work that we've accomplished over the last several years that will continue to, to help us support our FFO to debt number.
Harry Sideris: Yeah, I would, I would add a lot of the regulatory work we've already accomplished with some of the multi-year rate plans that we have in place, and we'll be looking at multi-year rate plan in Ohio. Those help, as well as CCWIP recovery, that helps with our customer costs, but also helps with our cash position. So that, that was work that we've accomplished over the last several years that will continue to, to help us support our FFO to debt number.
Speaker #10: And we'll be looking at multi-year rate plan in Ohio. Those help. As well as CWIP recovery that helps with our customer costs but also helps with our cash position.
Speaker #10: So that was work that we've accomplished over the last several years that will continue to help us support our FFO to debt
Speaker #10: number. Very clear.
Speaker #6: Thank you both. Much appreciated. I'll hop back in the queue.
Speaker #10: Thank you. Thanks,
Julien Dumoulin-Smith: Very clear. Thank you both. Much appreciated. I'll hop back in the queue.
Julien Dumoulin-Smith: Very clear. Thank you both. Much appreciated. I'll hop back in the queue.
Speaker #8: James, the next question will be from—
Speaker #6: the line of Carly Davenport with Goldman Sachs. Please go ahead. Your line is
Harry Sideris: Thank you.
Harry Sideris: Thank you.
Brian Savoy: Thanks, James.
Brian Savoy: Thanks, James.
Operator: The next question will be from the line of Carly Davenport with Goldman Sachs. Please go ahead. Your line is open.
Operator: The next question will be from the line of Carly Davenport with Goldman Sachs. Please go ahead. Your line is open.
Speaker #6: open. Hey.
Speaker #5: Good morning. Thanks so much for taking the questions and for all the updates. Maybe just on the generation build cycle—you've referenced, outside of the CPCN approvals, are there any outstanding items or constraints to signing firm EPC contracts for the execution of the gas generation build in your plans?
Carly Davenport: Hey, good morning. Thanks so much for taking the questions and for all the updates. Maybe just on the generation build cycle you've referenced, outside of the CPCN approvals, are there any outstanding items or constraints to signing firm EPC contracts for the execution of the gas generation build in your plans?
Carly Davenport: Hey, good morning. Thanks so much for taking the questions and for all the updates. Maybe just on the generation build cycle you've referenced, outside of the CPCN approvals, are there any outstanding items or constraints to signing firm EPC contracts for the execution of the gas generation build in your plans?
Speaker #10: Yeah. Good morning, Carly. Yeah. We've been planning for this for the last three years, making sure that we had the supply chain built out to make sure we had all the long lead items, whether it's transformers, circuit breakers, as well as gas turbines, and also the EPC contracts.
Harry Sideris: Yeah. Good morning, Carly. Yeah, we, we've been planning for this for the last three years, making sure that we had the supply chain built out to make sure we had all the long lead items, whether it's transformers, circuit breakers, as well as gas turbines, and also the EPC contracts. We've taken a different approach, going forward with how we do this, where we're looking at more of a programmatic approach with one EPC vendor that will get us efficiencies, that will help us deliver the projects on time and on budget, and move them from one project through the next project, through the next project.
Harry Sideris: Yeah. Good morning, Carly. Yeah, we, we've been planning for this for the last three years, making sure that we had the supply chain built out to make sure we had all the long lead items, whether it's transformers, circuit breakers, as well as gas turbines, and also the EPC contracts. We've taken a different approach, going forward with how we do this, where we're looking at more of a programmatic approach with one EPC vendor that will get us efficiencies, that will help us deliver the projects on time and on budget, and move them from one project through the next project, through the next project. So as we stage those out and layer them out, we feel like that'll keep us with a solid workforce as well as the experience to be able to develop these projects in a timely and qualitative manner.
Speaker #10: We've taken a different approach going forward with how we do this, where we're looking at more of a programmatic approach with one EPC vendor that will get us efficiencies that will help us deliver the projects on time and on budget.
Speaker #10: And move them from one project through the next project, through the next project. So as we stage those out and layer them out, we feel like that'll keep us with a solid workforce as well as the experience to be able to develop these projects in a timely and qualitative manner.
Harry Sideris: So as we stage those out and layer them out, we feel like that'll keep us with a solid workforce as well as the experience to be able to develop these projects in a timely and qualitative manner.
Speaker #5: Great. Thank you for that. And then maybe just on some of the upportunities that you've given us, I think some more details just on the type of generation that you're looking at those opportunities.
Carly Davenport: Great. Thank you for that. And then maybe just on some of the operate opportunities that you've given us, I think, some more details just on the type of generation that you're looking at those opportunities. Could you talk a little bit about the timing of sort of the cadence of the gas, nuclear, and hydro operate opportunity, and also any indication on the capital investment required to execute on those projects?
Carly Davenport: Great. Thank you for that. And then maybe just on some of the operate opportunities that you've given us, I think, some more details just on the type of generation that you're looking at those opportunities. Could you talk a little bit about the timing of sort of the cadence of the gas, nuclear, and hydro operate opportunity, and also any indication on the capital investment required to execute on those projects?
Speaker #5: Could you talk a little bit about the timing of sort of the cadence of the gas nuclear and hydro upgrade opportunity and also any indication on the capital investment required to execute on those
Speaker #5: projects?
Speaker #10: Yeah.
Speaker #10: So there's about 1,000 megawatts of upgrades across the system. A lot of that is on the gas fleet with advanced materials, as well as packages into those.
Harry Sideris: Yes. So there's about 1,000 megawatts of upgrades across the system. A lot of that is on the gas fleet with advanced materials as well as packages into those. We've done a lot of that work already in Florida. We also have about 300 megawatts of nuclear upgrades, and then the rest are some hydro upgrades. These are very competitive to new generation. They're actually cheaper than anything that we can do on the system. That's why we're going forward. They also add an efficiency component that allows you to get more megawatts for the same fuel, which helps with fuel costs and drives that affordability number that we were talking about earlier. So we feel very comfortable with our plan and our costs that we have in our plan, and those are very good investments for our customers.
Harry Sideris: Yes. So there's about 1,000 megawatts of upgrades across the system. A lot of that is on the gas fleet with advanced materials as well as packages into those. We've done a lot of that work already in Florida. We also have about 300 megawatts of nuclear upgrades, and then the rest are some hydro upgrades. These are very competitive to new generation. They're actually cheaper than anything that we can do on the system. That's why we're going forward. They also add an efficiency component that allows you to get more megawatts for the same fuel, which helps with fuel costs and drives that affordability number that we were talking about earlier. So we feel very comfortable with our plan and our costs that we have in our plan, and those are very good investments for our customers.
Speaker #10: We've done a lot of that work already in Florida. We also have about 300 megawatts of nuclear upgrades, and then the rest are some hydro upgrades.
Speaker #10: These are very competitive to new generation. They're actually cheaper than anything that we can do on the system. That's why we're going forward. They also add an efficiency component that allows you to get more megawatts for the same fuel which helps with fuel costs and drives that affordability.
Speaker #10: Number that we've been talking about earlier. So we feel very comfortable with our plan and our costs that we have in our plan and those are very good investments for our
Speaker #10: customers. Great.
Speaker #5: Thank you for the time.
Speaker #8: Thanks, Carly.
Carly Davenport: Great. Thank you for the time.
Carly Davenport: Great. Thank you for the time.
Speaker #6: The next question will be from the line of Anthony Crowdell with Mizuho. Please go ahead. Your line is open.
Anthony Crowdell: Also, Harry, kudos to you, an operator with the same first name. It's probably not happened in a while.
Speaker #11: While. Just—we've planned it that way.
Anthony Crowdell: Also, Harry, kudos to you, an operator with the same first name. It's probably not happened in a while.
Speaker #10: Just for you.
Speaker #11: All right. Just quickly, it's not so much Duke specific. I'm curious because I know you guys have two pending rate cases, follow-up on Nick's question earlier.
Harry Sideris: We planned it that way-
Harry Sideris: We planned it that way-
Anthony Crowdell: Just-
Anthony Crowdell: Just-
Harry Sideris: ... just for you.
Harry Sideris: ... just for you.
Anthony Crowdell: All right. Just quickly, it's not so much Duke specific. I'm curious because I know you guys have two pending rate cases to follow up on Nick's question earlier. But in the current environment where affordability has really reached a new level of concern for policymakers, do you think it's easier for parties now to come to a settlement? Or do you think with that affordability backdrop and it seems like every politician is using this as a stump speech, it's getting more challenging to reach a settlement?
Anthony Crowdell: All right. Just quickly, it's not so much Duke specific. I'm curious because I know you guys have two pending rate cases to follow up on Nick's question earlier. But in the current environment where affordability has really reached a new level of concern for policymakers, do you think it's easier for parties now to come to a settlement? Or do you think with that affordability backdrop and it seems like every politician is using this as a stump speech, it's getting more challenging to reach a settlement?
Speaker #11: But in the current environment where affordability is really reached a new level of concern for policymakers, do you think it's easier for parties now to come to a settlement, or do you think that affordability backdrop and it seems like every politician is using this as a stump speech, it's getting more challenging to reach a settlement?
Speaker #10: Well, affordability is definitely on everybody's mind. And like I mentioned earlier, it's not just electricity prices that they have on their mind. It's really housing, healthcare, food prices.
Harry Sideris: Well, affordability is definitely on everybody's mind. And like I mentioned earlier, it's not just electricity prices that they have on their mind. It's really housing, healthcare, and food prices. So it is definitely a topic of discussion. What we focused on talking to stakeholders and legislators is making sure that we show the value that Duke Energy provides to our customers through storm response, reliability, economic development, bringing more jobs and businesses into the communities, but also showing that we have always, for over 120 years, focused on cost. That's what's made us successful in the past. That's why we have auto manufacturers and other businesses in our territory, because we've always had low rates. We continue to have rates well below the national average. Our rate increases on average have been below the rate of inflation.
Harry Sideris: Well, affordability is definitely on everybody's mind. And like I mentioned earlier, it's not just electricity prices that they have on their mind. It's really housing, healthcare, and food prices. So it is definitely a topic of discussion. What we focused on talking to stakeholders and legislators is making sure that we show the value that Duke Energy provides to our customers through storm response, reliability, economic development, bringing more jobs and businesses into the communities, but also showing that we have always, for over 120 years, focused on cost. That's what's made us successful in the past. That's why we have auto manufacturers and other businesses in our territory, because we've always had low rates. We continue to have rates well below the national average. Our rate increases on average have been below the rate of inflation.
Speaker #10: So it is definitely a topic of discussion. What we focused on talking to stakeholders and legislators is making sure that we show the value that Duke Energy provides to our customers through storm response, reliability, economic development, bringing more jobs and businesses into the communities.
Speaker #10: But also showing that we have always, for over 120 years, focused on cost. That's what's made us successful in the past. That's why we have auto manufacturers and other businesses in our territory because we've always had low rates.
Speaker #10: We continue to have rates well below the national average. Our rate increases on average have been below the rate of inflation. Those are very important points as we talk to the stakeholders about what we're trying to accomplish.
Harry Sideris: Those are very important points as we talk to the stakeholders about what we're trying to accomplish. And then we have a lot of tools. Like I mentioned, the tax credits, $500+ million a year of nuclear credits because of our well-run nuclear plants, allow us to turn that back into the customers, helping absorb some of those increases as we build out the system for the future. So we feel like we're positioned very well. We have a history of having constructive settlements. And again, we feel like we have a strong case based on value, reliability, and affordability for our customers if we have to litigate it.
Harry Sideris: Those are very important points as we talk to the stakeholders about what we're trying to accomplish. And then we have a lot of tools. Like I mentioned, the tax credits, $500+ million a year of nuclear credits because of our well-run nuclear plants, allow us to turn that back into the customers, helping absorb some of those increases as we build out the system for the future. So we feel like we're positioned very well. We have a history of having constructive settlements. And again, we feel like we have a strong case based on value, reliability, and affordability for our customers if we have to litigate it.
Speaker #10: And then we have a lot of tools, like I mentioned—the tax credits, $500-plus million a year of nuclear credits because of our well-run nuclear plants—allow us to turn that back into the customers, helping absorb some of those increases as well. So we feel like we're positioned very well.
Speaker #10: We have a history of having constructive settlements. And again, we feel like we have a strong case based on value, reliability, and affordability for our customers if we have to litigate it.
Speaker #11: Great. And then just, again, maybe this one may be more specific to Duke on the data centers that is signing up. And I guess maybe regulatory approval of them you guys highlighted earlier and you've been pretty steadfast on making sure that data centers or the big hookups large loads don't really impact residential customers or residential customers are made whole.
Anthony Crowdell: Great. And then just an again, maybe this one more, maybe more specific to Duke on the data centers that is signing up, and I guess maybe regulatory approval of them. You know, you guys highlighted earlier, and you, you've been pretty steadfast on making sure that, you know, data centers or the big hookups, large loads, don't really impact residential customers or, you know, residential customers are made whole from these large loads. I'm just wondering, do you think there are regulation shifts where not only you have to show that the no impact to the residential or the small customer, but actually that this new load is beneficial or some net, a net benefit, and that maybe their regulators want to quantify that sooner?
Anthony Crowdell: Great. And then just an again, maybe this one more, maybe more specific to Duke on the data centers that is signing up, and I guess maybe regulatory approval of them. You know, you guys highlighted earlier, and you, you've been pretty steadfast on making sure that, you know, data centers or the big hookups, large loads, don't really impact residential customers or, you know, residential customers are made whole from these large loads. I'm just wondering, do you think there are regulation shifts where not only you have to show that the no impact to the residential or the small customer, but actually that this new load is beneficial or some net, a net benefit, and that maybe their regulators want to quantify that sooner?
Speaker #11: From these large loads, I'm just wondering, do you think there are regulation shifts where not only you have to show that no impact to the residential or the small customer, but actually that this new load is beneficial or some net benefit and that maybe there are regulators want to quantify that sooner?
Speaker #11: Or do you think that the current backdrop of just showing that there's no impact to the smaller customer really will stay in place for the next several years?
Anthony Crowdell: Or do you think that the current backdrop of just showing that there's no impact to the smaller customer really will stay hold for the next several years?
Anthony Crowdell: Or do you think that the current backdrop of just showing that there's no impact to the smaller customer really will stay hold for the next several years?
Speaker #10: I think this is another hot topic amongst regulators and to show that our data centers are paying their fair share and then over time, they're actually reducing the cost to the broader base of customers through spreading out the fixed costs over a larger base.
Harry Sideris: I think this is another hot topic among regulators and politicians as well, and we continue to show that our data centers are paying their fair share, and then over time, they're actually reducing the cost to the broader base of customers through spreading out the fixed costs over a larger base. So we continue to show those results to them. You know, we have a tariff filed in Florida, but in the other jurisdictions, we're using currently approved tariffs, and that protect the customer. These minimum take requirements, these termination fees, these upfront capital investments from them, are all tools that we're using to show that these folks are not only carrying their weight, but they're actually, over time, going to help our customers.
Harry Sideris: I think this is another hot topic among regulators and politicians as well, and we continue to show that our data centers are paying their fair share, and then over time, they're actually reducing the cost to the broader base of customers through spreading out the fixed costs over a larger base. So we continue to show those results to them. You know, we have a tariff filed in Florida, but in the other jurisdictions, we're using currently approved tariffs, and that protect the customer. These minimum take requirements, these termination fees, these upfront capital investments from them, are all tools that we're using to show that these folks are not only carrying their weight, but they're actually, over time, going to help our customers. So we've been very, very constructive discussions with our regulators on that.
Speaker #10: So we continue to show those results to them. We have a tariff filed in Florida, but in the other jurisdictions, we're using currently approved tariffs.
Speaker #10: And that protects the customer in these minimum take requirements, these termination fees, these upfront capital investments from them, are all tools that we're using to show that these folks are not only carrying their weight, but they're actually over time going to help our customers.
Speaker #10: So, we've been having very constructive discussions with our regulators on
Harry Sideris: So we've been very, very constructive discussions with our regulators on that.
Speaker #10: that. Great.
Speaker #11: Thanks so much for taking my questions. You're welcome. Thank
Speaker #10: Appreciate it.
Stephen D'Ambrisi: Great. Thanks so much for taking my questions.
Anthony Crowdell: Great. Thanks so much for taking my questions.
Speaker #6: The next question today will be from the line of David Arcaro with Morgan Stanley. Please go ahead. Your line is now open.
Harry Sideris: Appreciate it.
Harry Sideris: Appreciate it.
Brian Savoy: You're welcome. Thank you.
Brian Savoy: You're welcome. Thank you.
Operator: The next question today will be from the line of David Arcaro with Morgan Stanley. Please go ahead. Your line is now open.
Operator: The next question today will be from the line of David Arcaro with Morgan Stanley. Please go ahead. Your line is now open.
Speaker #13: Oh, hey. Good morning. Thanks so much for taking my question. Let me see.
Speaker #10: Good morning, David.
David Arcaro: Oh, hey, good morning. Thanks so much for taking my question.
David Arcaro: Oh, hey, good morning. Thanks so much for taking my question.
Speaker #13: Good morning. I was curious about the data center pipeline. Are you evaluating interruptibility or flexibility as one of the characteristics? As a way to speed up interconnection, is that something that you think data centers would be willing to consider, or something that you're exploring as you firm up the ESAs?
Harry Sideris: Good morning, David.
Harry Sideris: Good morning, David.
David Arcaro: Morning. With the data center pipeline, I was curious, are you evaluating interruptibility or flexibility as kind of one of the characteristics, you know, as a way to speed up interconnection? Is that something that you think data centers would be willing to consider or something that you're exploring as you firm up the ESAs?
David Arcaro: Morning. With the data center pipeline, I was curious, are you evaluating interruptibility or flexibility as kind of one of the characteristics, you know, as a way to speed up interconnection? Is that something that you think data centers would be willing to consider or something that you're exploring as you firm up the ESAs?
Speaker #10: Yeah, great question, David. Yes, we absolutely have done that with the contracts that we have signed. That's been one of the provisions. It helps us get them online faster.
Harry Sideris: Yeah. Great question, David. Yes, we absolutely have done that with the contracts that we have signed. That's been one of the provisions. It, it helps us get them online faster. They've been open to doing it because it does give them that speed to, to the power that they need. And it also helps us as we discuss benefits to the customers and, and the, the fact that it's going to maintain reliability, having that ability to, to, curtail their load or to have them go on their backup generation for 50 hours or so a year. So very, very, constructive discussions, and that's in our contracts that we have signed.
Harry Sideris: Yeah. Great question, David. Yes, we absolutely have done that with the contracts that we have signed. That's been one of the provisions. It, it helps us get them online faster. They've been open to doing it because it does give them that speed to, to the power that they need. And it also helps us as we discuss benefits to the customers and, and the, the fact that it's going to maintain reliability, having that ability to, to, curtail their load or to have them go on their backup generation for 50 hours or so a year. So very, very, constructive discussions, and that's in our contracts that we have signed.
Speaker #10: They've been open to doing it because it does give them that speed to the power that they need. And it also helps us as we discuss benefits to the customers and the fact that it's going to maintain reliability having that ability to curtail their load or have them go on their backup generation for 50 hours or so a year.
Speaker #10: So, very constructive discussions. And that's in our contracts that we have signed.
Speaker #13: Great. Okay. Thanks so much. I will leave it there. Appreciate it.
Speaker #10: Thanks, David.
David Arcaro: Great. Okay, thanks so much. I will leave it there. Appreciate it.
David Arcaro: Great. Okay, thanks so much. I will leave it there. Appreciate it.
Speaker #6: The next question will be from the line of Steve D'Ambrosi with RBC. Please go ahead. Your line is open.
Harry Sideris: Thanks, David.
Harry Sideris: Thanks, David.
Operator: The next question will be from the line of Steve D'Ambrosio with RBC. Please go ahead. Your line is open.
Operator: The next question will be from the line of Steve D'Ambrosio with RBC. Please go ahead. Your line is open.
Speaker #11: Hi, Harry and Brian. Thanks very much for the time this
Speaker #11: morning. Thanks,
Stephen D'Ambrisi: Hi, Harry and Brian. Thanks very much for the time this morning.
[Utilities Analyst] (RBC): Hi, Harry and Brian. Thanks very much for the time this morning.
Speaker #11: Just had a quick one on David. sales growth and the incremental one and a half gigawatts of data center ESAs that you've signed. Can you just level set us on what amount of data center load growth is embedded in the three to four percent enterprise load growth and the four to five percent Carolina's load growth?
Brian Savoy: Hey, Steve.
Brian Savoy: Hey, Steve.
Stephen D'Ambrisi: Just had a quick, quick one on sales, sales growth and the incremental 1.5 gigawatts of data center ESAs that you've signed. Can you just level set us on what amount of data center load growth is embedded in the 3 to 4% enterprise load growth and the 4 to 5% Carolinas load growth? And just how, if there's any sensitivities that we can think about to the extent you have incremental data center ESA signings.
[Utilities Analyst] (RBC): Just had a quick, quick one on sales, sales growth and the incremental 1.5 gigawatts of data center ESAs that you've signed. Can you just level set us on what amount of data center load growth is embedded in the 3 to 4% enterprise load growth and the 4 to 5% Carolinas load growth? And just how, if there's any sensitivities that we can think about to the extent you have incremental data center ESA signings.
Speaker #11: And just how—if there's any sensitivities that we can think about—to the extent you have incremental data center ESA signings?
Speaker #10: Yeah. So as you intimate, it's becoming a more increasingly larger component of the load growth profile as we get later in the decade. And just for a number, the economic development profile that we have in the Carolinas and across the system data centers comprise about 75% of that by the end of by 2030.
Brian Savoy: Yeah. So it's—as you, as you intimate, it's becoming a more increasingly larger component of, of the load growth profile as, as we get later in the decade. And, and just for a, a number, the economic development profile that we have in, in, in the Carolinas and, and across the system, data centers comprise about 75% of that by the end of—by 2030. All right? So it's, it's a growing component. That was only 50% just a couple of quarters ago, but as we sign new customers, it becomes a larger component.
Brian Savoy: Yeah. So it's—as you, as you intimate, it's becoming a more increasingly larger component of, of the load growth profile as, as we get later in the decade. And, and just for a, a number, the economic development profile that we have in, in, in the Carolinas and, and across the system, data centers comprise about 75% of that by the end of—by 2030. All right? So it's, it's a growing component. That was only 50% just a couple of quarters ago, but as we sign new customers, it becomes a larger component. And so, you know, if you break down the 3% to 4% long-term load growth, enterprise-wide, I think, you know, residential and existing customers are maybe 1/3 of that, and then the other 2/3 relate to economic development, of which a big portion is data centers.
Speaker #10: All right? So it's a growing component. That was only 50% just a couple of quarters ago. But as we sign new customers, it becomes a larger component.
Speaker #10: And so if you break down the three to four percent long-term load growth enterprise-wide, I think residential is an existing customers are maybe a third of that.
Brian Savoy: And so, you know, if you break down the 3% to 4% long-term load growth, enterprise-wide, I think, you know, residential and existing customers are maybe 1/3 of that, and then the other 2/3 relate to economic development, of which a big portion is data centers.
Speaker #10: And then the other two-thirds relate to economic development, of which a big portion is data centers.
Speaker #11: Okay, that's really helpful. And then, just to the extent that we have incremental—you referenced nine gigawatts of pipeline—to the extent where we roll forward a couple of quarters and the four and a half gigawatts of ESAs goes to six, obviously, there are timing considerations.
Stephen D'Ambrisi: Okay. And then that, that's really helpful. And then just to the extent that we have incremental, you know, you referenced 9GW of pipeline. To the extent, you know, where we roll forward a couple of quarters and the 4.5GW of ESAs goes to 6, obviously, there's timing considerations, but, like, you know, how should we think about that layering into load growth, you know, and rolling forward your load growth projections?
[Utilities Analyst] (RBC): Okay. And then that, that's really helpful. And then just to the extent that we have incremental, you know, you referenced 9GW of pipeline. To the extent, you know, where we roll forward a couple of quarters and the 4.5GW of ESAs goes to 6, obviously, there's timing considerations, but, like, you know, how should we think about that layering into load growth, you know, and rolling forward your load growth projections?
Speaker #11: But how should we think about that layering into load growth and rolling forward your load growth
Speaker #11: projections? It
Speaker #10: definitely is a tailwind, Steve. And I would but your point about timing is important because contracts that we signed in '26 are going to be a year behind those we signed in '25.
Brian Savoy: It definitely is a tailwind, Steve, and I would. But your point about timing is important because, you know, contracts that we sign in 2026 are going to be a year behind those we signed in 2025, and then the ramp will start. So I would think about it as two ways. One, it's a tailwind to the load growth around the 2030 time frame, and then it extends that ramp well into the 2030s.
Brian Savoy: It definitely is a tailwind, Steve, and I would. But your point about timing is important because, you know, contracts that we sign in 2026 are going to be a year behind those we signed in 2025, and then the ramp will start. So I would think about it as two ways. One, it's a tailwind to the load growth around the 2030 time frame, and then it extends that ramp well into the 2030s.
Speaker #10: And then the ramp will start. So I would think about it as two ways. One, it's a tailwind to the load growth around the '20, '30 timeframe.
Speaker #10: And then it extends that ramp well into the '30s. A lot of those that are in the pipeline now will be a little further out as they start their development.
Harry Sideris: A lot of those that are in the pipeline now will be a little further out as they start their development. So that ramp rate will be towards the back end of the plan.
Harry Sideris: A lot of those that are in the pipeline now will be a little further out as they start their development. So that ramp rate will be towards the back end of the plan.
Speaker #10: So, that ramp rate will be towards the back end of the plan.
Speaker #11: Okay. That's helpful. And then the only other question I had was just on the rate-based CAGR. It says you raised it, obviously, to 9.6%.
Stephen D'Ambrisi: Okay, that's helpful. And then the only other question I had was just on the rate base CAGR. It says, you know, you raised it obviously to 9.6%. And I noticed that the footnote said that it's gross of minority interest investments and so-- or minority investments. And so just with the impact of the DEF transaction, can you talk about what that number is on, maybe on that basis?
[Utilities Analyst] (RBC): Okay, that's helpful. And then the only other question I had was just on the rate base CAGR. It says, you know, you raised it obviously to 9.6%. And I noticed that the footnote said that it's gross of minority interest investments and so-- or minority investments. And so just with the impact of the DEF transaction, can you talk about what that number is on, maybe on that basis?
Speaker #11: I noted that at the footnote said that it's gross of minority interest investments. Or minority investments. So just with the impact of the DEF transaction, can you talk about what that number is on maybe a net basis?
Speaker #10: Yeah, happy to, Steve. And I would say, first, we put the footnote for clarity. But we've always shown the rate-based growth gross because we've had the GIC investment in Indiana since 2021.
Brian Savoy: Yeah, happy to, Steve. And I would say first, we put the footnote for clarity, but we've always shown the rate base growth gross because we've had the GIC investment in Indiana since 2021. So this isn't new, and it's how we would we're investing the CapEx gross, and then the minority interest is taken out at the bottom of the income statement. So, well, we're not doing any trickery here with the rate base growth. But the nine and six, if we took out the minority investment in Florida that's going to happen during this five-year window, would knock the CAGR to 8.8%. But I want to underscore, you know, those in the proceeds coming in from Brookfield are going to offset holdco, so...
Brian Savoy: Yeah, happy to, Steve. And I would say first, we put the footnote for clarity, but we've always shown the rate base growth gross because we've had the GIC investment in Indiana since 2021. So this isn't new, and it's how we would we're investing the CapEx gross, and then the minority interest is taken out at the bottom of the income statement. So, well, we're not doing any trickery here with the rate base growth. But the nine and six, if we took out the minority investment in Florida that's going to happen during this five-year window, would knock the CAGR to 8.8%. But I want to underscore, you know, those in the proceeds coming in from Brookfield are going to offset holdco, so...
Speaker #10: So this isn't new. And it's how we would we're investing the CapEx gross. And then the minority interest is taken out at the bottom of the income statement.
Speaker #10: So we're not doing any trickery here with the rate-based growth. But the 9.6%—if we took out the minority investment in Florida that's going to happen during this five-year window—would knock the CAGR to 8.8%.
Speaker #10: But I want to underscore those the proceeds coming in from Brookfield are going to offset HoldCo. So if you're doing the detailed model, whatever you're modeling for HoldCo interest expense should be less than it would be otherwise if you were going to have it on a gross
Speaker #10: But I want to underscore those the proceeds coming in from Brookfield are going to offset HoldCo. So if you're doing the detailed model, whatever you're modeling for HoldCo interest expense should be less than it would be otherwise if you were going to have it on a gross level.
Brian Savoy: If you're doing the detailed model, whatever you're modeling for holdco interest expense should be less than it would be otherwise if you were going to have it on a gross level.
Brian Savoy: If you're doing the detailed model, whatever you're modeling for holdco interest expense should be less than it would be otherwise if you were going to have it on a gross level.
Speaker #11: Perfect. Yeah. Wasn't implying that there was any trickery. Just wanted to get the clarity. I appreciate
Speaker #10: No, no, no. No, I wanted to be clear.
[Company Representative] (Duke Energy): Perfect. Yeah, wasn't implying that there was any trickery. Just wanted to get the clarity.
[Utilities Analyst] (RBC): Perfect. Yeah, wasn't implying that there was any trickery. Just wanted to get the clarity.
Speaker #11: it.
Speaker #10: clear. We added the footnote this time. That was a new ad.
Brian Savoy: No, no, no. I didn't-
Brian Savoy: No, no, no. I didn't-
[Company Representative] (Duke Energy): Appreciate it.
[Utilities Analyst] (RBC): Appreciate it.
Speaker #11: Yeah. Yeah. Thank you very much.
Brian Savoy: No, I wanted to be clear. I wanted to be clear. We added a footnote this time. That was a new add.
Brian Savoy: No, I wanted to be clear. I wanted to be clear. We added a footnote this time. That was a new add.
Speaker #10: Thank you. Thanks, Steve.
[Company Representative] (Duke Energy): Yeah. Yeah. Thank you very much.
[Utilities Analyst] (RBC): Yeah. Yeah. Thank you very much.
Speaker #6: The next question will be from the line of David Paz with Wolf Research. Please go ahead. Your line is open.
Brian Savoy: Thank you. Thanks, David.
Brian Savoy: Thank you. Thanks, David.
Operator: The next question will be from the line of David Paz with Wolfe Research. Please go ahead. Your line is open.
Operator: The next question will be from the line of David Paz with Wolfe Research. Please go ahead. Your line is open.
Speaker #12: Thank you. I appreciate the confidence in your growth inflection in 2028. But I want to make sure I heard you correctly. Did you say that you could still reach the top half, or 6 to 7 percent, in 2028?
David Paz: Thank you. Just I appreciate the confidence in your growth inflection in 2028, but I want to make sure I heard you correctly. Did you say that you could still reach the top half of 6 to 7% in 2028, reflecting just the minimum take? So in other words, you'll hit at least 6%, even if for some reason we get some international or contaminated.
David Paz: Thank you. Just I appreciate the confidence in your growth inflection in 2028, but I want to make sure I heard you correctly. Did you say that you could still reach the top half of 6 to 7% in 2028, reflecting just the minimum take? So in other words, you'll hit at least 6%, even if for some reason we get some international or contaminated.
Speaker #12: Reflecting just the minimum take? So in other words, you'll hit at least 6% even if for some reason the data centers do not show up in 2028.
Speaker #10: Yeah. Good morning, David. That is absolutely correct. We are fully confident in being able in '28 as the load comes online, with these minimum take contract provisions that we have of reaching that top half, that 6 to 7 percent growth rate.
Speaker #10: Yeah. Good morning, David. That is absolutely correct. We are fully confident in being able in '28 as the load comes online, with these minimum take contract provisions that we have of reaching that top half, that 6 to 7 percent growth
Harry Sideris: Yeah. Good morning, Dave. That is absolutely correct. We are fully confident in being able in 2028, as that load comes online with these minimum take contract provisions that we have of reaching that top half, that 6 to 7%, growth rate.
Harry Sideris: Yeah. Good morning, Dave. That is absolutely correct. We are fully confident in being able in 2028, as that load comes online with these minimum take contract provisions that we have of reaching that top half, that 6 to 7%, growth rate.
Speaker #12: Okay, great. Thank you. And then just on the four and a half gigawatts of ESAs, would any of those—or I guess any signed from now until there's potentially some kind of order or ruling on the large load tariff in North Carolina—would, if we were to see a large load tariff, do you anticipate they would impact the four and a half?
David Paz: Okay, great. Thank you. And then just on the 4.5 gigawatts PSAs, would any of those, or I guess any sign from now until there's potentially some kind of order or ruling on a large load tariff in North Carolina, which if, if we were to see a large load tariff, is it—do you anticipate they would impact 4.5 gigawatts?
David Paz: Okay, great. Thank you. And then just on the 4.5 gigawatts PSAs, would any of those, or I guess any sign from now until there's potentially some kind of order or ruling on a large load tariff in North Carolina, which if, if we were to see a large load tariff, is it—do you anticipate they would impact 4.5 gigawatts?
Speaker #12: gigawatts? No.
Speaker #10: Not at all. We have existing tariffs that these things are signed under. And they'll continue to function under that. Any new changes to tariffs will only apply to the new ones.
Harry Sideris: No, not at all. We have existing tariffs that these things are signed under, and, you know, they'll continue to function under that. Any new changes to tariffs will only apply to the new ones. We've had conferences and technical conferences with the commission in North Carolina, and they are supportive of the way that we're approaching this, and we don't see any impacts there.
Harry Sideris: No, not at all. We have existing tariffs that these things are signed under, and, you know, they'll continue to function under that. Any new changes to tariffs will only apply to the new ones. We've had conferences and technical conferences with the commission in North Carolina, and they are supportive of the way that we're approaching this, and we don't see any impacts there.
Speaker #10: We've had conferences and technical conferences with the commission in North Carolina. And they are supportive of the way that we're approaching this. And we don't see any impacts
Speaker #10: there. Great.
Speaker #12: Thank you so
Speaker #12: much. Thank
David Paz: Great. Thank you so much.
David Paz: Great. Thank you so much.
Harry Sideris: Thank you.
Harry Sideris: Thank you.
Brian Savoy: Thanks, David.
Julien Dumoulin-Smith: Thanks, David.
Speaker #6: Thank you. This you. will conclude Q&A so I'll now hand back to Harry Sideris for some closing remarks.
Operator: Thank you. This will conclude Q&A, so I'll now hand back to Harry Sideris for some closing remarks.
Operator: Thank you. This will conclude Q&A, so I'll now hand back to Harry Sideris for some closing remarks.
Speaker #13: Yeah. Thank you for the questions today. I just wanted to wrap up real quick and re-emphasize that our business has never been stronger. We delivered on 2025 commitments.
Harry Sideris: Yeah, thank you for the questions today. I just wanted to wrap up real quick and reemphasize that our business has never been stronger. We delivered on 2025 commitments, and we're going to build on that momentum into 2026. We are fully executing on all gears on our strategy, reaching new milestones in our generation build and converting our economic development pipeline into real projects. I'm more confident than ever that of our ability to earn in the top half, like we talked about, of our 5 to 7% EPS growth range starting in 2028, and also the fact that this will be durable into the future. So again, thanks for joining us today, and thank you for your investment in Duke Energy. Take care.
Harry Sideris: Yeah, thank you for the questions today. I just wanted to wrap up real quick and reemphasize that our business has never been stronger. We delivered on 2025 commitments, and we're going to build on that momentum into 2026. We are fully executing on all gears on our strategy, reaching new milestones in our generation build and converting our economic development pipeline into real projects. I'm more confident than ever that of our ability to earn in the top half, like we talked about, of our 5 to 7% EPS growth range starting in 2028, and also the fact that this will be durable into the future. So again, thanks for joining us today, and thank you for your investment in Duke Energy. Take care.
Speaker #13: And we're going to build on that momentum into 2026. We are fully executing on all gears on our strategy, reaching new milestones in our generation build, and converting our economic development pipeline into real projects.
Speaker #13: I am more confident than ever in our ability to earn the top half, like we talked about, of our 5% to 7% EPS growth range starting in '28.
Speaker #13: And also the fact that this will be durable into the future. So again, thanks for joining us today and thank you for your investment in Duke Energy.
Speaker #13: Take
Speaker #13: care. This concludes the
Operator: This concludes the Duke Energy Q4 and year-end 2025 earnings call. Thank you for joining. You may now disconnect your lines.
Operator: This concludes the Duke Energy Q4 and year-end 2025 earnings call. Thank you for joining. You may now disconnect your lines.
