Duke Energy (DUK) 10-K risk factor changes: FY2024 vs FY2023

Duke Energy’s future results could be adversely affected if it is unable to implement its business strategy [removed: including achieving] [added: to reliably and affordably serve] its [added: customers while also balancing its grid and fleet modernization objectives and] carbon emissions reduction goals.

Duke Energy’s results of operations depend, in significant part, on the extent to which it can implement its business strategy [added: and goals] successfully.

Duke [removed: Energy's clean energy transition, which includes achieving net-zero carbon emissions from electricity generation by 2050, modernizing the regulatory construct, transforming the customer experience, and digital transformation,] [added: Energy] is subject to business, policy, regulatory, technology, economic and competitive uncertainties and contingencies, many of which are beyond its control and may make those goals difficult to achieve.

Federal or state policies could be enacted that restrict the availability [removed: of] [added: of, and increase the costs associated with the use of,] fuels or generation technologies, such as natural gas or nuclear power, that enable Duke Energy to reduce its carbon emissions.

In addition, new technologies that are not yet commercially available or are unproven at utility scale will likely be [removed: needed] [added: needed,] including [added: carbon capture and sequestration and supporting infrastructure as well as] new resources capable of following electric load over long durations such as advanced nuclear, hydrogen and long-duration storage.

[removed: Achieving] [added: Meeting the evolving and growing energy needs of] our [removed: carbon reduction goals] [added: customers] will require continued operation of our existing carbon-free technologies including nuclear and renewables.

The rapid transition to and expansion of certain low-carbon resources, such as renewables without cost-effective storage, may challenge our ability to meet customer expectations of reliability [added: and affordability] in a carbon constrained [removed: environment.][added: environment, particularly as demand increases.]

Additionally, if regulatory or legislative bodies do not allow recovery of costs incurred in providing service, or do not do so on a timely basis, the Duke Energy Registrants’ [removed: earnings] [added: results of operations, financial position or cash flows] could be negatively impacted.

Stranded costs primarily include the generation assets of the Duke Energy Registrants whose value in a competitive marketplace may be less than their current book value, as well as above-market purchased power commitments from QFs from whom the Duke Energy Registrants are legally obligated to purchase energy at an avoided cost rate under [removed: PURPA.][added: the Public Utility Regulatory Policies Act of 1978.]

Regulation affects almost every aspect of the Duke Energy Registrants’ businesses, including, among other things, their ability to: take fundamental business management actions; determine the terms and rates [removed: of transmission and distribution] [added: for] services; make acquisitions; issue equity or debt securities; engage in transactions with other subsidiaries and affiliates; and pay dividends upstream to the Duke Energy Registrants.

There can be no assurance that laws, regulations and [removed: policies] [added: policies, including tax incentives and credits,] will not be changed in ways that result in material modifications of business models and objectives or affect returns on investment by restricting activities and products, subjecting them to escalating costs, causing delays, or prohibiting them [removed: outright.][added: outright, which could have a material effect on the Duke Energy Registrants' results of operations, financial position and cash flows.]

These [added: and other environmental] laws and regulations can result in increased capital, operating and other costs.

[removed: Delays in obtaining any required] environmental [removed: regulatory approvals, failure to obtain and comply with them or changes in environmental] laws or regulations to more stringent compliance levels [removed: could] [added: could, and are likely to,] result in additional costs of operation for existing facilities or development of new facilities being prevented, delayed or subject to additional costs.

[removed: Although it is not expected that the] [added: The] costs to comply with [removed: current] environmental [added: laws and] regulations [removed: will] [added: could] have a material [removed: adverse] effect on the Duke Energy Registrants’ results of operations, financial position and cash [removed: flows due to regulatory cost recovery, the Duke Energy Registrants are at risk that the costs of complying with environmental regulations in the future will have such an effect.][added: flows.]

The EPA has issued or proposed federal [removed: regulations] [added: regulations, including the new rules issued in April 2024,] governing the management of [removed: cooling water intake structures,] wastewater, CCR management [removed: units,] [added: units] and CO2 emissions.

New state legislation [added: in response to such regulations] could impose carbon reduction goals that are more aggressive than the Company's plans.

There is continued concern, and increasing [added: and conflicting] activism, both nationally and internationally, about climate change.

Regulatory changes [added: and/or uncertainty of applicability of such legislative and regulatory initiatives] could also result in generation facilities to be retired earlier than planned to meet our net-zero 2050 goal.

Rapidly rising prices as a result of [removed: inflation] [added: inflation, tariffs,] or other factors may impact the ability of the Company to recover costs timely or execute on its business strategy including the achievement of growth objectives.

- weather conditions, including [removed: abnormally mild] [added: extreme] winter or summer weather that [added: could] cause [added: significantly] lower [added: or higher demand for] energy or natural gas usage for heating or cooling purposes, as applicable, [removed: and] [added: storm-related customer outages resulting in lower usage, or] periods of low rainfall that decrease the ability to operate facilities in an economical manner;

- supply of and demand for energy [removed: commodities;][added: commodities, including potential usage of electricity by data centers;]

Natural disasters or operational accidents may adversely affect the Duke Energy Registrants’ operating [removed: results.][added: results, financial position or cash flows.]

Natural disasters or operational accidents within the Company or industry (such as [removed: forest] [added: wild] fires, earthquakes, hurricanes or natural gas transmission pipeline explosions) could have direct or indirect impacts to the Duke Energy Registrants or to key contractors and suppliers.

The Duke Energy Registrants will continue to seek full cost recovery for expenditures through the normal ratemaking process with state and federal utility commissions, who permit recovery in rates of [removed: necessary] [added: reasonable] and prudently incurred costs associated with the Duke Energy Registrants’ regulated operations, and through other wholesale contracts with terms that contemplate recovery of such costs, although there is no guarantee of full cost recovery.

At [removed: other sites, planning] [added: all sites requiring CCR closure] and [added: groundwater remediation,] closure methods [added: and groundwater corrective action remedies] have been studied and factored into the estimated retirement and management [removed: costs, and closure activities have commenced.][added: costs.]

Customer growth and customer usage are affected by several factors outside the control of the Duke Energy Registrants, such as mandated EE measures, demand-side management goals, [added: advancements in technology that may impact the energy usage by large commercial customers, such as data centers,] distributed generation resources and economic and demographic conditions, such as [removed: inflation] [added: inflation, tariffs,] and interest rate volatility, population changes, job and income growth, housing starts, new business formation and the overall level of economic activity.

Furthermore, the Duke Energy Registrants currently have EE riders in place to recover the cost of EE programs in North Carolina, South Carolina, Florida, Indiana, [removed: Ohio] and Kentucky.

The Duke Energy [removed: Registrants] [added: Registrants'] future results of operations may be impacted by changing [added: or conflicting] expectations and [removed: demands including heightened emphasis on] [added: demands, particularly regarding] environmental, social and governance concerns.

Duke Energy’s ability to execute its strategy and achieve anticipated financial outcomes are influenced by the expectations of our customers, regulators, [removed: investors,] [added: investors] and stakeholders.

Additionally, the risks of global climate change [removed: continues] [added: continue] to shape our customers’ sustainability goals and energy needs as well as the investment and financing criteria of investors.

Furthermore, the increasing use of social media [added: and conflicting expectations and demands regarding environmental, social, and governance concerns,] may accelerate and increase the potential scope of negative publicity we might receive and could increase the negative impact on our reputation, business, results of [removed: operations,] [added: operations] and financial condition.

Furthermore, with this heightened emphasis on environmental, social, and governance concerns, and climate change in particular, there is an increased risk of litigation, activism, and legislation from groups both in support of and opposed to various environmental, social and governance initiatives, which could cause delays and increase the costs of our [removed: clean] energy transition.

Furthermore, destruction caused by severe weather events, such as hurricanes, flooding, tornadoes, severe thunderstorms, snow and ice storms, [added: droughts, extreme temperatures, and wild fires,] including from climate change, can result in lost operating revenues due to outages, property [removed: damage,] [added: damage or total loss,] including downed transmission and distribution lines, [added: personal injury,] reputational harm, and additional and unexpected expenses to mitigate storm [removed: damage.][added: damage, including incremental financing costs.]

The cost of storm restoration efforts may not be fully recoverable [added: or recoverable on a timely basis] through the regulatory [removed: process.][added: process and may impact the results of operations, financial position or cash flows of the Duke Energy Registrants.]

Disruption in the delivery of fuel, including disruptions as a result of, among other things, [added: changing economic conditions,] bankruptcies, transportation delays, weather, labor relations, force majeure events or environmental regulations affecting any of these fuel suppliers, could limit the Duke Energy Registrants' ability to operate their facilities.

Duke Energy relies on the continued operation of [removed: sophisticated] [added: advanced] digital information technology systems and network infrastructure, which are part of an interconnected regional grid.

The Duke Energy Registrants are also subject to regulations set by the [removed: Nuclear Regulatory Commission] [added: NRC] regarding the protection of digital computer and communication systems and networks required for the operation of nuclear power plants.

The Duke Energy Registrants’ operations have been and may be affected by pandemic health [removed: events, including COVID-19,] [added: events] in ways listed below and in ways the Duke Energy Registrants cannot predict at this time.

The COVID-19 pandemic and efforts to respond to it [removed: have] resulted in widespread adverse consequences on the global economy and on the Duke Energy Registrants’ customers, third-party vendors, and other parties with whom we do business.

If [removed: the COVID-19] [added: another] pandemic or [removed: other] health [removed: epidemics] [added: epidemic or outbreak occurs] and [removed: outbreaks that may occur are] [added: is] significantly prolonged, it could impact the Duke Energy Registrants' business strategy, results of operations, financial position and cash flows in the future as a result of delays in rate cases or other legal proceedings, an inability to obtain labor or equipment necessary for the construction of large capital projects, an inability to procure satisfactory levels of fuels or other necessary equipment for the continued production of electricity and delivery of natural gas, volatility in global equity securities markets, and the health and availability of our critical personnel and their ability to perform business functions.

Duke Energy is working to meet growing and evolving customer energy needs while balancing customer reliability and affordability, and other priorities including the need to modernize its fleet and the regulatory construct.

For example, Duke Energy anticipates that its nuclear stations in North Carolina and South Carolina will continue to qualify for significant tax incentives in the form of nuclear production tax credits under the IRA.

Nuclear energy is a reliable and clean energy source and nuclear tax incentives allowed under the IRA, including nuclear production tax credits, are expected to reduce the cost of the energy transition for our customers.

If such nuclear production tax credits were eliminated or reduced, it could negatively impact our ability to return the anticipated cost benefits to customers.

Additionally, new EPA rules issued in April 2024 impose stringent GHG emission reduction standards, revised air toxic limits, and wastewater discharge limitations that may impact our carbon-reduction targets, and operational timeline and costs associated with certain new and existing generation.

Such potential changes that may have adverse consequences could include no longer allowing tax incentives and credits currently provided for under the IRA, including the ability to record or sell related tax credits to third parties.

For example, new EPA

rules issued in April 2024, among other things, impose stringent GHG emissions limitations on existing coal plants and new natural gas plants

and more stringent air toxic limits on existing coal plants, increase limitations on wastewater discharge, and impose groundwater monitoring and

corrective action requirements on previously unregulated coal ash sources at regulated facilities (CCR Management Units) and inactive surface

impoundments at retired generating facilities (Legacy CCR Surface Impoundments).

Potential legal challenges to such rules may not be

successful, and adherence to these rules may increase the cost of compliance, impact generation resource mix and carbon-reduction targets,

and negatively impact customer reliability and affordability due to such rules' imposition of stringent GHG emissions limitations and reliance on

carbon capture technologies that are not yet adequately demonstrated at utility scale.

Delays in obtaining any required environmental regulatory approvals, failure to obtain and comply with them or changes in

Such events can and in the past, have, negatively impacted sales volume such as in the case of storm-related customer outages resulting in lower usage, and costs to restore service and rebuild assets after such events may be, and in the case of hurricanes Helene and Milton experienced in 2024, have been, material and did impact the results of operations, financial position or cash flows of the Duke Energy Registrants, and such events may do so in the future, until complete and timely cost recovery is approved and occurs under existing relevant regulatory mechanisms across our jurisdictions.

The 2015 CCR Rule classifies CCR as nonhazardous waste and allows for beneficial use of CCR with some restrictions.

The regulation applies to all new and existing landfills, new and existing surface impoundments receiving CCR and existing surface impoundments located at stations generating electricity (regardless of fuel source), which were no longer receiving CCR but contained liquids as of the effective date of the rule.

The rule establishes requirements regarding design and operating criteria, groundwater monitoring and corrective action, closure requirements and post-closure care, and recordkeeping, notifications, and internet posting requirements to ensure the safe disposal and management of CCR.

In addition to the federal regulations, CCR landfills and surface impoundments will continue to be regulated by existing state laws, regulations and permits, as well as additional legal requirements, including judicial orders.

The 2024 CCR Rule significantly expands the scope of the 2015 CCR Rule to apply to legacy CCR surface impoundments (inactive impoundments at retired facilities) and CCR management units (previously unregulated coal ash sources at regulated facilities).

Access to capital markets may also be critical to finance unexpected material expenditures such as unusually volatile commodity costs or significant storm restoration activities for severe weather events.

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

These regulations classify CCR as nonhazardous waste under the RCRA and apply to electric generating sites with new and existing landfills and, new and existing surface impoundments, and establish requirements regarding landfill design, structural integrity design and assessment criteria for surface impoundments, groundwater monitoring, protection and remedial procedures and other operational and reporting procedures for the disposal and management of CCR.

In addition to the federal regulations, CCR landfills and surface impoundments will continue to be regulated by existing state laws, regulations and permits, as well as additional legal requirements that may be imposed in the future, such as the settlement reached with the NCDEQ to excavate seven of the nine remaining coal ash basins in North Carolina, and partially excavate the remaining two, and the EPA's January 11, 2022, issuance of a letter interpreting the CCR Rule, including its applicability and closure provisions.

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

Excavation at these sites involves movement of CCR materials to off-site locations for use as structural fill, to appropriately engineered off-site or on-site lined landfills or conversion of the ash for beneficial use.

Duke Energy has completed excavation of coal ash at the four high-priority North Carolina sites.

Management’s Discussion and Analysis should be read in conjunction with the Consolidated Financial Statements and Notes for the years ended December 31, [removed: 2023, 2022] [added: 2024, 2023] and [removed: 2021.][added: 2022.]

Management's Discussion and Analysis of Financial Condition and Results of Operations," in Duke Energy's Annual Report on Form 10-K for the year ended December 31, [removed: 2022,] [added: 2023,] filed with the SEC on February [removed: 27, 2023,] [added: 23, 2024,] for a discussion of variance drivers for the year ended December 31, [removed: 2022,] [added: 2023,] as compared to December 31, [removed: 2021.][added: 2022.]

At Duke Energy, we remain focused on continuing to advance our [removed: clean] energy [removed: transition while] [added: transition,] maintaining [removed: affordability and] reliability [added: and affordability] for our customers [added: while providing cleaner energy] and delivering on our commitments to our communities, employees, investors, and other stakeholders.

The fundamentals of our business [removed: are strong and allow] [added: remain strong, allowing] us to deliver growth in earnings and dividends in a low-risk, predictable and transparent way.

[removed: In 2023,] [added: While several historic, back-to-back hurricanes challenged our operations and required incremental financing costs,] we [added: met our near-term financial commitments and] continued to make progress, generating positive [removed: strategic and] regulatory [added: and strategic] outcomes, [removed: navigating rising interest rates, lower volumes due] [added: advancing key actions related] to [removed: mild temperatures and other macroeconomic headwinds, while meeting] our [removed: near-term financial commitments] [added: energy transition] and continuing to provide the safe and reliable service that our communities depend on.

We [removed: also] continue to [removed: make] [added: rebuild] the [added: most heavily damaged infrastructure impacted by storms in our service territories, engage with our customers and make critical] investments [removed: necessary] to support our ongoing [removed: clean] energy transition and a business portfolio that delivers a reliable and growing dividend, with [removed: 2023] [added: 2024] representing the [removed: 97th] [added: 98th] consecutive year Duke Energy paid a cash dividend on its common stock.

[removed: ][added: ]

Duke Energy's [removed: 2023] [added: 2024] Net Income Available to Duke Energy Corporation (GAAP Reported Earnings) [removed: was impacted by] [added: increased primarily due to] higher [removed: regulatory charges] [added: impairments on the sale of the Commercial Renewables business] in the prior year.

[removed: 2023] [added: 2024] Areas of Focus and Accomplishments

[removed: Clean Energy] [added: Energy] Transition.

[removed: Our] [added: Faced with anticipated long-term growth not seen for decades, our] industry continues to experience an unprecedented level of change and [removed: 2023] [added: 2024] was a dynamic year for our company as we navigated [removed: ongoing macroeconomic headwinds] [added: storm response] and continued to execute on our strategic [removed: priorities and deliver on our vision.][added: priorities.]

*Generating [added: Reliable, Affordable and] Cleaner Energy*

[removed: We] [added: Although our path will not be linear as we retire coal and bring new generation resources online, we] have made strong progress to date in reducing carbon emissions from electricity generation (a [removed: 48%] [added: 44%] reduction from 2005) and have established goals to do more [removed: (at least 50%] [added: (50%] reduction by 2030, 80% by 2040, and net zero by 2050).

Over the next decade, we expect to deploy between approximately [removed: $170] [added: $190 billion] and [removed: $180] [added: $200] billion of capital into our regulated businesses, driven by [removed: clean] energy transition [removed: investments.][added: investments designed to ensure reliable, affordable, and cleaner energy while meeting expected growth in energy demand in the coming decades.]

These investments will [added: maintain reliability and affordability,] drive [removed: substantial] economic benefits for the communities we [removed: serve] [added: serve, deliver cleaner energy] and reduce our customers' exposure to fuel volatility.

*Carolinas [removed: Integrated] Resource Plan*

[removed: In January 2024, we filed supplemental modeling and analysis with the NCUC and PSCSC] [added: These updates were necessary] due to substantially increased load forecasts resulting from continued economic development successes in the Carolinas occurring since the [removed: system-wide] [added: systemwide integrated resource] plan was prepared.

In [removed: 2023,] [added: 2024,] our SOG investments helped to avoid approximately [removed: 330,000] [added: 925,000] customer interruptions across our six-state electric service area, preventing customers from having more than [removed: 1.4] [added: 8.6] million hours of lost outage time during major events.

[removed: While 2023 presented unique macroeconomic challenges,] Duke Energy has a demonstrated track record of executing on our business plans while driving efficiencies and productivity in the business.

Despite [removed: rising] [added: higher] interest rates and [removed: near-record mild weather across all] [added: navigating the operational and financial impacts] of [added: unprecedented hurricanes across] our service territories, we achieved financial results within our adjusted EPS guidance and continued our cost-management journey with a focus on driving productivity, increasing flexibility and prioritizing spend based on risk and strategic value to our customers and investors.

[removed: With these actions, lower fuel prices, and] [added: We've experienced] increased stability in these markets [removed: during 2023, we anticipate to be] [added: and have now fully recovered these deferred fuel costs, with remaining balances back] in line with our historical average [removed: balance of deferred fuel costs by the end] [added: as] of [added: December 31,] 2024.

[removed: We execute] [added: For solar panels, we've executed] longer supply agreements and [added: we continue to] proactively secure equipment in advance of hurricane season.

Our procurement teams [added: also] continue to execute on action plans to enhance planning, augment supply, amend operations and leverage our scale to continue to mitigate these risks to the extent possible.

[removed: In 2023, Site Selection magazine recognized Duke Energy as a “Top Utility in Economic Development," recognizing our critical role and successful efforts working] [added: We successfully worked] with our state partners to win [removed: 67] [added: 78 economic development] projects [removed: this year] [added: in 2024] alone, representing approximately [removed: $22] [added: $26] billion in new capital investment and [removed: 15,000] [added: over 16,000] new jobs within our service territories.

These projects include transformational [removed: electric vehicle] [added: life sciences, automotive,] and [removed: battery manufacturing] [added: semiconductors] facilities as well as data centers.

One of our long-term strategic goals [removed: is] [added: was] to achieve modernized regulatory constructs across all of our jurisdictions.

Modernized [added: regulatory] constructs provide benefits, which include improved earnings and cash flows through more timely recovery of investments, as well as stable pricing for customers.

Overall, [removed: this] [added: 2024] was a very active year as it relates to regulatory filings, which reflects the important investments and ongoing [removed: clean] energy transition across all [added: of] our service territories.

[removed: Also in South Carolina, we filed a] [added: - In January 2024,] Duke Energy Carolinas [added: filed a South Carolina] rate [removed: case with the PSCSC in January 2024.][added: case.]

While customer satisfaction across our industry continues to be impacted by the macroeconomic environment and the impacts of inflationary pressures including higher fuel prices [added: and interest rates] on customer bills, our work continues to be recognized by our customers, with strong customer satisfaction scores in our jurisdictions including Piedmont, which was ranked [removed: number one] [added: No. 1] in customer satisfaction by J.D. Power for residential natural gas service in the south for the [removed: second] [added: third] year in a row.

[removed: Operational Excellence, Safety] [added: Hurricane Response] and [removed: Reliability.] [added: Operational Excellence.] The reliable and safe operation of our power [removed: plants,] [added: generating facilities,] electric distribution system and natural gas infrastructure in our communities continues to be foundational to serving our customers, our financial results, and our credibility with stakeholders.

We will continue to [removed: work to ensure that] [added: practice] our [added: forecasting,] grid [added: assessment, oversight,] and [removed: fleet can withstand the stress of] [added: governance processes as] extreme weather [removed: on our system,] [added: challenges operations from time to time,] evaluate lessons learned and enhance our strategy and communications to effectively serve our customers now and in the future.

Despite [removed: these recent challenges,] [added: the extreme weather and operational challenges with storm response,] our [removed: regulated] generation fleet and nuclear sites [removed: had] [added: delivered] strong performance throughout the year and our electric distribution system performed well.

The safety [added: and health] of our workforce is a core value and we remain an industry leader in personal [removed: safety.][added: safety as measured by the Occupational Safety and Health Administration's (OSHA) Total Incident Case Rate (TICR).]

Our workforce and [removed: our] contract partners [removed: worked] [added: work] hard to prepare for [removed: this year’s] storm season, through drills, material planning, call center readiness, contingency [removed: planning,] [added: planning] and customer communications.

Our ability to effectively handle all facets of the [removed: 2023] [added: 2024] storm response efforts while making ongoing investments to enhance the reliability and physical security of the [removed: grid, mitigate ongoing macroeconomic challenges, and navigate supply chain constraints,] [added: grid] is a testament to our team’s extensive preparation and coordination, applying lessons learned from previous storms, and [removed: to] on-the-ground management throughout the restoration efforts.

Duke Energy Objectives – [removed: 2024] [added: 2025] and Beyond

[removed: At Duke Energy, our business strategy centers on delivering reliable, affordable and cleaner energy to our customers and communities,] [added: To meet these goals, we are] safely transforming and readying our system by investing in [added: secure and] innovative technologies, modernizing our gas and electric infrastructure and [removed: expanding and] integrating efficiency and demand management programs.

As we transition our business to [removed: cleaner] [added: meet anticipated increased long-term demand while delivering more efficient] sources of energy, we are focused on [removed: delivering] [added: creating] sustainable value for our customers and shareholders by leveraging business transformation to exceed customer expectations, optimizing investments to drive attractive shareholder [removed: returns,] [added: returns] and [removed: by] providing new product offerings and solutions that deliver growth and customer value.

To achieve these [removed: major milestones,] [added: objectives,] we are [removed: shaping the landscape by] partnering with stakeholders, championing public policy that advances [removed: innovation,] [added: innovation] and [removed: advancing] [added: continuing to leverage] regulatory models that support [removed: carbon] [added: the delivery of reliable energy, timely cost recovery] and [removed: methane emission reductions.][added: affordable customer rates.]

This is a dynamic and exciting time for our industry and our company in particular as we move further into the energy transition.

While 2024 presented unprecedented challenges as it relates to a historic storm season, we are now in the early stages of the approval and planned construction of significant new generation investments and anticipate growing energy demands in the coming decades from continued migration into our attractive service territories, onshoring of domestic industries, electrification, and data centers and other investments from the expected artificial intelligence revolution.

In 2024, we responded to the most significant hurricane season in our company's history.

Additional drivers primarily include growth from rate increases and riders, improved weather and higher sales volumes, partially offset by higher interest expense, depreciation on a growing asset base and storm costs, along with a higher effective tax rate.

Additionally, operational excellence is especially critical to successfully navigate effective storm response and to efficiently provide the continuity of service our customers demand, regardless of weather or circumstance.

In 2024, with three consecutive major hurricanes Debby, Helene and Milton, this preparation was critical as we responded to several unprecedented and catastrophic weather events across our service territories.

The historic nature of these storms required a new level of coordination and teamwork across every organization at our company.

In August 2024, Hurricane Debby made landfall in Florida as a Category 1 storm, impacting the Duke Energy Florida territory as well as the Duke Energy Carolinas and Duke Energy Progress territories in North Carolina and South Carolina and causing approximately 700,000 customer outages.

In late September 2024, Hurricane Helene made landfall in Florida as a Category 4 storm and subsequently impacted all of Duke Energy's service territories as the storm moved inland, with the most severe damage occurring in Florida and the Carolinas.

Approximately 3.5 million customers were impacted by Hurricane Helene across Duke Energy's system, the largest number of companywide outages from a single event on our system ever reported.

Then, in October 2024, Hurricane Milton made landfall in Florida as a Category 3 storm, causing severe damage across our Florida service territory as a result of high winds, rain and flooding and resulting in more than 1 million customer outages.

In such extreme circumstances, our immediate priority is, and always will be, executing the extensive storm preparation and response work to ensure the safe, timely, and efficient restoration of service to impacted customers as quickly as possible.

Around-the-clock power restoration efforts continued following the historic damage inflicted by these storms with lineworkers, tree trimmers and removal experts, state department of transportation workers and countless others, working to repair and, in certain areas, completely rebuild, the critical electricity infrastructure that powers and supports the communities we serve.

Our operations teams worked diligently, restoring power to approximately 5.5 million customers.

We've also seen the benefits of ongoing grid hardening investments, leveraging self-healing technologies and remote restoration capabilities to automate the rerouting of power, more effectively deploy resources, and reduce the frequency or duration of outages for many of our customers during severe weather events.

Preparation, sound execution, and a comprehensive communication strategy helped us respond quickly and build stakeholder loyalty and support as we continue the important work of rebuilding our communities, including power infrastructure in the hardest-hit areas of our service territories.

While these historic storms created incremental financing needs, we are working with our state commissions to appropriately track and recover storm costs under approved regulatory frameworks on a timely basis.

We also remain focused on balancing the bill impacts on our customers, including seeking insurance recovery and the securitization of related costs in certain jurisdictions, as appropriate.

In addition to unprecedented storm response, most of our service territories experienced above-average temperatures this summer, including the warmest July on record in Florida, new energy peaks in the Carolinas and weather alerts from PJM and MISO in the Midwest.

In January 2025, due to 65 hours of freezing or below freezing temperatures, Duke Energy Carolinas and Duke Energy Progress achieved a new record combined peak usage.

We prepared for the arrival of extreme weather and delivered on our customer commitments, identifying potential risks, effectively maintaining adequate short-term planning reserves, leveraging outage scheduling optimization, and controlling planned and emergent equipment issues.

Effective operations and flexibility by our generation and transmission teams managed these tight margins in an efficient manner and ensured the integrity of the grid our customers rely upon.

We closely tracked 2023's record-setting safety results with our 2024 TICR coming in below target and anticipate ranking first among North American combined gas and electric companies in an annual industry safety survey for the 10th consecutive year.

We expect our gas operations organization to finish in the top 10% according to a gas industry survey for the fourth year in a row.

Following on our historic success from 2023, we finished 2024 with less than 100 OSHA recordable injuries.

In addition, we achieved significant year-over-year improvement in environmental performance as measured by internal metrics and had no significant environmental events.

With PBR and MYRP in North Carolina, MYRP in Florida, and grid investment riders in the Midwest, 2024 marked a significant milestone for utilizing these structures across most of our service territories.

We continued to move a variety of regulatory initiatives forward this year, including the following:

In May 2024, we reached a constructive comprehensive settlement with certain parties and in July 2024, the PSCSC issued an order approving the settlement and revising recovery of certain environmental compliance costs.

New rates were effective August 1, 2024.

- In April 2024, we filed formal requests for new base rates across several jurisdictions including Duke Energy Florida, Duke Energy Indiana and Piedmont.

◦Duke Energy Florida filed a three-year rate plan to begin in January 2025.

In August 2024, the FPSC approved our constructive comprehensive settlement with certain parties and new rates were effective January 1, 2025.

◦Duke Energy Indiana filed a general rate case with the IURC and received a constructive order in January 2025.

New rates are expected to be effective by March 2025.

◦Piedmont filed a general rate case with the NCUC and reached a constructive comprehensive settlement with certain parties in September 2025.

Revised interim rates were effective November 1, 2024, subject to refund and pending NCUC approval of the settlement and a final order, which was received in January 2025.

- Also, in April 2024, Duke Energy Progress issued $177 million of storm recovery bonds, our first issuance under South Carolina's 2022 securitization legislation, which provided the necessary framework for us to lower the bill impacts on our customers related to critical storm restoration activities.

In December 2024, we initiated securitization filings in North Carolina related to the unprecedented back-to-back hurricanes of 2024 and are also pursuing timely recovery of storm costs under existing regulatory mechanisms in Florida.

- In December 2024, Duke Energy Kentucky filed an electric base rate case and new rates are anticipated to go into effect in July 2025.

In 2023, we furthered our transition to a fully regulated utility by closing on the sale of our commercial utility-scale solar and wind group and our distributed generation operations.

We advanced a variety of regulatory priorities resulting in positive outcomes and modern recovery mechanisms, and continued to engage with our customers and the communities in our jurisdictions.

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Additional drivers primarily include growth from riders and other retail margin, favorable rate case impacts, lower operations and maintenance expense and lower tax expense.

These items were partially offset by higher interest and depreciation expense, unfavorable weather and lower volumes.

We are targeting energy generated from coal to represent less than 5% of total generation by 2030 and a full exit by 2035, subject to regulatory approvals, as part of the largest planned coal fleet retirement in the industry.

Duke Energy was one of the first utilities to address the totality of its impact – approximately 95% of the Company's greenhouse gas emissions are tied to a measurable net zero goal.

*Sale of Commercial Renewables*

In November 2022, Duke Energy committed to a plan to sell the Commercial Renewables business, excluding the offshore wind contract for Carolina Long Bay.

As we look forward to the remainder of this decade and beyond, we have line of sight to significant renewable, grid and other investment opportunities within our faster-growing regulated operations.

We closed on the sales of the commercial utility-scale solar and wind group and the distributed generation group in October 2023, facilitating our transition to a fully regulated utility.

HB 951 was passed in 2021 reflecting North Carolina policy accelerating a clean energy transition for generation while continuing to prioritize affordability and reliability for our customers.

The legislation established a framework overseen by the NCUC to advance state CO2 emission reductions in North Carolina through the use of least cost planning, including stakeholder involvement, and also introduced modernized recovery mechanisms under PBR, which consists of MYRP, PIMS, and residential decoupling, and promotes more efficient recovery of investments and aligns incentives between the Company and the state’s energy policy objectives.

In May 2022, we filed a proposed Carbon Plan with the NCUC that outlined potential pathways toward achieving the HB 951 carbon reduction targets while balancing affordability and reliability for our customers and in December 2022, the NCUC issued an order adopting its initial Carbon Plan, which included a set of near-term actions to support meeting the state's carbon reduction goals.

In August 2023, Duke Energy Carolinas and Duke Energy Progress filed an updated combined systemwide Carolinas IRP with the NCUC and the PSCSC, setting the course for the next 15 years of our clean energy transition.

The plan outlined the diverse resources required to serve customers reliably and to achieve our clean energy transition in both states.

Recognizing the importance of natural gas, we continue to work toward a net-zero methane emission goal by 2030 related to our natural gas distribution business.

In October, we announced plans to build and operate our first system capable of producing, storing and combusting 100% green hydrogen.

The one-of-its-kind, end-to-end system will use solar energy at Duke Energy Florida's 74.5-MW DeBary solar plant to produce green hydrogen for an upgraded on-site CT designed to operate on a blend of natural gas and hydrogen or up to 100% hydrogen.

We anticipate the system will be installed and fully functioning in 2024, providing access to on-demand, dispatchable, increasingly clean energy for our Duke Energy Florida customers.

Response to Macroeconomic Headwinds.

We executed on our Workload Reduction Initiative launched in late 2022 while building on our culture of continuous improvement to continue to identify ways to reduce operating costs.

We remain focused on organization simplification, automation, reducing service levels provided to internal customers as appropriate, outsourcing, and continued operational excellence.

In 2023, we made substantial progress, recovering $1.5 billion in deferred fuel costs this year.

While inflation has moderated to a degree, we continue to successfully navigate supply chain challenges including longer lead times and shortages of solar panels and other equipment.

Grid investment riders in the Midwest and Florida enable more timely cost recovery and earnings growth and we have a MYRP in Florida through 2024.

In North Carolina, as highlighted above, HB 951 authorizes the use of modernized regulatory constructs under the direction of the NCUC.

In October 2022, Duke Energy Progress filed its first North Carolina rate case utilizing PBR and reached partial settlements on key matters in April and May 2023.

In August 2023, the NCUC issued a constructive order approving these partial settlements and Duke Energy Progress' PBR Application with certain modifications, marking the first implementation of an MYRP under the performance-based regulations authorized by HB 951.

Duke Energy Progress implemented revised Year 1 rates on October 1, 2023.

In January 2023, we also filed a Duke Energy Carolinas rate case in North Carolina, which incorporated elements of PBR.

In August 2023, we reached partial settlements on key matters with the Public Staff and received a constructive order from the NCUC in December 2023, with new rates effective January 2024.

After more than a decade of work, these rate cases mark a significant milestone in securing regulatory approval of modern ratemaking structures in North Carolina.

In addition to the Duke Energy Progress and Duke Energy Carolinas rate cases in North Carolina, we continued to move a variety of other regulatory initiatives forward during 2023.

In February 2023, the PSCSC approved a constructive comprehensive settlement with all parties in the Duke Energy Progress South Carolina rate case and we implemented new customer rates effective April 1, 2023.

In the Midwest, we received a constructive order on our Duke Energy Kentucky electric rate case in October 2023.

As it relates to our natural gas businesses, in Duke Energy Ohio, we filed a stipulation on key matters in our base rate case with all parties except the OCC in April 2023.

We received an order approving the stipulation in November 2023.

In September 2023, the TPUC approved a settlement related to our Annual Review Mechanism in Tennessee, with adjusted rates effective October 1, 2023.

EU&I provides retail electric service through the generation, transmission, distribution and sale of electricity to approximately [removed: 8.4] [added: 8.6] million customers within the Southeast and Midwest regions of the U.S. The service territory is approximately 90,000 square miles across six states with a total estimated population of 27 million.

The following map shows the service territory for EU&I as of December 31, [removed: 2023.][added: 2024.]

[removed: ][added: ]

The following table represents the distribution of GWh billed sales by customer class for the year ended December 31, [removed: 2023.][added: 2024.]

| Residential | | | [removed: 32] [added: 33] | | % | | | | [removed: 26] [added: 27] | | % | | | | 50 | | % | | | | 37 | | % | | | | [removed: 28] [added: 29] | | % |

| Industrial | | | [removed: 23] [added: 22] | | % | | | | [removed: 15] [added: 14] | | % | | | | [removed: 8] [added: 7] | | % | | | | [removed: 23] [added: 22] | | % | | | | [removed: 31] [added: 30] | | % |

| Total retail sales | | | [removed: 89] [added: 88] | | % | | | | 63 | | % | | | | [removed: 94] [added: 93] | | % | | | | 98 | | % | | | | 85 | | % |

| Wholesale and other sales | | | [removed: 11] [added: 12] | | % | | | | 37 | | % | | | | [removed: 6] [added: 7] | | % | | | | 2 | | % | | | | 15 | | % |

The number of [removed: residential and general service] [added: retail] customers within the EU&I service territory is expected to increase over time.

[removed: Lower industrial] [added: Industrial] sales [removed: continued] [added: remained soft] due to overall [removed: industrial weakness,] [added: weakness across the class,] including some manufacturing plant closings [removed: across] [added: in] certain jurisdictions, [removed: continuation] [added: impacts] of [removed: supply chain constraints and higher inventory levels, as well as higher] [added: continued high] interest [removed: rates.][added: rates, and difficulty hiring qualified labor.]

The impact on [removed: customer's] [added: customers'] usage [added: of electricity] from these factors and other potential economic dynamics continues to be monitored.

Over [removed: the] [added: a] longer time frame, it is [removed: still] expected that the continued adoption of more efficient housing and appliances will have a negative impact on average usage per residential [added: customer; however, decoupled rates in North Carolina and various rate design mechanisms in other jurisdictions partially mitigate the impact of the declining usage per] customer [removed: over time.][added: on overall profitability.]

[removed: Although decoupling mechanisms may mitigate some weather impacts, residential] [added: Residential] and [removed: general service] [added: commercial] customers are typically more impacted by weather than industrial [removed: customers.][added: customers, although decoupling mechanisms in certain jurisdictions may mitigate some of the weather impacts.]

Competition in the regulated electric distribution business is primarily from the development and deployment of alternative energy sources including on-site generation from industrial customers and distributed generation, such as private solar, at residential, [removed: general service] [added: commercial] and/or industrial customer sites.

EU&I owns approximately [removed: 54,772] [added: 55,139] MW of generation capacity.

Energy and capacity [added: to serve customers] are also supplied through contracts with other generators and purchased on the open market.

EU&I’s generation portfolio is a balanced mix of energy resources having different operating characteristics and fuel sources designed to provide energy at the lowest [removed: possible] cost to meet its obligation to serve retail customers.

The following table lists sources of electricity and fuel costs for the three years ended December 31, [removed: 2023.][added: 2024.]

| | | | [removed: 2023] [added: 2024] | | | | | | [removed: 2022] [added: 2023] | | | | | | [removed: 2021] [added: 2022] | | | | | | [removed: 2023] [added: 2024] | | | | | | [removed: 2022] [added: 2023] | | | | | | [removed: 2021] [added: 2022] | | |

| Natural gas and fuel oil(a) | | | [removed: 33.3] [added: 34.7] | | % | | | | [removed: 34.2] [added: 33.3] | | % | | | | [removed: 31.8] [added: 34.2] | | % | | | | [removed: 3.81] [added: 3.39] | | | | | | [removed: 6.35] [added: 3.81] | | | | | | [removed: 3.89] [added: 6.35] | | |

| Nuclear(a) | | | [removed: 28.4] [added: 27.5] | | % | | | | [removed: 26.6] [added: 28.4] | | % | | | | [removed: 29.8] [added: 26.6] | | % | | | | 0.58 | | | | | | 0.58 | | | | | | 0.58 | | |

| Coal(a) | | | [removed: 12.8] [added: 14.1] | | % | | | | [removed: 13.5] [added: 12.8] | | % | | | | [removed: 18.2] [added: 13.5] | | % | | | | [removed: 4.07] [added: 4.09] | | | | | | [removed: 3.43] [added: 4.07] | | | | | | [removed: 2.84] [added: 3.43] | | |

| All fuels (cost based on weighted average)(a) | | | [removed: 74.5] [added: 76.3] | | % | | | | [removed: 74.3] [added: 74.5] | | % | | | | [removed: 79.8] [added: 74.3] | | % | | | | [removed: 2.63] [added: 2.51] | | | | | | [removed: 3.75] [added: 2.63] | | | | | | [removed: 2.42] [added: 3.75] | | |

| Hydroelectric and solar(b) | | | [removed: 1.8] [added: 1.9] | | % | | | | [removed: 1.5] [added: 1.8] | | % | | | | 1.5 | | % | | | | | | | | | | | | | | | | | | |

| Total generation | | | [removed: 76.3] [added: 78.2] | | % | | | | [removed: 75.8] [added: 76.3] | | % | | | | [removed: 81.3] [added: 75.8] | | % | | | | | | | | | | | | | | | | | | |

| Purchased power and net interchange | | | [removed: 23.7] [added: 21.8] | | % | | | | [removed: 24.2] [added: 23.7] | | % | | | | [removed: 18.7] [added: 24.2] | | % | | | | | | | | | | | | | | | | | | |

EU&I has entered into fuel contracts that cover 100% of its uranium concentrates through at least [removed: 2027,] [added: 2029,] 100% of its conversion services through at least [removed: 2029,] [added: 2034,] 100% of its enrichment services through at least [removed: 2027,] [added: 2033,] and 100% of its fabrication services requirements for these plants through at least 2027.

Expiration dates for its long-term contracts, which may have various price adjustment provisions and market reopeners, range from [removed: 2024] [added: 2025] to [removed: 2027] [added: 2029] for Duke Energy [removed: Carolinas,] [added: Carolinas and] Duke Energy [removed: Progress and] [added: Progress, 2025 to 2028 for] Duke Energy [removed: Indiana, 2024] [added: Florida, 2025] to [removed: 2026] [added: 2027] for Duke Energy [removed: Florida] [added: Ohio] and [removed: 2024 to] 2025 [added: to 2030] for Duke Energy [removed: Ohio.][added: Indiana.]

The current average sulfur content of coal purchased by EU&I is between 0.5% and 3.5% for Duke Energy Carolinas and Duke Energy Progress, between [removed: 1%] [added: 1.0%] and 3.5% for Duke Energy Florida, [removed: and] between [removed: 0.5%] [added: 1.5%] and 4.0% for Duke Energy Ohio and [added: between 1.0% and 4.0% for] Duke Energy Indiana.

EU&I [removed: purchases] [added: acquires] a portion of its capacity and system requirements through purchase obligations, leases and purchase capacity contracts.

| | | | [removed: 2023] [added: 2024] | | | | | | [removed: 2022] [added: 2023] | | | | | | [removed: 2021] [added: 2022] | | |

| Purchase obligations and leases (in millions of MWh)(a) | | | [removed: 37.6] [added: 32.1] | | | | | | [removed: 41.2] [added: 37.6] | | | | | | [removed: 36.0] [added: 41.2] | | |

| Purchase capacity under contract (in MW)(b) | | | [removed: 3,997] [added: 3,202] | | | | | | [removed: 4,028] [added: 3,997] | | | | | | [removed: 4,259] [added: 4,028] | | |

(a) Represents approximately [removed: 15%] [added: 12%] of total system requirements for [removed: 2023, 16%] [added: 2024, 15%] for [removed: 2022] [added: 2023] and [removed: 14%] [added: 16%] for [removed: 2021.][added: 2022.]

(b) [removed: For 2023, 2022 and 2021, these] [added: These] agreements include approximately [added: 182 MW of firm capacity for 2024, and] 412 MW of firm capacity [added: for 2023 and 2022] under contract by Duke Energy Florida with QFs.

As of December 31, [removed: 2023,] [added: 2024,] the inventory balance for EU&I was approximately [removed: $4.1] [added: $4.4] billion.

The EPA has issued regulations related to the management of CCR from power [removed: plants] [added: plants,] including the [added: 2015 and 2024] CCR [removed: Rule.][added: Rules.]

These regulations classify CCR as nonhazardous waste under [removed: the Resource Conservation and Recovery Act (RCRA)] [added: RCRA] and apply to electric generating sites with new and existing landfills and new and existing surface impoundments and establish requirements regarding [removed: landfill design, structural integrity] design and [removed: assessment criteria for surface impoundments,] [added: operating criteria,] groundwater [removed: monitoring, protection] [added: monitoring] and [removed: remedial procedures] [added: corrective action, closure requirements] and [removed: other operational] [added: post-closure care,] and [removed: reporting procedures] [added: recordkeeping, notifications, and internet posting requirements] for the disposal and management of CCR.

At [removed: other] [added: all] sites [removed: where] [added: requiring] CCR [removed: management is required, planning] [added: closure] and [added: groundwater remediation,] closure methods [added: and groundwater corrective action remedies] have been studied and factored into the estimated retirement and management [removed: costs, and closure activities have commenced.][added: costs.]

The [added: 2015 and 2024] EPA CCR [removed: rule] [added: Rules] and the Coal Ash Act leave the decision on cost recovery determinations related to closure of coal ash surface impoundments to the normal ratemaking processes before utility regulatory commissions.

Both transactions closed in October 2023 and the sale of the remaining assets was concluded in January 2025.

Duke Energy owns a 50% interest in DATC.

DATC owns 100% interest in DATC Path 15 Transmission LLC, which owns transmission rights in North America.

In January 2025, Duke Energy entered into an agreement to sell its indirect 50% ownership interest in DATC Path 15 Transmission LLC.

In November 2024, Duke Energy sold its 50% ownership interest in Pioneer.

See Note 13 to the Consolidated Financial Statements, “Investments in Unconsolidated Affiliates” for further information.

| Commercial | | | 33 | | % | | | | 22 | | % | | | | 36 | | % | | | | 39 | | % | | | | 26 | | % |

Weather-normal sales volumes have shown growth in 2024 compared to 2023 due primarily to strong residential customer growth and strength in the commercial sector including data center usage.

Commercial and industrial sales volumes are expected to grow over this longer time frame as sales benefit from a robust economic development portfolio.

An unusually active hurricane season that impacted the Florida and Carolinas territories was also considered when quantifying the impacts of weather for 2024.

Declines in usage caused by outage durations related to hurricanes Helene and Milton were estimated and included as an impact due to weather.

Duke Energy Florida has agreed to not enter any new financial natural gas hedging contracts through December 2027.

| Progress Energy | | | 4,967 | | | | | | 4,457 | | | | | | 4,592 | | | | | | 2024 | | |

| Duke Energy Indiana 2024 Rate Case | | | IURC | | | $ | 385 | | 9.75 | | % | 53 | | % | March 2025 | | | | | |

| Duke Energy Florida 2024 Rate Case(a) | | | FPSC | | | 203 | | | 10.3 | | % | 53 | | % | January 2025 | | | | | |

| Duke Energy Florida 2021 Settlement agreement(e) | | | FPSC | | | 195 | | | 9.85 | | % | 53 | | % | January 2022 | | | | | |

| Duke Energy Kentucky 2024 Kentucky Electric Rate Case | | | KPSC | | | 70 | | | 10.85 | | % | 52.728 | | % | July 2025 | | | | | |

| | | | | | | | | | | | | | | | | | | | | |

(a) In Year 2, rates will increase by $59 million.

Rate increases for new solar investments were also approved along with the 10.3% ROE midpoint.

(e) Based on initial settlement.

Year 1, 2 and 3 rates are approximately 34%, 25% and 41%, respectively, with 9.85% as the original ROE midpoint.

For more details, see Note 4 to the Consolidated Financial Statements, “Regulatory Matters.”

GU&I also has various regulatory mechanisms in place to track and recover certain costs associated with capital investments including the IMR in North Carolina, ARM in Tennessee, and CEP Rider in Ohio.

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

(a) Year 2 and thereafter will include an additional $10 million in revenues.

Our workforce consisted of approximately 23.0% women and 20.6% people of color as of December 31, 2024.

In all events all employees are hired or promoted based on merit.

| Scott L. Batson | | | | | | 62 | | | | | | Senior Vice President and Chief Power Grid Officer. Mr. Batson has served as Senior Vice President and Chief Power Grid Officer since March 2024. Prior to that, he served as Senior Vice President and Chief Distribution Officer from November 2019 to March 2024; Regional Senior Vice President of Customer Delivery in North Carolina and South Carolina from October 2018 to November 2019; Senior Vice President of Nuclear Operations in South Carolina from September 2016 to October 2018; and various other roles of increasing responsibility since joining the Corporation in 1985. | | |

| T. Preston Gillespie | | | | | | 62 | | | | | | Executive Vice President, Chief Generation Officer and Enterprise Operational Excellence. Mr. Gillespie has served as Executive Vice President, Chief Generation Officer and Enterprise Operational Excellence since January 2023. Prior to that, he served as the Chief Generation Officer since 2020, and has held various other roles of increasing responsibility since joining Duke Energy in 1986, including Senior Vice President of Nuclear Operations, Site Vice President and Plant Manager of Oconee Nuclear Station, and Site Operations Manager of Catawba Nuclear Station, among other leadership roles. | | |

| Bonnie B. Titone | | | | | | 51 | | | | | | Senior Vice President and Chief Administrative Officer. Ms. Titone has served as Senior Vice President and Chief Administrative Officer since April 2024. Prior to that, she served as Senior Vice President and Chief Information Officer from March 2020 through March 2024; and Vice President and Chief Information Officer from June 2019 through February 2020 since joining the Corporation in June 2019. | | |

| Alexander J. "Sasha" Weintraub | | | | | | 54 | | | | | | Senior Vice President and Chief Customer Officer. Mr. Weintraub has served as Senior Vice President and Chief Customer Officer since April 2024. Prior to that, he served as Senior Vice President and President of the Corporation's natural gas business from October 2019 until April 2024; Senior Vice President and Chief Commercial Officer of the Corporation's natural gas business from November 2018 until October 2019; Senior Vice President of both Customer and Market Solutions from August 2014 until November 2019; and various other roles of increasing responsibility since joining the Corporation in 1999. | | |

Duke Energy Ohio sold all of KO Transmission's pipeline facilities and related real property to Columbia Gas Transmission, LLC in February 2023 for approximately book value.

Both transactions closed in October 2023.

EU&I is also a joint owner in certain electric transmission projects.

EU&I has a 50% ownership interest in DATC, a partnership with American Transmission Company, formed to design, build and operate transmission infrastructure.

DATC owns 72% of the transmission service rights to Path 15, an 84-mile transmission line in central California.

EU&I also has a 50% ownership interest in Pioneer, which builds, owns and operates electric transmission facilities in North America.

| General service | | | 34 | | % | | | | 22 | | % | | | | 36 | | % | | | | 38 | | % | | | | 26 | | % |

Growth in weather-normal sales volumes, however, was lower in 2023 compared to 2022 due primarily to the continuation of energy efficiency adoption, rooftop solar and broad weakness across industrial sectors.

While migration to EU&I's service territory remained strong, residential sales decreased due primarily to the return to more normal post-pandemic activities and economic conditions throughout the year.

This was partially offset by higher data center usage, which contributed to growth in commercial sales volumes.

Duke Energy Florida has temporarily agreed to not hedge natural gas prices, but retains an ability to propose hedging again in annual fuel docket filings.

| | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

Closure activities have begun in all of Duke Energy's jurisdictions.

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

Excavation at these sites involves movement of CCR materials to appropriate engineered off-site or on-site lined landfills or for reuse in an approved beneficial application.

Duke Energy has completed excavation of coal ash at the four high-priority North Carolina sites.

FERC approved the amended wholesale rate schedules in 2017.

(a) Amounts for Progress Energy equal the sum of Duke Energy Progress and Duke Energy Florida.

A funding study was last completed and filed in 2019.

Duke Energy Progress also completed a funding study, which was filed with the NCUC and PSCSC in July 2020.

In October 2021, Duke Energy Progress filed the 2019 nuclear decommissioning cost study with the FERC, as well as a revised date schedule for decommissioning expense to be collected from wholesale customers.

The FERC accepted the filing, as filed on December 9, 2021.

| Duke Energy Progress 2019 North Carolina Rate Case | | | NCUC | | | 178 | | | 9.6 | | % | 52 | | % | June 2021 | | | | | |

| Duke Energy Carolinas 2019 North Carolina Rate Case | | | NCUC | | | 33 | | | 9.6 | | % | 52 | | % | June 2021 | | | | | |

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

The FPSC approved the 2021 Settlement on May 4, 2021, issuing an order on June 4, 2021.

Revised customer rates became effective January 1, 2022, with subsequent base rate increases effective January 1, 2023, and January 1, 2024.

In January 2024, Duke Energy Florida notified the FPSC that it expects to file a formal request for new base rates in April 2024.

The Sabal Trail Phase I mainline was placed into service in July 2017 and traverses Alabama, Georgia and Florida.

The remaining lateral line to the Duke Energy Florida's Citrus County CC was placed into service in March 2018.

Phase II of Sabal Trail went into service in May 2020, adding approximately 200,000 Dth of capacity to the Sabal Trail pipeline.

The ACP pipeline was intended to transport diverse natural gas supplies into southeastern markets and would be regulated by FERC.

Dominion Energy owns 53% of ACP and was contracted to construct and operate the ACP pipeline upon completion.

On July 5, 2020, Dominion announced a sale of substantially all of its natural gas transmission and storage segment assets, which were critical to the ACP pipeline.

Further, permitting delays and legal challenges had materially affected the timing and cost of the pipeline.

Duke Energy, also through its GU&I segment, has investments in various renewable natural gas joint ventures.

KO Transmission Company (KO Transmission), a wholly owned subsidiary of Duke Energy Ohio, is an interstate pipeline company engaged in the business of transporting natural gas and is subject to the rules and regulations of FERC.

KO Transmission's 90-mile pipeline supplies natural gas to Duke Energy Ohio and interconnects with the Columbia Gulf Transmission pipeline and Tennessee Gas Pipeline.

An approximately 70-mile portion of KO Transmission's pipeline facilities was co-owned by Columbia Gas Transmission, LLC.

| Piedmont 2023 Tennessee Annual Review Mechanism | | | TPUC | | | 40 | | | | | | 9.8 | | % | | | | 48.67 | | % | | | | October 2023 | | | | | | | | |

[removed: On] [added: In] December [removed: 15,] 2017, the state of Maryland filed suit in Baltimore City Circuit Court against Duke Energy Merchants and other defendants alleging contamination of state waters by MTBE leaking from gasoline storage tanks and is seeking an unspecified amount of monetary damages.

Initial motions to dismiss filed by the defendants were denied by the court [removed: on] [added: in] September [removed: 4,] 2019, and the matter is now in discovery.

[removed: On] [added: In] December [removed: 18,] 2020, the plaintiff and defendants selected 50 focus sites, none of which have any ties to Duke Energy Merchants.

In addition, [removed: the Duke Energy Registrants are,] from time to time, [added: the Duke Energy Registrants are] parties to various [removed: lawsuits and] [added: legal, environmental or other] regulatory [removed: proceedings] [added: proceedings, including] in the ordinary course of [removed: their] business.

[removed: For information regarding legal proceedings, including regulatory and environmental matters, see] [added: See] Note 4, “Regulatory Matters,” and Note 5, “Commitments and Contingencies,” to the Consolidated Financial [removed: Statements.][added: Statements, which information is incorporated herein by reference, for discussion of certain legal, environmental and other regulatory proceedings to which the Duke Energy Registrants are a party.]

The Town of Carrboro Litigation

On December 4, 2024, the town of Carrboro, North Carolina, filed a lawsuit against Duke Energy in the North Carolina Superior Court, Orange County, alleging that Duke Energy and its predecessor companies knew since the late 1960s that fossil-fuel emissions could cause global climate changes and engaged in a campaign to conceal the dangers of fossil fuel emissions from the public, regulators, legislators, and others, resulting in a delayed transition away from fossil fuel emissions and worsening climate change.

The lawsuit also alleges that Duke Energy misled the public regarding Duke Energy’s support for, and actions toward, transitioning its fossil fuel portfolio to renewable energy.

The damages alleged range from road and stormwater-system impacts to increased electricity costs and recurring invasions and interferences from extreme weather events.

The lawsuit asserts state-law claims for public nuisance, private nuisance, trespass, negligence, and gross negligence, and is seeking an unspecified amount of monetary damages.

The case has been transferred to the North Carolina Business Court.

Duke Energy cannot predict the outcome of this matter.

SEC regulations require disclosure of certain environmental matters when a governmental authority is a party to the proceedings and such proceedings involve potential monetary sanctions that the Duke Energy Registrants reasonably believe will exceed a specified threshold.

Pursuant to the SEC regulations, the Duke Energy Registrants use a threshold of $1 million for such proceedings.

For the fiscal year ended December 31, [removed: 2023] [added: 2024] or

| | | | [removed: ] [added: ] | | | | | |

| Estimated aggregate market value of the common equity held by nonaffiliates of Duke Energy at June 30, [removed: 2023.] [added: 2024.] | | | | | | $ | [removed: 69,080,869,078] [added: 77,292,284,116] | |

| Number of Shares of Common Stock Outstanding at January 31, [removed: 2024] [added: 2025] | | | | | | | | |

| Duke Energy | | | Common stock, $0.001 par value | | | [removed: 770,811,446] [added: 776,461,008] | | |

Portions of the Duke Energy definitive proxy statement for the [removed: 2024] [added: 2025] Annual Meeting of the Shareholders or an amendment to this Annual Report are incorporated by reference into PART III, Items 10, 11 and 13 hereof.

FORM 10-K FOR THE YEAR ENDED December 31, [removed: 2023][added: 2024]

| | | | [DUKE [removed: ENERGY](#i9c7a20c96f214d19aa98516eab3970ec_22)] [added: ENERGY](#ic62e9486a6d54f1189ca777991aa0418_22)] | | | [removed: [9](#i9c7a20c96f214d19aa98516eab3970ec_22)] [added: [9](#ic62e9486a6d54f1189ca777991aa0418_22)] | | |

| | | | [BUSINESS [removed: SEGMENTS](#i9c7a20c96f214d19aa98516eab3970ec_28)] [added: SEGMENTS](#ic62e9486a6d54f1189ca777991aa0418_28)] | | | [removed: [9](#i9c7a20c96f214d19aa98516eab3970ec_28)] [added: [9](#ic62e9486a6d54f1189ca777991aa0418_28)] | | |

| | | | [HUMAN CAPITAL [removed: MANAGEMENT](#i9c7a20c96f214d19aa98516eab3970ec_43)] [added: MANAGEMENT](#ic62e9486a6d54f1189ca777991aa0418_43)] | | | [removed: [19](#i9c7a20c96f214d19aa98516eab3970ec_43)] [added: [18](#ic62e9486a6d54f1189ca777991aa0418_43)] | | |

| | | | [EXECUTIVE [removed: OFFICERS](#i9c7a20c96f214d19aa98516eab3970ec_46)] [added: OFFICERS](#ic62e9486a6d54f1189ca777991aa0418_46)] | | | [removed: [21](#i9c7a20c96f214d19aa98516eab3970ec_46)] [added: [19](#ic62e9486a6d54f1189ca777991aa0418_46)] | | |

| | | | [ENVIRONMENTAL [removed: MATTERS](#i9c7a20c96f214d19aa98516eab3970ec_49)] [added: MATTERS](#ic62e9486a6d54f1189ca777991aa0418_49)] | | | [removed: [22](#i9c7a20c96f214d19aa98516eab3970ec_49)] [added: [21](#ic62e9486a6d54f1189ca777991aa0418_49)] | | |

| | | | [DUKE ENERGY [removed: CAROLINAS](#i9c7a20c96f214d19aa98516eab3970ec_52)] [added: CAROLINAS](#ic62e9486a6d54f1189ca777991aa0418_52)] | | | [removed: [22](#i9c7a20c96f214d19aa98516eab3970ec_52)] [added: [21](#ic62e9486a6d54f1189ca777991aa0418_52)] | | |

| | | | [PROGRESS [removed: ENERGY](#i9c7a20c96f214d19aa98516eab3970ec_55)] [added: ENERGY](#ic62e9486a6d54f1189ca777991aa0418_55)] | | | [removed: [22](#i9c7a20c96f214d19aa98516eab3970ec_55)] [added: [21](#ic62e9486a6d54f1189ca777991aa0418_55)] | | |

| | | | [DUKE ENERGY [removed: PROGRESS](#i9c7a20c96f214d19aa98516eab3970ec_58)] [added: PROGRESS](#ic62e9486a6d54f1189ca777991aa0418_58)] | | | [removed: [22](#i9c7a20c96f214d19aa98516eab3970ec_58)] [added: [21](#ic62e9486a6d54f1189ca777991aa0418_58)] | | |

| | | | [DUKE ENERGY [removed: FLORIDA](#i9c7a20c96f214d19aa98516eab3970ec_61)] [added: FLORIDA](#ic62e9486a6d54f1189ca777991aa0418_61)] | | | [removed: [23](#i9c7a20c96f214d19aa98516eab3970ec_61)] [added: [22](#ic62e9486a6d54f1189ca777991aa0418_61)] | | |

| | | | [DUKE ENERGY [removed: OHIO](#i9c7a20c96f214d19aa98516eab3970ec_64)] [added: OHIO](#ic62e9486a6d54f1189ca777991aa0418_64)] | | | [removed: [23](#i9c7a20c96f214d19aa98516eab3970ec_64)] [added: [22](#ic62e9486a6d54f1189ca777991aa0418_64)] | | |

| | | | [DUKE ENERGY [removed: INDIANA](#i9c7a20c96f214d19aa98516eab3970ec_67)] [added: INDIANA](#ic62e9486a6d54f1189ca777991aa0418_67)] | | | [removed: [23](#i9c7a20c96f214d19aa98516eab3970ec_67)] [added: [22](#ic62e9486a6d54f1189ca777991aa0418_67)] | | |

| 1A. | | | [RISK [removed: FACTORS](#i9c7a20c96f214d19aa98516eab3970ec_73)] [added: FACTORS](#ic62e9486a6d54f1189ca777991aa0418_73)] | | | [removed: [23](#i9c7a20c96f214d19aa98516eab3970ec_73)] [added: [22](#ic62e9486a6d54f1189ca777991aa0418_73)] | | |

| 1B. | | | [UNRESOLVED STAFF [removed: COMMENTS](#i9c7a20c96f214d19aa98516eab3970ec_76)] [added: COMMENTS](#ic62e9486a6d54f1189ca777991aa0418_76)] | | | [removed: [32](#i9c7a20c96f214d19aa98516eab3970ec_76)] [added: [31](#ic62e9486a6d54f1189ca777991aa0418_76)] | | |

| 3. | | | [LEGAL [removed: PROCEEDINGS](#i9c7a20c96f214d19aa98516eab3970ec_91)] [added: PROCEEDINGS](#ic62e9486a6d54f1189ca777991aa0418_94)] | | | [removed: [38](#i9c7a20c96f214d19aa98516eab3970ec_91)] [added: [37](#ic62e9486a6d54f1189ca777991aa0418_94)] | | |

| 4. | | | [MINE SAFETY [removed: DISCLOSURES](#i9c7a20c96f214d19aa98516eab3970ec_94)] [added: DISCLOSURES](#ic62e9486a6d54f1189ca777991aa0418_97)] | | | [removed: [38](#i9c7a20c96f214d19aa98516eab3970ec_94)] [added: [37](#ic62e9486a6d54f1189ca777991aa0418_97)] | | |

| 5. | | | [MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY [removed: SECURITIES](#i9c7a20c96f214d19aa98516eab3970ec_100)] [added: SECURITIES](#ic62e9486a6d54f1189ca777991aa0418_103)] | | | [removed: [39](#i9c7a20c96f214d19aa98516eab3970ec_100)] [added: [38](#ic62e9486a6d54f1189ca777991aa0418_103)] | | |

| 6. | | | [SELECTED FINANCIAL [removed: DATA](#i9c7a20c96f214d19aa98516eab3970ec_103)] [added: DATA](#ic62e9486a6d54f1189ca777991aa0418_106)] | | | [removed: [39](#i9c7a20c96f214d19aa98516eab3970ec_103)] [added: [38](#ic62e9486a6d54f1189ca777991aa0418_106)] | | |

| 7. | | | [MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF [removed: OPERATIONS](#i9c7a20c96f214d19aa98516eab3970ec_109)] [added: OPERATIONS](#ic62e9486a6d54f1189ca777991aa0418_112)] | | | [removed: [40](#i9c7a20c96f214d19aa98516eab3970ec_106)] [added: [39](#ic62e9486a6d54f1189ca777991aa0418_109)] | | |

| 7A. | | | [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET [removed: RISK](#i9c7a20c96f214d19aa98516eab3970ec_202)] [added: RISK](#ic62e9486a6d54f1189ca777991aa0418_205)] | | | [removed: [71](#i9c7a20c96f214d19aa98516eab3970ec_202)] [added: [69](#ic62e9486a6d54f1189ca777991aa0418_205)] | | |

| 8. | | | [FINANCIAL STATEMENTS AND SUPPLEMENTARY [removed: DATA](#i9c7a20c96f214d19aa98516eab3970ec_205)] [added: DATA](#ic62e9486a6d54f1189ca777991aa0418_208)] | | | [removed: [72](#i9c7a20c96f214d19aa98516eab3970ec_205)] [added: [70](#ic62e9486a6d54f1189ca777991aa0418_208)] | | |

| 9. | | | [CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL [removed: DISCLOSURE](#i9c7a20c96f214d19aa98516eab3970ec_448)] [added: DISCLOSURE](#ic62e9486a6d54f1189ca777991aa0418_454)] | | | [removed: [228](#i9c7a20c96f214d19aa98516eab3970ec_448)] [added: [235](#ic62e9486a6d54f1189ca777991aa0418_454)] | | |

| 9A. | | | [CONTROLS AND [removed: PROCEDURES](#i9c7a20c96f214d19aa98516eab3970ec_451)] [added: PROCEDURES](#ic62e9486a6d54f1189ca777991aa0418_457)] | | | [removed: [228](#i9c7a20c96f214d19aa98516eab3970ec_451)] [added: [235](#ic62e9486a6d54f1189ca777991aa0418_457)] | | |

| 10. | | | [DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE [removed: GOVERNANCE](#i9c7a20c96f214d19aa98516eab3970ec_463)] [added: GOVERNANCE](#ic62e9486a6d54f1189ca777991aa0418_469)] | | | [removed: [230](#i9c7a20c96f214d19aa98516eab3970ec_463)] [added: [237](#ic62e9486a6d54f1189ca777991aa0418_469)] | | |

| 12. | | | [SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER [removed: MATTERS](#i9c7a20c96f214d19aa98516eab3970ec_469)] [added: MATTERS](#ic62e9486a6d54f1189ca777991aa0418_475)] | | | [removed: [230](#i9c7a20c96f214d19aa98516eab3970ec_469)] [added: [238](#ic62e9486a6d54f1189ca777991aa0418_475)] | | |

| 13. | | | [CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR [removed: INDEPENDENCE](#i9c7a20c96f214d19aa98516eab3970ec_472)] [added: INDEPENDENCE](#ic62e9486a6d54f1189ca777991aa0418_478)] | | | [removed: [231](#i9c7a20c96f214d19aa98516eab3970ec_472)] [added: [238](#ic62e9486a6d54f1189ca777991aa0418_478)] | | |

| 14. | | | [PRINCIPAL ACCOUNTING FEES AND [removed: SERVICES](#i9c7a20c96f214d19aa98516eab3970ec_475)] [added: SERVICES](#ic62e9486a6d54f1189ca777991aa0418_481)] | | | [removed: [231](#i9c7a20c96f214d19aa98516eab3970ec_475)] [added: [239](#ic62e9486a6d54f1189ca777991aa0418_481)] | | |

| 15. | | | [EXHIBITS AND FINANCIAL STATEMENT [removed: SCHEDULES](#i9c7a20c96f214d19aa98516eab3970ec_481)] [added: SCHEDULES](#ic62e9486a6d54f1189ca777991aa0418_487)] | | | [removed: [232](#i9c7a20c96f214d19aa98516eab3970ec_481)] [added: [240](#ic62e9486a6d54f1189ca777991aa0418_487)] | | |

◦The ability to implement our business strategy, including [added: meeting forecasted load growth demand, grid and fleet modernization objectives, and] our carbon emission reduction [removed: goals;][added: goals, while balancing customer reliability and affordability;]

◦State, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental [removed: requirements,] [added: requirements and/or uncertainty of applicability or changes to such legislative and regulatory initiatives,] including those related to climate change, as well as rulings that affect cost and investment recovery or have an impact on rate structures or market prices;

◦The ability to [added: timely] recover eligible costs, including amounts associated with coal ash impoundment retirement obligations, asset retirement and construction costs related to carbon emissions reductions, and costs related to significant weather events, and to earn an adequate return on investment through rate case proceedings and the regulatory process;

◦The impact of extraordinary external events, such as [removed: the] [added: a global] pandemic [removed: health event resulting from COVID-19,] [added: or military conflict,] and their collateral consequences, including the disruption of global supply chains or the economic activity in our service territories;

◦Industrial, commercial and residential [removed: growth or] decline in service territories or customer bases resulting from sustained downturns of the economy, [added: storm damage,] reduced customer usage due to cost pressures from [removed: inflation] [added: inflation, tariffs,] or fuel costs, [removed: and the] [added: worsening] economic health of our service [removed: territories or variations] [added: territories, reductions] in customer usage patterns, [removed: including] [added: or lower than anticipated load growth, particularly if usage of electricity by data centers is less than currently projected,] energy efficiency efforts, natural gas building and appliance electrification, and use of alternative energy sources, such as self-generation and distributed generation technologies;

◦Advancements in [removed: technology;][added: technology, including artificial intelligence;]

| 1. | | | [BUSINESS](#ic62e9486a6d54f1189ca777991aa0418_67) | | | [9](#ic62e9486a6d54f1189ca777991aa0418_19) | | |

| | | | [GENERAL](#ic62e9486a6d54f1189ca777991aa0418_25) | | | [9](#ic62e9486a6d54f1189ca777991aa0418_25) | | |

| | | | PIEDMONT | | | [22](#ic62e9486a6d54f1189ca777991aa0418_70) | | |

| 1C. | | | [CYBERSECURITY](#ic62e9486a6d54f1189ca777991aa0418_79) | | | [32](#ic62e9486a6d54f1189ca777991aa0418_79) | | |

| 2. | | | [PROPERTIES](#ic62e9486a6d54f1189ca777991aa0418_82) | | | [34](#ic62e9486a6d54f1189ca777991aa0418_82) | | |

| 9B. | | | [OTHER INFORMATION](#ic62e9486a6d54f1189ca777991aa0418_463) | | | [237](#ic62e9486a6d54f1189ca777991aa0418_463) | | |

| 11. | | | [EXECUTIVE COMPENSATION](#ic62e9486a6d54f1189ca777991aa0418_472) | | | [237](#ic62e9486a6d54f1189ca777991aa0418_472) | | |

| | | | EXHIBIT INDEX | | | [E-1](#ic62e9486a6d54f1189ca777991aa0418_490) | | |

| | | | [SIGNATURES](#ic62e9486a6d54f1189ca777991aa0418_493) | | | E-[2](#ic62e9486a6d54f1189ca777991aa0418_493) | | |

| 2024 CCR Rule | | | The EPA's Legacy CCR Surface Impoundments rule issued in April 2024 under the Resource Conservation and Recovery Act, which significantly expands the scope of the 2015 CCR Rule | | |

| NCI | | | Noncontrolling Interests | | |

| RCRA | | | The Resource Conservation and Recovery Act, a federal law that governs the disposal of hazardous and solid waste in the United States. | | |

| SPP | | | Storm Protection Plan | | |

| VIE | | | Variable Interest Entity | | |

| | | | | | |

| 1. | | | [BUSINESS](#i9c7a20c96f214d19aa98516eab3970ec_67) | | | [9](#i9c7a20c96f214d19aa98516eab3970ec_19) | | |

| | | | [GENERAL](#i9c7a20c96f214d19aa98516eab3970ec_25) | | | [9](#i9c7a20c96f214d19aa98516eab3970ec_25) | | |

| | | | PIEDMONT | | | [23](#i9c7a20c96f214d19aa98516eab3970ec_70) | | |

| 1C. | | | [CYBERSECUR](#i9c7a20c96f214d19aa98516eab3970ec_4344)[ITY](#i9c7a20c96f214d19aa98516eab3970ec_4344) | | | [32](#i9c7a20c96f214d19aa98516eab3970ec_4344) | | |

| 2. | | | [PROPERTIES](#i9c7a20c96f214d19aa98516eab3970ec_79) | | | [35](#i9c7a20c96f214d19aa98516eab3970ec_79) | | |

| 9B. | | | [O](#i9c7a20c96f214d19aa98516eab3970ec_4357)[THER INFORMATION](#i9c7a20c96f214d19aa98516eab3970ec_4357) | | | [230](#i9c7a20c96f214d19aa98516eab3970ec_4357) | | |

| 11. | | | [EXECUTIVE COMPENSATION](#i9c7a20c96f214d19aa98516eab3970ec_466) | | | [230](#i9c7a20c96f214d19aa98516eab3970ec_466) | | |

| | | | EXHIBIT INDEX | | | [E-1](#i9c7a20c96f214d19aa98516eab3970ec_484) | | |

| | | | [SIGNATURES](#i9c7a20c96f214d19aa98516eab3970ec_487) | | | E-[2](#i9c7a20c96f214d19aa98516eab3970ec_487) | | |

| IDEM | | | the Indiana Department of Environmental Management | | |

| MGP Settlement | | | Stipulation and Recommendation filed jointly by Duke Energy Ohio the staff of the PUCO, the Office of the Ohio Consumers' Counsel and the Ohio Energy Group on August 31, 2021 | | |

| OCC | | | Ohio Consumers' Counsel | | |

| OVEC | | | Ohio Valley Electric Corporation | | |

| PURPA | | | Public Utility Regulatory Policies Act of 1978 | | |

| State electric utility commissions | | | NCUC, PSCSC, FPSC, PUCO, IURC and KPSC (Collectively) | | |

| State gas utility commissions | | | NCUC, PSCSC, PUCO, TPUC and KPSC (Collectively) | | |

| | | | | | |

| --- | --- | --- | --- | --- | --- |

| CYBERSECURITY | | | | | |

In light of the ever-evolving threat landscape and increasing sophistication of threat actor tactics, techniques and procedures, steadfast and [removed: sophisticated] [added: advanced] cybersecurity and security operations are integral parts of Duke Energy’s enterprise risk management framework.

Duke Energy’s first line of defense is the CIRT under the Office of the Chief [removed: Information Officer.][added: Administrative Officer (CAO).]

Duke Energy manages cybersecurity threats through its 24/7 Duke Energy Cybersecurity Operations Center (CSOC), which serves as the Company’s central command center for monitoring and coordinating responses to [removed: cyberthreats.][added: cyber-threats.]

Another key component of Duke Energy’s first line of defense against cybersecurity threats is its Third-Party Risk Management (TPRM) process, whereby third parties providing services that meet certain criteria such as storing or transmitting Duke Energy data, hosting an application, or connecting to the Duke Energy network are required to undergo a cybersecurity assessment primarily to ascertain the risk of a [removed: third party’s] [added: third-party’s] proposed services to Duke Energy.

The EST monitors cyber activity and also reports on the status of the Company’s cybersecurity performance and any ongoing remediation efforts to the Company’s [added: CAO,] Chief Information Officer (CIO) and CSISO.

The [removed: CIO] [added: CAO] and CSISO report these cybersecurity metrics, which use a vulnerability management scoring system and closely align with the National Institute of Standards and Technology Cybersecurity Framework, to the Audit Committee at each regularly scheduled Audit Committee meeting.

Duke Energy is not currently aware of any potential cybersecurity threats, including as a result of any previous cybersecurity [removed: incidents] [added: incidents,] that have materially affected or are reasonably likely to materially affect the Company, including its business strategy, results of operations or financial condition, however, Duke Energy cannot provide assurance that it will not be materially affected in the future by cybersecurity risks or any future material incidents.

The Audit Committee receives updates throughout the year from the [removed: CIO] [added: CAO] and CSISO on cybersecurity and grid security issues, including compliance with regulations, employee [removed: training,] [added: training] and drills, at every regularly scheduled Audit Committee meeting, and engages in discussions throughout the year with management on the effectiveness of Duke Energy’s overall cybersecurity program and progress for addressing any identified risks.

[removed: In addition, the] [added: The] Company’s Executive Cybersecurity Oversight Governance Committee (ECOG), comprised of the Company's [removed: Chair, President,] [added: Chair] and Chief Executive Officer (CEO), [added: President,] Executive Vice President (EVP) and Chief Financial Officer, [removed: EVP] and [removed: Chief Commercial Officer, EVP Customer Experience, Solutions and Services, and] EVP, Chief Generation Officer and Enterprise Operational Excellence, receives monthly updates from the [removed: CIO] [added: CAO] and CSISO and provides senior management throughout the Company informational technology and operational technology perspectives, oversight and governance on investments and priorities for the broader cybersecurity organization, in addition to providing final decision oversight on recommendations and response to the [removed: ever challenging] [added: ever-challenging] cybersecurity threat landscape.

- The [removed: EVP, Customer Experience, Solutions and Services] [added: President] of Duke Energy has gained cybersecurity experience through focusing on transmission and the development of long-term grid strategies and solutions and through a prior role as Chief Distribution Officer, overseeing the safe, reliable, and efficient operation of Duke Energy’s electric distribution systems, and through serving on the board of the Association of Edison Illuminating Companies.

- The [removed: CIO] [added: CAO] of Duke Energy has over 25 years of experience in delivering secure information technology solutions across multiple industries, leading technology delivery for all core business functions.

The [removed: CIO] [added: CAO] holds a Secret Security clearance and has active interactions and partnership with the Federal Bureau of Investigation, Edison Electric Institute and State Fusion Centers in the jurisdictions that Duke Energy serves.

In 2024, the Audit Committee received three updates and the full Board of Directors received one update on cybersecurity.

| | | | | | |

| --- | --- | --- | --- | --- | --- |

| CYBERSECURITY | | | | | |

In 2023, the Audit Committee received four updates on cybersecurity.

- The EVP and Chief Commercial Officer of Duke Energy has cybersecurity experience gained through responsibility for enterprise technology and security, among other areas.

The following table provides information related to the EU&I's generation stations as of December 31, [removed: 2023.][added: 2024.]

| Lincoln [removed: Combustion Turbine (CT)] [added: CT] | | | Fossil | | | Gas/Oil | | | NC | | | | | | [removed: 1,507] [added: 1,909] | | | | | |

| W.S. Lee [removed: Combined Cycle (CC)(b)] [added: CC(b)] | | | Fossil | | | Gas | | | SC | | | | | | 706 | | | | | |

| Bad Creek | | | Hydro | | | Water | | | SC | | | | | | [removed: 1,600] [added: 1,640] | | | | | |

| Distributed generation | | | Renewable | | | Solar | | | [removed: NC] [added: IN] | | | | | | [removed: 178] [added: 21] | | | | | |

| Total Duke Energy Carolinas | | | | | | | | | | | | | | | [removed: 20,736] [added: 20,773] | | | | | |

| Smith CT | | | Fossil | | | Gas/Oil | | | NC | | | | | | [removed: 960] [added: 1,000] | | | | | |

| Other small facilities [removed: (3] [added: (three] plants) | | | Hydro | | | Water | | | NC | | | | | | 116 | | | | | |

| Distributed generation | | | Renewable | | | Solar | | | NC | | | | | | [removed: 141] [added: 174] | | | | | |

| [removed: Asheville – Rock Hill] Battery [added: Storage] | | | Renewable | | | Storage | | | NC | | | | | | [removed: 9] [added: 25] | | | | | |

| Total Duke Energy Progress | | | | | | | | | | | | | | | [removed: 13,770] [added: 13,845] | | | | | |

| Anclote | | | Fossil | | | Gas | | | FL | | | | | | [removed: 1,035] [added: 1,025] | | | | | |

| Bayboro CT | | | Fossil | | | Oil | | | FL | | | | | | [removed: 226] [added: 193] | | | | | |

| [removed: Lake Placid] Battery [removed: (microgrid)] [added: Storage] | | | Renewable | | | Storage | | | [removed: FL] [added: NC] | | | | | | [removed: 17] [added: 45] | | | | | |

| [removed: Trenton] Battery [added: Storage] | | | Renewable | | | Storage | | | FL | | | | | | [removed: 11] [added: 48] | | | | | |

| [removed: Micanopy] Battery [added: Storage] | | | Renewable | | | Storage | | | [removed: FL] [added: IN] | | | | | | [removed: 8] [added: 15] | | | | | |

| Distributed generation | | | Renewable | | | Solar | | | [removed: FL] [added: NC] | | | | | | [removed: 1,186] [added: 146] | | | | | |

| Total Duke Energy Florida | | | | | | | | | | | | | | | [removed: 12,303] [added: 12,542] | | | | | |

| Wheatland CT | | | Fossil | | | Gas | | | IN | | | | | | [removed: 508] [added: 520] | | | | | |

| Henry County CT(f) | | | Fossil | | | Gas/Oil | | | IN | | | | | | [removed: 134] [added: 141] | | | | | |

| Cayuga CT | | | Fossil | | | Gas/Oil | | | IN | | | | | | [removed: 105] [added: 110] | | | | | |

| Distributed generation [added: (19 sites)] | | | Renewable | | | Solar | | | [removed: IN] [added: FL] | | | | | | [removed: 29] [added: 1,468] | | | | | |

| Total Duke Energy Indiana | | | | | | | | | | | | | | | [removed: 6,790] [added: 6,806] | | | | | |

| Total Electric Utilities | | | | | | | | | | | | | | | [removed: 54,772] [added: 55,139] | | | | | |

(f)Includes 50 [removed: MW, which are] [added: MW] contracted to WVPA.

The following table provides information related to EU&I's electric transmission and distribution properties as of December 31, [removed: 2023.][added: 2024.]

| Miles of 230 kV | | | [removed: 8,500] [added: 8,600] | | | 2,700 | | | 3,400 | | | [removed: 1,700] [added: 1,800] | | | — | | | 700 | | |

| Miles of 100 to 161 kV | | | [removed: 12,600] [added: 12,700] | | | 6,900 | | | 2,600 | | | [removed: 1,000] [added: 1,100] | | | 700 | | | 1,400 | | |

| Miles of 13 to 69 kV | | | [removed: 8,100] [added: 8,200] | | | 2,800 | | | — | | | [removed: 2,200] [added: 2,300] | | | 600 | | | 2,500 | | |

| Total conductor miles of electric transmission lines | | | [removed: 31,400] [added: 31,700] | | | 13,000 | | | 6,300 | | | [removed: 5,100] [added: 5,400] | | | 1,700 | | | 5,300 | | |

| Miles of overhead lines | | | [removed: 171,100] [added: 171,700] | | | [removed: 66,600] [added: 66,700] | | | [removed: 44,300] [added: 44,500] | | | [removed: 25,000] [added: 25,100] | | | 13,300 | | | [removed: 21,900] [added: 22,100] | | |

| Miles of underground line | | | [removed: 111,800] [added: 114,900] | | | [removed: 43,600] [added: 44,500] | | | [removed: 28,900] [added: 30,100] | | | [removed: 22,900] [added: 23,600] | | | [removed: 6,500] [added: 6,600] | | | [removed: 9,900] [added: 10,100] | | |

| Total conductor miles of electric distribution lines | | | [removed: 282,900] [added: 286,600] | | | [removed: 110,200] [added: 111,200] | | | [removed: 73,200] [added: 74,600] | | | [removed: 47,900] [added: 48,700] | | | [removed: 19,800] [added: 19,900] | | | [removed: 31,800] [added: 32,200] | | |

The following table provides information related to GU&I's natural gas distribution as of December 31, [removed: 2023.][added: 2024.]

| Miles of natural gas distribution and transmission pipelines | | | [removed: 35,700] [added: 36,300] | | | [removed: 7,700] [added: 7,600] | | | [removed: 28,000] [added: 28,700] | | |

| Miles of natural gas service lines | | | [removed: 28,800] [added: 29,700] | | | [removed: 6,700] [added: 6,800] | | | [removed: 22,100] [added: 22,900] | | |

Duke Energy owns approximately [removed: 7.1] [added: 7.2] million square feet and leases approximately [removed: 2.5] [added: 2] million square feet of corporate, regional and district office space spread throughout its service territories.

| | | | | | | | | | | | | | | | | | | | | |

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| Fossil | | | | | | | | | | | | | | | 40,104 | | | | | |

| Hydro | | | | | | | | | | | | | | | 3,762 | | | | | |

| Renewable | | | | | | | | | | | | | | | 1,951 | | | | | |

| | | | | | | | | | | | | | | | | | | | | |

| LEGAL PROCEEDINGS AND MINE SAFETY DISCLOSURES | | | | | |

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

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

Additionally, analysis of resource adequacy across all jurisdictions demonstrates that as solar adoption increases, there is a higher risk of reliability challenges in the winter.

As such, most of Duke Energy's IRPs are expected to shift toward winter planning.

See Item 7, "Other Matters" for additional information on IRPs.

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

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

| Allen | | | Fossil | | | Coal | | | NC | | | | | | 426 | | | | | |

| PROPERTIES | | | | | |

| Hot Springs Microgrid | | | Renewable | | | Storage | | | NC | | | | | | 6 | | | | | |

| Jennings Battery | | | Renewable | | | Storage | | | FL | | | | | | 6 | | | | | |

| Cape San Blas Battery | | | Renewable | | | Storage | | | FL | | | | | | 6 | | | | | |

| Camp Atterbury Battery | | | Renewable | | | Storage | | | IN | | | | | | 5 | | | | | |

| Nabb Battery | | | Renewable | | | Storage | | | IN | | | | | | 5 | | | | | |

| Crane Battery | | | Renewable | | | Storage | | | IN | | | | | | 5 | | | | | |

| Fossil | | | | | | | | | | | | | | | 40,107 | | | | | |

| Hydro | | | | | | | | | | | | | | | 3,722 | | | | | |

| Renewable | | | | | | | | | | | | | | | 1,621 | | | | | |

As of January 31, [removed: 2024,] [added: 2025,] there were [removed: 121,476] [added: 114,684] Duke Energy common stockholders of record.

Issuer Purchases of Equity Securities for Fourth Quarter [removed: 2023][added: 2024]

There were no repurchases of equity securities during the fourth quarter of [removed: 2023.][added: 2024.]

The graph assumes an initial investment of $100 on December 31, [removed: 2018,] [added: 2019,] in Duke Energy common stock, in the S&P 500 and in the Philadelphia Utility Index and that all dividends were reinvested.

[removed: ][added: ]

| Report of Independent Registered Public Accounting Firm | | | [removed: [74](#i9c7a20c96f214d19aa98516eab3970ec_208)] [added: [72](#ic62e9486a6d54f1189ca777991aa0418_211)] | | |

| Consolidated Statements of Operations | | | [removed: [77](#i9c7a20c96f214d19aa98516eab3970ec_211)] [added: [74](#ic62e9486a6d54f1189ca777991aa0418_214)] | | |

| Consolidated Statements of Comprehensive Income | | | [removed: [78](#i9c7a20c96f214d19aa98516eab3970ec_214)] [added: [75](#ic62e9486a6d54f1189ca777991aa0418_217)] | | |

| Consolidated Balance Sheets | | | [removed: [79](#i9c7a20c96f214d19aa98516eab3970ec_217)] [added: [76](#ic62e9486a6d54f1189ca777991aa0418_220)] | | |

| Consolidated Statements of Cash Flows | | | [removed: [80](#i9c7a20c96f214d19aa98516eab3970ec_220)] [added: [77](#ic62e9486a6d54f1189ca777991aa0418_223)] | | |

| Consolidated Statements of Changes in Equity | | | [removed: [81](#i9c7a20c96f214d19aa98516eab3970ec_223)] [added: [78](#ic62e9486a6d54f1189ca777991aa0418_226)] | | |

| Report of Independent Registered Public Accounting Firm | | | [removed: [82](#i9c7a20c96f214d19aa98516eab3970ec_226)] [added: [79](#ic62e9486a6d54f1189ca777991aa0418_229)] | | |

| Consolidated Statements of Operations and Comprehensive Income | | | [removed: [84](#i9c7a20c96f214d19aa98516eab3970ec_229)] [added: [81](#ic62e9486a6d54f1189ca777991aa0418_232)] | | |

| Consolidated Balance Sheets | | | [removed: [85](#i9c7a20c96f214d19aa98516eab3970ec_232)] [added: [82](#ic62e9486a6d54f1189ca777991aa0418_235)] | | |

| Consolidated Statements of Cash Flows | | | [removed: [86](#i9c7a20c96f214d19aa98516eab3970ec_235)] [added: [83](#ic62e9486a6d54f1189ca777991aa0418_238)] | | |

| Consolidated Statements of Changes in Equity | | | [removed: [87](#i9c7a20c96f214d19aa98516eab3970ec_238)] [added: [84](#ic62e9486a6d54f1189ca777991aa0418_241)] | | |

| Report of Independent Registered Public Accounting Firm | | | [removed: [88](#i9c7a20c96f214d19aa98516eab3970ec_241)] [added: [85](#ic62e9486a6d54f1189ca777991aa0418_244)] | | |

| Consolidated Statements of Operations and Comprehensive Income | | | [removed: [90](#i9c7a20c96f214d19aa98516eab3970ec_244)] [added: [87](#ic62e9486a6d54f1189ca777991aa0418_247)] | | |

| Consolidated Balance Sheets | | | [removed: [91](#i9c7a20c96f214d19aa98516eab3970ec_247)] [added: [88](#ic62e9486a6d54f1189ca777991aa0418_250)] | | |

| Consolidated Statements of Cash Flows | | | [removed: [92](#i9c7a20c96f214d19aa98516eab3970ec_250)] [added: [89](#ic62e9486a6d54f1189ca777991aa0418_253)] | | |

| Consolidated Statements of Changes in Equity | | | [removed: [93](#i9c7a20c96f214d19aa98516eab3970ec_253)] [added: [90](#ic62e9486a6d54f1189ca777991aa0418_256)] | | |

| Report of Independent Registered Public Accounting Firm | | | [removed: [94](#i9c7a20c96f214d19aa98516eab3970ec_256)] [added: [91](#ic62e9486a6d54f1189ca777991aa0418_259)] | | |

| Consolidated Statements of Operations and Comprehensive Income | | | [removed: [96](#i9c7a20c96f214d19aa98516eab3970ec_259)] [added: [93](#ic62e9486a6d54f1189ca777991aa0418_262)] | | |

| Consolidated Balance Sheets | | | [removed: [97](#i9c7a20c96f214d19aa98516eab3970ec_262)] [added: [94](#ic62e9486a6d54f1189ca777991aa0418_265)] | | |

| Consolidated Statements of Cash Flows | | | [removed: [98](#i9c7a20c96f214d19aa98516eab3970ec_265)] [added: [95](#ic62e9486a6d54f1189ca777991aa0418_268)] | | |

| Consolidated Statements of Changes in Equity | | | [removed: [99](#i9c7a20c96f214d19aa98516eab3970ec_268)] [added: [96](#ic62e9486a6d54f1189ca777991aa0418_271)] | | |

| Report of Independent Registered Public Accounting Firm | | | [removed: [100](#i9c7a20c96f214d19aa98516eab3970ec_271)] [added: [97](#ic62e9486a6d54f1189ca777991aa0418_274)] | | |

| Consolidated Statements of Operations and Comprehensive Income | | | [removed: [102](#i9c7a20c96f214d19aa98516eab3970ec_274)] [added: [99](#ic62e9486a6d54f1189ca777991aa0418_277)] | | |

| Consolidated Statements of Cash Flows | | | [removed: [104](#i9c7a20c96f214d19aa98516eab3970ec_280)] [added: [101](#ic62e9486a6d54f1189ca777991aa0418_283)] | | |

| Consolidated Statements of Changes in Equity | | | [removed: [105](#i9c7a20c96f214d19aa98516eab3970ec_283)] [added: [102](#ic62e9486a6d54f1189ca777991aa0418_286)] | | |

| Report of Independent Registered Public Accounting Firm | | | [removed: [106](#i9c7a20c96f214d19aa98516eab3970ec_286)] [added: [103](#ic62e9486a6d54f1189ca777991aa0418_289)] | | |

| Consolidated Statements of Operations and Comprehensive Income | | | [removed: [108](#i9c7a20c96f214d19aa98516eab3970ec_289)] [added: [105](#ic62e9486a6d54f1189ca777991aa0418_292)] | | |

| Consolidated Statements of Cash Flows | | | [removed: [110](#i9c7a20c96f214d19aa98516eab3970ec_295)] [added: [107](#ic62e9486a6d54f1189ca777991aa0418_298)] | | |

| Consolidated Statements of Changes in Equity | | | [removed: [111](#i9c7a20c96f214d19aa98516eab3970ec_298)] [added: [108](#ic62e9486a6d54f1189ca777991aa0418_301)] | | |

| Report of Independent Registered Public Accounting Firm | | | [removed: [112](#i9c7a20c96f214d19aa98516eab3970ec_301)] [added: [109](#ic62e9486a6d54f1189ca777991aa0418_304)] | | |

| Consolidated Statements of Operations and Comprehensive Income | | | [removed: [114](#i9c7a20c96f214d19aa98516eab3970ec_304)] [added: [111](#ic62e9486a6d54f1189ca777991aa0418_307)] | | |

| Consolidated Statements of Cash Flows | | | [removed: [116](#i9c7a20c96f214d19aa98516eab3970ec_310)] [added: [113](#ic62e9486a6d54f1189ca777991aa0418_313)] | | |

| Consolidated Statements of Changes in Equity | | | [removed: [117](#i9c7a20c96f214d19aa98516eab3970ec_313)] [added: [114](#ic62e9486a6d54f1189ca777991aa0418_316)] | | |

| Report of Independent Registered Public Accounting Firm | | | [removed: [118](#i9c7a20c96f214d19aa98516eab3970ec_316)] [added: [115](#ic62e9486a6d54f1189ca777991aa0418_319)] | | |

| Consolidated Statements of Operations and Comprehensive Income | | | [removed: [120](#i9c7a20c96f214d19aa98516eab3970ec_319)] [added: [117](#ic62e9486a6d54f1189ca777991aa0418_322)] | | |

| Consolidated Statements of Cash Flows | | | [removed: [122](#i9c7a20c96f214d19aa98516eab3970ec_325)] [added: [119](#ic62e9486a6d54f1189ca777991aa0418_328)] | | |

| Consolidated Statements of Changes in Equity | | | [removed: [123](#i9c7a20c96f214d19aa98516eab3970ec_328)] [added: [120](#ic62e9486a6d54f1189ca777991aa0418_331)] | | |

| Note 1 – Summary of Significant Accounting Policies | | | [removed: [124](#i9c7a20c96f214d19aa98516eab3970ec_334)] [added: [121](#ic62e9486a6d54f1189ca777991aa0418_337)] | | |

| Note 5 – Commitments and Contingencies | | | [removed: [153](#i9c7a20c96f214d19aa98516eab3970ec_367)] [added: [160](#ic62e9486a6d54f1189ca777991aa0418_370)] | | |

| Note 7 – Debt and Credit Facilities | | | [removed: [162](#i9c7a20c96f214d19aa98516eab3970ec_376)] [added: [169](#ic62e9486a6d54f1189ca777991aa0418_379)] | | |

| Consolidated Balance Sheets | | | [100](#ic62e9486a6d54f1189ca777991aa0418_280) | | |

| Consolidated Balance Sheets | | | [106](#ic62e9486a6d54f1189ca777991aa0418_295) | | |

| Consolidated Balance Sheets | | | [112](#ic62e9486a6d54f1189ca777991aa0418_310) | | |

| Consolidated Balance Sheets | | | [118](#ic62e9486a6d54f1189ca777991aa0418_325) | | |

| Note 2 – Dispositions | | | [128](#ic62e9486a6d54f1189ca777991aa0418_340) | | |

| Note 3 – Business Segments | | | [130](#ic62e9486a6d54f1189ca777991aa0418_343) | | |

| Note 4 – Regulatory Matters | | | [142](#ic62e9486a6d54f1189ca777991aa0418_346) | | |

| Note 6 – Leases | | | [164](#ic62e9486a6d54f1189ca777991aa0418_376) | | |

| Note 13 – Investments in Unconsolidated Affiliates | | | [183](#ic62e9486a6d54f1189ca777991aa0418_400) | | |

| Note 19 – Revenue | | | [206](#ic62e9486a6d54f1189ca777991aa0418_421) | | |

| Note 20 – Stockholders' Equity | | | [211](#ic62e9486a6d54f1189ca777991aa0418_427) | | |

| Note 21 – Severance | | | [212](#ic62e9486a6d54f1189ca777991aa0418_430) | | |

| Note 24 – Income Taxes | | | [228](#ic62e9486a6d54f1189ca777991aa0418_439) | | |

- For regulatory matters in process, we inspected the Company’s and intervenors’ filings with the Commissions that may impact the Company’s future rates, for any evidence that might contradict management’s assertions.

- We performed audit procedures to assess the ongoing regulatory recoverability of asset retirement obligations specific to coal ash.

- We obtained an analysis from management regarding the estimated storm costs that they determined were probable of recovery, but not yet addressed in a regulatory order.

This analysis also included letters from the internal legal counsel asserting that the recovery of these costs is probable.

The Company records asset retirement obligations associated with coal ash remediation at operating and retired coal burning generation facilities.

These legal obligations are the result of state and federal regulations across the Company’s jurisdictions.

Judgment is required to calculate coal ash remediation obligations, which are determined through site-specific assumptions, as well as assumptions used in determining the present value of the obligation.

- With the assistance of professionals within our firm with the appropriate expertise, we assessed the reasonableness of:

–Management’s interpretation of the applicability of the 2024 CCR rule,

–The significant site-specific assumptions, and

–The significant assumptions used in determining the present value of the obligation.

| Less: Preferred Redemption Costs | | | 16 | | | | | | — | | | | | | — | | |

| Less: Preferred Redemption Costs | | | 16 | | | | | | — | | | | | | — | | |

| Receivable from sales of Commercial Renewables Disposal Groups | | | 551 | | | | | | — | | |

| Cost | | | 180,806 | | | | | | 171,353 | | |

| Other | | | 3,509 | | | | | | 3,964 | | |

| Redemption of preferred stock | | | (1,000) | | | | | | — | | | | | | — | | |

| Cash paid for (received from) income taxes, net (includes transferable tax credit sale proceeds of $558, $28 and $0, respectively) | | | (400) | | | | | | 1 | | | | | | (6) | | |

| Purchase of NCI | | | — | | | — | | | — | | | | | | (51) | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | (51) | | | | | | 31 | | | | | | (20) | | |

| Sale of NCI | | | — | | | — | | | — | | | | | | (13) | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | (13) | | | | | | 10 | | | | | | (3) | | |

| Preferred stock, Series B, redemption | | | (989) | | | — | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | (989) | | | | | | — | | | | | | (989) | | |

| Distributions to NCI in subsidiaries | | | — | | | — | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (32) | | | | | | (32) | | |

| Sale of Commercial Renewables Disposal Groups | | | — | | | — | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | (51) | | | | | | (51) | | |

| Balance at December 31, 2024 | | | $ | 973 | | 776 | | | $ | 1 | | | | | $ | 45,494 | | | | | $ | 3,431 | | | | | | | | | | | $ | 326 | | | | | $ | (17) | | | | | $ | (81) | | | | | $ | 50,127 | | | | | $ | 1,129 | | | | | $ | 51,256 | |

(d) Net income available to Duke Energy Corporation Common Stockholders reflects preferred dividends and, for 2024, the $16 million preferred redemption costs.

- We read relevant regulatory orders issued by the Commissions and other publicly available information to assess the likelihood of recovery in future rates based on precedents of the Commissions’ treatment of similar costs under similar circumstances.

- For regulatory matters in process, we inspected the Company’s and intervenors’ filings with the Commissions that may impact the Company’s future rates, for any evidence that might contradict management’s assertions.

| Consolidated Balance Sheets | | | [103](#i9c7a20c96f214d19aa98516eab3970ec_277) | | |

| Consolidated Balance Sheets | | | [109](#i9c7a20c96f214d19aa98516eab3970ec_292) | | |

| Consolidated Balance Sheets | | | [115](#i9c7a20c96f214d19aa98516eab3970ec_307) | | |

| Consolidated Balance Sheets | | | [121](#i9c7a20c96f214d19aa98516eab3970ec_322) | | |

| Note 2 – Dispositions | | | [131](#i9c7a20c96f214d19aa98516eab3970ec_337) | | |

| Note 3 – Business Segments | | | [134](#i9c7a20c96f214d19aa98516eab3970ec_340) | | |

| Note 4 – Regulatory Matters | | | [137](#i9c7a20c96f214d19aa98516eab3970ec_343) | | |

| Note 6 – Leases | | | [157](#i9c7a20c96f214d19aa98516eab3970ec_373) | | |

| Note 19 – Revenue | | | [196](#i9c7a20c96f214d19aa98516eab3970ec_415) | | |

| Note 20 – Stockholders' Equity | | | [201](#i9c7a20c96f214d19aa98516eab3970ec_421) | | |

| Note 21 – Severance | | | [203](#i9c7a20c96f214d19aa98516eab3970ec_424) | | |

| Note 24 – Income Taxes | | | [219](#i9c7a20c96f214d19aa98516eab3970ec_433) | | |

| Note 26 – Subsequent Events | | | [226](#i9c7a20c96f214d19aa98516eab3970ec_439) | | |

| Note 27 – Quarterly Financial Data (Unaudited) | | | [226](#i9c7a20c96f214d19aa98516eab3970ec_439) | | |

| REPORTS | | | | | |

*Critical Audit Matter Description*

- We performed audit procedures on the incurred asset retirement obligations requested for recovery to confirm their completeness and accuracy.

- We obtained an analysis from management and letters from internal legal counsel for asset retirement obligations specific to coal ash costs, regarding probability of recovery for deferred costs not yet addressed in a regulatory order to assess management’s assertion that amounts are probable of recovery.

The Company owns and operates nuclear facilities and records asset retirement obligations for their eventual decommissioning.

Judgment is required to calculate decommissioning estimates, which are determined through site-specific, third-party cost studies and are based on discounted cash flows, regulatory, legal, and legislative decisions, selection of discount rates and cost escalation rates, among other factors.

How the Critical Audit Matter Was Addressed in the Audit

- We tested the effectiveness of management’s controls over the evaluation of nuclear asset retirement obligations, including those over management’s assessment of the results of the site-specific cost study, as well as the evaluation of economic inputs.

- We made inquiries and inspected opinions of internal counsel regarding the status of relevant assumptions.

- With the assistance of professionals in our firm with the appropriate expertise, we inspected and evaluated the reasonableness of the results of the decommissioning study, as well as the impacts of any economic inputs on the calculation of revisions to cash flow estimates.

Dispositions - Disclosures related to Discontinued Operations and Accounting for the Associated Impairment Charges — Refer to Note 2 to the financial statements.

In November 2022, Duke Energy committed to a plan to sell the Commercial Renewables business segment.

As a result, the utility-scale solar and wind group, the distributed generation group and the remaining assets (collectively, Commercial Renewables Disposal Groups) were classified as discontinued operations in the fourth quarter of 2022.

During October 2023, Duke Energy completed the divestiture of the utility-scale solar and wind group and the distributed generation group.

Pretax impairment charges of approximately $1.7 billion were recorded as of December 31, 2023 on the Commercial Renewables Disposal Groups.

We identified the disclosures related to discontinued operations and accounting for the associated impairment charges as a critical audit matter because of the extensive effort required to audit the subjective and complex judgments associated with the determination of the impairment charges.

Our audit procedures for the disclosures related to discontinued operations and accounting for the associated impairment charges included the following, among others:

- We tested the effectiveness of management’s controls over (1) the evaluation and disclosure of discontinued operations and (2) the determination of the impairment charges.

- We evaluated management’s assessment of discontinued operations classification and disclosure.

- We assessed the terms of the purchase and sale agreements of the utility-scale solar and wind group and the distributed generation group to evaluate management's calculations of the impairment charges including the completeness and accuracy of amounts included in such calculations and the mathematical accuracy of the calculations.

- With the assistance of our tax specialists, we evaluated the reasonableness of the methods, assumptions, and judgments used by management to determine the income tax benefit associated with the divestitures.

- We evaluated the reasonableness of the determination of the fair value of the remaining assets which are not yet divested.

- We evaluated the accuracy and completeness of the related disclosures.

- We obtained representation from management asserting to the appropriate presentation, measurement and timing of the Commercial Renewables Disposal Groups.

February 23, 2024

| Cost | | | 171,351 | | | | | | 163,839 | | |

Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, the Duke Energy Registrants have evaluated the effectiveness of their disclosure controls and procedures (as such term is defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of December 31, [removed: 2023,] [added: 2024,] and, based upon this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that these controls and procedures are effective in providing reasonable assurance of compliance.

Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, the Duke Energy Registrants have evaluated changes in internal control over financial reporting (as such term is defined in Rules 13a-15 and 15d-15 under the Exchange Act) that occurred during the fiscal quarter ended December 31, [removed: 2023,] [added: 2024,] and have concluded no change has materially affected, or is reasonably likely to materially affect, internal controls over financial reporting.

The Duke Energy Registrants’ management, including their Chief Executive Officer and Chief Financial Officer, has conducted an evaluation of the effectiveness of their internal control over financial reporting as of December 31, [removed: 2023,] [added: 2024,] based on the framework in the Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Based on that evaluation, management concluded that its internal controls over financial reporting were effective as of December 31, [removed: 2023.][added: 2024.]

We have audited the internal control over financial reporting of Duke Energy Corporation and subsidiaries (the “Company”) as of December 31, [removed: 2023,] [added: 2024,] based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, [removed: 2023,] [added: 2024,] based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, [removed: 2023,] [added: 2024,] of the Company and our report dated February [removed: 23, 2024,] [added: 27, 2025,] expressed an unqualified opinion on those financial statements.

February 27, 2025

February 23, 2024

[removed: During] [added: Except as described below, during] the three months ended December 31, [removed: 2023,] [added: 2024,] no director or officer of the Company adopted, terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as each term is defined in Item 408(a) of Regulation S-K.

Director and Officer Trading Arrangements

During the three months ended September 30, 2024, Alex Glenn, Senior Vice President and Chief Executive Officer, Duke Energy Florida and Midwest, adopted a 10b5-1 trading arrangement for the sale of up to 15,002 shares of the Company's common stock between November 15, 2024, and November 17, 2025, or such earlier date such plan is terminated sooner pursuant to the terms specified therein, including but not limited to the execution of all trades specified therein.

Such plan terminated upon the sale of all shares available under the plan, which transaction was timely reported on a Form 4 filed with the Commission on November 18, 2024.

Mr. Glenn's 10b5-1 trading arrangement was entered into during an open insider trading window and is intended to satisfy the alternative defense of Rule 10b5-1 under the Exchange Act and the Company's policies regarding insider transactions.

Insider Trading Policy

We have adopted trading policies and procedures governing the purchase, sale, and/or other dispositions of Duke Energy's securities by directors, officers and employees or the Company itself that are reasonably designed to promote compliance with insider trading laws, rules and regulations, and any listing standards applicable to the Company.

A copy of our Securities Trading Policy is filed as Exhibit 19 to this Annual Report on Form 10-K.

Policies Related to Stock Option Grants and Similar Option-Like Instruments

The Compensation and People Development Committee of the Board of Directors (the Compensation Committee) maintains an equity grant policy which establishes the specific procedures for the timing of equity awards.

We have not granted stock options to our employees since 2013, so the policy currently governs the timing of RSUs and performance shares granted to our employees and stock awards granted to our independent directors.

Under this policy, annual grants may be made at any previously scheduled meeting of the Compensation Committee or the Board of Directors, provided that reasonable efforts will be made to make such grants at the first regularly scheduled meeting of each calendar year, and annual grants to independent directors may be made by the Board of Directors at any previously scheduled meeting of the Board of Directors, provided that reasonable efforts will be made to make such grants at the regularly scheduled meeting of the Board of Directors that is held in conjunction with the annual meeting each year.

Other stock award grants may be made during any "open window period" as defined in our securities trading policy or on the same day as any previously scheduled meeting of the Board of Directors or the Compensation Committee.

We have not timed the release of material non-public information for the purpose of affecting the value of any executive or director compensation, and we have no plan to do so.

| | | | | | |

| --- | --- | --- | --- | --- | --- |

| OTHER INFORMATION | | | | | |

The following table shows information as of December 31, [removed: 2023,] [added: 2024,] about securities to be issued upon exercise of outstanding options, warrants and rights under Duke Energy's equity compensation plans, along with the weighted average exercise price of the outstanding options, warrants and rights and the number of securities remaining available for future issuance under the plans.

| Equity compensation plans [added: not] approved by security holders | | | [removed: 3,586,377] [added: 99,986] | | | [removed: (2)] [added: (4)] | | | n/a | | | [removed: 14,990,958] [added: n/a] | | | [removed: (3)] [added: (5)] | | |

| Equity compensation plans [removed: not] approved by security holders | | | [removed: 104,831] [added: 3,680,932] | | | [removed: (4)] [added: (2)] | | | n/a | | | [removed: n/a] [added: 13,585,751] | | | [removed: (5)] [added: (3)] | | |

(1) As of December 31, [removed: 2023,] [added: 2024,] no options were outstanding under equity compensation plans.

(2) Includes RSUs and performance shares (assuming the maximum payout level) granted under the Duke Energy Corporation 2015 Long-Term Incentive Plan or the Duke Energy Corporation 2023 Long-Term Incentive Plan, as well as shares that could be payable with respect to certain compensation deferred under the Duke Energy Corporation Executive Savings Plan (Executive Savings Plan) or the [added: Duke Energy Corporation] Directors’ Savings [removed: Plan.][added: Plan (Directors' Savings Plan).]

(4) Includes shares that could be payable with respect to certain compensation deferred under the Executive Savings Plan or the [removed: Duke Energy Corporation] Directors' Savings [removed: Plan (Directors' Savings Plan),] [added: Plan,] each of which is a non-qualified deferred compensation plan described in more detail below.

| Total | | | 3,780,918 | | | | | | n/a | | | 13,585,751 | | | | | |

| Total | | | 3,691,208 | | | | | | n/a | | | 14,990,958 | | | | | |

| | | | | | |

| --- | --- | --- | --- | --- | --- |

| OTHER INFORMATION | | | | | |

| | | | | | |

| --- | --- | --- | --- | --- | --- |

| OTHER INFORMATION | | | | | |

The following tables present the Deloitte fees for services rendered to the Duke Energy Registrants during [removed: 2023] [added: 2024] and [removed: 2022.][added: 2023.]

| Audit Fees(a) | | | [removed: $] [added: $] | [removed: 14.0] [added: 14.0] | | | | | [removed: $] [added: $] | [removed: 3.3] [added: 3.3] | | | | | [removed: $] [added: $] | [removed: 5.0] [added: 5.0] | | | | | [removed: $] [added: $] | [removed: 2.5] [added: 2.5] | | | | | [removed: $] [added: $] | [removed: 2.5] [added: 2.5] | | | | | [removed: $] [added: $] | [removed: 2.1] [added: 2.1] | | | | | [removed: $] [added: $] | [removed: 1.8] [added: 1.8] | | | | | [removed: $] [added: $] | [removed: 1.4] [added: 1.4] | |

| Audit-Related Fees(b) | | | [removed: 0.5] [added: 0.5] | | | | | | [removed: 0.1] [added: 0.1] | | | | | | [removed: 0.2] [added: 0.2] | | | | | | [removed: 0.1] [added: 0.1] | | | | | | [removed: 0.1] [added: 0.1] | | | | | | [removed: 0.2] [added: 0.2] | | | | | | [removed: —] [added: —] | | | | | | [removed: —] [added: —] | | |

| Total Fees | | | [removed: $] [added: $] | [removed: 14.5] [added: 14.5] | | | | | [removed: $] [added: $] | [removed: 3.4] [added: 3.4] | | | | | [removed: $] [added: $] | [removed: 5.2] [added: 5.2] | | | | | [removed: $] [added: $] | [removed: 2.6] [added: 2.6] | | | | | [removed: $] [added: $] | [removed: 2.6] [added: 2.6] | | | | | [removed: $] [added: $] | [removed: 2.3] [added: 2.3] | | | | | [removed: $] [added: $] | [removed: 1.8] [added: 1.8] | | | | | [removed: $] [added: $] | [removed: 1.4] [added: 1.4] | |

| | | | Year Ended December 31, [removed: 2022] [added: 2024] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Audit-Related Fees(b) | | | [removed: 1.7] [added: 0.7] | | | | | | [removed: 0.1] [added: 0.1] | | | | | | [removed: 0.2] [added: 0.4] | | | | | | [removed: 0.1] [added: 0.3] | | | | | | [removed: 0.1] [added: 0.1] | | | | | | [removed: 0.2] [added: 0.2] | | | | | | [removed: —] [added: —] | | | | | | [removed: —] [added: —] | | |

All services performed in [removed: 2023] [added: 2024] and [removed: 2022] [added: 2023] by the independent accountant were approved by the Audit Committee pursuant to the preapproval policy.

| Audit Fees(a) | | | $ | 14.7 | | | | | $ | 3.4 | | | | | $ | 5.2 | | | | | $ | 2.7 | | | | | $ | 2.5 | | | | | $ | 2.2 | | | | | $ | 1.9 | | | | | $ | 1.4 | |

| Total Fees | | | $ | 15.4 | | | | | $ | 3.5 | | | | | $ | 5.6 | | | | | $ | 3.0 | | | | | $ | 2.6 | | | | | $ | 2.4 | | | | | $ | 1.9 | | | | | $ | 1.4 | |

| Audit Fees(a) | | | $ | 13.7 | | | | | $ | 3.2 | | | | | $ | 4.9 | | | | | $ | 2.5 | | | | | $ | 2.4 | | | | | $ | 2.0 | | | | | $ | 1.8 | | | | | $ | 1.3 | |

| Total Fees | | | $ | 15.4 | | | | | $ | 3.3 | | | | | $ | 5.1 | | | | | $ | 2.6 | | | | | $ | 2.5 | | | | | $ | 2.2 | | | | | $ | 1.8 | | | | | $ | 1.3 | |

Consolidated Statements of Operations for the Years Ended December 31, [removed: 2023, 2022] [added: 2024, 2023] and [removed: 2021][added: 2022]

Consolidated Statements of Comprehensive Income for the Years Ended December 31, [removed: 2023, 2022] [added: 2024, 2023] and [removed: 2021][added: 2022]

Consolidated Balance Sheets as of December 31, [removed: 2023,] [added: 2024,] and [removed: 2022][added: 2023]

Consolidated Statements of Cash Flows for the Years Ended December 31, [removed: 2023, 2022] [added: 2024, 2023] and [removed: 2021][added: 2022]

Consolidated Statements of Changes in Equity for the Years Ended December 31, [removed: 2023, 2022] [added: 2024, 2023] and [removed: 2021][added: 2022]

Consolidated Statements of Operations and Comprehensive Income for the Years Ended December 31, [removed: 2023, 2022] [added: 2024, 2023] and [removed: 2021][added: 2022]

| 2.1 | | | [Agreement and Plan of Merger between Duke Energy Corporation, Diamond Acquisition Corporation and Progress Energy, Inc., dated as of January 8, 2011 (incorporated by reference to Exhibit 2.1 [removed: to Duke Energy Corporation's Current] [added: to](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm) [D](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)[u](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)[k](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)[e](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm) [](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)[E](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)[n](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)[e](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)[r](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)[g](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)[y](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm) [](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)[C](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)[o](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)[r](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)[p](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)[o](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)[r](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)[a](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)[t](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)[i](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)[o](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)[n](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)['](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)[s](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm) [Current] Report on Form 8-K filed on January 11, 2011, File No. [removed: 1-32853).](http://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)] [added: 1-32853).](https://www.sec.gov/Archives/edgar/data/1326160/000119312511006050/dex21.htm)] | | | X | | | | | | | | | | | | X | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| 2.2 | | | [Agreement and Plan of Merger between Piedmont Natural Gas Company, Duke Energy Corporation and Forest Subsidiary, Inc. (incorporated by reference to Exhibit 2.1 to Duke Energy Corporation's Current Report on Form 8-K filed on October 26, 2015, File No. [removed: 1-32853).](http://www.sec.gov/Archives/edgar/data/1326160/000110465915072758/a15-21712_1ex2d1.htm)] [added: 1-32853).](https://www.sec.gov/Archives/edgar/data/1326160/000110465915072758/a15-21712_1ex2d1.htm)] | | | X | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | X | | |

| 3.1 | | | [Amended and Restated Certificate of [removed: Incorporation (incorporated] [added: Incorporation](https://www.sec.gov/Archives/edgar/data/1326160/000110465914040400/a14-12843_3ex3d1.htm) [of Duke Energy Corporation](https://www.sec.gov/Archives/edgar/data/1326160/000110465914040400/a14-12843_3ex3d1.htm) [(incorporated] by reference to Exhibit 3.1 [removed: to Duke Energy Corporation's Current] [added: to](https://www.sec.gov/Archives/edgar/data/1326160/000110465914040400/a14-12843_3ex3d1.htm) [registrant's](https://www.sec.gov/Archives/edgar/data/1326160/000110465914040400/a14-12843_3ex3d1.htm) [Current] Report on Form 8-K filed on May 20, 2014, File No. [removed: 1-32853).](http://www.sec.gov/Archives/edgar/data/1326160/000110465914040400/a14-12843_3ex3d1.htm)] [added: 1-32853).](https://www.sec.gov/Archives/edgar/data/1326160/000110465914040400/a14-12843_3ex3d1.htm)] | | | X | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| 3.2 | | | [removed: [A](https://www.sec.gov/Archives/edgar/data/1326160/000110465923127338/tm2333093d2_ex3-1.htm)[mended] [added: [Amended] and Restated [removed: By-Laws of] [added: By-Laws](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001326160/000114036124025705/ef20028749_8k.htm) [](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001326160/000114036124025705/ef20028749_8k.htm)[of] Duke Energy [removed: Corporation,] [added: Corporation](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001326160/000114036124025705/ef20028749_8k.htm)[,] effective as [removed: of](https://www.sec.gov/Archives/edgar/data/1326160/000110465923127338/tm2333093d2_ex3-1.htm) [December 14, 2023](https://www.sec.gov/Archives/edgar/data/1326160/000110465923127338/tm2333093d2_ex3-1.htm)] [added: of May 8, 202](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001326160/000114036124025705/ef20028749_8k.htm)[4](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001326160/000114036124025705/ef20028749_8k.htm)] [(incorporated [removed: by](https://www.sec.gov/Archives/edgar/data/1326160/000110465923127338/tm2333093d2_ex3-1.htm) [reference] [added: by reference] to Exhibit 3.1 [removed: to Duke Energy Corporation's Current] [added: to](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001326160/000114036124025705/ef20028749_8k.htm) [registra](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001326160/000114036124025705/ef20028749_8k.htm)[nt's](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001326160/000114036124025705/ef20028749_8k.htm) [Current] Report on Form 8-K filed on [removed: December 19, 2023,] [added: May 13, 2024,] File No. [removed: 1-32853).](https://www.sec.gov/Archives/edgar/data/1326160/000110465923127338/tm2333093d2_ex3-1.htm)] [added: 1-32853).](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001326160/000114036124025705/ef20028749_8k.htm)] | | | X | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| 3.3 | | | [Articles of Organization including Articles of [removed: Conversion (incorporated] [added: Conversion](https://www.sec.gov/Archives/edgar/data/30371/000119312506075954/dex31.htm) [of](https://www.sec.gov/Archives/edgar/data/30371/000119312506075954/dex31.htm) [Duke Energy Carolina's, LLC](https://www.sec.gov/Archives/edgar/data/30371/000119312506075954/dex31.htm) [(incorporated] by reference to Exhibit 3.1 [removed: to Duke Energy Carolinas, LLC's Current] [added: to](https://www.sec.gov/Archives/edgar/data/30371/000119312506075954/dex31.htm) [registrant's](https://www.sec.gov/Archives/edgar/data/30371/000119312506075954/dex31.htm) [Current] Report on Form 8-K filed on April 7, 2006, File No. [removed: 1-4928).](http://www.sec.gov/Archives/edgar/data/30371/000119312506075954/dex31.htm)] [added: 1-4928).](https://www.sec.gov/Archives/edgar/data/30371/000119312506075954/dex31.htm)] | | | | | | | | | X | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| 3.3.1 | | | [Amended Articles of [removed: Organization,] [added: Organization](https://www.sec.gov/Archives/edgar/data/30371/000119312506233026/dex31.htm) [of Duke Energy Carolinas, LLC](https://www.sec.gov/Archives/edgar/data/30371/000119312506233026/dex31.htm)[,] effective October 1, 2006 (incorporated by reference to Exhibit 3.1 [removed: to Duke Energy Carolinas, LLC's Quarterly] [added: to](https://www.sec.gov/Archives/edgar/data/30371/000119312506233026/dex31.htm) [registrant'](https://www.sec.gov/Archives/edgar/data/30371/000119312506233026/dex31.htm)[s](https://www.sec.gov/Archives/edgar/data/30371/000119312506233026/dex31.htm) [Quarterly] Report on Form 10-Q for the quarter ended September 30, 2006, filed on November 13, 2006, File No. [removed: 1-4928).](http://www.sec.gov/Archives/edgar/data/30371/000119312506233026/dex31.htm)] [added: 1-4928).](https://www.sec.gov/Archives/edgar/data/30371/000119312506233026/dex31.htm)] | | | | | | | | | X | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |