Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Duke Energy
Report of Independent Registered Public Accounting Firm			72
Consolidated Statements of Operations			74
Consolidated Statements of Comprehensive Income			75
Consolidated Balance Sheets			76
Consolidated Statements of Cash Flows			77
Consolidated Statements of Changes in Equity			78
Duke Energy Carolinas
Report of Independent Registered Public Accounting Firm			79
Consolidated Statements of Operations and Comprehensive Income			81
Consolidated Balance Sheets			82
Consolidated Statements of Cash Flows			83
Consolidated Statements of Changes in Equity			84
Progress Energy
Report of Independent Registered Public Accounting Firm			85
Consolidated Statements of Operations and Comprehensive Income			87
Consolidated Balance Sheets			88
Consolidated Statements of Cash Flows			89
Consolidated Statements of Changes in Equity			90
Duke Energy Progress
Report of Independent Registered Public Accounting Firm			91
Consolidated Statements of Operations and Comprehensive Income			93
Consolidated Balance Sheets			94
Consolidated Statements of Cash Flows			95
Consolidated Statements of Changes in Equity			96
Duke Energy Florida
Report of Independent Registered Public Accounting Firm			97
Consolidated Statements of Operations and Comprehensive Income			99
Consolidated Balance Sheets			100
Consolidated Statements of Cash Flows			101
Consolidated Statements of Changes in Equity			102
Duke Energy Ohio
Report of Independent Registered Public Accounting Firm			103
Consolidated Statements of Operations and Comprehensive Income			105
Consolidated Balance Sheets			106
Consolidated Statements of Cash Flows			107
Consolidated Statements of Changes in Equity			108
Duke Energy Indiana
Report of Independent Registered Public Accounting Firm			109
Consolidated Statements of Operations and Comprehensive Income			111
Consolidated Balance Sheets			112
Consolidated Statements of Cash Flows			113
Consolidated Statements of Changes in Equity			114
Piedmont
Report of Independent Registered Public Accounting Firm			115
Consolidated Statements of Operations and Comprehensive Income			117
Consolidated Balance Sheets			118
Consolidated Statements of Cash Flows			119
Consolidated Statements of Changes in Equity			120

FINANCIAL STATEMENTS

Combined Notes to Consolidated Financial Statements
Note 1 – Summary of Significant Accounting Policies			121
Note 2 – Dispositions			128
Note 3 – Business Segments			131
Note 4 – Regulatory Matters			143
Note 5 – Commitments and Contingencies			161
Note 6 – Leases			165
Note 7 – Debt and Credit Facilities			169
Note 8 – Guarantees and Indemnifications			176
Note 9 – Joint Ownership of Generating and Transmission Facilities			176
Note 10 – Asset Retirement Obligations			176
Note 11 – Property, Plant and Equipment			180
Note 12 – Goodwill and Intangible Assets			181
Note 13 – Investments in Unconsolidated Affiliates			182
Note 14 – Related Party Transactions			184
Note 15 – Derivatives and Hedging			185
Note 16 – Investments in Debt and Equity Securities			191
Note 17 – Fair Value Measurements			196
Note 18 – Variable Interest Entities			201
Note 19 – Revenue			204
Note 20 – Stockholders' Equity			209
Note 21 – Severance			210
Note 22 – Stock-Based Compensation			211
Note 23 – Employee Benefit Plans			213
Note 24 – Income Taxes			225
Note 25 – Other Income and Expenses, Net			232

REPORTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of Duke Energy Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Duke Energy Corporation and subsidiaries (the “Company”) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 26, 2026, expressed an unqualified opinion on the Company's internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Regulatory Matters – Impact of Rate Regulation on the Financial Statements – Refer to Notes 1 and 4 to the financial statements.

Critical Audit Matter Description

The Company is subject to regulation by federal and state utility regulatory agencies (the “Commissions”), which have jurisdiction with respect to the rates of the Company’s electric and natural gas distribution companies. Management has determined it meets the criteria for the application of regulated operations accounting in preparing its financial statements under accounting principles generally accepted in the United States of America. Judgment can be required to determine if otherwise recognizable incurred costs qualify to be presented as a regulatory asset and deferred because such costs are probable of future recovery in customer rates.

We identified the impact of rate regulation related to regulatory assets as a critical audit matter due to the judgments made by management, including assumptions regarding the outcome of future decisions by the Commissions to support its assertions on the likelihood of future recovery for deferred costs. Given that management’s accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the ratemaking process due to its inherent complexities as it relates to regulatory assets.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the recovery of regulatory assets included the following, among others:

• We tested the effectiveness of management’s controls over the evaluation of the likelihood of the recovery in future rates and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates.

• We evaluated the Company’s disclosures related to the impacts of rate regulation including the balances recorded and regulatory developments.

• We read relevant regulatory orders issued by the Commissions and other publicly available information to assess the likelihood of recovery in future rates. We also evaluated the external information and compared it to management’s recorded balances for completeness.

• 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 evaluated the reasonableness of management’s judgments regarding the recoverability of regulatory asset balances by performing the following to inform our understanding of the composition of the balances:

REPORTS

–We inquired of management regarding changes in the regulatory environment (i.e., recently approved orders) and regulatory asset balances during the year.

–We evaluated the reasonableness of such changes based on our knowledge of commission-approved amortization, incurred costs, and recently approved regulatory orders, as applicable.

–We utilized trend analyses to evaluate the historical consistency of regulatory asset balances.

• We obtained representation from management asserting that regulatory assets recorded in the financial statements are probable of recovery.

/s/ Deloitte & Touche LLP

Charlotte, North Carolina

February 26, 2026

We have served as the Company's auditor since 1947.

FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

			Years Ended December 31,
(in millions, except per share amounts)			2025						2024						2023
Operating Revenues
Regulated electric			$	29,060					$	27,787					$	26,617
Regulated natural gas			2,870						2,252						2,152
Nonregulated electric and other			307						318						291
Total operating revenues			32,237						30,357						29,060
Operating Expenses
Fuel used in electric generation and purchased power			8,058						9,206						9,086
Cost of natural gas			983						565						593
Operation, maintenance and other			6,698						5,389						5,625
Depreciation and amortization			6,324						5,793						5,253
Property and other taxes			1,597						1,466						1,400
Impairment of assets and other charges			(4)						38						85
Total operating expenses			23,656						22,457						22,042
Gains on Sales of Other Assets and Other, net			45						26						52
Operating Income			8,626						7,926						7,070
Other Income and Expenses
Equity in earnings (losses) of unconsolidated affiliates			51						(9)						113
Other income and expenses, net			669						661						598
Total other income and expenses			720						652						711
Interest Expense			3,634						3,384						3,014
Income From Continuing Operations Before Income Taxes			5,712						5,194						4,767
Income Tax Expense From Continuing Operations			642						590						438
Income From Continuing Operations			5,070						4,604						4,329
Income (Loss) From Discontinued Operations, net of tax			1						10						(1,455)
Net Income			5,071						4,614						2,874
Less: Net Income Attributable to Noncontrolling Interests			103						90						33
Net Income Attributable to Duke Energy Corporation			4,968						4,524						2,841
Less: Preferred Dividends			56						106						106
Less: Preferred Redemption Costs			—						16						—
Net Income Available to Duke Energy Corporation Common Stockholders			$	4,912					$	4,402					$	2,735
Earnings Per Share – Basic and Diluted
Income from continuing operations available to Duke Energy Corporation common stockholders
Basic and Diluted			$	6.31					$	5.70					$	5.35
Income (loss) from discontinued operations attributable to Duke Energy Corporation common stockholders
Basic and Diluted			$	—					$	0.01					$	(1.81)
Net income available to Duke Energy Corporation common stockholders
Basic and Diluted			$	6.31					$	5.71					$	3.54
Weighted average shares outstanding
Basic and Diluted			777						772						771

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

			Years Ended December 31,
(in millions)			2025						2024						2023
Net Income			$	5,071					$	4,614					$	2,874
Other Comprehensive Income (Loss), net of tax**(a)**
Pension and OPEB adjustments			13						8						(1)
Net unrealized (losses) gains on cash flow hedges			(6)						209						63
Reclassification into earnings from cash flow hedges			8						(5)						27
Net unrealized (losses) gains on fair value hedges			(50)						24						37
Unrealized gains (losses) on available-for-sale securities			5						(2)						8
Other Comprehensive (Loss) Income, net of tax			(30)						234						134
Comprehensive Income			5,041						4,848						3,008
Less: Comprehensive Income Attributable to Noncontrolling Interests			103						90						33
Comprehensive Income Attributable to Duke Energy Corporation			4,938						4,758						2,975
Less: Preferred Dividends			56						106						106
Less: Preferred Redemption Costs			—						16						—
Comprehensive Income Available to Duke Energy Corporation Common Stockholders			$	4,882					$	4,636					$	2,869

(a) Net of income tax benefit of approximately $9 million for the year ended December 31, 2025, and net of income tax expense of approximately $70 million and $40 million for the years ended December 31, 2024, and 2023, respectively.

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION

CONSOLIDATED BALANCE SHEETS

			December 31,
(in millions)			2025						2024
ASSETS
Current Assets
Cash and cash equivalents			$	245					$	314
Receivables (net of allowance for doubtful accounts of $194 at 2025 and $122 at 2024)			4,214						2,170
Receivables of VIEs (net of allowance for doubtful accounts of $85 at 2024)			16						1,889
Receivable from sales of Commercial Renewables Disposal Groups			—						551
Inventory (includes $669 at 2025 and $494 at 2024 related to VIEs)			4,569						4,496
Regulatory assets (includes $204 at 2025 and $120 at 2024 related to VIEs)			1,934						2,739
Assets held for sale			109						96
Other (includes $88 at 2025 and $90 at 2024 related to VIEs)			526						695
Total current assets			11,613						12,950
Property, Plant and Equipment
Cost			190,409						178,737
Accumulated depreciation and amortization			(60,450)						(57,111)
Net property, plant and equipment			129,959						121,626
Other Noncurrent Assets
Goodwill			19,010						19,010
Regulatory assets (includes $3,108 at 2025 and $1,705 at 2024 related to VIEs)			14,379						14,220
Nuclear decommissioning trust funds			12,889						11,434
Operating lease right-of-use assets, net			1,241						1,148
Investments in equity method unconsolidated affiliates			330						353
Assets held for sale			2,148						2,095
Other			4,167						3,507
Total other noncurrent assets			54,164						51,767
Total Assets			$	195,736					$	186,343
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (includes $296 at 2025 and $214 at 2024 related to VIEs)			$	5,223					$	5,436
Notes payable and commercial paper			2,624						3,584
Taxes accrued			975						851
Interest accrued			922						854
Current maturities of long-term debt (includes $118 at 2025 and $1,012 at 2024 related to VIEs)			7,104						4,349
Asset retirement obligations			579						650
Regulatory liabilities			1,271						1,421
Liabilities associated with assets held for sale			84						132
Other			2,265						2,080
Total current liabilities			21,047						19,357
Long-Term Debt (includes $3,308 at 2025 and $1,842 at 2024 related to VIEs)			80,108						76,340
Other Noncurrent Liabilities
Deferred income taxes			12,377						11,424
Asset retirement obligations			9,046						9,338
Regulatory liabilities			15,682						14,521
Operating lease liabilities			1,033						957
Accrued pension and other post-retirement benefit costs			396						434
Investment tax credits			969						894
Liabilities associated with assets held for sale			170						271
Other (includes $27 at 2024 related to VIEs)			1,889						1,551
Total other noncurrent liabilities			41,562						39,390
Commitments and Contingencies
Equity
Preferred stock, Series A, $0.001 par value, 40 million depositary shares authorized and outstanding at 2025 and 2024			973						973
Common stock, $0.001 par value, 2 billion shares authorized; 778 million and 776 million shares outstanding at 2025 and 2024			1						1
Additional paid-in capital			45,614						45,494
Retained earnings			5,056						3,431
Accumulated other comprehensive income			198						228
Total Duke Energy Corporation stockholders' equity			51,842						50,127
Noncontrolling interests			1,177						1,129
Total equity			53,019						51,256
Total Liabilities and Equity			$	195,736					$	186,343

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

			Years Ended December 31,
(in millions)			2025						2024						2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income			$	5,071					$	4,614					$	2,874
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion (including amortization of nuclear fuel)			7,704						6,419						6,084
Equity in (earnings) losses of unconsolidated affiliates			(51)						9						(98)
Equity component of AFUDC			(328)						(233)						(198)
Losses on sales of Commercial Renewables Disposal Groups			4						14						1,725
Gains on sales of other assets			(45)						(26)						(52)
Impairment of assets and other charges			(4)						38						85
Deferred income taxes			1,204						987						3
Contributions to qualified pension plans			(100)						(100)						(100)
Payments for asset retirement obligations			(509)						(545)						(632)
(Increase) decrease in
Net realized and unrealized mark-to-market and hedging transactions			—						(103)						(18)
Receivables			(187)						(23)						443
Inventory			(63)						(212)						(706)
Other current assets			6						885						(267)
Increase (decrease) in
Accounts payable			(821)						1,329						(800)
Taxes accrued			127						32						126
Other current liabilities			52						(55)						(80)
Other assets			(265)						(1,170)						914
Other liabilities			535						468						575
Net cash provided by operating activities			12,330						12,328						9,878
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures			(14,024)						(12,280)						(12,604)
Contributions to equity method investments			—						(8)						(34)
Return of investment capital			22						25						16
Purchases of debt and equity securities			(8,888)						(5,703)						(3,761)
Proceeds from sales and maturities of debt and equity securities			9,005						5,803						3,824
Proceeds from the sales of other assets			67						49						149
Proceeds from the sales of Commercial Renewables Disposal Groups, net of cash divested			559						—						734
Other			(1,079)						(1,009)						(799)
Net cash used in investing activities			(14,338)						(13,123)						(12,475)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the:
Issuance of long-term debt			11,891						8,956						10,028
Issuance of common stock			16						405						8
Redemption of preferred stock			—						(1,000)						—
Payments for the redemption of long-term debt			(5,652)						(3,357)						(4,737)
Proceeds from the issuance of short-term debt with original maturities greater than 90 days			124						557						610
Payments for the redemption of short-term debt with original maturities greater than 90 days			(5)						(1,096)						(125)
Notes payable and commercial paper			(1,238)						(388)						(343)
Contributions from noncontrolling interests			—						47						278
Dividends paid			(3,300)						(3,213)						(3,244)
Other			114						(52)						(124)
Net cash provided by financing activities			1,950						859						2,351
Net (decrease) increase in cash, cash equivalents and restricted cash			(58)						64						(246)
Cash, cash equivalents and restricted cash at beginning of period			421						357						603
Cash, cash equivalents and restricted cash at end of period			$	363					$	421					$	357
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized			$	3,590					$	3,284					$	2,883
Cash (received from) paid for income taxes, net (includes transferable tax credit sale proceeds of $723, $558 and $28 for 2025, 2024 and 2023, respectively)			(625)						(400)						1
Significant non-cash transactions:
Accrued capital expenditures			2,674						1,909						1,908

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

																																	Duke Energy Corporation Stockholders' Accumulated Other Comprehensive Income (Loss)
																																	Net Gains						Net Unrealized												Total Duke
						Common									Additional																		(Losses)						Gains (Losses)						Pension						Energy Corp.
			Preferred			Stock			Common						Paid-in						Retained												on						on AFS						and OPEB						Stockholders'												Total
(in millions)			Stock			Shares			Stock						Capital						Earnings												Hedges**(b)**						Securities						Adjustments						Equity						NCI						Equity
Balance at December 31, 2022			$	1,962		770			$	1					$	44,862					$	2,637											$	(29)					$	(23)					$	(88)					$	49,322					$	2,531					$	51,853
Net income(c)			—			—			—						—						2,735												—						—						—						2,735						33						2,768
Other comprehensive income (loss)			—			—			—						—						—												127						8						(1)						134						—						134
Common stock issuances, including dividend reinvestment and employee benefits			—			1			—						78						—												—						—						—						78						—						78
Common stock dividends			—			—			—						—						(3,138)												—						—						—						(3,138)						—						(3,138)
Sale of NCI			—			—			—						(13)						—												—						—						—						(13)						10						(3)
Contribution from NCI, net of transaction costs(a)			—			—			—						—						—												—						—						—						—						278						278
Distributions to NCI in subsidiaries			—			—			—						—						—												—						—						—						—						(59)						(59)
Sale of Commercial Renewables Disposal Groups			—			—			—						—						—												—						—						—						—						(1,722)						(1,722)
Other			—			—			—						(7)						1												—						—						—						(6)						4						(2)
Balance at December 31, 2023			$	1,962		771			$	1					$	44,920					$	2,235											$	98					$	(15)					$	(89)					$	49,112					$	1,075					$	50,187
Net income(c)			—			—			—						—						4,402												—						—						—						4,402						90						4,492
Other comprehensive income (loss)			—			—			—						—						—												228						(2)						8						234						—						234
Common stock issuances, including dividend reinvestment and employee benefits			—			5			—						574						—												—						—						—						574						—						574
Preferred stock, Series B, redemption			(989)			—			—						—						—												—						—						—						(989)						—						(989)
Common stock dividends			—			—			—						—						(3,204)												—						—						—						(3,204)						—						(3,204)
Contribution from NCI			—			—			—						—						—												—						—						—						—						47						47
Distributions to NCI in subsidiaries			—			—			—						—						—												—						—						—						—						(32)						(32)
Sale of Commercial Renewables Disposal Groups			—			—			—						—						—												—						—						—						—						(51)						(51)
Other			—			—			—						—						(2)												—						—						—						(2)						—						(2)
Balance at December 31, 2024			$	973		776			$	1					$	45,494					$	3,431											$	326					$	(17)					$	(81)					$	50,127					$	1,129					$	51,256
Net income(c)			—			—			—						—						4,912												—						—						—						4,912						103						5,015
Other comprehensive (loss) income			—			—			—						—						—												(48)						5						13						(30)						—						(30)
Common stock issuances, including dividend reinvestment and employee benefits			—			2			—						120						—												—						—						—						120						—						120
Common stock dividends			—			—			—						—						(3,290)												—						—						—						(3,290)						—						(3,290)
Distributions to NCI in subsidiaries			—			—			—						—						—												—						—						—						—						(31)						(31)
Sale of Commercial Renewables Disposal Groups			—			—			—						—						—												—						—						—						—						(18)						(18)
Other			—			—			—												3												—						—						—						3						(6)						(3)
Balance at December 31, 2025			$	973		778			$	1					$	45,614					$	5,056											$	278					$	(12)					$	(68)					$	51,842					$	1,177					$	53,019

(a) Relates to tax equity financing activity in the Commercial Renewables Disposal Groups.

(b) See Duke Energy Consolidated Statements of Comprehensive Income for detailed activity related to Cash Flow and Fair Value Hedges.

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

See Notes to Consolidated Financial Statements

REPORTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholder and the Board of Directors of Duke Energy Carolinas, LLC

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Duke Energy Carolinas, LLC and subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of operations and comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Regulatory Matters – Impact of Rate Regulation on the Financial Statements – Refer to Notes 1 and 4 to the financial statements.

Critical Audit Matter Description

The Company is subject to rate regulation by the North Carolina Utilities Commission and by the South Carolina Public Service Commission (collectively the “Commissions”), which have jurisdiction with respect to the electric rates of the Company. Management has determined it meets the criteria for the application of regulated operations accounting in preparing its financial statements under accounting principles generally accepted in the United States of America. Judgment can be required to determine if otherwise recognizable incurred costs qualify to be presented as a regulatory asset and deferred because such costs are probable of future recovery in customer rates.

We identified the impact of rate regulation related to regulatory assets as a critical audit matter due to the judgments made by management, including assumptions regarding the outcome of future decisions by the Commissions to support its assertions on the likelihood of future recovery for deferred costs. Given that management’s accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the ratemaking process due to its inherent complexities as it relates to regulatory assets.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the recovery of regulatory assets included the following, among others:

• We tested the effectiveness of management’s controls over the evaluation of the likelihood of the recovery in future rates and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates.

• We evaluated the Company’s disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

• We read relevant regulatory orders issued by the Commissions and other publicly available information to assess the likelihood of recovery in future rates. We also evaluated the external information and compared it to management’s recorded balances for completeness.

• 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 evaluated the reasonableness of management’s judgments regarding the recoverability of regulatory asset balances by performing the following to inform our understanding of the composition of the balances:

REPORTS

–We inquired of management regarding changes in the regulatory environment (i.e., recently approved orders) and regulatory asset balances during the year.

–We evaluated the reasonableness of such changes based on our knowledge of commission-approved amortization, incurred costs, and recently approved regulatory orders, as applicable.

–We utilized trend analyses to evaluate the historical consistency of regulatory asset balances.

• We obtained representation from management asserting that regulatory assets recorded in the financial statements are probable of recovery.

/s/ Deloitte & Touche LLP

Charlotte, North Carolina

February 26, 2026

We have served as the Company's auditor since 1947.

FINANCIAL STATEMENTS

DUKE ENERGY CAROLINAS, LLC

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

			Years Ended December 31,
(in millions)			2025						2024						2023
Operating Revenues			$	9,713					$	9,718					$	8,288
Operating Expenses
Fuel used in electric generation and purchased power			2,649						3,251						2,524
Operation, maintenance and other			2,002						1,740						1,774
Depreciation and amortization			1,903						1,768						1,593
Property and other taxes			349						346						320
Impairment of assets and other charges			(11)						31						44
Total operating expenses			6,892						7,136						6,255
Gains on Sales of Other Assets and Other, net			6						2						26
Operating Income			2,827						2,584						2,059
Other Income and Expenses, net			258						247						238
Interest Expense			783						722						686
Income Before Income Taxes			2,302						2,109						1,611
Income Tax Expense			194						226						141
Net Income			$	2,108					$	1,883					$	1,470
Other Comprehensive Income, net of tax
Net gains on cash flow hedges			1						—						—
Comprehensive Income			$	2,109					$	1,883					$	1,470

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY CAROLINAS, LLC

CONSOLIDATED BALANCE SHEETS

						December 31,
(in millions)						2025						2024
ASSETS
Current Assets
Cash and cash equivalents						$	3					$	6
Receivables (net of allowance for doubtful accounts of $55 at 2025 and $18 at 2024)						1,343						266
Receivables of VIEs (net of allowance for doubtful accounts of $51 at 2024)						4						1,054
Receivables from affiliated companies						331						157
Notes receivable from affiliated companies						69						65
Inventory						1,530						1,536
Regulatory assets (includes $72 at 2025 and $12 at 2024 related to VIEs)						730						685
Other (includes $12 at 2025 and $9 at 2024 related to VIEs)						75						52
Total current assets						4,085						3,821
Property, Plant and Equipment
Cost						62,513						58,382
Accumulated depreciation and amortization						(20,658)						(19,090)
Net property, plant and equipment						41,855						39,292
Other Noncurrent Assets
Regulatory assets (includes $1,257 at 2025 and $189 at 2024 related to VIEs)						4,502						4,199
Nuclear decommissioning trust funds						7,338						6,468
Operating lease right-of-use assets, net						91						98
Other						1,304						1,127
Total other noncurrent assets						13,235						11,892
Total Assets						$	59,175					$	55,005
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable						$	1,670					$	1,809
Accounts payable to affiliated companies						386						241
Taxes accrued						306						627
Interest accrued						214						201
Current maturities of long-term debt (includes $16 at 2025 and $510 at 2024 related to VIEs)						629						521
Asset retirement obligations						245						247
Regulatory liabilities						569						618
Other						621						541
Total current liabilities						4,640						4,805
Long-Term Debt (includes $1,316 at 2025 and $198 at 2024 related to VIEs)						17,848						16,669
Long-Term Debt Payable to Affiliated Companies						300						300
Other Noncurrent Liabilities
Deferred income taxes						4,191						4,052
Asset retirement obligations						3,597						3,743
Regulatory liabilities						7,609						6,592
Operating lease liabilities						79						87
Accrued pension and other post-retirement benefit costs						24						24
Investment tax credits						345						317
Other (includes $15 at 2024 related to VIEs)						802						576
Total other noncurrent liabilities						16,647						15,391
Commitments and Contingencies
Equity
Member's equity						19,745						17,846
Accumulated other comprehensive loss						(5)						(6)
Total equity						19,740						17,840
Total Liabilities and Equity						$	59,175					$	55,005

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY CAROLINAS, LLC

CONSOLIDATED STATEMENTS OF CASH FLOWS

			Years Ended December 31,
(in millions)			2025						2024						2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income			$	2,108					$	1,883					$	1,470
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of nuclear fuel)			2,169						2,033						1,845
Equity component of AFUDC			(144)						(113)						(91)
Gains on sales of other assets			(6)						(2)						(26)
Impairment of assets and other charges			(11)						31						44
Deferred income taxes			442						(28)						(53)
Contributions to qualified pension plans			(27)						(26)						(26)
Payments for asset retirement obligations			(197)						(180)						(210)
(Increase) decrease in
Receivables			(26)						(49)						22
Receivables from affiliated companies			(174)						46						187
Inventory			2						(60)						(320)
Other current assets			(87)						928						(495)
Increase (decrease) in
Accounts payable			(261)						476						(447)
Accounts payable to affiliated companies			145						46						(14)
Taxes accrued			(321)						346						64
Other current liabilities			94						(74)						32
Other assets			(135)						(556)						703
Other liabilities			50						(164)						100
Net cash provided by operating activities			3,621						4,537						2,785
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures			(4,477)						(3,966)						(3,733)
Purchases of debt and equity securities			(4,734)						(2,775)						(2,025)
Proceeds from sales and maturities of debt and equity securities			4,734						2,775						2,025
Net proceeds from the sales of other assets			—						—						30
Notes receivable from affiliated companies			(4)						(65)						—
Other			(388)						(358)						(288)
Net cash used in investing activities			(4,869)						(4,389)						(3,991)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt			2,495						1,487						2,780
Payments for the redemption of long-term debt			(1,224)						(19)						(1,042)
Notes payable to affiliated companies			—						(668)						(565)
Distributions to parent			(200)						(950)						—
Other			183						(1)						(1)
Net cash provided by (used in) financing activities			1,254						(151)						1,172
Net increase (decrease) in cash, cash equivalents and restricted cash			6						(3)						(34)
Cash, cash equivalents and restricted cash at beginning of period			16						19						53
Cash, cash equivalents and restricted cash at end of period			$	22					$	16					$	19
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized			$	758					$	683					$	528
Cash paid for (received from) income taxes, net (includes transferable tax credit sale proceeds of $551, $440 and $0 for 2025, 2024 and 2023, respectively)			85						(85)						151
Significant non-cash transactions:
Accrued capital expenditures			997						802						613

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY CAROLINAS, LLC

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

									Accumulated Other
									Comprehensive
									Loss
									Net
									Net Losses (Gains) on
			Member's						Cash Flow						Total
(in millions)			Equity						Hedges						Equity
Balance at December 31, 2022			$	15,448					$	(6)					$	15,442
Net income			1,470						—						1,470
Other			(5)						—						(5)
Balance at December 31, 2023			$	16,913					$	(6)					$	16,907
Net income			1,883						—						1,883
Distributions to parent			(950)						—						(950)
Balance at December 31, 2024			$	17,846					$	(6)					$	17,840
Net income			2,108						—						2,108
Other comprehensive income			—						1						1
Distributions to parent			(200)						—						(200)
Other			(9)						—						(9)
Balance at December 31, 2025			$	19,745					$	(5)					$	19,740

See Notes to Consolidated Financial Statements

REPORTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholder and the Board of Directors of Progress Energy, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Progress Energy, Inc. and subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of operations and comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Regulatory Matters – Impact of Rate Regulation on the Financial Statements – Refer to Notes 1 and 4 to the financial statements.

Critical Audit Matter Description

The Company is subject to rate regulation by the North Carolina Utilities Commission, South Carolina Public Service Commission and Florida Public Service Commission (collectively the “Commissions”), which have jurisdiction with respect to the electric rates of the Company. Management has determined it meets the criteria for the application of regulated operations accounting in preparing its financial statements under accounting principles generally accepted in the United States of America. Judgment can be required to determine if otherwise recognizable incurred costs qualify to be presented as a regulatory asset and deferred because such costs are probable of future recovery in customer rates.

We identified the impact of rate regulation related to regulatory assets as a critical audit matter due to the judgments made by management, including assumptions regarding the outcome of future decisions by the Commissions to support its assertions on the likelihood of future recovery for deferred costs. Given that management’s accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the ratemaking process due to its inherent complexities as it relates to regulatory assets.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the recovery of regulatory assets included the following, among others:

• We tested the effectiveness of management’s controls over the evaluation of the likelihood of the recovery in future rates and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates.

• We evaluated the Company’s disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

• We read relevant regulatory orders issued by the Commissions and other publicly available information to assess the likelihood of recovery in future rates. We evaluated the external information and compared it to management’s recorded balances for completeness.

• 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 evaluated the reasonableness of management’s judgments regarding the recoverability of regulatory asset balances by performing the following to inform our understanding of the composition of the balances:

REPORTS

–We inquired of management regarding changes in the regulatory environment (i.e., recently approved orders) and regulatory asset balances during the year.

–We evaluated the reasonableness of such changes based on our knowledge of commission-approved amortization, incurred costs, and recently approved regulatory orders, as applicable.

–We utilized trend analyses to evaluate the historical consistency of regulatory asset balances.

• We obtained representation from management asserting that regulatory assets recorded in the financial statements are probable of recovery.

/s/ Deloitte & Touche LLP

Charlotte, North Carolina

February 26, 2026

We have served as the Company's auditor since 1930.

FINANCIAL STATEMENTS

PROGRESS ENERGY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

			Years Ended December 31,
(in millions)			2025						2024						2023
Operating Revenues			$	14,509					$	13,633					$	13,544
Operating Expenses
Fuel used in electric generation and purchased power			4,267						4,755						5,026
Operation, maintenance and other			3,335						2,463						2,636
Depreciation and amortization			2,543						2,393						2,151
Property and other taxes			657						617						644
Impairment of assets and other charges			2						6						28
Total operating expenses			10,804						10,234						10,485
Gains on Sales of Other Assets and Other, net			27						27						27
Operating Income			3,732						3,426						3,086
Other Income and Expenses, net			287						235						201
Interest Expense			1,119						1,064						954
Income Before Income Taxes			2,900						2,597						2,333
Income Tax Expense			485						426						377
Net Income			$	2,415					$	2,171					$	1,956
Other Comprehensive Income (Loss), net of tax
Pension and OPEB adjustments			—						—						(2)
Unrealized gains on available-for-sale securities			—						—						3
Other Comprehensive Income, net of tax			—						—						1
Comprehensive Income			$	2,415					$	2,171					$	1,957

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

PROGRESS ENERGY, INC.

CONSOLIDATED BALANCE SHEETS

			December 31,
(in millions)			2025						2024
ASSETS
Current Assets
Cash and cash equivalents			$	54					$	73
Receivables (net of allowance for doubtful accounts of $65 at 2025 and $39 at 2024)			1,538						707
Receivables of VIEs (net of allowance for doubtful accounts of $34 at 2024)			12						835
Receivables from affiliated companies			81						25
Notes receivable from affiliated companies			251						—
Inventory (includes $669 at 2025 and $494 at 2024 related to VIEs)			2,210						2,086
Regulatory assets (includes $132 at 2025 and $108 at 2024 related to VIEs)			753						1,647
Other (includes $72 at 2025 and $75 at 2024 related to VIEs)			150						182
Total current assets			5,049						5,555
Property, Plant and Equipment
Cost			78,347						72,560
Accumulated depreciation and amortization			(25,425)						(23,586)
Net property, plant and equipment			52,922						48,974
Other Noncurrent Assets
Goodwill			3,655						3,655
Regulatory assets (includes $1,851 at 2025 and $1,516 at 2024 related to VIEs)			6,650						6,618
Nuclear decommissioning trust funds			5,550						4,967
Operating lease right-of-use assets, net			607						625
Other			1,405						1,242
Total other noncurrent assets			17,867						17,107
Total Assets			$	75,838					$	71,636
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (includes $289 at 2025 and $208 at 2024 related to VIEs)			$	1,679					$	2,170
Accounts payable to affiliated companies			571						507
Notes payable to affiliated companies			—						1,077
Taxes accrued			222						312
Interest accrued			256						232
Current maturities of long-term debt (includes $102 at 2025 and $502 at 2024 related to VIEs)			722						1,517
Asset retirement obligations			196						231
Regulatory liabilities			350						522
Other			758						792
Total current liabilities			4,754						7,360
Long-Term Debt (includes $1,936 at 2025 and $1,582 at 2024 related to VIEs)			25,976						22,829
Long-Term Debt Payable to Affiliated Companies			150						150
Other Noncurrent Liabilities
Deferred income taxes			5,576						5,263
Asset retirement obligations			4,290						4,317
Regulatory liabilities			5,601						5,258
Operating lease liabilities			552						557
Accrued pension and other post-retirement benefit costs			247						254
Investment tax credits			434						385
Other (includes $11 at 2024 related to VIEs)			491						357
Total other noncurrent liabilities			17,191						16,391
Commitments and Contingencies
Equity
Common stock, $0.01 par value, 100 shares authorized and outstanding at 2025 and 2024			—						—
Additional paid-in capital			12,278						11,830
Retained earnings			15,499						13,086
Accumulated other comprehensive loss			(10)						(10)
Total equity			27,767						24,906
Total Liabilities and Equity			$	75,838					$	71,636

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

PROGRESS ENERGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

			Years Ended December 31,
(in millions)			2025						2024						2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income			$	2,415					$	2,171					$	1,956
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion (including amortization of nuclear fuel)			3,666						2,761						2,721
Equity component of AFUDC			(117)						(74)						(67)
Gains on sales of other assets			(27)						(27)						(27)
Impairment of assets and other charges			2						6						28
Deferred income taxes			330						33						(120)
Contributions to qualified pension plans			(23)						(23)						(22)
Payments for asset retirement obligations			(214)						(279)						(329)
(Increase) decrease in
Receivables			7						25						21
Receivables from affiliated companies			(56)						65						(68)
Inventory			(112)						(172)						(322)
Other current assets			92						81						287
Increase (decrease) in
Accounts payable			(776)						867						(266)
Accounts payable to affiliated companies			121						43						(248)
Taxes accrued			(82)						49						124
Other current liabilities			(79)						164						9
Other assets			(113)						(723)						357
Other liabilities			84						92						84
Net cash provided by operating activities			5,118						5,059						4,118
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures			(6,125)						(5,252)						(4,917)
Purchases of debt and equity securities			(3,998)						(2,703)						(1,590)
Proceeds from sales and maturities of debt and equity securities			4,044						2,809						1,663
Notes receivable from affiliated companies			(251)						—						—
Other			(421)						(463)						(329)
Net cash used in investing activities			(6,751)						(5,609)						(5,173)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt			4,420						1,134						2,555
Payments for the redemption of long-term debt			(2,121)						(467)						(1,248)
Notes payable to affiliated companies			(1,077)						34						200
Contributions from parent			400						—						—
Dividends to parent			—						(125)						(500)
Other			(10)						(1)						(1)
Net cash provided by financing activities			1,612						575						1,006
Net (decrease) increase in cash, cash equivalents and restricted cash			(21)						25						(49)
Cash, cash equivalents and restricted cash at beginning of period			160						135						184
Cash, cash equivalents and restricted cash at end of period			$	139					$	160					$	135
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized			$	1,123					$	1,078					$	954
Cash paid for income taxes, net (includes transferable tax credit sale proceeds of $171, $118 and $28 for 2025, 2024 and 2023, respectively)			265						315						310
Significant non-cash transactions:
Accrued capital expenditures			1,116						745						806

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

PROGRESS ENERGY, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

																					Accumulated Other Comprehensive Income (Loss)
																					Net Gains						Net Unrealized
									Additional												(Losses) on						Gains (Losses)						Pension and
									Paid-in						Retained						Cash Flow						on Available-for-						OPEB																		Total
(in millions)									Capital						Earnings						Hedges						Sale Securities						Adjustments																		Equity
Balance at December 31, 2022									$	11,832					$	9,585					$	(1)					$	(8)					$	(2)																	$	21,406
Net income									—						1,956						—						—						—																		1,956
Other comprehensive income (loss)									—						—						—						3						(2)																		1
Dividends to parent									—						(500)						—						—						—																		(500)
Other									(2)						(1)						—						—						—																		(3)
Balance at December 31, 2023									$	11,830					$	11,040					$	(1)					$	(5)					$	(4)																	$	22,860
Net income									—						2,171						—						—						—																		2,171
Dividends to parent									—						(125)						—						—						—																		(125)
Balance at December 31, 2024									$	11,830					$	13,086					$	(1)					$	(5)					$	(4)																	$	24,906
Net income									—						2,415						—						—						—																		2,415
Distributions to parent									(9)						—						—						—						—																		(9)
Equitization of certain intercompany balances with affiliates									57						(2)						—						—						—																		55
Contributions from parent									400						—						—						—						—																		400
Balance at December 31, 2025									$	12,278					$	15,499					$	(1)					$	(5)					$	(4)																	$	27,767

See Notes to Consolidated Financial Statements

REPORTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholder and the Board of Directors of Duke Energy Progress, LLC

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Duke Energy Progress, LLC and subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of operations and comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Regulatory Matters – Impact of Rate Regulation on the Financial Statements – Refer to Notes 1 and 4 to the financial statements.

Critical Audit Matter Description

The Company is subject to rate regulation by the North Carolina Utilities Commission and by the South Carolina Public Service Commission (collectively the “Commissions”), which have jurisdiction with respect to the electric rates of the Company. Management has determined it meets the criteria for the application of regulated operations accounting in preparing its financial statements under accounting principles generally accepted in the United States of America. Judgment can be required to determine if otherwise recognizable incurred costs qualify to be presented as a regulatory asset and deferred because such costs are probable of future recovery in customer rates.

We identified the impact of rate regulation related to regulatory assets as a critical audit matter due to the judgments made by management, including assumptions regarding the outcome of future decisions by the Commissions to support its assertions on the likelihood of future recovery for deferred costs. Given that management’s accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the ratemaking process due to its inherent complexities as it relates to regulatory assets.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the recovery of regulatory assets included the following, among others:

• We tested the effectiveness of management’s controls over the evaluation of the likelihood of the recovery in future rates and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates.

• We evaluated the Company’s disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

• We read relevant regulatory orders issued by the Commissions and other publicly available information to assess the likelihood of recovery in future rates. We evaluated the external information and compared it to management’s recorded balances for completeness.

• 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 evaluated the reasonableness of management’s judgments regarding the recoverability of regulatory asset balances by performing the following to inform our understanding of the composition of the balances:

REPORTS

–We inquired of management regarding changes in the regulatory environment (i.e., recently approved orders) and regulatory asset balances during the year.

–We evaluated the reasonableness of such changes based on our knowledge of commission-approved amortization, incurred costs, and recently approved regulatory orders, as applicable.

–We utilized trend analyses to evaluate the historical consistency of regulatory asset balances.

• We obtained representation from management asserting that regulatory assets recorded in the financial statements are probable of recovery.

/s/ Deloitte & Touche LLP

Charlotte, North Carolina

February 26, 2026

We have served as the Company's auditor since 1930.

FINANCIAL STATEMENTS

DUKE ENERGY PROGRESS, LLC

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

			Years Ended December 31,
(in millions)			2025						2024						2023
Operating Revenues			$	7,386					$	7,017					$	6,488
Operating Expenses
Fuel used in electric generation and purchased power			2,518						2,409						2,203
Operation, maintenance and other			1,455						1,388						1,379
Depreciation and amortization			1,406						1,336						1,266
Property and other taxes			172						177						164
Impairment of assets and other charges			2						6						29
Total operating expenses			5,553						5,316						5,041
Gains on Sales of Other Assets and Other, net			2						2						3
Operating Income			1,835						1,703						1,450
Other Income and Expenses, net			196						143						124
Interest Expense			526						493						427
Income Before Income Taxes			1,505						1,353						1,147
Income Tax Expense			223						189						149
Net Income and Comprehensive Income			$	1,282					$	1,164					$	998

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY PROGRESS, LLC

CONSOLIDATED BALANCE SHEETS

			December 31,
(in millions)			2025						2024
ASSETS
Current Assets
Cash and cash equivalents			$	16					$	24
Receivables (net of allowance for doubtful accounts of $38 at 2025 and $10 at 2024)			943						160
Receivables of VIEs (net of allowance for doubtful accounts of $34 at 2024)			9						835
Receivables from affiliated companies			104						10
Notes receivable from affiliated companies			186						—
Inventory			1,363						1,341
Regulatory assets (includes $70 at 2025 and $47 at 2024 related to VIEs)			652						626
Other (includes $38 at 2025 and $40 at 2024 related to VIEs)			95						104
Total current assets			3,368						3,100
Property, Plant and Equipment
Cost			45,175						42,060
Accumulated depreciation and amortization			(16,980)						(15,930)
Net property, plant and equipment			28,195						26,130
Other Noncurrent Assets
Regulatory assets (includes $1,169 at 2025 and $775 at 2024 related to VIEs)			4,543						4,555
Nuclear decommissioning trust funds			5,254						4,636
Operating lease right-of-use assets, net			386						348
Other			781						724
Total other noncurrent assets			10,964						10,263
Total Assets			$	42,527					$	39,493
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable			$	886					$	749
Accounts payable to affiliated companies			398						306
Notes payable to affiliated companies			—						611
Taxes accrued			167						394
Interest accrued			145						122
Current maturities of long-term debt (includes $41 at 2025 and $443 at 2024 related to VIEs)			285						983
Asset retirement obligations			194						230
Regulatory liabilities			274						348
Other			370						427
Total current liabilities			2,719						4,170
Long-Term Debt (includes $1,224 at 2025 and $809 at 2024 related to VIEs)			13,461						11,371
Long-Term Debt Payable to Affiliated Companies			150						150
Other Noncurrent Liabilities
Deferred income taxes			2,642						2,344
Asset retirement obligations			4,095						4,104
Regulatory liabilities			4,807						4,570
Operating lease liabilities			384						332
Accrued pension and other post-retirement benefit costs			139						141
Investment tax credits			194						144
Other (includes $11 at 2024 related to VIEs)			326						196
Total other noncurrent liabilities			12,587						11,831
Commitments and Contingencies
Equity
Member's equity			13,610						11,971
Total Liabilities and Equity			$	42,527					$	39,493

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY PROGRESS, LLC

CONSOLIDATED STATEMENTS OF CASH FLOWS

			Years Ended December 31,
(in millions)			2025						2024						2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income			$	1,282					$	1,164					$	998
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (including amortization of nuclear fuel)			1,602						1,520						1,460
Equity component of AFUDC			(100)						(61)						(52)
Impairment of assets and other charges			2						6						29
Deferred income taxes			345						(224)						(53)
Contributions to qualified pension plans			(14)						(14)						(13)
Payments for asset retirement obligations			(176)						(197)						(249)
(Increase) decrease in
Receivables			10						(11)						(10)
Receivables from affiliated companies			(94)						6						9
Inventory			(23)						(114)						(221)
Other current assets			(66)						375						(252)
Increase (decrease) in
Accounts payable			(8)						63						(26)
Accounts payable to affiliated companies			149						(26)						(176)
Taxes accrued			(227)						217						99
Other current liabilities			(8)						133						13
Other assets			(30)						(426)						173
Other liabilities			110						79						5
Net cash provided by operating activities			2,754						2,490						1,734
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures			(3,428)						(2,803)						(2,387)
Purchases of debt and equity securities			(3,789)						(2,480)						(1,406)
Proceeds from sales and maturities of debt and equity securities			3,788						2,480						1,402
Notes receivable from affiliated companies			(186)						—						—
Other			(215)						(172)						(144)
Net cash used in investing activities			(3,830)						(2,975)						(2,535)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt			2,613						855						991
Payments for the redemption of long-term debt			(1,236)						(72)						(369)
Notes payable to affiliated companies			(611)						(280)						652
Contributions from parent			300						—						—
Distributions to parent			—						—						(500)
Other			2						—						(1)
Net cash provided by financing activities			1,068						503						773
Net (decrease) increase in cash, cash equivalents and restricted cash			(8)						18						(28)
Cash, cash equivalents and restricted cash at beginning of period			69						51						79
Cash, cash equivalents and restricted cash at end of period			$	61					$	69					$	51
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized			$	536					$	522					$	447
Cash paid for income taxes, net (includes transferable tax credit sale proceeds of $102, $71 and $0 for 2025, 2024 and 2023, respectively)			120						192						73
Significant non-cash transactions:
Accrued capital expenditures			576						374						313

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY PROGRESS, LLC

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

															Member's
(in millions)															Equity
Balance at December 31, 2022															$	10,309
Net income															998
Distributions to parent															(500)
Balance at December 31, 2023															$	10,807
Net income															1,164
Balance at December 31, 2024															$	11,971
Net income															1,282
Contributions from parent															300
Equitization of certain intercompany balances with affiliates															57
Balance at December 31, 2025															$	13,610

See Notes to Consolidated Financial Statements

REPORTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholder and the Board of Directors of Duke Energy Florida, LLC

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Duke Energy Florida, LLC and subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of operations and comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Regulatory Matters — Impact of Rate Regulation on the Financial Statements — Refer to Notes 1 and 4 to the financial statements.

Critical Audit Matter Description

The Company is subject to rate regulation by the Florida Public Service Commission (the “Commission”), which has jurisdiction with respect to the electric rates of the Company. Management has determined it meets the criteria for the application of regulated operations accounting in preparing its financial statements under accounting principles generally accepted in the United States of America. Judgment can be required to determine if otherwise recognizable incurred costs qualify to be presented as a regulatory asset and deferred because such costs are probable of future recovery in customer rates.

We identified the impact of rate regulation related to regulatory assets as a critical audit matter due to the judgments made by management, including assumptions regarding the outcome of future decisions by the Commission to support its assertions on the likelihood of future recovery for deferred costs. Given that management’s accounting judgments are based on assumptions about the outcome of future decisions by the Commission, auditing these judgments required specialized knowledge of accounting for rate regulation and the ratemaking process due to its inherent complexities as it relates to regulatory assets.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the recovery of regulatory assets included the following, among others:

• We tested the effectiveness of management’s controls over the evaluation of the likelihood of the recovery in future rates and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates.

• We evaluated the Company’s disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

• We read relevant regulatory orders issued by the Commission and other publicly available information to assess the likelihood of recovery in future rates. We evaluated the external information and compared it to management’s recorded balances for completeness.

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

• We evaluated the reasonableness of management’s judgments regarding the recoverability of regulatory asset balances by performing the following to inform our understanding of the composition of the balances:

REPORTS

–We inquired of management regarding changes in the regulatory environment (i.e., recently approved orders) and regulatory asset balances during the year.

–We evaluated the reasonableness of such changes based on our knowledge of commission-approved amortization, incurred costs, and recently approved regulatory orders, as applicable.

–We utilized trend analyses to evaluate the historical consistency of regulatory asset balances.

• We obtained representation from management asserting that regulatory assets recorded in the financial statements are probable of recovery.

/s/ Deloitte & Touche LLP

Charlotte, North Carolina

February 26, 2026

We have served as the Company's auditor since 2001.

FINANCIAL STATEMENTS

DUKE ENERGY FLORIDA, LLC

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

			Years Ended December 31,
(in millions)			2025						2024						2023
Operating Revenues			$	7,105					$	6,595					$	7,036
Operating Expenses
Fuel used in electric generation and purchased power			1,749						2,346						2,823
Operation, maintenance and other			1,865						1,055						1,239
Depreciation and amortization			1,137						1,057						885
Property and other taxes			486						440						480
Impairment of assets and other charges			—						—						(1)
Total operating expenses			5,237						4,898						5,426
Gains on Sales of Other Assets and Other, net			3						3						2
Operating Income			1,871						1,700						1,612
Other Income and Expenses, net			90						86						78
Interest Expense			479						457						413
Income Before Income Taxes			1,482						1,329						1,277
Income Tax Expense			289						268						261
Net Income			$	1,193					$	1,061					$	1,016
Other Comprehensive Income, net of tax
Unrealized gains on available-for-sale securities			—						—						3
Other Comprehensive Income, net of tax			—						—						3
Comprehensive Income			$	1,193					$	1,061					$	1,019

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY FLORIDA, LLC

CONSOLIDATED BALANCE SHEETS

			December 31,
(in millions)			2025						2024
ASSETS
Current Assets
Cash and cash equivalents			$	21					$	33
Receivables (net of allowance for doubtful accounts of $27 at 2025 and $29 at 2024)			591						544
Receivables of VIEs			3						—
Receivables from affiliated companies			68						21
Notes receivable from affiliated companies			65						—
Inventory (includes $669 at 2025 and $494 at 2024 related to VIEs)			847						745
Regulatory assets (includes $62 at 2025 and $61 at 2024 related to VIEs)			102						1,022
Other (includes $34 at 2025 and $35 at 2024 related to VIEs)			52						227
Total current assets			1,749						2,592
Property, Plant and Equipment
Cost			33,160						30,490
Accumulated depreciation and amortization			(8,437)						(7,650)
Net property, plant and equipment			24,723						22,840
Other Noncurrent Assets
Regulatory assets (includes $682 at 2025 and $741 at 2024 related to VIEs)			2,106						2,064
Nuclear decommissioning trust funds			296						331
Operating lease right-of-use assets, net			221						277
Other			561						465
Total other noncurrent assets			3,184						3,137
Total Assets			$	29,656					$	28,569
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (includes $289 at 2025 and $208 at 2024 related to VIEs)			$	792					$	1,418
Accounts payable to affiliated companies			171						67
Notes payable to affiliated companies			—						466
Taxes accrued			69						60
Interest accrued			87						86
Current maturities of long-term debt (includes $61 at 2025 and $59 at 2024 related to VIEs)			437						534
Asset retirement obligations			2						1
Regulatory liabilities			76						174
Other			375						342
Total current liabilities			2,009						3,148
Long-Term Debt (includes $712 at 2025 and $773 at 2024 related to VIEs)			10,870						9,814
Other Noncurrent Liabilities
Deferred income taxes			3,005						3,024
Asset retirement obligations			195						213
Regulatory liabilities			794						688
Operating lease liabilities			168						225
Accrued pension and other post-retirement benefit costs			88						92
Investment tax credits			240						241
Other			165						143
Total other noncurrent liabilities			4,655						4,626
Commitments and Contingencies
Equity
Member's equity			12,127						10,986
Accumulated other comprehensive loss			(5)						(5)
Total equity			12,122						10,981
Total Liabilities and Equity			$	29,656					$	28,569

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY FLORIDA, LLC

CONSOLIDATED STATEMENTS OF CASH FLOWS

			Years Ended December 31,
(in millions)			2025						2024						2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income			$	1,193					$	1,061					$	1,016
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion			2,063						1,239						1,260
Equity component of AFUDC			(17)						(13)						(15)
(Gains) Losses on sales of other assets			(3)						(3)						(2)
Impairment of assets and other charges			—						—						(1)
Deferred income taxes			(48)						265						(89)
Contributions to qualified pension plans			(10)						(9)						(9)
Payments for asset retirement obligations			(38)						(82)						(80)
(Increase) decrease in
Receivables			(2)						37						30
Receivables from affiliated companies			(47)						217						(236)
Inventory			(89)						(58)						(101)
Other current assets			310						(456)						496
Increase (decrease) in
Accounts payable			(767)						803						(241)
Accounts payable to affiliated companies			104						(68)						(42)
Taxes accrued			17						(129)						132
Other current liabilities			(60)						37						3
Other assets			(89)						(309)						165
Other liabilities			(10)						38						101
Net cash provided by operating activities			2,507						2,570						2,387
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures			(2,698)						(2,449)						(2,529)
Purchases of debt and equity securities			(209)						(223)						(184)
Proceeds from sales and maturities of debt and equity securities			255						330						261
Notes receivable from affiliated companies			(65)						—						—
Other			(207)						(292)						(185)
Net cash used in investing activities			(2,924)						(2,634)						(2,637)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt			1,807						279						1,564
Payments for the redemption of long-term debt			(885)						(395)						(879)
Notes payable to affiliated companies			(466)						314						(453)
Contributions from parent			138						—						—
Distributions to parent			(188)						(125)						—
Other			(2)						(1)						(1)
Net cash provided by financing activities			404						72						231
Net (decrease) increase in cash, cash equivalents and restricted cash			(13)						8						(19)
Cash, cash equivalents and restricted cash at beginning of period			75						67						86
Cash, cash equivalents and restricted cash at end of period			$	62					$	75					$	67
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized			$	473					$	442					$	394
Cash paid for income taxes, net (includes transferable tax credit sale proceeds of $69, $47 and $28 for 2025, 2024 and 2023, respectively)			167						270						219
Significant non-cash transactions:
Accrued capital expenditures			540						371						493

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY FLORIDA, LLC

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

																					Accumulated
																					Other
																					Comprehensive
																					Income (Loss)
																					Net Unrealized
																					Gains (Losses) on
															Member's						Available-for-												Total
(in millions)															Equity						Sale Securities												Equity
Balance at December 31, 2022															$	9,031					$	(8)											$	9,023
Net income															1,016						—												1,016
Other comprehensive income															—						3												3
Other															1						—												1
Balance at December 31, 2023															$	10,048					$	(5)											$	10,043
Net income															1,061						—												1,061
Distributions to parent															(125)						—												(125)
Other															2						—												2
Balance at December 31, 2024															$	10,986					$	(5)											$	10,981
Net income															1,193						—												1,193
Distributions to parent															(188)						—												(188)
Contributions from parent															138						—												138
Other															(2)						—												(2)
Balance at December 31, 2025															$	12,127					$	(5)											$	12,122

See Notes to Consolidated Financial Statements

REPORTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholder and the Board of Directors of Duke Energy Ohio, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Duke Energy Ohio, Inc. and subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of operations and comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Regulatory Matters – Impact of Rate Regulation on the Financial Statements – Refer to Notes 1 and 4 to the financial statements.

Critical Audit Matter Description

The Company is subject to rate regulation by the Public Utilities Commission of Ohio and by the Kentucky Public Service Commission (collectively the “Commissions”), which have jurisdiction with respect to the electric and gas rates of the Company. Management has determined it meets the criteria for the application of regulated operations accounting in preparing its financial statements under accounting principles generally accepted in the United States of America. Judgment can be required to determine if otherwise recognizable incurred costs qualify to be presented as a regulatory asset and deferred because such costs are probable of future recovery in customer rates.

We identified the impact of rate regulation related to regulatory assets as a critical audit matter due to the judgments made by management, including assumptions regarding the outcome of future decisions by the Commissions to support its assertions on the likelihood of future recovery for deferred costs. Given that management’s accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the ratemaking process due to its inherent complexities as it relates to regulatory assets.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the recovery of regulatory assets included the following, among others:

• We tested the effectiveness of management’s controls over the evaluation of the likelihood of recovery in future rates and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates.

• We evaluated the Company’s disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

• We read relevant regulatory orders issued by the Commissions and other publicly available information to assess the likelihood of recovery in future rates. We evaluated the external information and compared it to management’s recorded balances for completeness.

• 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.

REPORTS

• We evaluated the reasonableness of management’s judgments regarding the recoverability of regulatory asset balances by performing the following to inform our understanding of the composition of the balances:

–We inquired of management regarding changes in the regulatory environment (i.e., recently approved orders) and regulatory asset balances during the year.

–We evaluated the reasonableness of such changes based on our knowledge of commission-approved amortization, incurred costs, and recently approved regulatory orders, as applicable.

–We utilized trend analyses to evaluate the historical consistency of regulatory asset balances.

• We obtained representation from management asserting that regulatory assets recorded in the financial statements are probable of recovery.

/s/ Deloitte & Touche LLP

Charlotte, North Carolina

February 26, 2026

We have served as the Company's auditor since 2002.

FINANCIAL STATEMENTS

DUKE ENERGY OHIO, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

			Years Ended December 31,
(in millions)			2025						2024						2023
Operating Revenues
Regulated electric			$	2,045					$	1,905					$	1,868
Regulated natural gas			752						640						639
Total operating revenues			2,797						2,545						2,507
Operating Expenses
Fuel used in electric generation and purchased power			626						538						608
Cost of natural gas			199						142						163
Operation, maintenance and other			490						485						478
Depreciation and amortization			466						403						367
Property and other taxes			432						400						364
Impairment of assets and other charges			—						—						3
Total operating expenses			2,213						1,968						1,983
Gains on Sales of Other Assets and Other, net			1						1						1
Operating Income			585						578						525
Other Income and Expenses, net			24						19						41
Interest Expense			203						192						169
Income Before Income Taxes			406						405						397
Income Tax Expense			68						64						63
Net Income and Comprehensive Income			$	338					$	341					$	334

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY OHIO, INC.

CONSOLIDATED BALANCE SHEETS

			December 31,
(in millions)			2025						2024
ASSETS
Current Assets
Cash and cash equivalents			$	18					$	24
Receivables (net of allowance for doubtful accounts of $51 at 2025 and $43 at 2024)			473						447
Receivables from affiliated companies			12						11
Notes receivable from affiliated companies			111						28
Inventory			187						183
Regulatory assets			86						88
Other			37						30
Total current assets			924						811
Property, Plant and Equipment
Cost			14,627						13,918
Accumulated depreciation and amortization			(3,812)						(3,674)
Net property, plant and equipment			10,815						10,244
Other Noncurrent Assets
Goodwill			920						920
Regulatory assets			686						705
Operating lease right-of-use assets, net			5						6
Other			96						82
Total other noncurrent assets			1,707						1,713
Total Assets			$	13,446					$	12,768
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable			$	333					$	313
Accounts payable to affiliated companies			91						52
Notes payable to affiliated companies			13						162
Taxes accrued			377						363
Interest accrued			51						49
Current maturities of long-term debt			45						245
Asset retirement obligations			6						8
Regulatory liabilities			57						34
Other			77						67
Total current liabilities			1,050						1,293
Long-Term Debt			4,350						3,895
Long-Term Debt Payable to Affiliated Companies			25						25
Other Noncurrent Liabilities
Deferred income taxes			1,341						1,314
Asset retirement obligations			129						131
Regulatory liabilities			470						465
Operating lease liabilities			5						6
Accrued pension and other post-retirement benefit costs			88						89
Other			90						91
Total other noncurrent liabilities			2,123						2,096
Commitments and Contingencies
Equity
Common stock, $8.50 par value, 120 million shares authorized; 90 million shares outstanding at 2025 and 2024			762						762
Additional paid-in capital			3,219						3,118
Retained earnings			1,917						1,579
Total equity			5,898						5,459
Total Liabilities and Equity			$	13,446					$	12,768

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY OHIO, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

			Years Ended December 31,
(in millions)			2025						2024						2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income			$	338					$	341					$	334
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion			470						408						371
Equity component of AFUDC			(16)						(7)						(9)
Impairment of assets and other charges			—						—						3
Deferred income taxes			—						8						113
Contributions to qualified pension plans			(6)						(5)						(5)
Payments for asset retirement obligations			(5)						(6)						(13)
(Increase) decrease in
Receivables			(27)						2						(38)
Receivables from affiliated companies			(1)						57						(40)
Inventory			(4)						(4)						(35)
Other current assets			(29)						78						(23)
Increase (decrease) in
Accounts payable			38						(10)						(34)
Accounts payable to affiliated companies			39						(19)						(1)
Taxes accrued			14						47						(1)
Other current liabilities			42						(5)						(54)
Other assets			8						45						(24)
Other liabilities			32						(25)						(38)
Net cash provided by operating activities			893						905						506
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures			(929)						(815)						(939)
Net proceeds from the sales of other assets			—						—						75
Notes receivable from affiliated companies			(83)						(194)						48
Other			(88)						(88)						(67)
Net cash used in investing activities			(1,100)						(1,097)						(883)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt			496						644						774
Payments for the redemption of long-term debt			(245)						—						(500)
Notes payable to affiliated companies			(149)						(451)						116
Contributions from parent			100						—						—
Other			(1)						(1)						(5)
Net cash provided by financing activities			201						192						385
Net (decrease) increase in cash and cash equivalents			(6)						—						8
Cash and cash equivalents at beginning of period			24						24						16
Cash and cash equivalents at end of period			$	18					$	24					$	24
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized			$	195					$	175					$	158
Cash paid for (received from) income taxes			103						(79)						58
Significant non-cash transactions:
Accrued capital expenditures			92						99						115

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY OHIO, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

									Additional
			Common						Paid-in						Retained												Total
(in millions)			Stock						Capital						Earnings												Equity
Balance at December 31, 2022			$	762					$	3,100					$	904											$	4,766
Net income			—						—						334												334
Balance at December 31, 2023			$	762					$	3,100					$	1,238											$	5,100
Net income			—						—						341												341
Other			—						18						—												18
Balance at December 31, 2024			$	762					$	3,118					$	1,579											$	5,459
Net income			—						—						338												338
Contributions from parent			—						100						—												100
Other			—						1						—												1
Balance at December 31, 2025			$	762					$	3,219					$	1,917											$	5,898

See Notes to Consolidated Financial Statements

REPORTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholder and the Board of Directors of Duke Energy Indiana, LLC

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Duke Energy Indiana, LLC and subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of operations and comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Regulatory Matters – Impact of Rate Regulation on the Financial Statements – Refer to Notes 1 and 4 to the financial statements.

Critical Audit Matter Description

The Company is subject to rate regulation by the Indiana Utility Regulatory Commission (the “Commission”), which has jurisdiction with respect to the electric rates of the Company. Management has determined it meets the criteria for the application of regulated operations accounting in preparing its financial statements under accounting principles generally accepted in the United States of America. Judgment can be required to determine if otherwise recognizable incurred costs qualify to be presented as a regulatory asset and deferred because such costs are probable of future recovery in customer rates.

We identified the impact of rate regulation related to regulatory assets as a critical audit matter due to the judgments made by management, including assumptions regarding the outcome of future decisions by the Commission to support its assertions on the likelihood of future recovery for deferred costs. Given that management’s accounting judgments are based on assumptions about the outcome of future decisions by the Commission, auditing these judgments required specialized knowledge of accounting for rate regulation and the ratemaking process due to its inherent complexities as it relates to regulatory assets.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the recovery of regulatory assets included the following, among others:

• We tested the effectiveness of management’s controls over the evaluation of the likelihood of the recovery in future rates and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates.

• We evaluated the Company’s disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

• We read relevant regulatory orders issued by the Commission and other publicly available information to assess the likelihood of recovery in future rates. We evaluated the external information and compared it to management’s recorded balances for completeness.

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

REPORTS

• We evaluated the reasonableness of management’s judgments regarding the recoverability of regulatory asset balances by performing the following to inform our understanding of the composition of the balances:

–We inquired of management regarding changes in the regulatory environment (i.e., recently approved orders) and regulatory asset balances during the year.

–We evaluated the reasonableness of such changes based on our knowledge of commission-approved amortization, incurred costs, and recently approved regulatory orders, as applicable.

–We utilized trend analyses to evaluate the historical consistency of regulatory asset balances.

• We obtained representation from management asserting that regulatory assets recorded in the financial statements are probable of recovery.

/s/ Deloitte & Touche LLP

Charlotte, North Carolina

February 26, 2026

We have served as the Company's auditor since 2002.

FINANCIAL STATEMENTS

DUKE ENERGY INDIANA, LLC

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

			Years Ended December 31,
(in millions)			2025						2024						2023
Operating Revenues			$	3,544					$	3,040					$	3,399
Operating Expenses
Fuel used in electric generation and purchased power			1,065						964						1,217
Operation, maintenance and other			811						671						713
Depreciation and amortization			823						676						666
Property and other taxes			61						50						59
Total operating expenses			2,760						2,361						2,655
Operating Income			784						679						744
Other Income and Expenses, net			61						62						76
Interest Expense			243						229						213
Income Before Income Taxes			602						512						607
Income Tax Expense			82						71						110
Net Income			$	520					$	441					$	497
Other Comprehensive Loss, net of tax
Pension and OPEB adjustments			$	—					$	(1)					$	—
Comprehensive Income			$	520					$	440					$	497

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY INDIANA, LLC

CONSOLIDATED BALANCE SHEETS

			December 31,
(in millions)			2025						2024
ASSETS
Current Assets
Cash and cash equivalents			$	12					$	13
Receivables (net of allowance for doubtful accounts of $15 at 2025 and 2024)			458						423
Receivables from affiliated companies			25						1
Inventory			531						586
Regulatory assets			193						113
Other			36						69
Total current assets			1,255						1,205
Property, Plant and Equipment
Cost			21,241						19,970
Accumulated depreciation and amortization			(7,492)						(6,848)
Net property, plant and equipment			13,749						13,122
Other Noncurrent Assets
Regulatory assets			1,032						1,040
Operating lease right-of-use assets, net			32						37
Other			278						323
Total other noncurrent assets			1,342						1,400
Total Assets			$	16,346					$	15,727
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable			$	360					$	257
Accounts payable to affiliated companies			38						57
Notes payable to affiliated companies			175						10
Taxes accrued			101						168
Interest accrued			62						59
Current maturities of long-term debt			4						4
Asset retirement obligations			133						164
Regulatory liabilities			275						183
Other			216						183
Total current liabilities			1,364						1,085
Long-Term Debt			4,939						4,644
Long-Term Debt Payable to Affiliated Companies			150						150
Other Noncurrent Liabilities
Deferred income taxes			1,525						1,494
Asset retirement obligations			992						1,104
Regulatory liabilities			1,185						1,404
Operating lease liabilities			28						33
Accrued pension and other post-retirement benefit costs			75						82
Investment tax credits			183						186
Other			14						19
Total other noncurrent liabilities			4,002						4,322
Commitments and Contingencies
Equity
Member's equity			5,891						5,526
Total equity			5,891						5,526
Total Liabilities and Equity			$	16,346					$	15,727

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY INDIANA, LLC

CONSOLIDATED STATEMENTS OF CASH FLOWS

			Years Ended December 31,
(in millions)			2025						2024						2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income			$	520					$	441					$	497
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion			827						679						669
Equity component of AFUDC			(34)						(19)						(10)
Deferred income taxes			(56)						(11)						91
Contributions to qualified pension plans			(8)						(8)						(8)
Payments for asset retirement obligations			(92)						(80)						(81)
(Increase) decrease in
Receivables			(38)						27						(40)
Receivables from affiliated companies			(24)						5						(8)
Inventory			56						(4)						(93)
Other current assets			(54)						70						138
Increase (decrease) in
Accounts payable			(6)						(44)						(83)
Accounts payable to affiliated companies			(19)						(78)						42
Taxes accrued			(67)						102						(26)
Other current liabilities			101						(70)						128
Other assets			(9)						(33)						(69)
Other liabilities			(52)						46						7
Net cash provided by operating activities			1,045						1,023						1,154
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures			(1,332)						(935)						(961)
Purchases of debt and equity securities			(62)						(133)						(68)
Proceeds from sales and maturities of debt and equity securities			137						132						55
Notes receivable from affiliated companies			—						(117)						109
Other			(91)						(46)						(66)
Net cash used in investing activities			(1,348)						(1,099)						(931)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt			297						298						495
Payments for the redemption of long-term debt			(4)						(4)						(303)
Notes payable to affiliated companies			165						(246)						(178)
Contributions from parent			—						235						—
Distributions to parent			(155)						(201)						(259)
Other			(1)						(1)						(1)
Net cash provided by (used in) financing activities			302						81						(246)
Net (decrease) increase in cash and cash equivalents			(1)						5						(23)
Cash and cash equivalents at beginning of period			13						8						31
Cash and cash equivalents at end of period			$	12					$	13					$	8
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized			$	236					$	219					$	202
Cash paid for (received from) income taxes			208						(80)						90
Significant non-cash transactions:
Accrued capital expenditures			235						115						114

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

DUKE ENERGY INDIANA, LLC

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

									Accumulated
									Other
									Comprehensive
									Income
									Pension
			Member's						and OPEB						Total
(in millions)			Equity						Adjustments						Equity
Balance at December 31, 2022			$	4,702					$	1					$	4,703
Net income			497						—						497
Distributions to parent			(187)						—						(187)
Balance at December 31, 2023			$	5,012					$	1					$	5,013
Net income			441						—						441
Contributions from parent			235						—						235
Distributions to parent			(160)						—						(160)
Other			(2)						(1)						(3)
Balance at December 31, 2024			$	5,526					$	—					$	5,526
Net income			520						—						520
Distributions to parent			(155)						—						(155)
Balance at December 31, 2025			$	5,891					$	—					$	5,891

See Notes to Consolidated Financial Statements

REPORTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholder and the Board of Directors of Piedmont Natural Gas Company, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Piedmont Natural Gas Company, Inc. and subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of operations and comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024 and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Regulatory Matters – Impact of Rate Regulation on the Financial Statements – Refer to Notes 1 and 4 to the financial statements.

Critical Audit Matter Description

The Company is subject to rate regulation by the North Carolina Utilities Commission, the Public Service Commission of South Carolina, and the Tennessee Public Utility Commission (collectively the “Commissions”), which have jurisdiction with respect to the gas rates of the Company. Management has determined it meets the criteria for the application of regulated operations accounting in preparing its financial statements under accounting principles generally accepted in the United States of America. Judgment can be required to determine if otherwise recognizable incurred costs qualify to be presented as a regulatory asset and deferred because such costs are probable of future recovery in customer rates.

We identified the impact of rate regulation related to regulatory assets as a critical audit matter due to the judgments made by management, including assumptions regarding the outcome of future decisions by the Commissions to support its assertions on the likelihood of future recovery for deferred costs. Given that management’s accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the ratemaking process due to its inherent complexities as it relates to regulatory assets.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the recovery of regulatory assets included the following, among others:

• We tested the effectiveness of management’s controls over the evaluation of the likelihood of recovery in future rates and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates.

• We evaluated the Company’s disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

• We read relevant regulatory orders issued by the Commissions and other publicly available information to assess the likelihood of recovery in future rates. We evaluated the external information and compared it to management’s recorded balances for completeness.

• 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.

REPORTS

• We evaluated the reasonableness of management’s judgments regarding the recoverability of regulatory asset balances by performing the following to inform our understanding of the composition of the balances:

–We inquired of management regarding changes in the regulatory environment (i.e., recently approved orders) and regulatory asset balances during the year.

–We evaluated the reasonableness of such changes based on our knowledge of commission-approved amortization, incurred costs, and recently approved regulatory orders, as applicable.

–We utilized trend analyses to evaluate the historical consistency of regulatory asset balances.

• We obtained representation from management asserting that regulatory assets recorded in the financial statements are probable of recovery.

/s/ Deloitte & Touche LLP

Charlotte, North Carolina

February 26, 2026

We have served as the Company's auditor since 1951.

FINANCIAL STATEMENTS

PIEDMONT NATURAL GAS COMPANY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

			Years Ended December 31,
(in millions)			2025						2024						2023
Operating Revenues
Regulated natural gas			$	2,209					$	1,702					$	1,603
Nonregulated natural gas and other			28						27						25
Total operating revenues			2,237						1,729						1,628
Operating Expenses
Cost of natural gas			784						423						430
Operation, maintenance and other			408						359						344
Depreciation and amortization			282						261						237
Property and other taxes			67						55						59
Impairment of assets and other charges			—						—						(4)
Total operating expenses			1,541						1,098						1,066
Operating Income			696						631						562
Other Income and Expenses
Equity in earnings of unconsolidated affiliates			8						8						9
Other income and expenses, net			41						54						57
Total other income and expenses			49						62						66
Interest Expense			193						185						165
Income Before Income Taxes			552						508						463
Income Tax Expense			112						95						84
Net Income and Comprehensive Income			$	440					$	413					$	379

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

PIEDMONT NATURAL GAS COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

			December 31,
(in millions)			2025						2024
ASSETS
Current Assets
Cash and cash equivalents			$	1					$	2
Receivables (net of allowance for doubtful accounts of $6 at 2025 and $7 at 2024)			390						306
Receivables from affiliated companies			8						16
Inventory			77						66
Assets held for sale			109						92
Regulatory assets			106						141
Other			8						10
Total current assets			699						633
Property, Plant and Equipment
Cost			11,325						10,712
Accumulated depreciation and amortization			(2,168)						(2,041)
Net property, plant and equipment			9,157						8,671
Other Noncurrent Assets
Goodwill			39						39
Regulatory assets			350						387
Operating lease right-of-use assets, net			2						4
Investments in unconsolidated affiliates			76						76
Assets held for sale			1,864						1,722
Other			283						267
Total other noncurrent assets			2,614						2,495
Total Assets			$	12,470					$	11,799
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable			$	286					$	195
Accounts payable to affiliated companies			90						26
Notes payable to affiliated companies			609						739
Taxes accrued			106						83
Interest accrued			41						44
Current maturities of long-term debt			490						205
Liabilities associated with assets held for sale			66						52
Regulatory liabilities			20						64
Other			81						72
Total current liabilities			1,789						1,480
Long-Term Debt			3,761						3,798
Other Noncurrent Liabilities
Deferred income taxes			1,071						1,018
Asset retirement obligations			25						24
Regulatory liabilities			802						783
Operating lease liabilities			2						7
Accrued pension and other post-retirement benefit costs			7						7
Liabilities associated with assets held for sale			170						182
Other			89						146
Total other noncurrent liabilities			2,166						2,167
Commitments and Contingencies
Equity
Common stock, no par value: 100 shares authorized and outstanding at 2025 and 2024			1,635						1,635
Retained earnings			3,118						2,718
Total Piedmont Natural Gas Company, Inc. stockholder's equity			4,753						4,353
Noncontrolling interests			1						1
Total equity			4,754						4,354
Total Liabilities and Equity			$	12,470					$	11,799

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

PIEDMONT NATURAL GAS COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

			Years Ended December 31,
(in millions)			2025						2024						2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income			$	440					$	413					$	379
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			285						264						239
Equity component of AFUDC			(17)						(21)						(21)
Impairment of assets and other charges			—						—						(4)
Deferred income taxes			40						60						38
Equity in earnings of unconsolidated affiliates			(8)						(8)						(9)
Contributions to qualified pension plans			(3)						(3)						(3)
(Increase) decrease in
Receivables			(105)						(61)						127
Receivables from affiliated companies			8						(6)						1
Inventory			(10)						34						58
Other current assets			40						(9)						(46)
Increase (decrease) in
Accounts payable			55						40						(45)
Accounts payable to affiliated companies			64						(28)						3
Taxes accrued			22						(5)						15
Other current liabilities			(35)						(13)						27
Other assets			7						(16)						(7)
Other liabilities			(6)						17						10
Net cash provided by operating activities			777						658						762
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures			(807)						(1,025)						(1,036)
Other			(44)						(54)						(54)
Net cash used in investing activities			(851)						(1,079)						(1,090)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt			450						373						348
Payments for the redemption of long-term debt			(205)						(40)						(45)
Notes payable to affiliated companies			(131)						200						25
Dividends to parent			(40)						(110)						—
Other			(1)						—						—
Net cash provided by financing activities			73						423						328
Net (decrease) increase in cash and cash equivalents			(1)						2						—
Cash and cash equivalents at beginning of period			2						—						—
Cash and cash equivalents at end of period			$	1					$	2					$	—
Supplemental Disclosures:
Cash paid for interest, net of amount capitalized			$	193					$	176					$	162
Cash paid for income taxes			55						48						28
Significant non-cash transactions:
Accrued capital expenditures			169						105						223

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS

PIEDMONT NATURAL GAS COMPANY, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

																					Total
																					Piedmont
																					Natural Gas
			Common												Retained						Company, Inc.						Noncontrolling						Total
(in millions)			Stock												Earnings						Equity						Interests						Equity
Balance at December 31, 2022			$	1,635											$	2,037					$	3,672					$	1					$	3,673
Net income			—												379						379						—						379
Balance at December 31, 2023			$	1,635											$	2,416					$	4,051					$	1					$	4,052
Net income			—												413						413						—						413
Dividends to parent			—												(110)						(110)						—						(110)
Other			—												(1)						(1)						—						(1)
Balance at December 31, 2024			$	1,635											$	2,718					$	4,353					$	1					$	4,354
Net income			—												440						440						—						440
Dividends to parent			—												(40)						(40)						—						(40)
Balance at December 31, 2025			$	1,635											$	3,118					$	4,753					$	1					$	4,754

See Notes to Consolidated Financial Statements

FINANCIAL STATEMENTS			SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Index to Combined Notes To Consolidated Financial Statements

The notes to the consolidated financial statements are a combined presentation. The following table indicates the registrants to which the notes apply.

			Applicable Notes
Registrant			1			2			3			4			5			6			7			8			9			10			11			12			13			14			15			16			17			18			19			20			21			22			23			24			25
Duke Energy			•			•			•			•			•			•			•			•			•			•			•			•			•						•			•			•			•			•			•			•			•			•			•			•
Duke Energy Carolinas			•						•			•			•			•			•						•			•			•			•						•			•			•			•			•			•						•			•			•			•			•
Progress Energy			•						•			•			•			•			•									•			•			•						•			•			•			•			•			•						•			•			•			•			•
Duke Energy Progress			•						•			•			•			•			•									•			•			•						•			•			•			•			•			•						•			•			•			•			•
Duke Energy Florida			•			•			•			•			•			•			•									•			•			•						•			•			•			•			•			•						•			•			•			•			•
Duke Energy Ohio			•						•			•			•			•			•									•			•			•						•			•						•			•			•						•			•			•			•			•
Duke Energy Indiana			•						•			•			•			•			•						•			•			•			•						•			•			•			•			•			•						•			•			•			•			•
Piedmont			•			•			•			•			•			•			•									•			•			•			•			•			•						•						•						•			•			•			•			•

Tables within the notes may not sum across due to (i) Progress Energy's consolidation of Duke Energy Progress, Duke Energy Florida and other subsidiaries that are not registrants and (ii) subsidiaries that are not registrants but included in the consolidated Duke Energy balances.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations and Basis of Consolidation

Duke Energy is an energy company headquartered in Charlotte, North Carolina, subject to regulation by the FERC and other regulatory agencies listed below. Duke Energy operates in the U.S. primarily through its direct and indirect subsidiaries. Certain Duke Energy subsidiaries are also subsidiary registrants, including Duke Energy Carolinas; Progress Energy; Duke Energy Progress; Duke Energy Florida; Duke Energy Ohio; Duke Energy Indiana and Piedmont. When discussing Duke Energy’s consolidated financial information, it necessarily includes the results of its separate Subsidiary Registrants, which along with Duke Energy, are collectively referred to as the Duke Energy Registrants.

The information in these combined notes relates to each of the Duke Energy Registrants as noted in the Index to Combined Notes to Consolidated Financial Statements. However, none of the Subsidiary Registrants make any representation as to information related solely to Duke Energy or the Subsidiary Registrants of Duke Energy other than itself.

These Consolidated Financial Statements include, after eliminating intercompany transactions and balances, the accounts of the Duke Energy Registrants and subsidiaries or VIEs where the respective Duke Energy Registrants have control. See Note 18 for additional information on VIEs. These Consolidated Financial Statements also reflect the Duke Energy Registrants’ proportionate share of certain jointly owned generation and transmission facilities. See Note 9 for additional information on joint ownership. Substantially all of the Subsidiary Registrants' operations qualify for regulatory accounting.

Duke Energy Carolinas is a regulated public utility primarily engaged in the generation, transmission, distribution and sale of electricity in portions of North Carolina and South Carolina. Duke Energy Carolinas is subject to the regulatory provisions of the NCUC, PSCSC, NRC and FERC.

Progress Energy is a public utility holding company, which conducts operations through its subsidiaries, Duke Energy Progress and Duke Energy Florida. Progress Energy is subject to regulation by the NCUC, PSCSC, FPSC, NRC and FERC.

Duke Energy Progress is a regulated public utility primarily engaged in the generation, transmission, distribution and sale of electricity in portions of North Carolina and South Carolina. Duke Energy Progress is subject to the regulatory provisions of the NCUC, PSCSC, NRC and FERC.

Duke Energy Florida is a regulated public utility primarily engaged in the generation, transmission, distribution and sale of electricity in portions of Florida. Duke Energy Florida is subject to the regulatory provisions of the FPSC, NRC and FERC.

Duke Energy Ohio is a regulated public utility primarily engaged in the transmission and distribution of electricity in portions of Ohio and Kentucky, the generation and sale of electricity in portions of Kentucky and the transportation and sale of natural gas in portions of Ohio and Kentucky. Duke Energy Ohio conducts competitive auctions for retail electricity supply in Ohio whereby the energy price is recovered from retail customers and recorded in Operating Revenues on the Consolidated Statements of Operations and Comprehensive Income. Operations in Kentucky are conducted through Duke Energy Ohio's wholly owned subsidiary, Duke Energy Kentucky. References herein to Duke Energy Ohio collectively include Duke Energy Ohio and its subsidiaries, unless otherwise noted. Duke Energy Ohio is subject to the regulatory provisions of the PUCO, KPSC and FERC.

Duke Energy Indiana is a regulated public utility primarily engaged in the generation, transmission, distribution and sale of electricity in portions of Indiana. Duke Energy Indiana is subject to the regulatory provisions of the IURC and FERC.

Piedmont is a regulated public utility primarily engaged in the distribution of natural gas in portions of North Carolina, South Carolina and Tennessee. Piedmont is subject to the regulatory provisions of the NCUC, PSCSC, TPUC and FERC.

Certain prior year amounts have been reclassified to conform to the current year presentation.

FINANCIAL STATEMENTS			SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Other Current Assets and Liabilities

The following table provides a description of amounts included in Other within Current Assets or Current Liabilities that exceed 5% of total Current Assets or Current Liabilities on the Duke Energy Registrants' Consolidated Balance Sheets at either December 31, 2025, or 2024.

									December 31,
(in millions)			Location						2025						2024
Duke Energy Carolinas
Accrued compensation			Current Liabilities						$	302					$	234
Progress Energy
Customer deposits/Collateral liabilities			Current Liabilities						$	293					$	281
Duke Energy Progress
Accrued compensation			Current Liabilities						$	143					$	114
Duke Energy Florida
Tax receivables			Current Assets						$	12					$	166
Customer deposits/Collateral liabilities			Current Liabilities						191						164
Duke Energy Indiana
Customer advances			Current Liabilities						$	117					$	100

Discontinued Operations and Held For Sale

Duke Energy has elected to present cash flows of discontinued operations combined with cash flows of continuing operations. For all periods presented, unless otherwise noted, the disclosures related to balance sheet activity exclude amounts presented as held for sale and disclosures related to income statement activity exclude amounts related to discontinued operations. For the years ended December 31, 2024 and 2023, the Income (Loss) From Discontinued Operations, net of tax on Duke Energy's Consolidated Statements of Operations includes amounts related to NCI. A portion of NCI on Duke Energy's Consolidated Balance Sheet as of December 31, 2024 relates to discontinued operations. See Note 2 for discussion of discontinued operations related to the Commercial Renewables Disposal Groups.

Significant Accounting Policies

Use of Estimates

In preparing financial statements that conform to GAAP, the Duke Energy Registrants must make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.

Regulatory Accounting

The majority of the Duke Energy Registrants’ operations are subject to price regulation for the sale of electricity and natural gas by state utility commissions or FERC. When prices are set on the basis of specific costs of the regulated operations and an effective franchise is in place such that sufficient electric services or natural gas can be sold to recover those costs, the Duke Energy Registrants apply regulatory accounting. Regulatory accounting changes the timing of the recognition of costs or revenues relative to a company that does not apply regulatory accounting. As a result, regulatory assets and regulatory liabilities are recognized on the Consolidated Balance Sheets. Regulatory assets and liabilities are amortized consistent with the treatment of the related cost in the ratemaking process. Regulatory assets are reviewed for recoverability each reporting period. If a regulatory asset is no longer deemed probable of recovery, the deferred cost is charged to earnings. See Note 4 for further information.

Regulatory accounting rules also require recognition of a disallowance (also called "impairment") loss if it becomes probable that part of the cost of a plant under construction (or a recently completed plant or an abandoned plant) will be disallowed for ratemaking purposes and a reasonable estimate of the amount of the disallowance can be made. For example, if a cost cap is set for a plant still under construction, the amount of the disallowance is a result of a judgment as to the ultimate cost of the plant. These disallowances can require judgments on allowed future rate recovery.

When it becomes probable that regulated generation, transmission or distribution assets will be abandoned, the cost of the asset is removed from plant in service. The value that may be retained as a regulatory asset on the balance sheet for the abandoned property is dependent upon amounts that may be recovered through regulated rates, including any return. As such, an impairment charge could be partially or fully offset by the establishment of a regulatory asset if rate recovery is probable. The impairment charge for a disallowance of costs for regulated plants under construction, recently completed or abandoned is based on discounted cash flows.

The Duke Energy Registrants utilize cost-tracking mechanisms, commonly referred to as fuel adjustment clauses or PGA clauses. These clauses allow for the recovery of fuel and fuel-related costs, portions of purchased power, natural gas costs and hedging costs through surcharges on customer rates. The difference between the costs incurred and the surcharge revenues is recorded either as an adjustment to Operating Revenues, Operating Expenses – Fuel used in electric generation or Operating Expenses – Cost of natural gas on the Consolidated Statements of Operations, with an off-setting impact on regulatory assets or liabilities.

FINANCIAL STATEMENTS			SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Cash, Cash Equivalents and Restricted Cash

All highly liquid investments with maturities of three months or less at the date of acquisition are considered cash equivalents. Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress and Duke Energy Florida have restricted cash balances related primarily to collateral assets, escrow deposits and VIEs. See Note 18 for additional information. Restricted cash amounts are included in Other within Current Assets and Other Noncurrent Assets on the Consolidated Balance Sheets. The following table presents the components of cash, cash equivalents and restricted cash included on the Consolidated Balance Sheets.

			December 31, 2025																		December 31, 2024
						Duke						Duke			Duke									Duke						Duke			Duke
			Duke			Energy			Progress			Energy			Energy						Duke			Energy			Progress			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida						Energy			Carolinas			Energy			Progress			Florida
Current Assets
Cash and cash equivalents			$	245		$	3		$	54		$	16		$	21					$	314		$	6		$	73		$	24		$	33
Other			84			12			71			38			34						84			9			76			40			35
Other Noncurrent Assets
Other			34			7			14			7			7						20			1			11			5			7
Total cash, cash equivalents and restricted cash			$	363		$	22		$	139		$	61		$	62					$	418		$	16		$	160		$	69		$	75

Inventory

Inventory related to regulated operations is valued at historical cost. Inventory is charged to expense or capitalized to property, plant and equipment when issued, primarily using the average cost method. Excess or obsolete inventory is written down to the lower of cost or net realizable value. Once inventory has been written down, it creates a new cost basis for the inventory that is not subsequently written up. Provisions for inventory write-offs were not material at December 31, 2025, and 2024, respectively. The components of inventory are presented in the tables below.

			December 31, 2025
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Materials and supplies			$	3,542					$	1,157					$	1,789					$	1,109					$	680					$	155					$	398					$	10
Coal			715						328						235						155						80						21						131						—
Natural gas, oil and other			312						45						186						99						87						11						2						67
Total inventory			$	4,569					$	1,530					$	2,210					$	1,363					$	847					$	187					$	531					$	77

			December 31, 2024
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Materials and supplies			$	3,386					$	1,150					$	1,649					$	1,074					$	576					$	149					$	389					$	11
Coal			801						341						241						164						77						23						196						—
Natural gas, oil and other			309						45						196						103						92						11						1						55
Total inventory			$	4,496					$	1,536					$	2,086					$	1,341					$	745					$	183					$	586					$	66

Investments in Debt and Equity Securities

The Duke Energy Registrants classify investments in equity securities as FV-NI and investments in debt securities as AFS. Both categories are recorded at fair value on the Consolidated Balance Sheets. Realized and unrealized gains and losses on securities classified as FV-NI are reported through net income. Unrealized gains and losses for debt securities classified as AFS are included in AOCI until realized, unless it is determined the carrying value of an investment has a credit loss. For certain investments of regulated operations, such as substantially all of the NDTF, realized and unrealized gains and losses (including any credit losses) on debt securities are recorded as a regulatory asset or liability. The credit loss portion of debt securities of nonregulated operations are included in earnings. Investments in debt and equity securities are classified as either current or noncurrent based on management’s intent and ability to sell these securities, taking into consideration current market liquidity. See Note 16 for further information.

Goodwill

Duke Energy, Progress Energy, Duke Energy Ohio and Piedmont perform annual goodwill impairment tests as of August 31 each year at the reporting unit level, which is determined to be a business segment or one level below. Duke Energy, Progress Energy, Duke Energy Ohio and Piedmont update these tests between annual tests if events or circumstances occur that would more likely than not reduce the fair value of a reporting unit below its carrying value. See Note 12 for further information.

FINANCIAL STATEMENTS			SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Intangible Assets

Intangible assets are included in Other in Other Noncurrent Assets on the Consolidated Balance Sheets. Generally, intangible assets are amortized using an amortization method that reflects the pattern in which the economic benefits of the intangible asset are consumed or on a straight-line basis if that pattern is not readily determinable. Amortization of intangibles is reflected in Depreciation and amortization on the Consolidated Statements of Operations. Intangible assets are subject to impairment testing and, if impaired, the carrying value is accordingly reduced.

Renewable energy certificates are used to measure compliance with renewable energy standards and are held primarily for consumption. See Note 12 for further information.

Long-Lived Asset Impairments

The Duke Energy Registrants evaluate long-lived assets that are held and used, excluding goodwill, for impairment when circumstances indicate the carrying value of those assets may not be recoverable. An impairment exists when a long-lived asset’s carrying value exceeds the estimated undiscounted cash flows expected to result from the use and eventual disposition of the asset. The estimated cash flows may be based on alternative expected outcomes that are probability weighted. If the carrying value of the long-lived asset is not recoverable based on these estimated future undiscounted cash flows, the carrying value of the asset is written down to its then current estimated fair value and an impairment charge is recognized.

The Duke Energy Registrants assess fair value of long-lived assets that are held and used using various methods, including recent comparable third-party sales, internally developed discounted cash flow analysis and analysis from outside advisors. Triggering events to reassess cash flows may include, but are not limited to, significant changes in commodity prices, the condition of an asset or management’s interest in selling the asset.

Property, Plant and Equipment

Property, plant and equipment are stated at the lower of depreciated historical cost net of any disallowances or fair value, if impaired. The Duke Energy Registrants capitalize all construction-related direct labor and material costs, as well as indirect construction costs such as general engineering, taxes and financing costs. See “Allowance for Funds Used During Construction and Interest Capitalized” section below for information on capitalized financing costs. Costs of renewals and betterments that extend the useful life of property, plant and equipment are also capitalized. The cost of repairs, replacements and major maintenance projects that do not extend the useful life or increase the expected output of the asset are expensed as incurred. Depreciation is generally computed over the estimated useful life of the asset using the composite straight-line method. Depreciation studies are conducted periodically to update composite rates and are approved by state utility commissions and/or the FERC when required. The composite weighted average depreciation rates, excluding nuclear fuel, are included in the table that follows.

			Years Ended December 31,
			2025						2024						2023
Duke Energy			3.1		%				3.0		%				2.9		%
Duke Energy Carolinas			3.1		%				3.1		%				2.7		%
Progress Energy			3.2		%				3.3		%				3.3		%
Duke Energy Progress			3.2		%				3.2		%				3.1		%
Duke Energy Florida			3.2		%				3.5		%				3.5		%
Duke Energy Ohio			2.9		%				2.9		%				2.8		%
Duke Energy Indiana			4.3		%				3.6		%				3.6		%
Piedmont			2.2		%				2.2		%				2.1		%

In general, when the Duke Energy Registrants retire regulated property, plant and equipment, the original cost plus the cost of retirement, less salvage value and any depreciation already recognized, is charged to accumulated depreciation. However, when it becomes probable the asset will be retired substantially in advance of its original expected useful life or is abandoned, the cost of the asset and the corresponding accumulated depreciation is recognized as a separate asset. If the asset is still in operation, the net amount is classified as Facilities to be retired, net on the Consolidated Balance Sheets. If the asset is no longer operating, the net amount is classified in Regulatory assets on the Consolidated Balance Sheets if deemed recoverable (see discussion of long-lived asset impairments above). The carrying value of the asset is based on historical cost if the Duke Energy Registrants are allowed to recover the remaining net book value and a return equal to at least the incremental borrowing rate. If not, an impairment is recognized to the extent the net book value of the asset exceeds the present value of future revenues discounted at the incremental borrowing rate.

When the Duke Energy Registrants sell entire regulated operating units, the original cost and accumulated depreciation and amortization balances are removed from Property, Plant and Equipment on the Consolidated Balance Sheets. Any gain or loss is recorded in earnings, unless otherwise required by the applicable regulatory body. See Note 11 for additional information.

Other Noncurrent Assets

Duke Energy, through a nonregulated subsidiary, was the winner of the Carolina Long Bay offshore wind auction in May 2022. The historical cost of the rights acquired from the auction, totaling $150 million is recorded in Other within Other noncurrent assets on Duke Energy's Consolidated Balance Sheets as of December 31, 2025, and 2024.

FINANCIAL STATEMENTS			SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Leases

Duke Energy determines if an arrangement is a lease at contract inception based on whether the arrangement involves the use of a physically distinct identified asset and whether Duke Energy has the right to obtain substantially all of the economic benefits from the use of the asset throughout the period as well as the right to direct the use of the asset. As a policy election, Duke Energy does not evaluate arrangements with initial contract terms of less than one year as leases.

Operating leases are included in Operating lease ROU assets, net, Other current liabilities and Operating lease liabilities on the Consolidated Balance Sheets. Finance leases are included in Property, Plant and Equipment, Current maturities of long-term debt and Long-Term Debt on the Consolidated Balance Sheets.

For lessee and lessor arrangements, Duke Energy has elected a policy to not separate lease and non-lease components for all asset classes. For lessor arrangements, lease and non-lease components are only combined under one arrangement and accounted for under the lease accounting framework if the non-lease components are not the predominant component of the arrangement and the lease component would be classified as an operating lease.

Nuclear Fuel

Nuclear fuel is classified as Property, Plant and Equipment on the Consolidated Balance Sheets.

Nuclear fuel in the front-end fuel processing phase is considered work in progress and not amortized until placed in service. Amortization of nuclear fuel is included within Fuel used in electric generation and purchased power on the Consolidated Statements of Operations. Amortization is recorded using the units-of-production method.

Allowance for Funds Used During Construction and Interest Capitalized

For regulated operations, the debt and equity costs of financing the construction of property, plant and equipment are reflected as AFUDC and capitalized as a component of the cost of property, plant and equipment. AFUDC equity is reported on the Consolidated Statements of Operations as non-cash income in Other income and expenses, net. AFUDC debt is reported as a non-cash offset to Interest Expense. After construction is completed, the Duke Energy Registrants are permitted to recover these costs through their inclusion in rate base and the corresponding subsequent depreciation or amortization of those regulated assets.

AFUDC equity, a permanent difference for income taxes, reduces the ETR when capitalized and increases the ETR when depreciated or amortized. See Note 24 for additional information.

Asset Retirement Obligations

AROs are recognized for legal obligations associated with the retirement of property, plant and equipment. When recording an ARO, the present value of the projected liability is recognized in the period in which it is incurred, if a reasonable estimate of fair value can be made. The liability is accreted over time. For operating plants, the present value of the liability is added to the cost of the associated asset and depreciated over the remaining life of the asset. For retired plants, the present value of the liability is recorded as a regulatory asset unless determined not to be probable of recovery.

The present value of the initial obligation and subsequent updates are based on discounted cash flows, which include estimates regarding timing of future cash flows, selection of discount rates and cost escalation rates, among other factors. These estimates are subject to change. Depreciation expense is adjusted prospectively for any changes to the carrying amount of the associated asset. The Duke Energy Registrants receive amounts to fund the cost of the ARO for regulated operations through a combination of regulated revenues and earnings on the NDTF. As a result, amounts recovered in regulated revenues, earnings on the NDTF, accretion expense and depreciation of the associated asset are netted and deferred as a regulatory asset or liability.

Accounts Payable

Duke Energy has a voluntary supply chain finance program (the “program”) that allows Duke Energy suppliers, at their sole discretion, to sell their receivables from Duke Energy to a global financial institution at a rate that leverages Duke Energy’s credit rating and, which may result in favorable terms compared to the rate available to the supplier on their own credit rating. Suppliers participating in the program, determine at their sole discretion which invoices they will sell to the financial institution. Suppliers’ decisions on which invoices are sold do not impact Duke Energy’s payment terms, which are based on commercial terms negotiated between Duke Energy and the supplier regardless of program participation. The commercial terms negotiated between Duke Energy and its suppliers are consistent regardless of whether the supplier elects to participate in the program. Duke Energy does not issue any guarantees with respect to the program and does not participate in negotiations between suppliers and the financial institution. Duke Energy does not have an economic interest in the supplier’s decision to participate in the program and receives no interest, fees or other benefit from the financial institution based on supplier participation in the program.

FINANCIAL STATEMENTS			SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following table presents the amounts included within Accounts payable on the Consolidated Balance Sheets sold to the financial institution by our suppliers and the supplier invoices sold to the financial institution under the program included within Net cash provided by operating activities on the Consolidated Statements of Cash Flows as of December 31, 2025, and December 31, 2024.

			For the Years Ended December 31, 2024 and 2025
			Duke
(in millions)			Energy																					Piedmont
Confirmed obligations outstanding at December 31, 2023			$	50																				$	47
Invoices confirmed during the period			156																					152
Confirmed invoices paid during the period			(193)																					(187)
Confirmed obligations outstanding at December 31, 2024			$	13																				$	12
Invoices confirmed during the period			71																					69
Confirmed invoices paid during the period			(61)																					(58)
Confirmed obligations outstanding at December 31, 2025			$	23																				$	23

Revenue Recognition

Duke Energy recognizes revenue as customers obtain control of promised goods and services in an amount that reflects consideration expected in exchange for those goods or services. Generally, the delivery of electricity and natural gas results in the transfer of control to customers at the time the commodity is delivered and the amount of revenue recognized is equal to the amount billed to each customer, including estimated volumes delivered when billings have not yet occurred. See Note 19 for further information.

Alternative Revenue Programs

Duke Energy accounts for certain types of programs established by the regulators in the states in which it operates, including decoupling mechanisms, as alternative revenue programs. Alternative revenue programs are contracts between an entity and its regulator, not a contract between an entity and a customer. Revenue arising from alternative revenue programs is presented as Regulated electric revenues and Regulated natural gas revenues on the Consolidated Statements of Operations. Revenue from alternative revenue programs is recognized in the period they are earned (i.e., during the period of revenue shortfall or excess due to fluctuations in customer usage or when specific targets are met resulting in the achievement of performance incentives or penalties) and a regulatory asset or liability on the Consolidated Balance Sheets is established, which is subsequently billed or refunded to customers. Duke Energy recognizes revenue as alternative revenue programs for programs that have been authorized for rate recovery, are objectively determinable and probable of recovery, and are expected to be collected within 24 months. See Note 19 for disaggregated revenue information including revenue from contracts with customers and revenues recognized as alternative revenue programs.

Derivatives and Hedging

Derivative and non-derivative instruments may be used in connection with commodity price and interest rate activities, including swaps, futures, forwards and options. All derivative instruments, except those that qualify for the NPNS exception, are recorded on the Consolidated Balance Sheets at fair value. Qualifying derivative instruments may be designated as either cash flow hedges or fair value hedges. Other derivative instruments (undesignated contracts) either have not been designated or do not qualify as hedges. The effective portion of the change in the fair value of cash flow hedges is recorded in AOCI. The effective portion of the change in the fair value of a fair value hedge is offset in net income by changes in the hedged item. For activity subject to regulatory accounting, gains and losses on derivative contracts are reflected as regulatory assets or liabilities and not as other comprehensive income or current period income. As a result, changes in fair value of these derivatives have no immediate earnings impact.

Formal documentation, including transaction type and risk management strategy, is maintained for all contracts accounted for as a hedge. At inception and at least every three months thereafter, the hedge contract is assessed to see if it is highly effective in offsetting changes in cash flows or fair values of hedged items.

See Note 15 for further information.

Captive Insurance Reserves

Duke Energy has captive insurance subsidiaries that provide coverage, on an indemnity basis, to the Subsidiary Registrants as well as certain third parties, on a limited basis, for financial losses, primarily related to property, workers’ compensation and general liability. Liabilities include provisions for estimated losses incurred but not reported (IBNR), as well as estimated provisions for known claims. IBNR reserve estimates are primarily based upon historical loss experience, industry data and other actuarial assumptions. Reserve estimates are adjusted in future periods as actual losses differ from experience.

Duke Energy, through its captive insurance entities, also has reinsurance coverage with third parties for certain losses above a per occurrence and/or aggregate retention. Receivables for reinsurance coverage are recognized when realization is deemed probable.

Preferred Stock

Preferred stock is reviewed to determine the appropriate balance sheet classification and embedded features, such as call options, are evaluated to determine if they should be bifurcated and accounted for separately. Costs directly related to the issuance of preferred stock are recorded as a reduction of the proceeds received. The liability for the dividend is recognized when declared. The accumulated dividends on the cumulative preferred stock is recognized to net income available to Duke Energy Corporation in the EPS calculation. See Note 20 for further information.

FINANCIAL STATEMENTS			SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Loss Contingencies and Environmental Liabilities

Contingent losses are recorded when it is probable a loss has occurred and the loss can be reasonably estimated. When a range of the probable loss exists and no amount within the range is a better estimate than any other amount, the minimum amount in the range is recorded. Unless otherwise required by GAAP, legal fees are expensed as incurred.

Environmental liabilities are recorded on an undiscounted basis when environmental remediation or other liabilities become probable and can be reasonably estimated. Environmental expenditures related to past operations that do not generate current or future revenues are expensed. Environmental expenditures related to operations that generate current or future revenues are expensed or capitalized, as appropriate. Certain environmental expenditures receive regulatory accounting treatment and are recorded as regulatory assets.

See Notes 4 and 5 for further information.

Severance and Special Termination Benefits

Duke Energy maintains severance plans for the general employee population under which, in general, the longer a terminated employee worked prior to termination the greater the amount of severance benefits provided. A liability for involuntary severance is recorded once an involuntary severance plan is committed to by management if involuntary severances are probable and can be reasonably estimated. For involuntary severance benefits incremental to its ongoing severance plan benefits, the fair value of the obligation is expensed at the communication date if there are no future service requirements or over the required future service period. Duke Energy also offers special termination benefits under voluntary severance programs. Special termination benefits are recorded immediately upon employee acceptance absent a significant retention period. Otherwise, the cost is recorded over the remaining service period. Employee acceptance of voluntary severance benefits is determined by management based on the facts and circumstances of the benefits being offered. See Note 21 for further information.

Guarantees

If necessary, liabilities are recognized at the time of issuance or material modification of a guarantee for the estimated fair value of the obligation it assumes. Fair value is estimated using a probability weighted approach. The obligation is reduced over the term of the guarantee or related contract in a systematic and rational method as risk is reduced. Duke Energy recognizes a liability for the best estimate of its loss due to the nonperformance of the guaranteed party. This liability is recognized at the inception of a guarantee and is updated periodically. See Note 8 for further information.

Income Taxes

Duke Energy and its subsidiaries file a consolidated federal income tax return and other state and foreign jurisdictional returns. The Subsidiary Registrants are parties to a tax-sharing agreement with Duke Energy. Income taxes recorded represent amounts the Subsidiary Registrants would incur as separate C-Corporations. Deferred income taxes have been provided for temporary differences between GAAP and tax bases of assets and liabilities because the differences create taxable or tax-deductible amounts for future periods. ITCs associated with regulated operations are deferred and amortized as a reduction of income tax expense over the estimated useful lives of the related properties. PTCs associated with regulated operations reduce income tax expense or are deferred and amortized as a reduction of income tax expense over a period of time that is agreed upon by the regulatory authorities and the Subsidiary Registrants.

Accumulated deferred income taxes are valued using the enacted tax rate expected to apply to taxable income in the periods in which the deferred tax asset or liability is expected to be settled or realized. In the event of a change in tax rates, deferred tax assets and liabilities are remeasured as of the enactment date of the new rate. To the extent that the change in the value of the deferred tax represents an obligation to customers, the impact of the remeasurement is deferred to a regulatory liability. Remaining impacts are recorded in income from continuing operations. Duke Energy's results of operations could be impacted if the estimate of the tax effect of reversing temporary differences is not reflective of actual outcomes, is modified to reflect new developments or interpretations of the tax law, revised to incorporate new accounting principles, or changes in the expected timing or manner of a reversal.

Tax-related interest and penalties are recorded in Interest Expense and Other income and expenses, net on the Consolidated Statements of Operations.

See Note 24 for further information.

Excise Taxes

Certain excise taxes levied by state or local governments are required to be paid even if not collected from the customer. These taxes are recognized on a gross basis. Taxes for which Duke Energy operates merely as a collection agent for the state and local government are accounted for on a net basis. Excise taxes accounted for on a gross basis within both Operating Revenues and Property and other taxes on the Consolidated Statements of Operations were as follows.

			Years Ended December 31,
(in millions)			2025						2024						2023
Duke Energy			$	447					$	423					$	458
Duke Energy Carolinas			27						31						27
Progress Energy			307						285						322
Duke Energy Progress			8						9						5
Duke Energy Florida			299						276						317
Duke Energy Ohio			110						105						106
Duke Energy Indiana			—						—						1
Piedmont			3						2						2

FINANCIAL STATEMENTS			SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Dividend Restrictions and Unappropriated Retained Earnings

Duke Energy does not have any current legal, regulatory or other restrictions on paying common stock dividends to shareholders. However, if Duke Energy were to defer dividend payments on the preferred stock, the declaration of common stock dividends would be prohibited. See Note 20 for more information. Additionally, as further described in Note 4, Duke Energy Carolinas, Duke Energy Progress, Duke Energy Ohio, Duke Energy Indiana and Piedmont have restrictions on paying dividends or otherwise advancing funds to Duke Energy due to conditions established by regulators in conjunction with merger transaction approvals. At December 31, 2025, and 2024, an insignificant amount of Duke Energy’s consolidated Retained earnings balance represents undistributed earnings of equity method investments.

New Accounting Standards

Other than implementation of the enhanced income tax disclosure requirements as described in Note 24, no new accounting standards were adopted by any of the Duke Energy Registrants in 2025.

The following new accounting standard has been issued but not yet adopted by the Duke Energy Registrants as of December 31, 2025.

Disaggregation of Income Statement Expenses. In November 2024, the FASB issued new accounting guidance that requires disclosure of disaggregated information for certain cost and expense categories. This new guidance does not change the expense captions presented on the Consolidated Statements of Operations but requires disaggregation of certain expense captions into specified categories in disclosures within the notes to the financial statements. For Duke Energy Registrants, the amendments will be effective for fiscal years beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. Duke Energy is currently assessing implementation of this guidance on the financial statement disclosures and expects it will have no impact on the results of operations, cash flows or financial condition.

2. DISPOSITIONS

Minority Interest in Florida Progress

On August 4, 2025, Duke Energy, Progress Energy and Florida Progress, LLC (Florida Progress), the holding company of Duke Energy Florida, entered into an investment agreement with an affiliate of Brookfield Super-Core Infrastructure Partners (Investor), pursuant to which Florida Progress agreed to issue up to 19.7% of its issued and outstanding membership interests to Investor following a series of closings, for an aggregate investment of $6 billion, subject to certain adjustments. At the first closing, Florida Progress will issue to Investor 9.2% of the Florida Progress membership interests for $2.8 billion (subject to adjustment). The first closing will be followed by additional closings with investments occurring no later than on the following timeline: (i) Investor will invest an additional $200 million in Florida Progress no later than December 31, 2026; (ii) Investor will invest an additional $500 million in Florida Progress no later than June 30, 2027; (iii) Investor will invest an additional $1.5 billion in Florida Progress no later than December 31, 2027; and (iv) Investor will invest an additional $1 billion in Florida Progress no later than June 30, 2028. Investor's ownership interest in Florida Progress will proportionally increase with each such investment that is made by Investor. Following the first closing, Investor has the option to fund the subsequent investments, and acquire the corresponding additional membership interests, earlier than the timeline described above. The transaction is subject to the satisfaction of certain customary conditions described in the investment agreement, including receipt of the approval of the FERC and completion of review by the Committee on Foreign Investments in the United States (CFIUS), as well as approval, or determination that the transaction does not require approval, by the NRC. Approval for the transaction was received from FERC and CFIUS in December 2025 and January 2026, respectively. On February 17, 2026, the NRC issued a written threshold determination that the transactions do not constitute a direct or indirect transfer of control of any license issued by the NRC, which constitutes the final condition required to be met prior to the first closing. The investment agreement also provides that, upon termination of the investment agreement under certain specified circumstances prior to the first closing, Investor would be required to pay Progress Energy a termination fee of $240 million.

Proceeds from the minority interest investment are expected to be used to efficiently fund Duke Energy’s growing capital and investment expenditures plan, primarily by displacing certain previously planned issuances of long-term debt and common equity.

The investment agreement limits Florida Progress’ ability to declare dividends before the first closing. The parties intend for the first closing to occur in March 2026. Following the first closing, Investor will receive certain limited rights commensurate with its eventual anticipated 19.7% investment in Florida Progress. Duke Energy and Progress Energy will retain control of Florida Progress, so no gain or loss is expected to be recognized on the Consolidated Statements of Operations. The investment will be presented as noncontrolling interest within stockholders' equity.

Sale of Piedmont's Tennessee Business

In July 2025, Piedmont entered into a purchase agreement with Spire Inc., a Missouri corporation, for the sale of Piedmont's Tennessee business with expected proceeds of $2.48 billion, subject to closing adjustments, with proceeds due at closing. Piedmont’s Tennessee business is included within the GU&I segment of Duke Energy and Piedmont. Completion of the transaction is subject to customary closing conditions, including approval from the TPUC. An evidentiary hearing was held on February 17, 2026, and a decision from the TPUC is anticipated on March 16, 2026. Subject to TPUC approval, Piedmont expects to complete the sale on March 31, 2026. The purchase agreement contains certain termination rights and provides that Spire Inc. may be required to pay a termination fee for an amount equal to 6.5% of the purchase price to Piedmont upon termination of the purchase agreement under certain circumstances. Proceeds from the sale are expected to be used for debt reduction at Piedmont and to efficiently fund Duke Energy's capital plan, primarily by displacing the issuance of common equity in the near term.

In the third quarter of 2025, Duke Energy and Piedmont reclassified the Piedmont Tennessee Disposal Group to assets held for sale. Piedmont ceased recording depreciation and amortization on long-lived assets of the Piedmont Tennessee Disposal Group upon meeting the held for sale criteria.

Sale of Commercial Renewables Segment

The Commercial Renewables Disposal Groups were classified as held for sale and as discontinued operations in the fourth quarter of 2022.

FINANCIAL STATEMENTS			DISPOSITIONS

In 2023, Duke Energy completed the sale of substantially all the assets in the Commercial Renewables business segment. Duke Energy closed on the transaction with an affiliate of Brookfield Renewable Partners L.P. on October 25, 2023, for proceeds of $1.1 billion, with approximately half of the proceeds received at closing and the remainder due 18 months after closing. The balance of the remaining proceeds of $551 million is included in Receivable from sales of Commercial Renewables Disposal Groups, as of December 31, 2024, on Duke Energy's Consolidated Balance Sheets. On April 28, 2025, Duke Energy received the remaining sale proceeds. In January 2025, a sale of the remaining Commercial Renewables business assets was completed and proceeds from that disposition were not material.

As part of the 2023 purchase and sale agreement for the Commercial Renewables distributed generation group, Duke Energy agreed to retain certain guarantees, with expiration dates between 2029 through 2034, related to tax equity partners' assets and operations disposed of via sale. Duke Energy has obtained certain guarantees from the buyers in regard to future performance obligations to assist in limiting Duke Energy's exposure under the retained guarantees. The fair value of the guarantees is immaterial as Duke Energy does not believe conditions are likely for performance under these guarantees.

Assets Held for Sale

The following table presents the carrying values of the major classes of Assets held for sale and Liabilities associated with assets held for sale included in Duke Energy's and Piedmont's Consolidated Balance Sheets.

			December 31, 2025
			Piedmont						Duke Energy
(in millions)			Piedmont Tennessee Disposal Group						Piedmont Tennessee Disposal Group			Commercial Renewables Disposal Groups			Total
Current Assets Held for Sale
Receivables, net			$	82					$	82		$	—		$	82
Inventory			12						12			—			12
Other			15						15			—			15
Total current assets held for sale			109						109			—			109
Noncurrent Assets Held for Sale
Property, Plant and Equipment
Cost			2,219						2,219			—			2,219
Accumulated depreciation and amortization			(406)						(406)			—			(406)
Net property, plant and equipment			1,813						1,813			—			1,813
Goodwill			10						294			—			294
Regulatory assets			41						41			—			41
Total noncurrent assets held for sale			1,864						2,148			—			2,148
Total Assets Held for Sale			$	1,973					$	2,257		$	—		$	2,257
Current Liabilities Associated with Assets Held for Sale
Accounts payable			$	58					$	58		$	18		$	76
Other			8						8			—			8
Total current liabilities associated with assets held for sale			66						66			18			84
Noncurrent Liabilities Associated with Assets Held for Sale
Asset retirement obligations			4						4			—			4
Regulatory liabilities			161						161			—			161
Other			5						5			—			5
Total noncurrent liabilities associated with assets held for sale			170						170			—			170
Total Liabilities Associated with Assets Held for Sale			$	236					$	236		$	18		$	254

FINANCIAL STATEMENTS			DISPOSITIONS

			December 31, 2024
			Piedmont						Duke Energy
(in millions)			Piedmont Tennessee Disposal Group						Piedmont Tennessee Disposal Group			Commercial Renewables Disposal Groups			Total
Current Assets Held for Sale
Receivables, net			$	64					$	64		$	—		$	64
Inventory			12						12			—			12
Other			16						16			4			20
Total current assets held for sale			92						92			4			96
Noncurrent Assets Held for Sale
Property, Plant and Equipment
Cost			2,069						2,069			109			2,178
Accumulated depreciation and amortization			(392)						(392)			(24)			(416)
Net property, plant and equipment			1,677						1,677			85			1,762
Goodwill			10						294			—			294
Regulatory assets			35						35			—			35
Operating lease right-of-use assets, net			—						—			4			4
Total noncurrent assets held for sale			1,722						2,006			89			2,095
Total Assets Held for Sale			$	1,814					$	2,098		$	93		$	2,191
Current Liabilities Associated with Assets Held for Sale
Accounts payable			$	42					$	42		$	19		$	61
Taxes accrued			1						1			1			2
Current maturities of long-term debt			—						—			43			43
Unrealized losses on commodity hedges			—						—			13			13
Other			9						9			4			13
Total current liabilities associated with assets held for sale			52						52			80			132
Noncurrent Liabilities Associated with Assets Held for Sale
Asset retirement obligations			4						4			5			9
Regulatory liabilities			173						173			—			173
Operating lease liabilities			—						—			5			5
Unrealized losses on commodity hedges			—						—			66			66
Other			5						5			13			18
Total noncurrent liabilities associated with assets held for sale			182						182			89			271
Total Liabilities Associated with Assets Held for Sale			$	234					$	234		$	169		$	403

Approximately $18 million of NCI included within Equity on the Duke Energy Consolidated Balance Sheets relates to the Commercial Renewables Disposal Groups as of December 31, 2024.

DISCONTINUED OPERATIONS

Unless otherwise noted, the notes to these consolidated financial statements exclude amounts related to discontinued operations for all periods presented.

The following table summarizes the Income (Loss) from Discontinued Operations, net of tax recorded on Duke Energy's Consolidated Statements of Operations:

						Years Ended December 31,
(in millions)						2025			2024			2023
Commercial Renewables Disposal Groups						$	(1)		$	12		$	(1,457)
Other						2			(2)			2
Income (Loss) from Discontinued Operations, net of tax						$	1		$	10		$	(1,455)

FINANCIAL STATEMENTS			DISPOSITIONS

Commercial Renewables Disposal Groups

The following table presents the results of the Commercial Renewables Disposal Groups, which are included in Income (Loss) from Discontinued Operations, net of tax in Duke Energy's Consolidated Statements of Operations.

			Years Ended December 31,
(in millions)			2025						2024						2023
Operating revenues			$	4					$	4					$	330
Operation, maintenance and other			1						22						302
Property and other taxes			—						2						45
Other income and expenses, net			—						—						(8)
Interest expense			—						4						65
Loss on disposal			4						14						1,725
Loss before income taxes			(1)						(38)						(1,815)
Income tax benefit			—						(50)						(358)
(Loss) Income from discontinued operations			$	(1)					$	12					$	(1,457)
Add: Net (income) loss attributable to noncontrolling interest included in discontinued operations			—						(3)						64
Net (loss) income from discontinued operations attributable to Duke Energy Corporation			$	(1)					$	9					$	(1,393)

No interest from corporate level debt was allocated to discontinued operations.

Cash Flows

Duke Energy has elected not to separately disclose discontinued operations on Duke Energy's Consolidated Statements of Cash Flows. The following table summarizes Duke Energy's cash flows from discontinued operations related to the Commercial Renewables Disposal Groups.

			Years Ended December 31,
(in millions)			2025						2024						2023
Cash flows provided by (used in):
Operating activities			$	(3)					$	7					$	607
Investing activities			—						(13)						122

3. BUSINESS SEGMENTS

Reportable segments are determined based on information used by the chief operating decision-maker (CODM) in deciding how to allocate resources and evaluate the performance of the business. The Duke Energy Registrants' CODM is the Chief Executive Officer. The CODM evaluates segment performance based on segment income for each of the Duke Energy Registrants' reportable business segments in deciding how to allocate resources and evaluate the performance of the business. Segment income is defined as income from continuing operations net of income attributable to NCI and preferred stock dividends. Segment income, as discussed below, includes intercompany revenues and expenses that are eliminated on the Consolidated Financial Statements. Certain governance costs are allocated to each segment. In addition, direct interest expense and income taxes are included in segment income.

Products and services are sold between affiliate companies and reportable segments of Duke Energy at cost. Substantially all assets and revenues from continuing operations for each of the Duke Energy Registrants are within the U.S. Segment assets as presented in the tables that follow exclude all intercompany assets.

Duke Energy

Duke Energy's segment structure includes the following two segments: EU&I and GU&I.

The EU&I segment includes Duke Energy's regulated electric utilities in the Carolinas, Florida and the Midwest. The regulated electric utilities conduct operations through the Subsidiary Registrants that are substantially all regulated and, accordingly, qualify for regulatory accounting treatment.

The GU&I segment includes Piedmont, Duke Energy's natural gas local distribution companies in Ohio and Kentucky, and Duke Energy's natural gas storage, midstream pipeline, and renewable natural gas investments. GU&I's operations are substantially all regulated and, accordingly, qualify for regulatory accounting treatment.

The remainder of Duke Energy’s operations is presented as Other, which is primarily comprised of interest expense on holding company debt, unallocated corporate costs and Duke Energy’s wholly owned captive insurance company, Bison. Other also includes Duke Energy's interest in NMC. See Note 13 for additional information on the investment in NMC.

Business segment information is presented in the following tables.

FINANCIAL STATEMENTS			BUSINESS SEGMENTS

			Year Ended December 31, 2025
			Electric						Gas												Total
			Utilities and						Utilities and												Reportable
(in millions)			Infrastructure						Infrastructure												Segments						Other						Eliminations						Total
Unaffiliated revenues			$	29,297					$	2,912											$	32,209					$	28					$	—					$	32,237
Intersegment revenues			60						91												151						137						(288)						—
Total operating revenues			$	29,357					$	3,003											$	32,360					$	165					$	(288)					$	32,237
Less:
Fuel used in electric generation and purchased power			$	8,138					$	—											$	8,138					$	—					$	(80)					$	8,058
Cost of natural gas			—						983												983						—						—						983
Operation, maintenance and other			6,414						518												6,932						(35)						(199)						6,698
Depreciation and amortization			5,605						435												6,040						312						(28)						6,324
Property and other taxes			1,418						164												1,582						14						1						1,597
Impairment of assets and other charges			(9)						—												(9)						5						—						(4)
Interest expense			2,132						267												2,399						1,317						(82)						3,634
Income tax expense (benefit)			862						146												1,008						(366)						—						642
Other Segment Items
Noncontrolling interests(a)			104						(1)												103						—						—						103
Preferred dividends			—						—												—						56						—						56
Add: Equity in earnings of unconsolidated affiliates			—						15												15						36						—						51
Add: Other(b)			644						53												697						117						(100)						714
Segment income (loss)			$	5,337					$	559											$	5,896					$	(985)					$	—					$	4,911
Discontinued Operations																																							1
Net income available to Duke Energy Corporation Common Stockholders																																							$	4,912
Add back: Net income attributable to noncontrolling interest																																							103
Add back: Preferred dividends																																							56
Net Income																																							$	5,071
Capital investments expenditures and acquisitions			$	12,553					$	1,114											$	13,667					$	335					$	—					$	14,002
Segment assets(c)			172,427						18,989												191,416						4,320						—						195,736

(a) Net income (loss) attributable to NCI related to continuing operations.

(b) Other for EU&I and GU&I includes Gains on sales of other assets and other, net, and Other income and expenses, net.

(c) GU&I includes Assets held for sale balances related to the Piedmont Tennessee Disposal Group. Refer to Note 2 for further information.

FINANCIAL STATEMENTS			BUSINESS SEGMENTS

			Year Ended December 31, 2024
			Electric						Gas												Total
			Utilities and						Utilities and												Reportable
(in millions)			Infrastructure						Infrastructure												Segments						Other						Eliminations						Total
Unaffiliated revenues			$	28,020					$	2,299											$	30,319					$	38					$	—					$	30,357
Intersegment revenues			73						91												164						119						(283)						—
Total operating revenues			$	28,093					$	2,390											$	30,483					$	157					$	(283)					$	30,357
Less:
Fuel used in electric generation and purchased power			$	9,285					$	—											$	9,285					$	—					$	(79)					$	9,206
Cost of natural gas			—						565												565						—						—						565
Operation, maintenance and other			5,185						478												5,663						(79)						(195)						5,389
Depreciation and amortization			5,128						400												5,528						293						(28)						5,793
Property and other taxes			1,305						149												1,454						12						—						1,466
Impairment of assets and other charges			37						—												37						1						—						38
Interest expense			2,006						256												2,262						1,245						(123)						3,384
Income tax expense (benefit)			820						99												919						(329)						—						590
Other Segment Items
Noncontrolling interests(a)			88						(1)												87						—						—						87
Preferred dividends			—						—												—						106						—						106
Preferred redemption costs			—						—												—						16						—						16
Add: Equity in (losses) earnings of unconsolidated affiliates			(11)						(48)												(59)						50						—						(9)
Add: Other(b)			542						58												600						229						(142)						687
Segment income (loss)(c)(d)(e)			$	4,770					$	454											$	5,224					$	(829)					$	—					$	4,395
Discontinued operations																																							7
Net income available to Duke Energy Corporation Common Stockholders																																							$	4,402
Add back: Net income attributable to noncontrolling interest																																							90
Add back: Preferred dividends																																							106
Add back: Preferred redemption costs																																							$	16
Net Income																																							$	4,614
Capital investments expenditures and acquisitions			$	10,689					$	1,313											$	12,002					$	261					$	—					$	12,263
Segment assets(f)			164,010						18,131												182,141						4,202						—						186,343

(a) Net income (loss) attributable to NCI related to continuing operations.

(b) Other for EU&I and GU&I includes Gains on sales of other assets and other, net, and Other income and expenses, net.

(c) EU&I includes the following in the referenced captions on the Consolidated Statements of Operations:

• $42 million recorded within Impairment of assets and other charges, $2 million within Operation, maintenance and other, and an $11 million reduction within Interest Expense related to South Carolinas rate case orders for Duke Energy Carolinas and Duke Energy Progress. See Note 4 for further information.

• $29 million recorded as a reduction of Operating revenues and $4 million as a reduction within Noncontrolling interests related to a Duke Energy Indiana regulatory liability associated with certain employee post-retirement benefits. See Note 4 for further information.

• $17 million recorded as a reduction of Operating revenues related to nonrecurring customer billing adjustments as a result of implementation of a new customer system.

• $15 million recorded within Equity in (losses) earnings of unconsolidated affiliates, primarily related to impairments for certain joint venture electric transmission projects, and $4 million within Gains on sales of other assets and other, net.

(d) GU&I includes $1 million recorded within Operation, maintenance and other and $3 million as a charge within Other income and expenses on the Consolidated Statements of Operations related to nonrecurring customer billing adjustments as a result of implementation of a new customer system. Additionally, GU&I includes $54 million recorded within Equity in (losses) earnings of unconsolidated affiliates on the Consolidated Statements of Operations related to impairments for certain renewable natural gas investments. See Note 13 for further information.

(e) Other includes $16 million recorded as Preferred Redemption Costs on the Consolidated Statements of Operations related to the redemption of Series B Preferred Stock. See Note 20 for further information. Additionally, Other includes $23 million recorded within Operation, maintenance and other on the Consolidated Statements of Operations related to an insurance deductible for Hurricane Helene property losses.

(f) GU&I includes Assets held for sale balances related to the Piedmont Tennessee Disposal Group. Refer to Note 2 for further information.

FINANCIAL STATEMENTS			BUSINESS SEGMENTS

			Year Ended December 31, 2023
			Electric						Gas												Total
			Utilities and						Utilities and												Reportable
(in millions)			Infrastructure						Infrastructure												Segments						Other						Eliminations						Total
Unaffiliated revenues			$	26,846					$	2,177											$	29,023					$	37					$	—					$	29,060
Intersegment revenues			75						89												164						97						(261)						—
Total operating revenues			$	26,921					$	2,266											$	29,187					$	134					$	(261)					$	29,060
Less:
Fuel used in electric generation and purchased power			$	9,164					$	—											$	9,164					$	—					$	(78)					$	9,086
Cost of natural gas			—						593												593						—						—						593
Operation, maintenance and other			5,309						455												5,764						36						(175)						5,625
Depreciation and amortization			4,684						349												5,033						248						(28)						5,253
Property and other taxes			1,320						129												1,449						(49)						—						1,400
Impairment of assets and other charges			75						(4)												71						14						—						85
Interest expense			1,850						217												2,067						1,097						(150)						3,014
Income tax expense (benefit)			742						116												858						(420)						—						438
Other Segment Items
Noncontrolling interests(a)			99						(2)												97						—						—						97
Preferred dividends			—						—												—						106						—						106
Add: Equity in earnings of unconsolidated affiliates			7						40												47						66						—						113
Add: Other(b)			538						66												604						216						(170)						650
Segment income (loss)(c)(d)			$	4,223					$	519											$	4,742					$	(616)					$	—					$	4,126
Discontinued operations																																							(1,391)
Net income available to Duke Energy Corporation Common Stockholders																																							$	2,735
Add back: Net income attributable to noncontrolling interest																																							33
Add back: Preferred dividends																																							106
Net Income																																							$	2,874
Capital investments expenditures and acquisitions(e)			$	10,135					$	1,492											$	11,627					$	995					$	—					$	12,622
Segment assets(f)			155,449						17,349												172,798						4,095						—						176,893

(a) Net income (loss) attributable to NCI related to continuing operations.

(b) Other for EU&I and GU&I includes Gains on sales of other assets and other, net, and Other income and expenses, net.

(c) EU&I includes $35 million recorded within Impairment of assets and other charges and $8 million within Operation, maintenance and other primarily related to the North Carolina rate case order on Duke Energy Carolinas' Consolidated Statements of Operations; it also includes $33 million recorded within Impairment of assets and other charges and $8 million within Operation, maintenance and other primarily related to the North Carolina rate case order on Duke Energy Progress' Consolidated Statements of Operations. See Note 4 for additional information.

(d) Other includes $110 million recorded within Operation, maintenance and other and $14 million within Impairment of assets and other charges primarily related to strategic repositioning as the Company transitions to a fully regulated utility on the Consolidated Statements of Operations. See Note 21 for additional information.

(e) Other includes capital investments expenditures and acquisitions related to the Commercial Renewables Disposal Groups.

(f) GU&I includes Assets held for sale balances related to the Piedmont Tennessee Disposal Group and Other includes Assets held for sale balances related to the Commercial Renewables Disposal Groups. See Note 2 for further information.

Major Customers

No Subsidiary Registrant has an individual customer representing more than 10% of its revenues for the year ended December 31, 2025.

FINANCIAL STATEMENTS			BUSINESS SEGMENTS

Products and Services

The following table summarizes revenues of the reportable segments by type.

			Retail						Wholesale						Retail																		Total
(in millions)			Electric						Electric						Natural Gas												Other						Revenues
2025
Electric Utilities and Infrastructure			$	25,504					$	2,423					$	—											$	1,430					$	29,357
Gas Utilities and Infrastructure			—						—						2,782												221						3,003
Total Reportable Segments			$	25,504					$	2,423					$	2,782											$	1,651					$	32,360
2024
Electric Utilities and Infrastructure			$	24,593					$	2,219					$	—											$	1,281					$	28,093
Gas Utilities and Infrastructure			—						—						2,320												70						2,390
Total Reportable Segments			$	24,593					$	2,219					$	2,320											$	1,351					$	30,483
2023
Electric Utilities and Infrastructure			$	23,484					$	2,193					$	—											$	1,244					$	26,921
Gas Utilities and Infrastructure			—						—						2,199												67						2,266
Total Reportable Segments			$	23,484					$	2,193					$	2,199											$	1,311					$	29,187

Duke Energy Carolinas

Duke Energy Carolinas has one reportable segment, EU&I.

EU&I generates, distributes and sells electricity in North Carolina and South Carolina. EU&I conducts operations primarily through Duke Energy Carolinas. The remainder of Duke Energy Carolinas' operations is presented as Other.

						Year Ended December 31, 2025
						Electric
						Utilities and			Eliminations/
(in millions)						Infrastructure			Other			Total
Total operating revenues						$	9,713		$	—		$	9,713
Less:
Fuel used in electric generation and purchased power						$	2,649		$	—		$	2,649
Operation, maintenance and other						1,959			43			2,002
Depreciation and amortization						1,903			—			1,903
Property and other taxes						349			—			349
Impairment of assets and other charges						(11)			—			(11)
Interest expense						783			—			783
Income tax expense (benefit)						205			(11)			194
Add: Other segment items(a)						267			(3)			264
Segment income (loss) / Net income						$	2,143		$	(35)		$	2,108
Capital expenditures						$	4,477		$	—		$	4,477
Segment assets						58,775			400			59,175

						Year Ended December 31, 2024
						Electric
						Utilities and			Eliminations/
(in millions)						Infrastructure			Other			Total
Total operating revenues						$	9,718		$	—		$	9,718
Less:
Fuel used in electric generation and purchased power						$	3,251		$	—		$	3,251
Operation, maintenance and other						1,710			30			1,740
Depreciation and amortization						1,768			—			1,768
Property and other taxes						346			—			346
Impairment of assets and other charges						31			—			31
Interest expense						722			—			722
Income tax expense (benefit)						233			(7)			226
Add: Other segment items(a)						252			(3)			249
Segment income (loss) / Net income						$	1,909		$	(26)		$	1,883
Capital expenditures						$	3,966		$	—		$	3,966
Segment assets						54,782			223			55,005

FINANCIAL STATEMENTS			BUSINESS SEGMENTS

						Year Ended December 31, 2023
						Electric
						Utilities and			Eliminations/
(in millions)						Infrastructure			Other			Total
Total operating revenues						$	8,288		$	—		$	8,288
Less:
Fuel used in electric generation and purchased power						$	2,524		$	—		$	2,524
Operation, maintenance and other						1,689			85			1,774
Depreciation and amortization						1,593			—			1,593
Property and other taxes						320			—			320
Impairment of assets and other charges						44			—			44
Interest expense						686			—			686
Income tax expense (benefit)						162			(21)			141
Add: Other segment items(a)						267			(3)			264
Segment income (loss) / Net income						$	1,537		$	(67)		$	1,470
Capital expenditures						$	3,733		$	—		$	3,733
Segment assets						51,908			202			52,110

(a) Other segment items includes Gains on sales of other assets and other, net, and Other income and expenses, net.

Progress Energy

Progress Energy has one reportable segment, EU&I.

EU&I generates, distributes and sells electricity in North Carolina, South Carolina and Florida. EU&I conducts operations primarily through its wholly owned subsidiaries, Duke Energy Progress and Duke Energy Florida. The remainder of Progress Energy's operations is presented as Other.

						Year Ended December 31, 2025
						Electric
						Utilities and			Eliminations/
(in millions)						Infrastructure			Other			Total
Total operating revenues						$	14,491		$	18		$	14,509
Less:
Fuel used in electric generation and purchased power						$	4,267		$	—		$	4,267
Operation, maintenance and other						3,280			55			3,335
Depreciation and amortization						2,543			—			2,543
Property and other taxes						658			(1)			657
Impairment of assets and other charges						2			—			2
Interest expense						1,005			114			1,119
Income tax expense (benefit)						523			(38)			485
Add: Other segment items(a)						291			23			314
Segment income (loss) / Net income						$	2,504		$	(89)		$	2,415
Capital expenditures						$	6,125		$	—		$	6,125
Segment assets						71,685			4,153			75,838

						Year Ended December 31, 2024
						Electric
						Utilities and			Eliminations/
(in millions)						Infrastructure			Other			Total
Total operating revenues						$	13,612		$	21		$	13,633
Less:
Fuel used in electric generation and purchased power						$	4,755		$	—		$	4,755
Operation, maintenance and other						2,413			50			2,463
Depreciation and amortization						2,393			—			2,393
Property and other taxes						617			—			617
Impairment of assets and other charges						6			—			6
Interest expense						949			115			1,064
Income tax expense (benefit)						465			(39)			426
Add: Other segment items(a)						224			38			262
Segment income (loss) / Net income						$	2,238		$	(67)		$	2,171
Capital expenditures						$	5,252		$	—		$	5,252
Segment assets						67,951			3,685			71,636

FINANCIAL STATEMENTS			BUSINESS SEGMENTS

						Year Ended December 31, 2023
						Electric
						Utilities and			Eliminations/
(in millions)						Infrastructure			Other			Total
Total operating revenues						$	13,524		$	20		$	13,544
Less:
Fuel used in electric generation and purchased power						$	5,026		$	—		$	5,026
Operation, maintenance and other						2,554			82			2,636
Depreciation and amortization						2,151			—			2,151
Property and other taxes						644			—			644
Impairment of assets and other charges						28			—			28
Interest expense						840			114			954
Income tax expense (benefit)						426			(49)			377
Add: Other segment items(a)						210			18			228
Segment income (loss) / Net income						$	2,065		$	(109)		$	1,956
Capital expenditures						$	4,917		$	—		$	4,917
Segment assets						63,182			3,912			67,094

(a) Other segment items includes Gains on sales of other assets and other, net, and Other income and expenses, net.

Duke Energy Progress

Duke Energy Progress has one reportable segment, EU&I.

EU&I generates, distributes and sells electricity in North Carolina and South Carolina. EU&I conducts operations primarily through Duke Energy Progress. The remainder of Duke Energy Progress' operations is presented as Other.

						Year Ended December 31, 2025
						Electric
						Utilities and			Eliminations/
(in millions)						Infrastructure			Other			Total
Total operating revenues						$	7,386		$	—		$	7,386
Less:
Fuel used in electric generation and purchased power						$	2,518		$	—		$	2,518
Operation, maintenance and other						1,431			24			1,455
Depreciation and amortization						1,406			—			1,406
Property and other taxes						172			—			172
Impairment of assets and other charges						2			—			2
Interest expense						526			—			526
Income tax expense (benefit)						229			(6)			223
Add: Other segment items(a)						200			(2)			198
Segment income (loss) / Net income						$	1,302		$	(20)		$	1,282
Capital expenditures						$	3,428		$	—		$	3,428
Segment assets						42,163			364			42,527

						Year Ended December 31, 2024
						Electric
						Utilities and			Eliminations/
(in millions)						Infrastructure			Other			Total
Total operating revenues						$	7,017		$	—		$	7,017
Less:
Fuel used in electric generation and purchased power						$	2,409		$	—		$	2,409
Operation, maintenance and other						1,370			18			1,388
Depreciation and amortization						1,336			—			1,336
Property and other taxes						177			—			177
Impairment of assets and other charges						6			—			6
Interest expense						492			1			493
Income tax expense (benefit)						194			(5)			189
Add: Other segment items(a)						138			7			145
Segment income (loss) / Net income						$	1,171		$	(7)		$	1,164
Capital expenditures						$	2,803		$	—		$	2,803
Segment assets						39,402			91			39,493

FINANCIAL STATEMENTS			BUSINESS SEGMENTS

						Year Ended December 31, 2023
						Electric
						Utilities and			Eliminations/
(in millions)						Infrastructure			Other			Total
Total operating revenues						$	6,488		$	—		$	6,488
Less:
Fuel used in electric generation and purchased power						$	2,203		$	—		$	2,203
Operation, maintenance and other						1,342			37			1,379
Depreciation and amortization						1,266			—			1,266
Property and other taxes						164			—			164
Impairment of assets and other charges						29			—			29
Interest expense						427			—			427
Income tax expense (benefit)						158			(9)			149
Add: Other segment items(a)						128			(1)			127
Segment income (loss) / Net income						$	1,027		$	(29)		$	998
Capital expenditures						$	2,387		$	—		$	2,387
Segment assets						36,820			104			36,924

(a) Other segment items includes Gains on sales of other assets and other, net, and Other income and expenses, net.

Duke Energy Florida

Duke Energy Florida has one reportable segment, EU&I.

EU&I generates, distributes and sells electricity in Florida. EU&I conducts operations primarily through Duke Energy Florida. The remainder of Duke Energy Florida's operations is presented as Other.

						Year Ended December 31, 2025
						Electric
						Utilities and			Eliminations/
(in millions)						Infrastructure			Other			Total
Total operating revenues						$	7,105		$	—		$	7,105
Less:
Fuel used in electric generation and purchased power						$	1,749		$	—		$	1,749
Operation, maintenance and other						1,849			16			1,865
Depreciation and amortization						1,137			—			1,137
Property and other taxes						486			—			486
Interest expense						479			—			479
Income tax expense (benefit)						294			(5)			289
Add: Other segment items(a)						91			2			93
Segment income (loss) / Net income						$	1,202		$	(9)		$	1,193
Capital expenditures						$	2,698		$	—		$	2,698
Segment assets						29,522			134			29,656

						Year Ended December 31, 2024
						Electric
						Utilities and			Eliminations/
(in millions)						Infrastructure			Other			Total
Total operating revenues						$	6,595		$	—		$	6,595
Less:
Fuel used in electric generation and purchased power						$	2,346		$	—		$	2,346
Operation, maintenance and other						1,043			12			1,055
Depreciation and amortization						1,057			—			1,057
Property and other taxes						440			—			440
Interest expense						457			—			457
Income tax expense (benefit)						271			(3)			268
Add: Other segment items(a)						86			3			89
Segment income (loss) / Net income						$	1,067		$	(6)		$	1,061
Capital expenditures						$	2,449		$	—		$	2,449
Segment assets						28,549			20			28,569

FINANCIAL STATEMENTS			BUSINESS SEGMENTS

						Year Ended December 31, 2023
						Electric
						Utilities and			Eliminations/
(in millions)						Infrastructure			Other			Total
Total operating revenues						$	7,036		$	—		$	7,036
Less:
Fuel used in electric generation and purchased power						$	2,823		$	—		$	2,823
Operation, maintenance and other						1,212			27			1,239
Depreciation and amortization						885			—			885
Property and other taxes						480			—			480
Impairment of assets and other charges						(1)			—			(1)
Interest expense						413			—			413
Income tax expense (benefit)						268			(7)			261
Add: Other segment items(a)						82			(2)			80
Segment income (loss) / Net income						$	1,038		$	(22)		$	1,016
Capital expenditures						$	2,529		$	—		$	2,529
Segment assets						26,362			239			26,601

(a) Other segment items includes Gains on sales of other assets and other, net, and Other income and expenses, net.

Duke Energy Ohio

Duke Energy Ohio has two reportable segments, EU&I and GU&I.

EU&I transmits and distributes electricity in portions of Ohio and generates, distributes and sells electricity in portions of Northern Kentucky. GU&I transports and sells natural gas in portions of Ohio and Northern Kentucky. Both reportable segments conduct operations primarily through Duke Energy Ohio and its wholly owned subsidiary, Duke Energy Kentucky. The remainder of Duke Energy Ohio's operations is presented as Other.

			Year Ended December 31, 2025
			Electric						Gas						Total
			Utilities and						Utilities and						Reportable						Eliminations/
(in millions)			Infrastructure						Infrastructure						Segments						Other												Total
Total operating revenues			$	2,045					$	752					$	2,797					—												$	2,797
Less:
Fuel used in electric generation and purchased power			$	626					$	—					$	626					$	—											$	626
Cost of natural gas			—						199						199						—												199
Operation, maintenance and other			366						116						482						8												490
Depreciation and amortization			318						147						465						1												466
Property and other taxes			335						97						432						—												432
Interest expense			131						71						202						1												203
Income tax expense (benefit)			43						27						70						(2)												68
Add: Other segment items(a)			17						8						25						—												25
Segment income (loss) / Net income			$	243					$	103					$	346					$	(8)											$	338
Capital expenditures			$	600					$	329					$	929					$	—											$	929
Segment assets			8,575						4,736						13,311						135												13,446

FINANCIAL STATEMENTS			BUSINESS SEGMENTS

			Year Ended December 31, 2024
			Electric						Gas						Total
			Utilities and						Utilities and						Reportable						Eliminations/
(in millions)			Infrastructure						Infrastructure						Segments						Other												Total
Total operating revenues			$	1,905					$	640					$	2,545					$	—											$	2,545
Less:
Fuel used in electric generation and purchased power			$	538					$	—					$	538					$	—											$	538
Cost of natural gas			—						142						142						—												142
Operation, maintenance and other			366						109						475						10												485
Depreciation and amortization			273						131						404						(1)												403
Property and other taxes			306						94						400						—												400
Interest expense			126						68						194						(2)												192
Income tax expense (benefit)			47						18						65						(1)												64
Add: Other segment items(a)			15						5						20						—												20
Segment income (loss) / Net income			$	264					$	83					$	347					$	(6)											$	341
Capital expenditures			$	535					$	280					$	815					$	—											$	815
Segment assets			8,211						4,506						12,717						51												12,768

			Year Ended December 31, 2023
			Electric						Gas						Total
			Utilities and						Utilities and						Reportable						Eliminations/
(in millions)			Infrastructure						Infrastructure						Segments						Other												Total
Total operating revenues			$	1,868					$	639					$	2,507					$	—											$	2,507
Less:
Fuel used in electric generation and purchased power			$	608					$	—					$	608					$	—											$	608
Cost of natural gas			—						163						163						—												163
Operation, maintenance and other			351						118						469						9												478
Depreciation and amortization			257						110						367						—												367
Property and other taxes			294						70						364						—												364
Impairment of assets and other charges			2						—						2						1												3
Interest expense			116						53						169						—												169
Income tax expense (benefit)			42						23						65						(2)												63
Add: Other segment items(a)			29						14						43						(1)												42
Segment income (loss) / Net income			$	227					$	116					$	343					$	(9)											$	334
Capital expenditures			$	520					$	419					$	939					$	—											$	939
Segment assets			7,978						4,346						12,324						(108)												12,216

(a) Other segment items for EU&I and GU&I includes Gains on sales of other assets and other, net, and Other income and expenses, net.

Duke Energy Indiana

Duke Energy Indiana has one reportable segment, EU&I.

EU&I generates, distributes and sells electricity in Indiana. EU&I conducts operations primarily through Duke Energy Indiana. The remainder of Duke Energy Indiana's operations is presented as Other.

FINANCIAL STATEMENTS			BUSINESS SEGMENTS

						Year Ended December 31, 2025
						Electric
						Utilities and			Eliminations/
(in millions)						Infrastructure			Other			Total
Total operating revenues						$	3,544		$	—		$	3,544
Less:
Fuel used in electric generation and purchased power						$	1,065		$	—		$	1,065
Operation, maintenance and other						801			10			811
Depreciation and amortization						823			—			823
Property and other taxes						61			—			61
Interest expense						243			—			243
Income tax expense (benefit)						85			(3)			82
Add: Other segment items(a)						62			(1)			61
Segment income (loss) / Net income						$	528		$	(8)		$	520
Capital expenditures						$	1,332		$	—		$	1,332
Segment assets						16,321			25			16,346

						Year Ended December 31, 2024
						Electric
						Utilities and			Eliminations/
(in millions)						Infrastructure			Other			Total
Total operating revenues						$	3,040		$	—		$	3,040
Less:
Fuel used in electric generation and purchased power						$	964		$	—		$	964
Operation, maintenance and other						666			5			671
Depreciation and amortization						676			—			676
Property and other taxes						50			—			50
Interest expense						228			1			229
Income tax expense (benefit)						72			(1)			71
Add: Other segment items(a)						62			—			62
Segment income (loss) / Net income						$	446		$	(5)		$	441
Capital expenditures						$	935		$	—		$	935
Segment assets						15,726			1			15,727

						Year Ended December 31, 2023
						Electric
						Utilities and			Eliminations/
(in millions)						Infrastructure			Other			Total
Total operating revenues						$	3,399		$	—		$	3,399
Less:
Fuel used in electric generation and purchased power						$	1,217		$	—		$	1,217
Operation, maintenance and other						695			18			713
Depreciation and amortization						666			—			666
Property and other taxes						59			—			59
Impairment of assets and other charges						(1)			1			—
Interest expense						213			—			213
Income tax expense (benefit)						115			(5)			110
Add: Other segment items(a)						77			(1)			76
Segment income (loss) / Net income						$	512		$	(15)		$	497
Capital expenditures						$	961		$	—		$	961
Segment assets						14,966			(155)			14,811

(a) Other segment items includes Gains on sales of other assets and other, net, and Other income and expenses, net.

Piedmont

Piedmont has one reportable segment, GU&I.

GU&I distributes and sells natural gas in North Carolina, South Carolina and Tennessee. GU&I conducts operations primarily through Piedmont. The remainder of Piedmont's operations is presented as Other.

FINANCIAL STATEMENTS			BUSINESS SEGMENTS

						Year Ended December 31, 2025
						Gas
						Utilities and			Eliminations/
(in millions)						Infrastructure			Other			Total
Total operating revenues						$	2,237		$	—		$	2,237
Less:
Cost of natural gas						$	784		$	—		$	784
Operation, maintenance and other						393			15			408
Depreciation and amortization						282			—			282
Property and other taxes						67			—			67
Interest expense						193			—			193
Income tax expense (benefit)						115			(3)			112
Other Segment Items
Add: Equity in earnings of unconsolidated affiliates						—			8			8
Add: Other(a)						46			(5)			41
Segment income (loss) / Net income						$	449		$	(9)		$	440
Capital expenditures						$	807		$	—		$	807
Segment assets(b)						12,384			86			12,470

						Year Ended December 31, 2024
						Gas
						Utilities and			Eliminations/
(in millions)						Infrastructure			Other			Total
Total operating revenues						$	1,729		$	—		$	1,729
Less:
Cost of natural gas						$	423		$	—		$	423
Operation, maintenance and other						355			4			359
Depreciation and amortization						261			—			261
Property and other taxes						55			—			55
Interest expense						185			—			185
Income tax expense (benefit)						94			1			95
Other Segment Items
Add: Equity in earnings of unconsolidated affiliates						—			8			8
Add: Other(a)						54			—			54
Segment income (loss) / Net income						$	410		$	3		$	413
Capital expenditures						$	1,025		$	—		$	1,025
Segment assets(b)						11,707			92			11,799

						Year Ended December 31, 2023
						Gas
						Utilities and			Eliminations/
(in millions)						Infrastructure			Other			Total
Total operating revenues						$	1,628		$	—		$	1,628
Less:
Cost of natural gas						$	430		$	—		$	430
Operation, maintenance and other						336			8			344
Depreciation and amortization						237			—			237
Property and other taxes						59			—			59
Impairment of assets and other charges						(4)			—			(4)
Interest expense						165			—			165
Income tax expense (benefit)						84			—			84
Other Segment Items
Add: Equity in earnings of unconsolidated affiliates						—			9			9
Add: Other(a)						59			(2)			57
Segment income (loss) / Net income						$	380		$	(1)		$	379
Capital expenditures						$	1,036		$	—		$	1,036
Segment assets(b)						10,978			89			11,067

(a) Other includes Gains on sales of other assets and other, net, and Other income and expenses, net.

(b) GU&I includes Assets held for sale balances related to the Piedmont Tennessee Disposal Group. Refer to Note 2 for further information.

FINANCIAL STATEMENTS			REGULATORY MATTERS

4. REGULATORY MATTERS

REGULATORY ASSETS AND LIABILITIES

The Duke Energy Registrants record regulatory assets and liabilities that result from the ratemaking process. See Note 1 for further information.

FINANCIAL STATEMENTS			REGULATORY MATTERS

The following tables present the regulatory assets and liabilities recorded on the Consolidated Balance Sheets of Duke Energy and Progress Energy. See separate tables below for balances by individual registrant.

			Duke Energy												Progress Energy
			December 31,												December 31,
(in millions)			2025						2024						2025						2024
Regulatory Assets
AROs – coal ash			$	3,670					$	3,384					$	1,544					$	1,335
Accrued pension and OPEB			2,281						2,524						744						828
Storm cost deferrals			73						1,951						49						1,238
Storm cost securitized balance, net			2,567						1,023						1,239						822
AROs – nuclear and other			602						948						564						905
Nuclear asset securitized balance, net			717						771						717						771
Debt fair value adjustment			665						719						—						—
COR regulatory asset			860						646						746						571
Deferred fuel and purchased power			619						588						228						282
Hedge costs deferrals			365						352						135						126
PISCC and deferred operating expenses			291						331						37						37
Retired generation facilities			252						337						176						202
Customer connect project			234						257						107						116
Grid deferral			257						255						63						54
Incremental COVID-19 expenses			202						231						94						89
Vacation accrual			240						228						45						43
Deferred asset – Lee and Harris COLA			177						215						4						10
Advanced metering infrastructure (AMI)			162						204						48						70
Demand side management (DSM) / Energy efficiency (EE)			335						199						247						199
CEP deferral			200						195						—						—
NCEMPA deferrals			202						179						202						179
Decoupling			118						162						27						32
Nuclear deferral			117						134						53						53
Deferred pipeline integrity costs			117						129						—						—
COR settlement			106						110						28						29
Derivatives – natural gas supply contracts			72						94						—						—
Deferred coal ash handling system costs			60						77						13						17
Qualifying facility contract buyouts			55						62						55						62
Network Integration Transmission Services deferral			31						31						—						—
Transmission expansion obligation			30						31						—						—
East Bend deferrals			20						24						—						—
Propane caverns			22						24						—						—
Deferred purchased gas costs			26						9						—						—
Other			568						535						238						195
Total regulatory assets			16,313						16,959						7,403						8,265
Less: Current portion			1,934						2,739						753						1,647
Total noncurrent regulatory assets			$	14,379					$	14,220					$	6,650					$	6,618
Regulatory Liabilities
COR regulatory liability			$	5,336					$	5,302					$	3,084					$	2,984
Net regulatory liability related to income taxes			4,748						5,356						1,741						1,882
AROs – nuclear and other			2,982						2,289						—						—
Deferred nuclear PTC			1,377						676						197						95
Hedge cost deferrals			582						583						248						281
Renewable energy credits			267						241						146						139
Accrued pension and OPEB			184						232						11						12
Deferred fuel and purchased power			28						223						28						94
Storm cost recovery			262						6						90						6
DSM / EE			26						69						—						—
Storm reserve			132						—						132						—
Nuclear insurance distributions reserve			163						152						—						—
Other			866						813						274						287
Total regulatory liabilities			16,953						15,942						5,951						5,780
Less: Current portion			1,271						1,421						350						522
Total noncurrent regulatory liabilities			$	15,682					$	14,521					$	5,601					$	5,258

FINANCIAL STATEMENTS			REGULATORY MATTERS

Descriptions of regulatory assets and liabilities summarized in the tables above and below follow. See tables below for recovery and amortization periods at the separate registrants.

AROs – coal ash. Represents deferred depreciation and accretion related to the legal obligation to close ash basins. The costs are deferred until recovery treatment has been determined. See Notes 1 and 10 for additional information.

AROs – nuclear and other. Represents regulatory assets or liabilities, including deferred depreciation and accretion, related to legal obligations associated with the future retirement of property, plant and equipment, excluding amounts related to coal ash. The AROs relate primarily to decommissioning nuclear power facilities. The amounts also include certain deferred gains and losses on NDTF investments. See Notes 1 and 10 for additional information.

Deferred fuel and purchased power. Represents certain energy-related costs that are recoverable or refundable as approved by the applicable regulatory body.

Accrued pension and OPEB. Accrued pension and OPEB represent regulatory assets and liabilities related to each of the Duke Energy Registrants’ respective shares of unrecognized actuarial gains and losses and unrecognized prior service cost and credit attributable to Duke Energy’s pension plans and OPEB plans. The regulatory asset or liability is amortized with the recognition of actuarial gains and losses and prior service cost and credit to net periodic benefit costs for pension and OPEB plans. The accrued pension and OPEB regulatory assets are expected to be recovered primarily over the average remaining service periods or life expectancies of employees covered by the benefit plans. See Note 23 for additional detail.

Storm cost deferrals. Represents deferred incremental costs incurred related to major weather-related events.

Storm cost securitized balance, net. Represents the North Carolina portion of storm restoration expenditures related to hurricanes Helene, Debby, Ian, Florence, Michael, Dorian and Zeta and winter storms Diego and Izzy. The South Carolina portion of storm restoration expenditures are related to ice storms Pax and Ulysses, hurricanes Helene, Matthew, Florence, Michael and Dorian and Winter Storms Izzy and Jasper, as well as funding of the negative South Carolina storm reserve balance.

Nuclear asset securitized balance, net. Represents the balance associated with Crystal River Unit 3 retirement approved for recovery by the FPSC on September 15, 2015, and the upfront financing costs securitized in 2016 with issuance of the associated bonds. The regulatory asset balance is net of the AFUDC equity portion.

Debt fair value adjustment. Purchase accounting adjustments recorded at the Duke Energy (Parent) level to state the carrying value of debt at fair value in connection with the Duke Energy mergers with Progress Energy in 2012 and Piedmont in 2016. Amount is amortized over the life of the related debt.

Hedge costs deferrals. Amounts relate to realized and unrealized gains and losses on derivatives recorded as a regulatory asset or liability, respectively, until the contracts are settled.

COR regulatory asset. Represents the excess of spend over funds received from customers to cover the future removal of property, plant and equipment from retired or abandoned sites as property is retired, net of certain deferred gains on NDTF investments.

PISCC and deferred operating expenses. Represents deferred depreciation and operating expenses as well as carrying costs on the portion of capital expenditures placed in service but not yet reflected in retail rates as plant in service.

Retired generation facilities. Represents amounts to be recovered for facilities that have been retired and are probable of recovery.

Deferred asset – Lee and Harris COLA. Represents deferred costs incurred for the canceled Lee and Harris nuclear projects.

Customer connect project. Represents incremental operating expenses and carrying costs on deferred amounts related to the deployment of the new customer information system.

AMI. Represents deferred costs related to the installation of AMI meters and remaining net book value of non-AMI meters to be replaced at Duke Energy Carolinas, net book value of existing meters at Duke Energy Florida, Duke Energy Progress and Duke Energy Ohio and future recovery of net book value of electromechanical meters that have been replaced with AMI meters at Duke Energy Indiana.

Incremental COVID-19 expenses. Represents incremental costs related to customer charge-offs and certain costs to ensure continuity and quality of service in a safe manner during the COVID-19 pandemic.

Vacation accrual. Represents vacation entitlement, which is generally recovered in the following year.

Grid deferral. Represents deferred incremental operation and maintenance expense, depreciation and property taxes associated with grid improvement plans.

DSM/EE. Deferred costs related to various DSM and EE programs recoverable or refundable as approved by the applicable regulatory body.

CEP deferral. Represents deferred depreciation, PISCC and deferred property tax for Duke Energy Ohio Gas capital assets for the CEP.

NCEMPA deferrals. Represents retail allocated cost deferrals and returns associated with the additional ownership interest in assets acquired from NCEMPA in 2015.

Derivatives – natural gas supply contracts. Represents costs for certain long-dated, fixed quantity forward natural gas supply contracts, which are recoverable through PGA clauses.

Deferred pipeline integrity costs. Represents pipeline integrity management costs in compliance with federal regulations.

FINANCIAL STATEMENTS			REGULATORY MATTERS

Nuclear deferral. Includes amounts related to nuclear plant outage and refueling costs, which are deferred and recovered over the nuclear fuel cycle.

COR settlement. Represents approved COR settlements that are being amortized over the average remaining lives, at the time of approval, of the associated assets.

Decoupling. Relates primarily to margin and revenue decoupling.

Deferred coal ash handling system costs. Represents deferred depreciation and returns associated with capital assets related to converting the ash handling system from wet to dry.

Qualifying facility contract buyouts. Represents termination payments for regulatory recovery through the capacity clause.

Network Integration Transmission Services deferral. Represents a deferral of costs and return related transmission costs.

Transmission expansion obligation. Represents transmission expansion obligations related to Duke Energy Ohio's withdrawal from MISO.

East Bend deferrals. Represents amounts to be recovered for deferred costs and depreciation related to the East Bend station.

Propane caverns. Represents amounts for costs related to propane inventory, the net book value of remaining assets and decommissioning costs at Duke Energy Ohio.

Net regulatory liability related to income taxes. Amounts for all registrants include regulatory liabilities related primarily to impacts from the Tax Cuts and Jobs Act (the Tax Act). See Note 24 for additional information. Amounts have no immediate impact on rate base as regulatory assets are offset by deferred tax liabilities.

COR regulatory liability. Represents funds received from customers to cover current and future coal ash remediation costs and future removal of property, plant and equipment from retired or abandoned sites as property is retired. Also includes certain deferred gains on NDTF investments.

Deferred nuclear PTC. Represents the net realizable value of nuclear PTCs that will be passed back to customers over time.

Renewable energy credits. Represents certificates for the environmental benefits of renewable energy that will be returned to customers in a future period.

Storm cost recovery. Actual storm costs were less than the amount securitized and the difference is deferred as a regulatory liability and accrues a return at the commission-authorized WACC from the bond issuance date until the amount is reflected in customer rates.

Storm reserve. Amounts reserved for future incremental storm restoration costs.

Nuclear insurance distributions reserve. Amounts reserved related to the Nuclear Mutual Limited (now known as Nuclear Electric Insurance Limited (NEIL)) portion of nuclear insurance distributions which are to be held for the benefit of customers.

Deferred purchased gas costs. Represents certain natural gas costs that are recoverable or refundable as approved by the applicable regulatory body.

RESTRICTIONS ON THE ABILITY OF CERTAIN SUBSIDIARIES TO MAKE DIVIDENDS, ADVANCES AND LOANS TO DUKE ENERGY

As a condition to the approval of merger transactions, the NCUC, PSCSC, PUCO, KPSC and IURC imposed conditions on the ability of Duke Energy Carolinas, Duke Energy Progress, Duke Energy Ohio, Duke Energy Kentucky, Duke Energy Indiana and Piedmont to transfer funds to Duke Energy through loans or advances, as well as restricted amounts available to pay dividends to Duke Energy. Certain subsidiaries may transfer funds to the Parent by obtaining approval of the respective state regulatory commissions. These conditions imposed restrictions on the ability of the public utility subsidiaries to pay cash dividends as discussed below.

Duke Energy Progress and Duke Energy Florida also have restrictions imposed by their first mortgage bond indentures, which in certain circumstances, limit their ability to make cash dividends or distributions on common stock. Amounts restricted as a result of these provisions were not material at December 31, 2025.

Additionally, certain other subsidiaries of Duke Energy have restrictions on their ability to dividend, loan or advance funds to Duke Energy due to specific legal or regulatory restrictions, including, but not limited to, minimum working capital and tangible net worth requirements.

The restrictions discussed below were not a material amount of Duke Energy's and Progress Energy's net assets at December 31, 2025.

Duke Energy Carolinas

Duke Energy Carolinas must limit cumulative distributions subsequent to mergers to (i) the amount of retained earnings on the day prior to the closing of the mergers, plus (ii) any future earnings recorded.

Duke Energy Progress

Duke Energy Progress must limit cumulative distributions subsequent to the mergers between Duke Energy and Progress Energy and Duke Energy and Piedmont to (i) the amount of retained earnings on the day prior to the closing of the respective mergers, plus (ii) any future earnings recorded.

FINANCIAL STATEMENTS			REGULATORY MATTERS

Duke Energy Ohio

Duke Energy Ohio will not declare and pay dividends out of capital or unearned surplus without the prior authorization of the PUCO. Duke Energy Ohio received FERC and PUCO approval to pay dividends from its equity accounts that are reflective of the amount that it would have in its retained earnings account had push-down accounting for the Cinergy merger not been applied to Duke Energy Ohio’s balance sheet. The conditions include a commitment from Duke Energy Ohio that equity, adjusted to remove the impacts of push-down accounting, will not fall below 30% of total capital.

Duke Energy Kentucky is required to pay dividends solely out of retained earnings and to maintain a minimum of 35% equity in its capital structure.

Duke Energy Indiana

Duke Energy Indiana must limit cumulative distributions subsequent to the merger between Duke Energy and Cinergy to (i) the amount of retained earnings on the day prior to the closing of the merger, plus (ii) any future earnings recorded. In addition, Duke Energy Indiana will not declare and pay dividends out of capital or unearned surplus without prior authorization of the IURC.

Piedmont

Piedmont must limit cumulative distributions subsequent to the acquisition of Piedmont by Duke Energy to (i) the amount of retained earnings on the day prior to the closing of the merger, plus (ii) any future earnings recorded.

RATE-RELATED INFORMATION

The NCUC, PSCSC, FPSC, IURC, PUCO, TPUC and KPSC approve rates for retail electric and natural gas services within their states. The FERC approves rates for electric sales to wholesale customers served under cost-based rates (excluding Ohio and Indiana), as well as sales of transmission service. For open regulatory matters, unless otherwise noted, the Subsidiary Registrants and Duke Energy Kentucky cannot predict the outcome or ultimate resolution of their respective matters.

Winter Storm Fern

In late January 2026, Winter Storm Fern moved across the eastern U.S and impacted all of Duke Energy's service territories, with damage primarily occurring in the Duke Energy Carolinas and Duke Energy Progress territories in North Carolina and South Carolina. Approximately 200,000 customers were impacted across Duke Energy's system. Total storm restoration costs, including capital expenditures, for Duke Energy are currently estimated to be in the range of $250 million to $350 million (which includes $150 million to $225 million for Duke Energy Carolinas and $100 million to $125 million for Duke Energy Progress). Incremental storm restoration costs related to operation and maintenance activities in excess of amounts in base rates will be deferred as regulatory assets and reviewed for recovery in future regulatory proceedings or charged to storm reserves, where applicable. These estimates could change as additional information is received on actual costs incurred for preparation and restoration activities.

Duke Energy Carolinas and Duke Energy Progress

Hurricanes Debby and Helene

In 2024, hurricanes Debby and Helene significantly impacted the Duke Energy Carolinas and Duke Energy Progress territories in North Carolina and South Carolina. As of December 31, 2025, total cumulative operations and maintenance expenses incurred for restoration and rebuilding of infrastructure were approximately $762 million ($474 million and $288 million for Duke Energy Carolinas and Duke Energy Progress, respectively), with an additional $507 million in cumulative capital investments ($408 million and $99 million for Duke Energy Carolinas and Duke Energy Progress, respectively), net of expected insurance recovery. The operations and maintenance expense amounts were deferred in Regulatory assets within Other Noncurrent Assets on the Consolidated Balance Sheets when incurred. Substantially all of the storm related costs have been securitized for recovery in both North Carolina and South Carolina as of December 31, 2025, as described below.

North Carolina Storm Cost Securitization

In December 2024, Duke Energy Carolinas and Duke Energy Progress filed their joint petition for review and approval of storm recovery costs (Phase 1) with the NCUC to securitize the North Carolina-retail allocable share of storm costs associated with hurricanes Helene, Debby and Ian, as well as Hurricane Zeta and Winter Storm Izzy, and the establishment of storm reserves for $200 million at Duke Energy Carolinas and $100 million at Duke Energy Progress. On February 3, 2025, Duke Energy Carolinas and Duke Energy Progress filed their joint petition for financing orders (Phase 2). Duke Energy Carolinas and Duke Energy Progress reached settlement agreements with the North Carolina Public Staff and other intervening parties that resolved all issues in the Phase 1 and Phase 2 proceedings and removed the establishment of storm reserves from the securitization proceeding. On April 16, 2025, the NCUC issued its Phase 1 order approving the settlement and determining storm recovery costs were reasonable, prudent and eligible for securitization. On June 18, 2025, the NCUC issued its Phase 2 order approving the settlement and issuing the financing orders.

In September 2025, Duke Energy Carolinas and Duke Energy Progress issued $582 million and $461 million, respectively, of storm recovery bonds. Storm recovery charges were effective November 1, 2025. Per the financing orders, any differences between estimates and actual costs of the storms must be accumulated and tracked to allow for a detailed review of the costs for reasonableness and prudency in Duke Energy Carolinas' and Duke Energy Progress’ next general rate case proceedings. As of December 31, 2025, actual North Carolina-retail allocable storm costs were lower than estimates and Duke Energy Carolinas and Duke Energy Progress recorded $136 million and $71 million, respectively, in Regulatory Liabilities within Other Noncurrent Liabilities on the Consolidated Balance Sheets. Accordingly, these amounts were included in Duke Energy Carolinas' and Duke Energy Progress' PBR applications filed in November 2025. See below and Notes 7 and 18 for more information.

FINANCIAL STATEMENTS			REGULATORY MATTERS

South Carolina Storm Cost Securitization

On March 21, 2025, Duke Energy Carolinas filed a petition for storm securitization with the PSCSC for authorization to finance the estimated South Carolina-retail allocable share of storm costs primarily related to Hurricane Helene storm recovery activities and inclusive of funding $25 million related to storm reserves. Duke Energy Carolinas reached a comprehensive settlement among all parties in the proceeding, which was filed with the PSCSC supporting securitization, including the storm reserve funding. On July 10, 2025, the PSCSC approved the settlement and the financing order was issued on August 1, 2025. In November 2025, Duke Energy Carolinas issued $561 million of storm recovery bonds. See Notes 7 and 18 for more information. Storm recovery charges were effective January 1, 2026. Additionally, per the financing order, any differences between estimates and actual costs of the storms must be accumulated and tracked to allow for a detailed review of the costs for reasonableness and prudency in Duke Energy Carolinas' next general rate case proceeding. As of December 31, 2025, actual South Carolina-retail allocable storm costs were lower than estimates and Duke Energy Carolinas recorded $35 million in Regulatory Liabilities within Other Noncurrent Liabilities on the Consolidated Balance Sheets. Due to the relatively low level of storm costs incurred by Duke Energy Progress in South Carolina, Duke Energy Progress will not seek to pursue securitization of those costs and has offset them against established storm reserve balances.

Applications to Combine Utilities

On August 14, 2025, Duke Energy Carolinas and Duke Energy Progress (together, the Companies) filed a joint application with the NCUC and PSCSC for approval to combine utilities, by which Duke Energy Progress will merge into Duke Energy Carolinas, resulting in a single electric utility serving the Companies' North Carolina and South Carolina service territories. Duke Energy Corporation, together with the Companies, also filed an application with the FERC on the same day. The single utility’s ability to plan, execute, and operate resources more efficiently is expected to result in substantial cost savings, benefiting customers by reducing the overall costs to serve. Subject to regulatory approvals, the targeted effective date is January 1, 2027. On January 30, 2026, FERC issued an order authorizing the combination as consistent with the public interest. There is no assurance that Duke Energy, Duke Energy Carolinas and Duke Energy Progress will obtain required regulatory approvals from the NCUC and the PSCSC, and approvals from all three regulators are required for the transaction to proceed.

The North Carolina Public Staff and intervenors in the NCUC proceeding filed testimony advocating, in part, that the NCUC impose certain conditions for the combination to go forward, including conditions related to treatment of costs to achieve and future rate consolidation. In the South Carolina proceeding, the South Carolina Office of Regulatory Staff and intervenors filed testimony recommending that the PSCSC condition approval of the combination on additional requirements, including addressing the identification, allocation and recovery of cost impacts and costs to achieve, as well as the treatment of benefits.

On February 24, 2026, the Companies reached a comprehensive settlement with the North Carolina Public Staff and certain other intervenors (stipulating parties) in the case, which was filed with NCUC. Subject to approval by the NCUC, the agreement resolves all issues between the stipulating parties regarding the combination of Duke Energy Carolinas and Duke Energy Progress. Among other terms, the agreement requires the Companies to guarantee savings from the combination will be at least $286 million to North Carolina retail customers over a 14-year period, permits recovery and deferral of costs to achieve, removes 200 MW of battery storage from the recommended portfolio and near term action plan in the 2025 Carolinas Resource Plan and provides that North Carolinas retail customers should provide an annual $25 million of Share the Benefits Contributions to South Carolina retail customers for six years starting in 2030.

The evidentiary hearing before the NCUC commenced on February 25, 2026. The South Carolina evidentiary hearing is anticipated to begin on April 8, 2026. Both orders are anticipated to be issued in the second quarter of 2026.

FINANCIAL STATEMENTS			REGULATORY MATTERS

Duke Energy Carolinas

Regulatory Assets and Liabilities

The following tables present the regulatory assets and liabilities recorded on Duke Energy Carolinas' Consolidated Balance Sheets.

			December 31,									Earns/Pays			Recovery/Refund
(in millions)			2025			2024						a Return			Period Ends
Regulatory Assets**(a)**
AROs – coal ash			$	1,506		$	1,481					Yes			(b)
Storm cost deferrals			—			691						Yes			(b)
Accrued pension and OPEB(c)			592			668						Yes			(g)
Deferred fuel and purchased power			306			298						(e)			2028
Deferred asset – Lee COLA			173			205									(b)
Hedge costs deferrals			199			202									(b)
Storm cost securitized balance, net			1,328			201									2046
Grid deferral(c)			194			201						Yes			(b)
Incremental COVID-19 expenses(c)			104			137						Yes			(b)
AMI(c)			102			114						Yes			(b)
Vacation accrual			91			86									2026
Nuclear deferral			64			81									2027
COR settlement			78			81						Yes			(b)
Deferred coal ash handling system costs(c)			47			60						Yes			(b)
Customer connect project(c)			48			54						Yes			(b)
Retired generation facilities(c)			56			110						Yes			(b)
DSM/EE			86			—						Yes			(h)
PISCC and deferred operating expenses			39			42						Yes			(b)
Decoupling			45			24						Yes			(b)
Other			174			148									(b)
Total regulatory assets			5,232			4,884
Less: Current portion			730			685
Total noncurrent regulatory assets			$	4,502		$	4,199
Regulatory Liabilities**(a)**
AROs – nuclear and other			$	2,982		2,289									(b)
Net regulatory liability related to income taxes(d)			1,608			$	1,951					Yes			(b)
COR regulatory liability(c)			1,383			1,479									(f)
Deferred nuclear PTC			1,180			581						Yes			(b)
Hedge cost deferrals			228			199									(b)
Deferred fuel and purchased power			—			108						(e)
Renewable energy credits			121			102						Yes			(b)
Storm cost recovery			172			—						Yes			(b)
DSM / EE(c)			—			53						Yes			(h)
Accrued pension and OPEB(c)			18			35						Yes			(g)
Nuclear insurance distributions reserve(c)			163			152						Yes			(b)
Other			323			261									(b)
Total regulatory liabilities			8,178			7,210
Less: Current portion			569			618
Total noncurrent regulatory liabilities			$	7,609		$	6,592

(a) Regulatory assets and liabilities are excluded from rate base unless otherwise noted.

(b) The expected recovery or refund period varies or has not been determined.

(c) Included in rate base.

(d) Includes regulatory liabilities related to the change in the federal tax rate as a result of the Tax Act and the change in the North Carolina tax rate. Portions are included in rate base.

(e) Pays interest on over-recovered costs in North Carolina. Includes certain purchased power costs in North Carolina and South Carolina and costs of distributed energy in South Carolina. The asset balance principally relates to North Carolina costs while the liability balance relates to South Carolina.

(f) Recovered over the life of the associated assets.

(g) Recovered primarily over the average remaining service periods or life expectancies of employees covered by the benefit plans. See Note 23 for additional detail.

(h) Includes incentives on DSM/EE investments and is recovered or refunded through an annual rider mechanism.

FINANCIAL STATEMENTS			REGULATORY MATTERS

2023 North Carolina Rate Case

In January 2023, Duke Energy Carolinas filed a PBR application with the NCUC to request an increase in base rate retail revenues. The PBR application included an MYRP to recover projected capital investments during the three-year MYRP period. In addition to the MYRP, the PBR application included an Earnings Sharing Mechanism, Residential Decoupling Mechanism and Performance Incentive Mechanisms (PIMs) as required by HB951.

In August 2023, Duke Energy Carolinas filed with the NCUC a partial settlement with the North Carolina Public Staff in connection with its PBR application. The partial settlement included, among other things, agreement on a substantial portion of the North Carolina retail rate base for the historic base case of approximately $19.5 billion and all of the capital projects and related costs to be included in the three-year MYRP, including $4.6 billion (North Carolina retail allocation) projected to go in service over the MYRP period. Additionally, the partial settlement included agreement, with certain adjustments, on depreciation rates, the recovery of grid improvement plan costs and PIMs, Tracking Metrics and the Residential Decoupling Mechanism under the PBR application. On August 28, 2023, Duke Energy Carolinas filed with the NCUC a second partial settlement with the North Carolina Public Staff resolving additional issues, including the future treatment of nuclear PTCs related to the IRA, through a stand-alone rider that would provide the benefits to customers. This stand-alone rider was effective in rates beginning January 1, 2025.

On December 15, 2023, the NCUC issued an order approving Duke Energy Carolinas' PBR application, as modified by the partial settlements and the order, including an overall retail revenue increase of $436 million in Year 1, $174 million in Year 2 and $158 million in Year 3, for a combined total of $768 million. The order established an ROE of 10.1% based upon an equity ratio of 53% and approved, with certain adjustments, depreciation rates and the recovery of grid improvement plan costs and certain deferred COVID-related costs. Additionally, the Residential Decoupling Mechanism and PIMs were approved as requested under the PBR application and revised by the partial settlements. As a result of the partial settlements and the order, Duke Energy Carolinas recognized pretax charges of $29 million within Impairment of assets and other charges, and $8 million within Operations, maintenance and other, for the year ended December 31, 2023, on the Consolidated Statements of Operations. Duke Energy Carolinas implemented interim rates on September 1, 2023. New revised Year 1 rates and the residential decoupling were implemented on January 15, 2024.

In February 2024, a number of parties filed Notices of Appeal of the December 15, 2023 NCUC order. Notices of Appeal were filed by the Carolina Industrial Group for Fair Utility Rates (CIGFUR) III, a collection of electric membership cooperatives (collectively, the EMCs), and the North Carolina Attorney General’s Office (the AGO). CIGFUR III and the EMCs appealed the interclass subsidy reduction percentage and the Transmission Cost Allocation stipulation. In addition, CIGFUR III appealed the NCUC’s elimination of the equal percentage fuel cost allocation methodology. The AGO appealed several issues including the authorized ROE and certain rate design and accounting matters. On March 1, 2024, Carolina Utility Customers Association, Inc. appealed several issues, including the authorized ROE and certain rate design and accounting matters. In July 2024, the Supreme Court of North Carolina consolidated these appeals with the parallel appeals of the NCUC's order regarding the Duke Energy Progress PBR application. Briefing is complete and oral arguments occurred in February 2025. Duke Energy Carolinas anticipates a decision to be issued in the first half of 2026.

2025 North Carolina Rate Case

On November 20, 2025, Duke Energy Carolinas filed a PBR application with the NCUC to request an increase in base rate retail revenues. The PBR application includes an MYRP to recover projected capital investments during a two-year MYRP period. In addition to the MYRP, the PBR application includes an Earnings Sharing Mechanism, Residential Decoupling Mechanism and PIMs. If approved, the overall net retail revenue increase would be $727 million in Year 1 and $275 million in Year 2, for a combined total of $1 billion or 15.0%. The application also requests an ROE of 10.95% with an equity ratio of 53%. The rate increase is driven primarily by major transmission and distribution investments since the last rate case and projected in the MYRP, as well as investments in energy storage and solar assets. Duke Energy Carolinas has requested the total Year 1 rates to be effective no later than January 1, 2027. The evidentiary hearing is scheduled to commence on July 7, 2026.

2024 South Carolina Rate Case

In January 2024, Duke Energy Carolinas filed a rate case with the PSCSC to request an increase in base rate retail revenues. In May 2024, Duke Energy Carolinas and the South Carolina Office of Regulatory Staff, as well as other consumer, environmental, and industrial intervening parties, filed a settlement resolving all issues in the base rate proceeding. The major components of the settlement include a $240 million annual customer rate increase, prior to a reduction from the accelerated return to customers of federal unprotected Property, Plant and Equipment related EDIT of $84 million annually over the first two years. The settlement includes an ROE of 9.94% with an equity ratio of 51.21% and resolved recovery of the continued investments in the grid, the Company's new corporate headquarters and environmental compliance costs. The PSCSC held a hearing in May 2024, to consider evidence supporting the settlement. On July 3, 2024, the PSCSC issued its final order approving an increase in base rates and approving nearly all components of the settlement. The order revised recovery of certain environmental compliance costs, the only provision of the settlement agreement not fully approved by the PSCSC. As a result, Duke Energy Carolinas recognized pretax charges of $33 million within Impairment of assets and other charges, $2 million within Operation, maintenance and other, partially offset by an $11 million reduction in Interest expense, for the year ended December 31, 2024, on the Consolidated Statements of Operations. Based upon the order, after accelerating the EDIT giveback to customers, the net rate increase is $150 million annually for the first two years. Revised customer rates were effective August 1, 2024, and are based upon a South Carolina retail rate base of $7.4 billion. This matter is now fully resolved.

2025 South Carolina Rate Case

On July 1, 2025, Duke Energy Carolinas filed a base rate case with the PSCSC requesting an increase in electric base rates. The request for the rate increase was driven by significant capital investments, including generation plant additions, as well as transmission, distribution and grid improvements. On November 11, 2025, Duke Energy Carolinas filed a comprehensive settlement with the South Carolina Office of Regulatory Staff and other intervenors in the case resolving all revenue requirement issues in the base rate proceeding. The settlement included an annual net increase in electric rates of approximately $19 million including the flow back of PTC benefits to customers, an ROE of 9.99% and an equity ratio of 53%. On December 31, 2025, the PSCSC issued an order approving the settlement agreement without modification. Revised customer rates will become effective on March 1, 2026.

FINANCIAL STATEMENTS			REGULATORY MATTERS

Oconee Subsequent License Renewal

On June 7, 2021, Duke Energy Carolinas filed a subsequent license renewal (SLR) application for Oconee with the NRC to renew the operating licenses. On March 31, 2025, the NRC issued the subsequent renewed licenses for Oconee, allowing an additional 20 years of operation to 2053 (units 1 and 2) and 2054 (unit 3).

Bad Creek License Extension

On July 14, 2025, Duke Energy Carolinas filed its final license application with the FERC for the Bad Creek Pumped Storage Hydroelectric Station. The application, if approved, would extend plant operations for an additional 50 years. The current license expires in July 2027 and the renewal would extend the operating license of the facility to 2077. A FERC ruling is expected in 2027.

Anderson County Combined Cycle CECPCN

On October 30, 2025, Duke Energy Carolinas filed with the PSCSC an application for a CECPCN to construct and operate a new 1,365-MW natural gas CC generating facility with hydrogen capability in Anderson County, South Carolina. The preliminary estimate of the total project cost is approximately $3.2 billion, inclusive of financing costs. Subject to negotiation of final contractual terms, the new CC will be co-owned with North Carolina Electric Membership Corporation (NCEMC) and Central Electric Power Cooperative (CEPC), with Duke Energy Carolinas owning approximately 1,170 MW, NCEMC owning 100 MW and CEPC owning the remaining 95 MW. If approved, construction is anticipated to begin in 2027 and the facility would be expected to be in service by the end of 2030. An evidentiary hearing with the PSCSC occurred on February 25, 2026, and a final order is expected to be issued no later than April 28, 2026.

Buck Combustion Turbines CPCN

On November 21, 2025, Duke Energy Carolinas filed with the NCUC an application to construct and operate two hydrogen-capable advanced-class simple-cycle CTs at the site of the existing Buck CC Station. The two new CTs, totaling approximately 850 MW, will provide incremental peaking generation to serve Duke Energy Carolinas' customers growing energy needs. Pending regulatory approvals, construction of the CTs is planned to start in 2027 with the units targeted to be placed in service by the end of 2029. As part of the application, Duke Energy Carolinas noted that the recovery of CWIP during the construction period for the proposed facility will not be included in rate base and will instead accrue AFUDC. The 2030 North Carolina retail revenue requirement for the proposed facility is estimated to be $154 million, representing an approximate average North Carolina retail rate increase of 2.3% across all classes.

Marshall Combustion Turbines CPCN

In March 2024, Duke Energy Carolinas filed with the NCUC an application to construct and operate two hydrogen-capable advanced-class simple-cycle CTs at the site of the existing Marshall Steam Station. The two new CTs, totaling approximately 850 MW, will enable the retirement of Marshall coal units 1 and 2 and provide incremental capacity to support system capacity needs and expanded flexibility to support integration of renewables. Pending regulatory approvals, the CTs are targeted to be placed in service by the end of 2028. In December 2024, the NCUC issued its order granting the CPCN authorizing construction and the NCDEQ issued final air permits for the two CTs.

Certain preliminary construction activities are ongoing and on December 1, 2025, Duke Energy Carolinas filed an application requesting the NCUC's ongoing review of the construction of the two CTs that are planned to operate at the Marshall Steam Station. The application requests that the NCUC find that Duke Energy Carolinas’ construction costs incurred for the CTs during the prior 12-month reporting period are prudent and reasonable. These activities include actions related to site preparation and the ordering of certain long-lead-time equipment. The application also requests that the NCUC modify the existing CPCN for the CTs to reflect a revision to the cost estimate for the units. A decision on the application is anticipated by the third quarter of 2026.

On January 30, 2026, Duke Energy Carolinas filed an application for an out-of-state certificate with the PSCSC requesting that it find that the North Carolina-sited facility comprised of two new advanced class CTs at the existing Marshall Steam station is in the public convenience and necessity for South Carolina retail customers. The PSCSC is expected to make a decision on the application by the end of July 2026.

FINANCIAL STATEMENTS			REGULATORY MATTERS

Duke Energy Progress

Regulatory Assets and Liabilities

The following tables present the regulatory assets and liabilities recorded on Duke Energy Progress' Consolidated Balance Sheets.

			December 31,									Earns/Pays			Recovery/Refund
(in millions)			2025			2024						a Return			Period Ends
Regulatory Assets**(a)**
AROs – coal ash			$	1,531		$	1,322					Yes			(b)
AROs – nuclear and other			554			900									(c)
Storm cost securitized balance, net			1,239			822									2046
Accrued pension and OPEB(d)			396			439						Yes			(i)
Deferred fuel and purchased power			227			277						(e)			2028
Storm cost deferrals			20			276						Yes			(b)
DSM/EE(d)			229			188						Yes			(g)
NCEMPA deferrals(d)			202			179						(f)			2042
Retired generation facilities(d)			87			108						Yes			(b)
Incremental COVID-19 expenses(d)			94			89									(b)
Hedge costs deferrals			87			85									(b)
AMI(d)			39			54						Yes			(b)
Grid deferral(d)			63			54						Yes			(b)
Nuclear deferral			53			53									2027
Customer connect project(d)			42			45						Yes			(b)
Vacation accrual			45			43									2026
PISCC and deferred operating expenses			37			37						Yes			2054
Decoupling			27			32						Yes			(b)
COR settlement			28			29						Yes			(b)
Deferred coal ash handling system costs(d)			13			17						Yes			(b)
Deferred asset – Harris COLA			4			10									(b)
Other			178			122									(b)
Total regulatory assets			5,195			5,181
Less: Current portion			652			626
Total noncurrent regulatory assets			$	4,543		$	4,555
Regulatory Liabilities**(a)**
COR regulatory liability(d)			$	3,084		2,984									(h)
Net regulatory liability related to income taxes(j)			1,206			$	1,318					Yes			(b)
Hedge cost deferrals			126			151									(b)
Renewable energy credits			146			139						Yes			(b)
Storm cost recovery			90			6						Yes			(b)
Deferred nuclear PTC			197			95						Yes			(b)
Accrued pension and OPEB(d)			11			12						Yes			(i)
Deferred fuel and purchased power			10			10						(e)			2028
Other			211			203									(b)
Total regulatory liabilities			5,081			4,918
Less: Current portion			274			348
Total noncurrent regulatory liabilities			$	4,807		$	4,570

(a) Regulatory assets and liabilities are excluded from rate base unless otherwise noted.

(b) The expected recovery or refund period varies or has not been determined.

(c) Recovery period for costs related to nuclear facilities runs through the decommissioning period of each unit.

(d) Included in rate base.

(e) Pays interest on over-recovered costs in North Carolina. Includes certain purchased power costs in North Carolina and South Carolina and costs of distributed energy in South Carolina. The asset balance principally relates to North Carolina costs while the liability balance relates to South Carolina.

(f) South Carolina retail allocated costs are earning a return.

(g) Includes incentives on DSM/EE investments and is recovered through an annual rider mechanism.

(h) Recovered over the life of the associated assets.

(i) Recovered primarily over the average remaining service periods or life expectancies of employees covered by the benefit plans. See Note 23 for additional detail.

(j) Includes regulatory liabilities related to the change in the federal tax rate as a result of the Tax Act and the change in the North Carolina tax rate. Portions are included in rate base.

FINANCIAL STATEMENTS			REGULATORY MATTERS

2022 North Carolina Rate Case

In October 2022, Duke Energy Progress filed a PBR application with the NCUC to request an increase in base rate retail revenues. The rate request before the NCUC included an MYRP to recover projected capital investments during the three-year MYRP period. In addition to the MYRP, the PBR application included an Earnings Sharing Mechanism, Residential Decoupling Mechanism and PIMs as required by HB951.

In April 2023, Duke Energy Progress filed with the NCUC a partial settlement with the North Carolina Public Staff, which included agreement on many aspects of Duke Energy Progress' three-year MYRP proposal. In May 2023, CIGFUR II joined this partial settlement and the North Carolina Public Staff and CIGFUR II filed a separate settlement reaching agreement on PIMs, Tracking Metrics and the Residential Decoupling Mechanism under the PBR application.

On August 18, 2023, the NCUC issued an order approving Duke Energy Progress' PBR application, as modified by the partial settlements and the order, including an overall retail revenue increase of $233 million in Year 1, $126 million in Year 2 and $135 million in Year 3, for a combined total of $494 million. Key aspects of the order include the approval of North Carolina retail rate base for the historic base case of approximately $12.2 billion and capital projects and related costs to be included in the three-year MYRP, including $3.5 billion (North Carolina retail allocation) projected to go in service over the MYRP period. The order established an ROE of 9.8% based upon an equity ratio of 53% equity and approved, with certain adjustments, depreciation rates and the recovery of grid improvement plan costs and certain deferred COVID-related costs. Additionally, the Residential Decoupling Mechanism and PIMs were approved as requested under the PBR application and revised by the partial settlements. As a result of the order, Duke Energy Progress recognized pretax charges of $28 million within Impairment of assets and other charges, which primarily related to certain COVID-19 deferred costs, and $8 million within Operation, maintenance and other, for the year ended December 31, 2023, on the Consolidated Statements of Operations. Duke Energy Progress implemented interim rates on June 1, 2023, and implemented revised Year 1 rates and the residential decoupling on October 1, 2023.

In October 2023, CIGFUR II and Haywood Electric Membership Corporation each filed a Notice of Appeal of the August 18, 2023 NCUC order. Both parties appealed certain matters that do not impact the overall revenue requirement in the rate case. Specifically, they appealed the interclass subsidy reduction percentage, and CIGFUR II also appealed the Customer Assistance Program and the equal percentage fuel cost allocation methodology. In November 2023, the AGO filed a Notice of Cross Appeal of the NCUC’s determination regarding the exclusion of electric vehicle revenue from the residential decoupling mechanism. In November 2023, Duke Energy Progress, the North Carolina Public Staff, CIGFUR II, and a number of other parties reached a settlement pursuant to which CIGFUR II agreed not to pursue its appeal of the Customer Assistance Program. In July 2024, the Supreme Court of North Carolina consolidated these appeals with the parallel appeals of the NCUC's order regarding the Duke Energy Carolinas PBR application. Briefing is complete and oral arguments occurred in February 2025. Duke Energy Progress anticipates a decision to be issued in the first half of 2026.

2025 North Carolina Rate Case

On November 20, 2025, Duke Energy Progress filed a PBR application with the NCUC to request an increase in base rate retail revenues. The PBR Application includes an MYRP to recover projected capital investments during a two-year MYRP period. In addition to the MYRP, the PBR Application includes an Earnings Sharing Mechanism, Residential Decoupling Mechanism and PIMs. If approved, the overall net retail revenue increase would be $529 million in Year 1 and $200 million in Year 2, for a combined total of $729 million or 15.1%, which includes the flow back of PTC benefits to customers through a proposed PTC rider similar to Duke Energy Carolinas. The application also requests an ROE of 10.95% with an equity ratio of 53%. The rate increase is driven primarily by major transmission and distribution investments since the last rate case and projected in the MYRP, as well as investments in energy storage and solar assets. Duke Energy Progress has requested the total Year 1 rates to be effective no later than January 1, 2027. The evidentiary hearing is scheduled to commence on August 11, 2026.

2025 South Carolina Rate Case

On June 12, 2025, Duke Energy Progress filed a base rate case with the PSCSC requesting an increase in electric base rates. The request for the rate increase was driven by significant capital investments, primarily including transmission, distribution and grid improvements. On October 27, 2025, Duke Energy Progress filed a comprehensive settlement with the South Carolina Office of Regulatory Staff and other intervenors in the case resolving all revenue requirement issues in the base rate proceeding. The settlement included an annual net increase in electric rates of approximately $40 million including the flow back of PTC benefits to customers, an ROE of 9.99% and an equity ratio of 53% and was subject to review and approval by the PSCSC. On December 12, 2025, the PSCSC issued an order approving the settlement agreement without modification. Revised customer rates were implemented on February 1, 2026.

Person County Combined Cycle CPCNs

On February 7, 2025, Duke Energy Progress filed with the NCUC its application to construct and operate a second 1,360-MW hydrogen-capable, advanced-class CC unit in Person County at the Roxboro Plant. NCEMC has also notified Duke Energy Progress of NCEMC's intent to co-own approximately 225 MW of the second CC and Duke Energy Progress and NCEMC began negotiations on the contractual arrangement in the second quarter of 2025. NCEMC has the right to co-own the facility under its existing supply agreement with Duke Energy Progress. Pending regulatory approvals, construction of the second CC is planned to start in 2026 with the unit targeted to be placed in service by the end of 2029. As part of the application, Duke Energy Progress noted that the recovery of CWIP during the construction period for the proposed facility may be pursued in the future. The 2030 North Carolina retail revenue requirement for the proposed second unit is estimated to be $113 million, representing an approximate average retail rate increase of 2.6% across all classes. The air permit was issued by the NCDEQ in December 2024. On October 16, 2025, the NCUC issued its order granting the CPCN. Certain preliminary construction activities are ongoing at both Person County CC units.

On January 30, 2026, Duke Energy Progress filed an application for out-of-state certificates with the PSCSC requesting that it find that the two new CC units, totaling approximately 2,720 MW, sited at the Person County facilities in North Carolina are in the public convenience and necessity for South Carolina retail customers. The PSCSC is expected to make a decision on the application by the end of July 2026.

Robinson Subsequent License Renewal

In April 2025, Duke Energy Progress filed an SLR application for Robinson with the NRC to renew Robinson’s operating license for an additional 20 years. The current license expires in 2030 and the renewal would extend the operating license of the facility to 2050. The NRC is performing

FINANCIAL STATEMENTS			REGULATORY MATTERS

the safety and environmental reviews for the application and is working through 2025 government shutdown impacts in an effort to maintain the schedule for a decision by April 2026.

Duke Energy Florida

Regulatory Assets and Liabilities

The following tables present the regulatory assets and liabilities recorded on Duke Energy Florida's Consolidated Balance Sheets.

			December 31,									Earns/Pays			Recovery/Refund
(in millions)			2025			2024						a Return			Period Ends
Regulatory Assets**(a)**
Storm cost deferrals			$	29		962						(e)			(b)
Nuclear asset securitized balance, net			717			771									2036
COR regulatory asset			746			571						Yes			(b)
Accrued pension and OPEB(c)			348			389						Yes			(f)
Retired generation facilities(c)			89			94						Yes			2044
Customer connect project(c)			65			71						Yes			2037
Qualifying facility contract buyouts(c)			55			62						Yes			2034
Hedge costs deferrals(c)			48			41						Yes			(b)
AMI(c)			9			16						Yes			2032
AROs – coal ash			13			13									(b)
AROs – nuclear and other			10			5									(b)
Other			79			91						(d)			(b)
Total regulatory assets			2,208			3,086
Less: Current portion			102			1,022
Total noncurrent regulatory assets			$	2,106		$	2,064
Regulatory Liabilities**(a)**
Net regulatory liability related to income taxes(c)			$	535		$	564								(b)
Hedge cost deferrals(c)			122			130						Yes			(b)
Deferred fuel and purchased power			18			84						(e)			2026
Storm reserve(c)			132			—						Yes			(b)
Other			63			84						(d)			(b)
Total regulatory liabilities			870			862
Less: Current portion			76			174
Total noncurrent regulatory liabilities			$	794		$	688

(a) Regulatory assets and liabilities are excluded from rate base unless otherwise noted.

(b) The expected recovery or refund period varies or has not been determined.

(c) Included in rate base.

(d) Certain costs earn/pay a return.

(e) Earns commercial paper rate.

(f) Recovered primarily over the average remaining service periods or life expectancies of employees covered by the benefit plans. See Note 23 for additional detail.

Clean Energy Connection

In July 2020, Duke Energy Florida petitioned the FPSC for approval of a voluntary solar program consisting of 10 new solar generating facilities with combined capacity of 749 MW. The FPSC approved the program in January 2021, allowing participants to support cost-effective solar development in Florida by paying a subscription fee based on per kilowatt subscriptions and receiving a credit on their bill based on the actual generation associated with their portion of the solar portfolio. The 10 new solar generation facilities were completed and all of the remaining sites were in service by the end of 2024 at a cost of approximately $1.1 billion. These investments are included in base rates, offset by the revenue from the subscription fees, with credits included in the fuel cost recovery clause.

In February 2021, the League of United Latin American Citizens (LULAC) filed a notice of appeal of the FPSC’s order approving the Clean Energy Connection to the Supreme Court of Florida. On May 27, 2022, the Supreme Court of Florida issued an order remanding the case back to the FPSC so that the FPSC can amend its order to better address some of the arguments raised by LULAC. In September 2022, the FPSC issued a revised order and submitted it to the Supreme Court of Florida. On July 17, 2025, the Supreme Court of Florida issued an order affirming the revised FPSC order. The ruling did not change the solar program or have other financial implications. This matter is now fully resolved.

FINANCIAL STATEMENTS			REGULATORY MATTERS

Storm Protection Plan

At least every three years, Duke Energy Florida must file an SPP with the FPSC. Each plan covers a 10-year period and includes investments in transmission and distribution meant to strengthen infrastructure, reduce outage times associated with extreme weather events, reduce restoration costs and improve overall service reliability. In January 2025, Duke Energy Florida filed an SPP for approval with the FPSC for the 2026-2035 time frame reflecting approximately $7 billion of capital investment in transmission and distribution. On May 16, 2025, Duke Energy Florida and the OPC filed joint stipulations to resolve all matters, and the FPSC issued an order on June 19, 2025, approving those stipulations. The stipulations require Duke Energy Florida to defer certain work in two programs from 2026 to 2027 and later. The remainder of Duke Energy Florida's filed SPP was approved without modification. This matter is now fully resolved.

2024 Florida Rate Case

In April 2024, Duke Energy Florida filed a formal request for new base rates with the FPSC. Duke Energy Florida proposed a three-year rate plan that would begin in January 2025, once its current base rate settlement agreement concludes at the end of 2024. Duke Energy Florida proposed multiyear rate increases that use the projected 12-month periods ending December 31, 2025, 2026, and 2027 as the test years, with adjusted rates to be effective with the first billing period of January 2025, 2026, and 2027, respectively.

In July 2024, Duke Energy Florida filed a settlement agreement with the FPSC. The parties to the settlement include Duke Energy Florida, the Office of Public Counsel and other intervening parties. Pursuant to the settlement, the parties agreed to a base rate stay-out provision that expires year-end 2027; however, Duke Energy Florida is allowed an increase to its base rates in 2025 and 2026, as well as utilization of certain tax benefits in lieu of a revenue increase in 2027. Additionally, revenue increases related to solar investments will be recovered via the Solar Base Rate Adjustment mechanism. The parties also agreed to an ROE band of 9.3% to 11.3% with a midpoint of 10.3% and an equity ratio of 53%. The agreement provides for $203 million and $59 million in base rate increases in 2025 and 2026, respectively, as well as increases associated with investments in 12 new solar facilities as they come on line. In August 2024, the FPSC approved the settlement agreement without modification and a final order was issued on November 12, 2024. New rates were effective January 1, 2025. This matter is now fully resolved.

Hurricanes Debby, Helene and Milton

In 2024, Hurricane Debby (Category 1 storm), Hurricane Helene (Category 4 storm) and Hurricane Milton (Category 3 storm) made landfall in Florida and caused significant damage. Duke Energy Florida has certain existing storm reserve regulatory liability amounts, which are applied to the recovery of storm costs. The storm reserve amount was approximately $63 million as of July 31, 2024, prior to the damage resulting from hurricanes Debby, Helene and Milton. Duke Energy Florida is permitted to petition the FPSC for recovery of incremental operation and maintenance costs resulting from the storms and to replenish the retail customer storm reserve to approximately $132 million.

In December 2024, Duke Energy Florida filed its petition to recover the estimated costs incurred to respond to all three storms, including replenishment of the storm reserve, seeking recovery of approximately $1.1 billion, over 12 months beginning with the first billing cycle in March 2025. On February 4, 2025, the FPSC voted to approve Duke Energy Florida's request for recovery of these estimated storm costs as filed, subject to true-up after the actual costs are filed. New rates were effective March 1, 2025.

Approximately $4 million and $936 million of the operation and maintenance expenses, net of storm reserves, are deferred in Regulatory assets within Current assets as of December 31, 2025, and December 31, 2024, respectively. Approximately $75 million of capital related to these storms will be sought for recovery in future base rate case filings. On January 5, 2026, Duke Energy Florida filed a notice with the FPSC to stop recovery of the storm cost charge because the costs were fully recovered and the storm reserve was fully replenished earlier than anticipated, primarily due to lower actual incurred storm costs as compared to preliminary estimates. The notice was administratively approved and revised rates with the storm charge removed were effective with the first billing cycle in February 2026.

FINANCIAL STATEMENTS			REGULATORY MATTERS

Duke Energy Ohio

Regulatory Assets and Liabilities

The following tables present the regulatory assets and liabilities recorded on Duke Energy Ohio's Consolidated Balance Sheets.

			December 31,									Earns/Pays			Recovery/Refund
(in millions)			2025			2024						a Return			Period Ends
Regulatory Assets**(a)**
CEP deferral			$	200		195						Yes			(b)
Accrued pension and OPEB			121			131									(d)
COR regulatory asset			114			75									(b)
Customer connect project			39			44									(b)
Network Integration Transmission Services deferral			31			31						Yes			(b)
Transmission expansion obligation			30			31									(b)
Decoupling			18			29									(b)
Deferred pipeline integrity costs			26			28						Yes			(b)
East Bend deferrals(c)			20			24						Yes			(b)
Propane caverns			22			24									(b)
PISCC and deferred operating expenses(c)			14			15						Yes			2083
AROs – coal ash			14			14						Yes			(b)
Deferred fuel and purchased power			25			8									2026
Other			98			144									(b)
Total regulatory assets			772			793
Less: Current portion			86			88
Total noncurrent regulatory assets			$	686		$	705
Regulatory Liabilities**(a)**
Net regulatory liability related to income taxes			$	405		$	432								(b)
Accrued pension and OPEB			13			14									(d)
Other			109			53									(b)
Total regulatory liabilities			527			499
Less: Current portion			57			34
Total noncurrent regulatory liabilities			$	470		$	465

(a) Regulatory assets and liabilities are excluded from rate base unless otherwise noted.

(b) The expected recovery or refund period varies or has not been determined.

(c) Included in rate base.

(d) Recovered primarily over the average remaining service periods or life expectancies of employees covered by the benefit plans. See Note 23 for additional detail.

Duke Energy Ohio 2022 Natural Gas Base Rate Case

In June 2022, Duke Energy Ohio filed a natural gas base rate case application with the PUCO. The drivers for this case were capital invested since Duke Energy Ohio's last natural gas base rate case in 2012. Duke Energy Ohio also sought to adjust the caps on its CEP Rider. In April 2023, Duke Energy Ohio filed a stipulation with all parties to the case except the Ohio Consumers' Counsel (OCC). In the stipulation, the parties agreed to approximately $32 million in revenue increases with an equity ratio of 52.32% and an ROE of 9.6%, and adjustments to the CEP Rider caps. The stipulation was opposed by the OCC at an evidentiary hearing that concluded in May 2023. On November 1, 2023, PUCO issued an order approving the stipulation as filed and new rates went into effect November 1, 2023. In December 2023, the OCC filed an application for rehearing and the PUCO granted OCC's application for rehearing for further consideration of issues raised. As a result of a Supreme Court of Ohio decision regarding procedural issues related to applications for rehearing, PUCO denied OCC’s rehearing request. In October 2024, the OCC filed its Notice of Appeal with the Supreme Court of Ohio. The case is fully briefed and oral argument occurred October 7, 2025. The matter is now submitted for decision.

Duke Energy Ohio 2024 Electric Security Plan

In April 2024, Duke Energy Ohio filed with the PUCO a request for an Electric Security Plan (ESP). The ESP application proposed a three-year term from June 1, 2025, through May 31, 2028, and included continuation of market-based rates for generation supply through competitive procurement processes and continuation and expansion of existing rider mechanisms. Duke Energy Ohio proposed a new rider mechanism relating to electric distribution infrastructure modernization programs, which may be enabled by and partially funded through federal or state funding opportunities, as well as future battery storage projects, and two electric vehicle programs. Additional proposals included new rider mechanisms related to solar for all investments for low-income and disadvantaged communities, low-income senior citizen bill assistance, and EE and demand-side management programs.

FINANCIAL STATEMENTS			REGULATORY MATTERS

In November 2024, Duke Energy Ohio filed a stipulation that the majority of the intervenors signed as either signatory or non-opposing parties. The stipulation includes the continuation of market-based rates for generation supply through competitive procurement auctions and the continuation of all existing riders. It further establishes new caps for certain riders. Duke Energy Ohio also agreed to withdraw its proposals for an infrastructure modernization rider, battery storage projects and electric vehicle programs. The stipulation included a residential EE program with provisions for low-income customers. On May 14, 2025, PUCO issued its order, approving the stipulation without modification.

On May 15, 2025, the governor of Ohio signed Ohio Substitute House Bill 15 (HB15) into law with an effective date of August 14, 2025. HB15 requires electric distribution utilities to file a base rate case every three years, commencing no later than December 31, 2029, and established an opportunity to apply for approval of a three-year rate plan with forward-looking test periods to mitigate regulatory lag. HB15 eliminates ESPs and certain distribution-related riders, but allows ESPs approved as of its effective date to remain in place through the end of their authorized term. HB15 also eliminated Duke Energy Ohio's Legacy Generation Rider upon the effective date of HB15 and prevents the PUCO from future reauthorization of similar arrangements. As a result of HB15, future losses related to Duke Energy Ohio's Inter-Company Power Agreement with OVEC will not be recoverable from retail customers.

Duke Energy Ohio RTO Adder

On February 24, 2022, the OCC filed a complaint asserting that FERC should reduce the ROE utilized in transmission formulas for Duke Energy Ohio and certain transmission providers by eliminating the 50 basis point adder associated with RTO membership. The OCC contends this is required because Ohio law mandates that transmission owning utilities join an RTO and that the 50 basis point adder is only applicable where RTO membership is voluntary. On December 15, 2022, FERC denied the complaint as it related to Duke Energy Ohio, but granted it for certain other transmission providers. As a result of appeal by certain other transmission providers, the U.S. Court of Appeals for the Sixth Circuit (Sixth Circuit) on January 17, 2025, reversed the prior decision from FERC. In the decision, the Sixth Circuit ruled the 50 basis point adder is available only where RTO membership is voluntary. The decision noted that Ohio law requires Ohio's transmission utilities to be a member of an RTO and therefore it is unlawful for FERC to remove the adder from certain transmission providers but not also remove the adder from Duke Energy Ohio. As a result, the issue was remanded back to FERC to revise their prior decision. As a result of the ruling, Duke Energy Ohio recognized a pretax charge during 2025, the results of which were not material. On March 26, 2025, the Sixth Circuit denied requests for rehearing. On April 16, 2025, the Sixth Circuit agreed to stay the mandate pending further appeal to the U.S. Supreme Court. On July 17, 2025, Duke Energy Ohio filed a respondent brief at the U.S. Supreme Court requesting review of the Sixth Circuit's decision. On November 10, 2025, the U.S. Supreme Court denied the appeal, and on November 13, 2025, the Sixth Circuit remanded the case back to FERC. An order from the FERC is expected in the first quarter of 2026.

Duke Energy Kentucky 2022 Electric Base Rate Case

In December 2022, Duke Energy Kentucky filed a base rate case with the KPSC driven by capital investments to strengthen the electricity generation and delivery systems along with adjusted depreciation rates for the East Bend and Woodsdale CT generation stations. Duke Energy Kentucky also requested approval for new programs and tariff updates, including a voluntary community-based renewable subscription program and two electric vehicle charging programs. The KPSC issued an order on October 12, 2023, including a $48 million increase in base revenues, an ROE of 9.75% for electric base rates and 9.65% for electric riders and an equity ratio of 52.145%. New rates went into effect October 13, 2023. Duke Energy Kentucky's request to adjust the depreciation rates of East Bend was denied and the KPSC ordered depreciation rates with a 2041 retirement date for the unit. The KPSC approved the request to align depreciation rates of Woodsdale CT with a 2040 retirement date and denied the voluntary community-based renewable subscription program and electric vehicle charging programs.

Revised rates were implemented in August 2024 after a rehearing request. On December 14, 2023, Duke Energy Kentucky filed an appeal with the Franklin County Circuit Court on certain matters for which the KPSC denied rehearing, specifically as it relates to the inclusion of decommissioning costs in depreciation rates for East Bend and Woodsdale. The case is fully briefed and Duke Energy Kentucky is awaiting the scheduling of oral arguments and the outcome of the appeal.

Duke Energy Kentucky 2024 Electric Base Rate Case

In December 2024, Duke Energy Kentucky filed a base rate case with the KPSC requesting an annualized increase in electric base rates of approximately $70 million. The request for the rate increase was driven by capital investments to strengthen the electricity generation and delivery systems. New rates went into effect on July 3, 2025, subject to refund. On October 2, 2025, the KPSC issued its decision approving a $44 million revenue requirement increase, with an ROE of 9.8% and an equity ratio of 52.73%. The KPSC further directed Duke Energy Kentucky to issue refunds of amounts collected since July 3, 2025, that exceed what has been approved by the order within 60 days. On October 22, 2025, Duke Energy Kentucky filed a petition for rehearing with the KPSC related to the treatment of terminal net salvage, rate case expense and recovery of costs from PJM. Additionally, on October 22, 2025, one commercial customer filed a petition for rehearing with the KPSC on a rate design issue, which does not impact the overall revenue requirement. On November 10, 2025, Duke Energy Kentucky’s motions for reconsideration regarding rate case expense and recovery of costs from PJM were granted and the motion for reconsideration regarding the treatment of terminal net salvage was denied by the KPSC. In December 2025, $7 million was refunded to customers.

Duke Energy Kentucky 2025 Natural Gas Base Rate Case

On June 2, 2025, Duke Energy Kentucky filed a base rate case with the KPSC requesting an increase in natural gas base rates. The request for the rate increase was driven by capital investments to strengthen the natural gas delivery system. On October 20, 2025, Duke Energy Kentucky filed a settlement with the Office of the Kentucky Attorney General, that if approved, would resolve all issues in the case. The settlement included an increase in natural gas base rates of approximately $22 million, an ROE of 9.8% for base rates (9.7% for riders), an equity ratio of 52.649%, and approval for cost recovery of Aldyl-A pipe and service replacements through an existing rider. On December 23, 2025, the KPSC approved the settlement without modification. New rates went into effect January 3, 2026. This matter is now fully resolved.

FINANCIAL STATEMENTS			REGULATORY MATTERS

Duke Energy Indiana

Regulatory Assets and Liabilities

The following tables present the regulatory assets and liabilities recorded on Duke Energy Indiana's Consolidated Balance Sheets.

			December 31,									Earns/Pays			Recovery/Refund
(in millions)			2025			2024						a Return			Period Ends
Regulatory Assets**(a)**
AROs – coal ash			$	606		$	554					Yes			(b)
PISCC and deferred operating expenses(c)			201			237						Yes			(b)
Accrued pension and OPEB			203			212									(e)
Retired generation facilities(c)			20			25						Yes			2030
Hedge costs deferrals			30			23									(b)
Customer connect project			18			19									(b)
Deferred fuel and purchased power			60			—									2026
Storm cost deferrals			21			17									(b)
AMI			10			12									2031
Other			56			54									(b)
Total regulatory assets			1,225			1,153
Less: Current portion			193			113
Total noncurrent regulatory assets			$	1,032		$	1,040
Regulatory Liabilities**(a)**
Net regulatory liability related to income taxes			$	641		$	725								(b)
COR regulatory liability(c)			444			434									(d)
Accrued pension and OPEB			113			139									(e)
Hedge cost deferrals			106			103									(b)
Deferred fuel and purchased power			—			21
DSM / EE			19			11									(b)
Other			137			154									(b)
Total regulatory liabilities			1,460			1,587
Less: Current portion			275			183
Total noncurrent regulatory liabilities			$	1,185		$	1,404

(a) Regulatory assets and liabilities are excluded from rate base unless otherwise noted.

(b) The expected recovery or refund period varies or has not been determined.

(c) Included in rate base.

(d) Refunded over the life of the associated assets.

(e) Recovered primarily over the average remaining service periods or life expectancies of employees covered by the benefit plans. See Note 23 for additional detail.

Indiana Coal Ash Recovery

In Duke Energy Indiana’s 2019 rate case, the IURC opened a subdocket for post-2018 coal ash related expenditures. In April 2020, Duke Energy Indiana filed testimony in the coal ash subdocket requesting recovery for post-2018 coal ash basin closure costs associated with closure plans that were approved by the Indiana Department of Environmental Management (IDEM) at that time as well as continued deferral approval and carrying costs on the balance of such coal ash basin closure costs. On November 3, 2021, the IURC issued an order allowing recovery of the post-2018 coal ash basin closure costs, as well as continuing deferral, with carrying costs on the balance. The OUCC and the Duke Industrial Group appealed. The Indiana Court of Appeals issued its opinion on February 21, 2023, reversing the IURC's order to the extent that it allowed Duke Energy Indiana to recover federally mandated costs incurred prior to the IURC's November 3, 2021 order. In addition, the court found that any costs incurred pre-petition to determine federally mandated compliance options were not specifically authorized by the statute and should also be disallowed.

In 2023, Duke Energy Indiana filed its proposal to remove from rates certain costs incurred prior to the IURC's November 3, 2021 order date. On September 20, 2023, the IURC approved Duke Energy Indiana's proposal to remove the costs from its rates and assessed simple interest on the refunds at a rate of 4.71%, beginning from when the costs were initially recovered from customers. In the 2024 Indiana Rate Case, Duke Energy Indiana included a request to recover the pre-order costs denied by the Indiana Court of Appeals and certain future coal ash closure costs as part of depreciation costs. The IURC's January 29, 2025 order in the 2024 Indiana Rate Case denied recovery of the pre-order costs previously denied by the Indiana Court of Appeals but approved the recovery of certain future coal ash closure costs as part of depreciation costs.

FINANCIAL STATEMENTS			REGULATORY MATTERS

In 2023, Duke Energy Indiana filed a petition under the amended version of the federal mandate statute for additional post-2018 coal ash closure costs for the remaining basins not included in the Indiana coal ash recovery case from 2020. On May 8, 2024, the IURC issued a CPCN and approved these coal ash related compliance projects as federally mandated compliance projects. In June 2024, the Citizens Action Coalition of Indiana (CAC) filed a notice of appeal of the IURC's order. On August 26, 2025, the Indiana Court of Appeals reversed the decision by the IURC concluding that the IURC incorrectly allowed Duke Energy Indiana to collect those coal ash costs from customers. In October 2025, Duke Energy Indiana and the Indiana Office of Attorney General filed separate petitions requesting the Indiana Supreme Court to review the case. On January 26, 2026, the Indiana Supreme Court denied Duke Energy Indiana's and the Indiana Office of Attorney General's petitions. There were no material impacts on the results of operations, cash flows or financial position as a result of this ruling. Duke Energy Indiana is evaluating next steps as it relates to the Indiana Supreme Court's decision.

TDSIC 2.0

In November 2021, Duke Energy Indiana filed for approval of the Transmission, Distribution, Storage Improvement Charge 2.0 investment plan for 2023-2028 (TDSIC 2.0). On June 15, 2022, the IURC approved, without modification, TDSIC 2.0, which includes approximately $2 billion in transmission and distribution investments selected to improve customer reliability, harden and improve resiliency of the grid, enable expansion of renewable and distributed energy projects and encourage economic development. In July 2022, the OUCC filed a notice of appeal to the Indiana Court of Appeals in Duke Energy Indiana’s TDSIC 2.0 proceeding. The Indiana Court of Appeals issued its opinion on March 9, 2023, affirming the IURC’s order in its entirety. The Duke Industrial Group filed a petition to transfer to the Indiana Supreme Court. On December 19, 2024, the Indiana Supreme Court affirmed the Indiana Court of Appeals decision, concluding there was substantial evidence that the IURC's conclusion was reasonable and the TDSIC 2.0 plan met the statutory requirements. On January 21, 2025, the Duke Industrial Group filed a motion for rehearing. On March 4, 2025, the Indiana Supreme Court denied the Duke Industrial Group's petition for rehearing. There can be no further appeals on TDSIC 2.0 and this matter is now fully resolved.

2024 Indiana Rate Case

In April 2024, Duke Energy Indiana filed an application with the IURC for a rate increase for retail customers. The request for rate increase was driven by $1.6 billion in investments made since the last general rate case filed in 2019 in order to reliably serve customers, improve resiliency of the system, and advance energy solutions.

In connection with this rate case, a $29 million increase in a regulatory liability associated with certain employee post-retirement benefits was recorded in December 2024. An order for the rate case was issued by the IURC on January 29, 2025, and revised February 3, 2025, which authorized an ROE of 9.75%, an equity ratio of 53% and an annual revenue increase of $296 million. Based on review of these orders, Duke Energy Indiana identified an inconsistency in the calculation of operating revenues before the effect of trackers. On February 7, 2025, Duke Energy Indiana made a compliance filing in accordance with the IURC's findings in its order and addressed the identified inconsistencies. The compliance filing also clarified the annual revenue increase was approximately $385 million. On February 18, 2025, one industrial customer submitted a filing requesting the IURC to clarify its revenue allocation in these proceedings, which was denied by the Commission on April 16, 2025. On February 25, 2025, the IURC approved Duke Energy Indiana’s compliance filing and new rates were implemented February 27, 2025. The industrial customer filed a notice of appeal on February 28, 2025, regarding cost of service allocation. On April 9, 2025, the IURC issued an order clarifying the intent of its January 29, 2025 order regarding the rate migration adjustment, resulting in revised rates that were effective on May 19, 2025. On May 14, 2025, the industrial customer filed a motion to dismiss its appeal, and on May 20, 2025, the Indiana Court of Appeals granted the industrial customer's motion to dismiss. This matter is now fully resolved.

Cayuga Combined Cycle CPCN

On February 13, 2025, Duke Energy Indiana filed for a CPCN seeking approval to construct two 1x1 CC natural gas-fired units with a combined winter rating of 1,476 MW. The Cayuga CC Project is proposed to be constructed on the same site as the retiring Cayuga coal-fired steam units with a winter rating of 1,005 MW. The Cayuga CC Project will result in an incremental 471 MW for the Duke Energy Indiana system and will allow Duke Energy Indiana to avoid expected maintenance and environmental compliance costs needed for the coal units to continue operating. The estimated cost of the Cayuga CC project is approximately $3.3 billion, plus actual AFUDC. Duke Energy Indiana proposed recovery of certain facility costs during construction, including AFUDC, through CWIP ratemaking via a proposed Generation Cost Tracker (GCT). Duke Energy Indiana expects CC 1 to be placed in service in 2029 and CC 2 to be placed in service in 2030. A final air permit was issued by IDEM on March 5, 2025.

On June 17, 2025, Duke Energy Indiana entered into a settlement agreement with one of the parties in this proceeding to conduct a study evaluating the feasibility of third-party operation of the Cayuga coal units. On July 11, 2025, Duke Energy Indiana entered into a settlement agreement with an additional party in this proceeding agreeing to the need of the units and addressing accounting and ratemaking components. Neither agreement altered the underlying plans in the pending CPCN application. On October 29, 2025, the IURC issued its order approving the settlement agreements, granting the CPCN and approving cost recovery through the proposed GCT. On November 26, 2025, CAC filed a notice of appeal of the IURC's order.

On November 25, 2025, Duke Energy Indiana filed its first GCT tariff for approval to recover Cayuga CC CPCN-related costs, with the proposed factors to take effect in the first April 2026 billing cycle and to remain in place for approximately six months or until superseded by IURC-approved factors in a subsequent filing. The estimated average cumulative retail rate impact during construction and initial in-service periods from April 2026 through May 2031 is approximately 5.6%.

FINANCIAL STATEMENTS			REGULATORY MATTERS

Piedmont

Regulatory Assets and Liabilities

The following tables present the regulatory assets and liabilities recorded on Piedmont's Consolidated Balance Sheets.

			December 31,									Earns/Pays			Recovery/Refund
(in millions)			2025			2024						a Return			Period Ends
Regulatory Assets**(a)**
Accrued pension and OPEB(c)			$	131		$	144								(g)
Deferred pipeline integrity costs(c)			91			101									2034
Derivatives – natural gas supply contracts(f)			72			94									2031
Decoupling			28			77						Yes			(b)
Pipeline Integrity Management – Transmission/Distribution			27			14									(b)
Deferred purchased gas costs			26			9						Yes			(b)
AROs – nuclear and other			25			25									(d)
Customer connect project(c)			22			24									2030
Vacation accrual(c)			15			14									2026
Other			19			26						(e)			(b)
Total regulatory assets			456			528
Less: Current portion			106			141
Total noncurrent regulatory assets			$	350		$	387
Regulatory Liabilities**(a)**
COR regulatory liability(c)			$	425		$	405					(e)			(d)
Net regulatory liability related to income taxes			353			366									(b)
Other			44			76						(e)			(b)
Total regulatory liabilities			822			847
Less: Current portion			20			64
Total noncurrent regulatory liabilities			$	802		$	783

(a) Regulatory assets and liabilities are excluded from rate base unless otherwise noted.

(b) The expected recovery or refund period varies or has not been determined.

(c) Included in rate base.

(d) Recovery over the life of the associated assets.

(e) Certain costs earn/pay a return.

(f) Balance will fluctuate with changes in the market.

(g) Recovered primarily over the average remaining service periods or life expectancies of employees covered by the benefit plans. See Note 23 for additional detail.

2024 North Carolina Rate Case

In April 2024, Piedmont filed an application with the NCUC for a rate increase for retail customers. In September 2024, Piedmont, the Public Staff and other intervening parties filed an Agreement and Stipulation of Settlement with the NCUC resolving all issues in the general rate case. The major components of the settlement include an overall average effective increase in net annual retail revenues of $88 million in the first year and $10 million of additional revenue after the first year. The settlement includes an ROE of 9.8% with an equity ratio of 52.3% and the addition of a rider mechanism for recovery of pipeline integrity management operations and maintenance expenses. The settlement was subject to the review and approval of the NCUC. The evidentiary hearing concluded in September 2024, and Piedmont implemented revised rates November 1, 2024. The NCUC issued its order approving the settlement as filed on January 7, 2025, and this matter is now fully resolved.

OTHER REGULATORY MATTERS

Potential Coal Plant Retirements

The Subsidiary Registrants periodically file IRPs with their state regulatory commissions. The IRPs provide a view of forecasted energy needs over a long term (10 to 20 years) and resources proposed to meet those needs. The IRPs also include planning assumptions around future retirement dates of aging coal-fired generating facilities.

Duke Energy Carolinas and Duke Energy Progress received an NCUC order on the 2022 Carbon Plan that concluded the projected retirement dates for their coal-fired generating facilities were reasonable for planning purposes and further directed that appropriate steps be taken to optimally retire the coal fleet according to such schedule. In August 2023, Duke Energy Carolinas and Duke Energy Progress filed their 2023 systemwide Carolinas Resource Plan with the NCUC and PSCSC, with a supplemental filing in January 2024 that demonstrated a need for additional resources beyond the set of resources identified by the companies in their initial plan. The NCUC and PSCSC issued orders in 2024 generally approving the resource plan. Duke Energy Carolinas and Duke Energy Progress conducted an updated coal retirement analysis for the 2025 Carolinas Resource Plan, consistent with direction by the NCUC in its order approving the 2023 Carolinas Resource Plan and in recognition by both the NCUC and PSCSC of the importance of continuing to assess the orderly retirement of these units. See the "Other Matters" section of Item 7 Management's Discussion and Analysis for further details on resource plans.

FINANCIAL STATEMENTS			REGULATORY MATTERS

Duke Energy continues to evaluate the retirement date assumptions for all coal-fired generating facilities as changes in energy usage and/or growth and availability of replacement generation could result in different retirement dates of units than their current estimated useful lives. Except as previously discussed related to Duke Energy Kentucky's East Bend plant, rate cases recently filed or approved across all jurisdictions included proposed depreciation rates that approximate earlier retirement dates as outlined in recent IRPs. Duke Energy plans to seek regulatory recovery for amounts that would not be otherwise recovered when any of these assets are retired.

5. COMMITMENTS AND CONTINGENCIES

INSURANCE

General Insurance

The Duke Energy Registrants have insurance and reinsurance coverage either directly or through indemnification from Duke Energy’s captive insurance company, Bison, and its affiliates, consistent with companies engaged in similar commercial operations with similar type properties. The Duke Energy Registrants’ coverage includes (i) commercial general liability coverage for liabilities arising to third parties for bodily injury and property damage; (ii) workers’ compensation; (iii) automobile liability coverage; and (iv) property coverage for all real and personal property damage. Real and personal property damage coverage excludes electric transmission and distribution lines, but includes damages arising from boiler and machinery breakdowns, earthquakes, flood damage and extra expense, but not outage or replacement power coverage. All coverage is subject to certain deductibles or retentions, sublimits, exclusions, terms and conditions common for companies with similar types of operations. The Duke Energy Registrants self-insure their electric transmission and distribution lines against loss due to storm damage and other natural disasters. As discussed further in Note 4, Duke Energy Florida maintains a storm damage reserve and has a regulatory mechanism to recover the cost of named storms on an expedited basis. Additionally, Duke Energy Carolinas and Duke Energy Progress maintain storm damage reserves and may leverage securitization to recover storm costs on an expedited basis, as appropriate.

The cost of the Duke Energy Registrants’ coverage can fluctuate from year to year reflecting claims history and conditions of the insurance and reinsurance markets. In the event of a loss, terms and amounts of insurance and reinsurance available might not be adequate to cover claims and other expenses incurred. Uninsured losses and other expenses, to the extent not recovered by other sources, could have a material effect on the Duke Energy Registrants’ results of operations, cash flows or financial position. Each company is responsible to the extent losses may be excluded or exceed limits of the coverage available.

Nuclear Insurance

Duke Energy Carolinas owns and operates McGuire and Oconee and operates and has a partial ownership interest in Catawba. McGuire and Catawba each have two reactors. Oconee has three reactors. The other joint owners of Catawba reimburse Duke Energy Carolinas for certain expenses associated with nuclear insurance per the Catawba joint owner agreements.

Duke Energy Progress owns and operates Robinson, Brunswick and Harris. Robinson and Harris each have one reactor. Brunswick has two reactors.

Duke Energy Florida owns Crystal River Unit 3, which permanently ceased operation in 2013 and achieved a SAFSTOR condition in July 2019. On October 1, 2020, Crystal River Unit 3 changed decommissioning strategies from SAFSTOR to DECON.

In the event of a loss, terms and amounts of insurance available might not be adequate to cover property damage and other expenses incurred. Uninsured losses and other expenses, to the extent not recovered by other sources, could have a material effect on Duke Energy Carolinas’, Duke Energy Progress’ and Duke Energy Florida’s results of operations, cash flows or financial position. Each company is responsible to the extent losses may be excluded or exceed limits of the coverage available.

Nuclear Liability Coverage

The Price-Anderson Act requires owners of nuclear reactors to provide for public nuclear liability protection per nuclear incident up to a maximum total financial protection liability. The maximum total financial protection liability, which is approximately $16.3 billion, is subject to change every five years for inflation and for the number of licensed reactors. Total nuclear liability coverage consists of a combination of private primary nuclear liability insurance coverage and a mandatory industry risk-sharing program to provide for excess nuclear liability coverage above the maximum reasonably available private primary coverage. The U.S. Congress could impose revenue-raising measures on the nuclear industry to pay claims.

Primary Liability Insurance

Duke Energy Carolinas and Duke Energy Progress have purchased the maximum reasonably available private primary nuclear liability insurance as required by law, which is $500 million per station. Duke Energy Florida has purchased $100 million primary nuclear liability insurance for Crystal River in compliance with the law.

Excess Liability Program

This program provides $15.8 billion of coverage per incident through the Price-Anderson Act’s mandatory industrywide excess secondary financial protection program of risk pooling. This amount is the product of potential cumulative retrospective premium assessments of $166 million times the current 95 licensed commercial nuclear reactors in the U.S. Under this program, operating unit licensees could be assessed retrospective premiums to compensate for public nuclear liability damages in the event of a nuclear incident at any licensed facility in the U.S. Retrospective premiums may be assessed at a rate not to exceed $24.7 million per year per licensed reactor for each incident. The assessment may be subject to state premium taxes.

FINANCIAL STATEMENTS			COMMITMENTS AND CONTINGENCIES

Nuclear Property and Accidental Outage Coverage

Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida are members of NEIL, an industry mutual insurance company, which provides property damage, nuclear accident decontamination and premature decommissioning insurance for each station for losses resulting from damage to its nuclear plants, either due to accidents or acts of terrorism. Additionally, NEIL provides accidental outage coverage for losses in the event of a major accidental outage at an insured nuclear station.

Pursuant to regulations of the NRC, each company’s property damage insurance policies provide that all proceeds from such insurance be applied, first, to place the plant in a safe and stable condition after a qualifying accident and second, to decontaminate the plant before any proceeds can be used for decommissioning, plant repair or restoration.

Losses resulting from acts of terrorism are covered as common occurrences, such that if terrorist acts occur against one or more commercial nuclear power plants insured by NEIL within a 12-month period, they would be treated as one event and the owners of the plants where the act occurred would share one full limit of liability. The full limit of liability is currently $3.2 billion. NEIL sublimits the total aggregate for all of their policies for non-nuclear terrorist events to approximately $1.8 billion.

Each nuclear facility has accident property damage, nuclear accident decontamination and premature decommissioning liability insurance from NEIL with limits of $1.5 billion, except for Crystal River Unit 3. Crystal River Unit 3’s limit is $50 million and is on an actual cash value basis. All nuclear facilities except for Catawba and Crystal River Unit 3 also share an additional $1.25 billion nuclear accident insurance limit above their dedicated underlying limit. This shared additional excess limit is not subject to reinstatement in the event of a loss. Catawba has a dedicated $1.25 billion of additional nuclear accident insurance limit above its dedicated underlying limit. Catawba and Oconee also have an additional $750 million of non-nuclear accident property damage limit. All coverages are subject to coverage terms, conditions, sublimits and significant deductibles.

NEIL’s Accidental Outage policy provides some coverage, similar to business interruption, for losses in the event of a major accident property damage outage of a nuclear unit. Coverage is provided on a weekly limit basis after a significant waiting period deductible and at 100% of the applicable weekly limits for 52 weeks and 80% of the remaining applicable weekly limits for nuclear accidents and 60% of the remaining appliable weekly limits for non-nuclear accident property damage. Coverage will not exceed the accidental outage policy limit of $490 million for each nuclear plant. NEIL sublimits the accidental outage recovery up to the first 104 weeks of coverage not to exceed $291 million from non-nuclear accidental property damage. Coverage amounts decrease in the event more than one unit at a station is out of service due to a common accident. All coverages are subject to coverage terms, conditions, sublimits and significant deductibles.

Potential Retroactive Premium Assessments

In the event of NEIL losses, NEIL’s board of directors may assess member companies' retroactive premiums of amounts up to 10 times their annual premiums for up to six years after a loss. NEIL has never exercised this assessment. The maximum aggregate current year policies' annual retrospective premium obligations for Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida are $170 million, $102 million and $1 million, respectively. Duke Energy Carolinas' maximum assessment amount includes 100% of potential obligations to NEIL for jointly owned reactors. Duke Energy Carolinas would seek reimbursement from the joint owners for their portion of these assessment amounts.

ENVIRONMENTAL

The Duke Energy Registrants are subject to federal, state and local regulations regarding air and water quality, hazardous and solid waste disposal, coal ash and other environmental matters. These regulations can be changed from time to time, imposing new obligations on the Duke Energy Registrants. The following environmental matters impact all of the Duke Energy Registrants.

Remediation Activities

In addition to AROs recorded as a result of various environmental regulations, discussed in Note 10, the Duke Energy Registrants are responsible for environmental remediation at various sites. These include certain properties that are part of ongoing operations and sites formerly owned or used by Duke Energy entities. These sites are in various stages of investigation, remediation and monitoring. Managed in conjunction with relevant federal, state and local agencies, remediation activities vary based upon site conditions and location, remediation requirements, complexity and sharing of responsibility. If remediation activities involve joint and several liability provisions, strict liability, or cost recovery or contribution actions, the Duke Energy Registrants could potentially be held responsible for environmental impacts caused by other potentially responsible parties and may also benefit from insurance policies or contractual indemnities that cover some or all cleanup costs. Liabilities are recorded when losses become probable and are reasonably estimable. The total costs that may be incurred cannot be estimated because the extent of environmental impact, allocation among potentially responsible parties, remediation alternatives and/or regulatory decisions have not yet been determined at all sites. Additional costs associated with remediation activities are likely to be incurred in the future and could be significant. Costs are typically expensed as Operation, maintenance and other in the Consolidated Statements of Operations unless regulatory recovery of the costs is deemed probable.

FINANCIAL STATEMENTS			COMMITMENTS AND CONTINGENCIES

The following table contains information regarding reserves for probable and estimable costs related to the various environmental sites. These reserves are recorded in Accounts Payable within Other Current Liabilities and Other within Other Noncurrent Liabilities on the Consolidated Balance Sheets.

(in millions)			December 31, 2025						December 31, 2024
Reserves for Environmental Remediation
Duke Energy			$	72					$	68
Duke Energy Carolinas			36						24
Progress Energy			20						19
Duke Energy Progress			10						9
Duke Energy Florida			10						10
Duke Energy Ohio			12						21
Duke Energy Indiana			2						2
Piedmont			2						2

Additional losses in excess of recorded reserves that could be incurred for the stages of investigation, remediation and monitoring for environmental sites that have been evaluated at this time are not material.

LITIGATION

For open litigation, unless otherwise noted, Duke Energy and the Subsidiary Registrants cannot predict the outcome or ultimate resolution of their respective matters.

Duke Energy

Mooresville Coal Ash Class Action Litigation

On December 20, 2024, 15 plaintiffs filed a lawsuit in Iredell County, North Carolina, against Duke Energy (Parent), Duke Energy Carolinas and Duke Energy Progress (collectively “Duke Energy”) on behalf of a putative class alleging past and ongoing environmental contamination in the Mooresville area of North Carolina. The lawsuit alleges that Duke Energy disposed of and sold coal ash as structural fill resulting in the contamination of soil, groundwater and Lake Norman. The plaintiffs claim that Duke Energy failed to properly remediate the contamination and continues to pollute, and they assert that the contamination has negatively impacted property values. The plaintiffs are seeking unspecified compensatory and punitive damages, injunctive relief to stop further contamination, remediation of contaminated areas and attorneys' fees and costs. On July 28, 2025, the plaintiffs filed an amended complaint, which asserts claims for negligence, negligence per se, gross negligence, private nuisance, strict liability for ultra-hazardous activities and trespass. On September 11, 2025, Duke Energy filed its answer to the plaintiff's amended complaint and a motion for judgment on the pleadings. Following a hearing on December 29, 2025, the court entered an interim order dismissing the plaintiffs’ strict liability claim. On February 4, 2026, the court entered an order denying the remainder of Duke Energy’s motion for judgment on the pleadings. A scheduling order has not yet been issued.

Nuclear Compensation Class Action Litigation

On July 11, 2025, plaintiffs Leo Dorrell and John Dunn filed a putative class action lawsuit in the U.S. District Court for the District of Maryland against all U.S. commercial nuclear power operators, including Duke Energy Corporation (Parent) and Progress Energy. The plaintiffs allege that the nuclear power industry engaged in a conspiracy to suppress compensation by exchanging salary information since 2003, in violation of Section 1 of the Sherman Act. The lawsuit seeks unspecified monetary damages, including treble damages, on behalf of current and former employees in the nuclear power industry as well as injunctive relief. On October 15, 2025, all defendants jointly filed an omnibus motion to dismiss all claims in the complaint and Duke Energy also joined a motion filed by several defendants to dismiss for lack of personal jurisdiction. On November 5, 2025, the plaintiffs filed an amended complaint adding Duke Energy Carolinas and Duke Energy Business Services as defendants and including more factual allegations to support their complaint. Although not named as a defendant, Duke Energy Progress is accused of having participated in the alleged conspiracy. The defendants filed their omnibus motion to dismiss on December 19, 2025, to which the plaintiffs responded on February 6, 2026. The defendants' reply is due on March 16, 2026.

Duke Energy Carolinas

NTE Carolinas II, LLC Litigation

In November 2017, Duke Energy Carolinas entered into a standard FERC large generator interconnection agreement (LGIA) with NTE Carolinas II, LLC (NTE), a company that proposed to build a combined-cycle natural gas plant in Rockingham County, North Carolina. In September 2019, Duke Energy Carolinas filed a lawsuit in Mecklenburg County Superior Court against NTE for breach of contract, alleging that NTE's failure to pay benchmark payments for Duke Energy Carolinas' transmission system upgrades required under the interconnection agreement constituted a termination of the interconnection agreement. Duke Energy Carolinas sought a monetary judgment against NTE because NTE failed to make multiple milestone payments. The lawsuit was moved to federal court in North Carolina. NTE filed a motion to dismiss Duke Energy Carolinas’ complaint and brought counterclaims alleging anti-competitive conduct and violations of state and federal statutes. Duke Energy Carolinas filed a motion to dismiss NTE's counterclaims. Both NTE's and Duke Energy Carolinas' motions to dismiss were subsequently denied by the court.

On May 21, 2020, in response to a NTE petition challenging Duke Energy Carolinas' termination of the LGIA, FERC issued a ruling that 1) it has exclusive jurisdiction to determine whether a transmission provider may terminate an LGIA; 2) FERC approval is required to terminate a conforming LGIA if objected to by the interconnection customer; and 3) Duke Energy may not announce the termination of a conforming LGIA unless FERC has approved the termination. FERC's Office of Enforcement also initiated an investigation of Duke Energy Carolinas into matters pertaining to the LGIA. In April 2023, Duke Energy Carolinas received notice from the FERC Office of Enforcement that they have closed their non-public investigation with no further action recommended.

FINANCIAL STATEMENTS			COMMITMENTS AND CONTINGENCIES

Following completion of discovery, Duke Energy Carolinas filed a motion for summary judgment seeking a ruling in its favor as to some of its affirmative claims against NTE and to all of NTE’s counterclaims. On June 24, 2022, the court issued an order partially granting Duke Energy Carolinas' motion by dismissing NTE's counterclaims that Duke Energy Carolinas engaged in anti-competitive behavior in violation of state and federal statutes. In October 2022, the parties executed a settlement agreement with respect to the remaining breach of contract claims in the litigation and a Stipulation of Dismissal was filed with the court.

In November 2022, NTE filed its Notice of Appeal to the U.S. Court of Appeals for the Fourth Circuit as to the district court's summary judgment ruling in Duke Energy Carolinas' favor on NTE's antitrust and unfair competition claims. On August 5, 2024, the U.S. Court of Appeals for the Fourth Circuit reversed the district court's grant of summary judgment and remanded the case back to the district court for further proceedings. In August 2024, Duke Energy Carolinas filed a petition for rehearing, which was denied on November 26, 2024. On February 21, 2025, Duke Energy Carolinas filed a petition seeking review by the U.S. Supreme Court. On January 12, 2026, the U.S. Supreme Court denied the petition seeking review. The district court judge has set the case for trial on March 9, 2026.

Asbestos-related Injuries and Damages Claims

Duke Energy Carolinas has experienced numerous claims for indemnification and medical cost reimbursement related to asbestos exposure. These claims relate to damages for bodily injuries alleged to have arisen from exposure to or use of asbestos in connection with construction and maintenance activities conducted on its electric generation plants prior to 1985.

Duke Energy Carolinas has recognized asbestos-related reserves of $395 million and $396 million at December 31, 2025, and 2024, respectively. These reserves are classified in Other within Other Noncurrent Liabilities and Other within Current Liabilities on the Consolidated Balance Sheets. These reserves are based on Duke Energy Carolinas' best estimate for current and future asbestos claims through 2045 and are recorded on an undiscounted basis. In light of the uncertainties inherent in a longer-term forecast, management does not believe they can reasonably estimate the indemnity and medical costs that might be incurred after 2045 related to such potential claims. It is possible Duke Energy Carolinas may incur asbestos liabilities in excess of the recorded reserves.

Duke Energy Carolinas has third-party insurance to cover certain losses related to asbestos-related injuries and damages above an aggregate self-insured retention. Receivables for insurance recoveries were $555 million and $539 million at December 31, 2025, and 2024, respectively. These amounts are classified in Other within Other Noncurrent Assets and Receivables within Current Assets on the Consolidated Balance Sheets. Any future payments up to the policy limit will be reimbursed by the third-party insurance carrier. Duke Energy Carolinas is not aware of any uncertainties regarding the legal sufficiency of insurance claims. Duke Energy Carolinas believes the insurance recovery asset is probable of recovery as the insurance carrier continues to have a strong financial strength rating.

The reserve for credit losses for insurance receivables for the asbestos-related injuries and damages is $9 million as of December 31, 2025, and December 31, 2024, for both Duke Energy and Duke Energy Carolinas. The insurance receivable is evaluated based on the risk of default and the historical losses, current conditions and expected conditions around collectability. Management evaluates the risk of default annually based on payment history, credit rating and changes in the risk of default from credit agencies.

Duke Energy Indiana

Coal Ash Insurance Coverage Litigation

In June 2022, Duke Energy Indiana filed a civil action in Indiana Superior Court against various insurance companies seeking declaratory relief with respect to insurance coverage for CCR-related expenses and liabilities covered by third-party liability insurance policies. The insurance policies cover the 1969-1972 and 1984-1985 periods and provide third-party liability insurance for claims and suits alleging property damage, bodily injury and personal injury (or a combination thereof). In June 2024, Duke Energy Indiana filed an amended complaint adding several additional insurance companies as defendants to the litigation. During 2023 through 2025, Duke Energy Indiana reached confidential settlements with various insurance companies, the results of which were not material to Duke Energy. All settlement payments have been received and the case has been dismissed. In July 2025, Duke Energy Indiana began refunding retail customers their share of coal ash insurance settlement proceeds, after expenses, over one year.

Other Litigation and Legal Proceedings

The Duke Energy Registrants are involved in other legal, tax and regulatory proceedings arising in the ordinary course of business, some of which involve significant amounts. The Duke Energy Registrants believe the final disposition of these proceedings will not have a material effect on their results of operations, cash flows or financial position. Reserves are classified on the Consolidated Balance Sheets in Other within Other Noncurrent Liabilities and Other within Current Liabilities.

OTHER COMMITMENTS AND CONTINGENCIES

General

As part of their normal business, the Duke Energy Registrants are party to various financial guarantees, performance guarantees and other contractual commitments to extend guarantees of credit and other assistance to various subsidiaries, investees and other third parties. These guarantees involve elements of performance and credit risk, which are not fully recognized on the Consolidated Balance Sheets and have uncapped maximum potential payments. However, the Duke Energy Registrants do not believe these guarantees will have a material effect on their results of operations, cash flows or financial position. See Notes 2 and 8 for more information.

Purchase Obligations

Purchased Power

Duke Energy Progress, Duke Energy Ohio and Duke Energy Indiana have ongoing purchased power contracts with other utilities, wholesale marketers, co-generators and qualified facilities. These purchased power contracts generally provide for capacity and energy payments. In addition, Duke Energy Progress has various contracts to secure transmission rights.

FINANCIAL STATEMENTS			COMMITMENTS AND CONTINGENCIES

The following table presents executory purchased power contracts with terms exceeding one year, excluding contracts classified as leases.

									Minimum Purchase Amount at December 31, 2025
			Contract
(in millions)			Expiration						2026						2027						2028						2029						2030						Thereafter						Total
Duke Energy Progress(a)			2028-2042						$	18					$	18					$	18					$	2					$	3					$	29					$	88
Duke Energy Ohio(b)			2027						191						125						—						—						—						—						316
Duke Energy Indiana(b)			2027						73						7						—						—						—						—						80

(a) Contracts represent between 18% and 100% of net plant output.

(b) Share of net plant output varies.

Natural Gas Supply and Capacity Contracts

Duke Energy Ohio and Piedmont routinely enter into long-term natural gas supply commodity and capacity commitments and other agreements that commit future cash flows to acquire services needed in their businesses. These commitments include pipeline and storage capacity contracts and natural gas supply contracts to provide service to customers. Costs arising from the natural gas supply commodity and capacity commitments, while significant, are pass-through costs to customers and are generally fully recoverable through specific fuel rate components operating in conjunction with PGA procedures, and subject to periodic prudence reviews in North Carolina and South Carolina. In the Midwest, these costs are recovered via the Gas Cost Recovery Rate in Ohio or the Gas Cost Adjustment Clause in Kentucky. The time periods for fixed payments under pipeline and storage capacity contracts are up to 17 years. The time periods for fixed payments under natural gas supply contracts is up to 10 years. The time periods for the natural gas supply purchase commitments is up to five years.

Certain storage and pipeline capacity contracts require the payment of demand charges that are based on rates approved by the FERC in order to maintain rights to access the natural gas storage or pipeline capacity on a firm basis during the contract term. The demand charges that are incurred in each period are recognized in the Consolidated Statements of Operations and Comprehensive Income as part of natural gas purchases and are included in Cost of natural gas.

The following table presents future unconditional purchase obligations under natural gas supply and capacity contracts as of December 31, 2025.

(in millions)			2026			2027			2028			2029			2030			Thereafter			Total
Duke Energy Ohio			$	133		$	136		$	135		$	131		$	118		$	828		$	1,481
Piedmont			414			400			335			265			262			605			2,281

6. LEASES

As part of its operations, Duke Energy leases certain aviation facilities, space on communication towers, dedicated host servers, industrial equipment, fleet vehicles, fuel transportation (barges and railcars), land and office space under various terms and expiration dates. Additionally, Duke Energy Carolinas, Duke Energy Progress and Duke Energy Indiana have finance leases related to firm natural gas pipeline transportation capacity. Duke Energy Progress and Duke Energy Florida have entered into certain purchase power agreements, which are classified as finance and operating leases.

Duke Energy has certain lease agreements, which include variable lease payments that are based on the usage of an asset. These variable lease payments are not included in the measurement of the ROU assets or operating lease liabilities on the Consolidated Financial Statements.

Certain Duke Energy lease agreements include options for renewal and early termination. The intent to renew a lease varies depending on the lease type and asset. Renewal options that are reasonably certain to be exercised are included in the lease measurements. The decision to terminate a lease early is dependent on various economic factors. No termination options have been included in any of the lease measurements.

In December 2019, Duke Energy Carolinas entered into a sale-leaseback arrangement to construct and occupy an office tower. The lease agreement was evaluated as a sale-leaseback of real estate but did not qualify for sale-leaseback accounting. As a result, the transaction is accounted for as a financing. Duke Energy Carolinas recorded the real estate on the Consolidated Balance Sheets within Property, Plant and Equipment as if it is the legal owner and recognizes depreciation expense over the estimated useful life. In addition, the failed sale-leaseback obligation is reported within Long-Term Debt on the Consolidated Balance Sheets with the monthly lease payments split between interest expense and debt principal.

Piedmont has certain agreements for the construction and transportation of natural gas pipelines to supply Duke Energy Carolinas' natural gas plant needs. Piedmont accounts for these pipeline lateral contracts as sales-type leases since the present value of the sum of the lease payments equals the fair value of the assets. These pipeline lateral assets owned by Piedmont had a current net investment basis of $3 million and $2 million as of December 31, 2025, and 2024, and a long-term net investment basis of $194 million and $197 million as of December 31, 2025, and 2024, respectively. These assets are classified in Other, within Current Assets and Other Noncurrent Assets, respectively, on Piedmont's Consolidated Balance Sheets. Duke Energy Carolinas accounts for the contracts as finance leases. The activity for these contracts is eliminated in consolidation at Duke Energy.

FINANCIAL STATEMENTS			LEASES

The following tables present the components of lease expense.

			Year Ended December 31, 2025
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Operating lease expense(a)			$	283					$	60					$	181					$	91					$	90					$	14					$	27					$	1
Short-term lease expense(a)			6						—						3						—						3						—						1						—
Variable lease expense(a)			39						2						35						26						9						—						1						1
Finance lease expense
Amortization of leased assets(b)			64						12						53						43						10						—						2						—
Interest on lease liabilities(c)			40						30						43						39						4						—						1						—
Total finance lease expense			104						42						96						82						14						—						3						—
Total lease expense			$	432					$	104					$	315					$	199					$	116					$	14					$	32					$	2

			Year Ended December 31, 2024
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Operating lease expense(a)			$	275					$	66					$	173					$	82					$	91					$	12					$	23					$	2
Short-term lease expense(a)			7						—						3						1						2						—						1						—
Variable lease expense(a)			33						2						29						19						10						—						1						1
Finance lease expense
Amortization of leased assets(b)			113						7						46						38						8						—						—						—
Interest on lease liabilities(c)			41						31						44						41						3						—						1						—
Total finance lease expense			154						38						90						79						11						—						1						—
Total lease expense			$	469					$	106					$	295					$	181					$	114					$	12					$	26					$	3

(a) Included in Operation, maintenance and other, except for expenses primarily related to barges and railcars, which is included in Fuel used in electric generation and purchased power on the Consolidated Statements of Operations.

(b) Included in Depreciation and amortization on the Consolidated Statements of Operations.

(c) Included in Interest Expense on the Consolidated Statements of Operations.

The following table presents operating lease maturities and a reconciliation of the undiscounted cash flows to operating lease liabilities.

			December 31, 2025
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
2026			$	289					$	24					$	126					$	61					$	65					$	1					$	7					$	1
2027			239						18						98						61						37						1						6						1
2028			200						15						83						60						23						1						4						1
2029			171						12						81						59						22						—						4						—
2030			136						9						73						59						14						—						3						—
Thereafter			539						44						368						231						137						3						17						—
Total operating lease payments			1,574						122						829						531						298						6						41						3
Less: Present value discount			(303)						(23)						(177)						(104)						(73)						(1)						(7)						—
Total operating lease liabilities(a)			$	1,271					$	99					$	652					$	427					$	225					$	5					$	34					$	3

(a) Certain operating lease payments include renewal options that are reasonably certain to be exercised.

FINANCIAL STATEMENTS			LEASES

The following table presents finance lease maturities and a reconciliation of the undiscounted cash flows to finance lease liabilities.

			December 31, 2025
									Duke												Duke						Duke												Duke
			Duke						Energy						Progress						Energy						Energy												Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida												Indiana
2026			$	95					$	40					$	94					$	81					$	13											$	2
2027			88						40						91						82						9												2
2028			84						39						90						82						8												1
2029			81						38						90						82						8												1
2030			82						39						90						82						8												1
Thereafter			497						319						437						323						114												18
Total finance lease payments			927						515						892						732						160												25
Less: Amounts representing interest			(351)						(243)						(323)						(251)						(72)												(15)
Total finance lease liabilities			$	576					$	272					$	569					$	481					$	88											$	10

The following tables contain additional information related to leases.

						December 31, 2025
												Duke												Duke						Duke						Duke						Duke
						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Classification			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Assets
Operating			Operating lease ROU assets, net			$	1,241					$	91					$	607					$	386					$	221					$	5					$	32					$	2
Finance			Net property, plant and equipment			654						251						605						478						127						—						8						—
Total lease assets						$	1,895					$	342					$	1,212					$	864					$	348					$	5					$	40					$	2
Liabilities
Current
Operating			Other current liabilities			$	238					$	20					$	100					$	43					$	57					$	—					$	6					$	1
Finance			Current maturities of long-term debt			55						11						53						45						8						—						—						—
Noncurrent
Operating			Operating lease liabilities			1,033						79						552						384						168						5						28						2
Finance			Long-Term Debt			521						261						516						436						80						—						10						—
Total lease liabilities						$	1,847					$	371					$	1,221					$	908					$	313					$	5					$	44					$	3

						December 31, 2024
												Duke												Duke						Duke						Duke						Duke
						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Classification			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Assets
Operating			Operating lease ROU assets, net			$	1,148					$	98					$	625					$	348					$	277					$	6					$	37					$	4
Finance			Net property, plant and equipment			645						252						620						512						108						—						6						—
Total lease assets						$	1,793					$	350					$	1,245					$	860					$	385					$	6					$	43					$	4
Liabilities
Current
Operating			Other current liabilities			$	208					$	20					$	97					$	42					$	55					$	1					$	6					$	1
Finance			Current maturities of long-term debt			46						8						48						41						7						—						—						—
Noncurrent
Operating			Operating lease liabilities			957						87						557						332						225						6						33						7
Finance			Long-Term Debt			524						262						533						474						59						—						10						—
Total lease liabilities						$	1,735					$	377					$	1,235					$	889					$	346					$	7					$	49					$	8

FINANCIAL STATEMENTS			LEASES

			Year Ended December 31, 2025
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Cash paid for amounts included in the measurement of lease liabilities**(a)**
Operating cash flows from operating leases			$	277					$	24					$	122					$	56					$	66					$	1					$	8					$	1
Operating cash flows from finance leases			40						30						43						39						4						—						1						—
Financing cash flows from finance leases			64						12						53						43						10						—						2						—
Lease assets obtained in exchange for new lease liabilities (non-cash)
Operating			$	348					$	4					$	6					$	6					$	—					$	—					$	1					$	—
Finance			72						15						40						9						31						—						2						—

			Year Ended December 31, 2024
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Cash paid for amounts included in the measurement of lease liabilities**(a)**
Operating cash flows from operating leases			$	250					$	24					$	122					$	57					$	65					$	1					$	8					$	1
Operating cash flows from finance leases			41						31						44						41						3						—						1						—
Financing cash flows from finance leases			113						7						46						38						8						—						—						—
Lease assets obtained in exchange for new lease liabilities (non-cash)
Operating			$	322					$	50					$	43					$	3					$	40					$	—					$	7					$	3
Finance			81						1						55						—						55						—						1						—

(a) No amounts were classified as investing cash flows from operating leases.

			December 31, 2025
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Weighted average remaining lease term (years)
Operating leases			8						9						10						9						12						11						9						3
Finance leases			12						14						11						10						21						—						19						—
Weighted average discount rate**(a)**
Operating leases			4.5		%				4.4		%				4.4		%				4.4		%				4.3		%				4.2		%				3.9		%				4.0		%
Finance leases			8.2		%				11.3		%				8.6		%				9.2		%				5.8		%				—		%				11.6		%				—		%

			December 31, 2024
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Weighted average remaining lease term (years)
Operating leases			8						9						9						8						11						11						11						4
Finance leases			11						15						11						10						15						—						20						—
Weighted average discount rate**(a)**
Operating leases			4.3		%				4.3		%				4.0		%				3.9		%				4.2		%				4.1		%				4.0		%				3.9		%
Finance leases			8.4		%				11.5		%				8.9		%				9.2		%				5.9		%				—		%				11.7		%				—		%

(a) The discount rate is calculated using the rate implicit in a lease if it is readily determinable. Generally, the rate used by the lessor is not provided to Duke Energy and in these cases the incremental borrowing rate is used. Duke Energy will typically use its fully collateralized incremental borrowing rate as of the commencement date to calculate and record the lease. The incremental borrowing rate is influenced by the lessee’s credit rating and lease term and as such may differ for individual leases, embedded leases or portfolios of leased assets.

FINANCIAL STATEMENTS			DEBT AND CREDIT FACILITIES

7. DEBT AND CREDIT FACILITIES

Summary of Debt and Related Terms

The following tables summarize outstanding debt.

			December 31, 2025
			Weighted
			Average									Duke						Duke			Duke			Duke			Duke
			Interest						Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Rate						Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Unsecured debt, maturing 2026-2082			4.63		%				$	35,585		$	1,150		$	1,800		$	—		$	150		$	1,285		$	386		$	4,275
Secured debt, maturing 2028-2052			3.85		%				4,279			2,115			2,109			1,290			818			—			—			—
First mortgage bonds, maturing 2026-2074(a)			4.33		%				44,289			15,053			21,923			11,576			10,349			3,075			4,238			—
Finance leases, maturing 2027-2064									576			272			569			481			88			—			10			—
Tax-exempt bonds, maturing 2027-2046(b)			3.54		%				1,331			—			500			500			—			77			352			—
Notes payable and commercial paper(c)			3.95		%				3,254			—			—			—			—			—			—			—
Money pool/intercompany borrowings									—			300			150			150			—			38			325			609
Fair value hedge carrying value adjustment									176			—			—			—			—			—			—			—
Unamortized debt discount and premium, net(d)									762			(20)			(44)			(25)			(19)			(22)			(16)			(7)
Unamortized debt issuance costs(e)									(416)			(93)			(159)			(76)			(79)			(20)			(27)			(17)
Total debt			4.41		%				$	89,836		$	18,777		$	26,848		$	13,896		$	11,307		$	4,433		$	5,268		$	4,860
Short-term notes payable and commercial paper									(2,624)			—			—			—			—			—			—			—
Short-term money pool/intercompany borrowings									—			—			—			—			—			(13)			(175)			(609)
Current maturities of long-term debt(f)									(7,104)			(629)			(722)			(285)			(437)			(45)			(4)			(490)
Total long-term debt(f)									$	80,108		$	18,148		$	26,126		$	13,611		$	10,870		$	4,375		$	5,089		$	3,761

(a)Substantially all electric utility property is mortgaged under mortgage bond indentures.

(b)Substantially all tax-exempt bonds are secured by first mortgage bonds, letters of credit or the Master Credit Facility.

(c)Includes $625 million classified as Long-Term Debt on the Consolidated Balance Sheets due to the existence of long-term credit facilities that backstop these commercial paper balances, along with Duke Energy’s ability and intent to refinance these balances on a long-term basis. The weighted average days to maturity for Duke Energy's commercial paper program was 21 days.

(d)Duke Energy includes $855 million and $45 million in purchase accounting adjustments related to Progress Energy and Piedmont, respectively.

(e)Duke Energy includes $21 million in purchase accounting adjustments primarily related to the merger with Progress Energy.

(f)Refer to Note 18 for additional information on amounts from consolidated VIEs.

FINANCIAL STATEMENTS			DEBT AND CREDIT FACILITIES

			December 31, 2024
			Weighted
			Average									Duke						Duke			Duke			Duke			Duke
			Interest						Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Rate						Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Unsecured debt, maturing 2025-2082			4.53		%				$	34,283		$	1,605		$	2,085		$	185		$	250		$	1,380		$	390		$	4,030
Secured debt, maturing 2025-2052			3.75		%				3,672			1,463			2,147			1,269			879			—			—			—
First mortgage bonds, maturing 2025-2074(a)			4.24		%				39,842			13,955			19,223			9,974			9,247			2,722			3,937			—
Finance leases, maturing 2027-2054									570			270			581			515			66			—			10			—
Tax-exempt bonds, maturing 2027-2046(b)			3.85		%				1,331			—			500			500			—			77			352			—
Notes payable and commercial paper(c)			4.67		%				4,213			—			—			—			—			—			—			—
Money pool/intercompany borrowings									—			300			1,227			761			467			189			160			739
Fair value hedge carrying value adjustment									(82)			—			—			—			—			—			—			—
Unamortized debt discount and premium, net(d)									845			(20)			(44)			(24)			(19)			(23)			(16)			(8)
Unamortized debt issuance costs(e)									(401)			(83)			(146)			(65)			(76)			(18)			(25)			(19)
Total debt			4.37		%				$	84,273		$	17,490		$	25,573		$	13,115		$	10,814		$	4,327		$	4,808		$	4,742
Short-term notes payable and commercial paper									(3,584)			—			—			—			—			—			—			—
Short-term money pool/intercompany borrowings									—			—			(1,077)			(611)			(466)			(162)			(10)			(739)
Current maturities of long-term debt(f)									(4,349)			(521)			(1,517)			(983)			(534)			(245)			(4)			(205)
Total long-term debt(f)									$	76,340		$	16,969		$	22,979		$	11,521		$	9,814		$	3,920		$	4,794		$	3,798

(a) Substantially all electric utility property is mortgaged under mortgage bond indentures.

(b) Substantially all tax-exempt bonds are secured by first mortgage bonds, letters of credit or the Master Credit Facility.

(c) Includes $625 million that was classified as Long-Term Debt on the Consolidated Balance Sheets due to the existence of long-term credit facilities that backstop these commercial paper balances, along with Duke Energy’s ability and intent to refinance these balances on a long-term basis. The weighted average days to maturity for Duke Energy's commercial paper programs was 13 days.

(d) Duke Energy includes $925 million and $56 million in purchase accounting adjustments related to Progress Energy and Piedmont, respectively.

(e) Duke Energy includes $23 million in purchase accounting adjustments primarily related to the merger with Progress Energy.

(f) Refer to Note 18 for additional information on amounts from consolidated VIEs.

Current Maturities of Long-Term Debt

The following table shows the significant components of Current maturities of Long-Term Debt on the Consolidated Balance Sheets. The Duke Energy Registrants currently anticipate satisfying these obligations with cash on hand and proceeds from additional borrowings.

(in millions)			Maturity Date						Interest Rate						December 31, 2025
Unsecured Debt
Duke Energy (Parent) Convertible Senior Notes			April 2026						4.125		%				1,725
Piedmont Term Loan Facility(a)			August 2026						4.611		%				450
Duke Energy (Parent)			September 2026						2.650		%				1,500
Duke Energy (Parent) Term Loan Facility(a)			September 2026						4.704		%				2,000
First Mortgage Bonds
Duke Energy Carolinas			December 2026						2.950		%				600
Duke Energy Florida(a)(b)			October 2073						3.981		%				200
Duke Energy Florida(a)(b)			April 2074						3.981		%				173
Duke Energy Progress(c)			October 2046						3.300		%				200
Other**(d)**															256
Current maturities of long-term debt															$	7,104

(a) Debt has a floating interest rate.

(b) These first mortgage bonds are classified as Current maturities of long-term debt on the Consolidated Balance Sheets based on terms of the indentures, which could require repayment in less than 12 months if exercised by the bondholders.

(c) These tax-exempt bonds are secured by first mortgage bonds and are classified as Current maturities of long-term debt on the Consolidated Balance Sheets as of December 31, 2025, due to a mandatory put option expiring October 1, 2026. Duke Energy Progress anticipates remarketing the bonds and the securities are expected to be reclassified to Long-Term Debt at that time.

(d) Includes finance lease obligations, amortizing debt, tax-exempt bonds with mandatory put options and small bullet maturities.

FINANCIAL STATEMENTS			DEBT AND CREDIT FACILITIES

Maturities and Call Options

The following table shows the annual maturities of long-term debt for the next five years and thereafter. Amounts presented exclude short-term notes payable, commercial paper and money pool borrowings and debt issuance costs for the Subsidiary Registrants.

			December 31, 2025
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy**(a)**						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
2026			$	7,123					$	630					$	730					$	287					$	443					$	45					$	4					$	490
2027			3,639						67						1,322						604						718						77						28						300
2028			4,079						1,018						1,427						608						819						40						7						—
2029			4,554						522						1,634						863						771						505						5						660
2030			4,433						1,277						1,481						371						1,111						528						155						—
Thereafter			63,037						15,375						20,459						11,265						7,543						3,267						4,937						2,826
Total long-term debt, including current maturities			$	86,865					$	18,889					$	27,053					$	13,998					$	11,405					$	4,462					$	5,136					$	4,276

(a) Excludes $921 million in purchase accounting adjustments related to the Progress Energy merger and the Piedmont acquisition.

The Duke Energy Registrants have the ability under certain debt facilities to call and repay the obligation prior to its scheduled maturity. Therefore, the actual timing of future cash repayments could be materially different than as presented above.

Short-Term Obligations Classified as Long-Term Debt

Tax-exempt bonds that may be put to the Duke Energy Registrants at the option of the holder and certain commercial paper issuances and money pool borrowings are classified as Long-Term Debt on the Consolidated Balance Sheets. These tax-exempt bonds, commercial paper issuances and money pool borrowings, which are short-term obligations by nature, are classified as long-term due to Duke Energy’s intent and ability to utilize such borrowings as long-term financing. As Duke Energy’s Master Credit Facility and other bilateral letter of credit agreements have non-cancelable terms in excess of one year as of the balance sheet date, Duke Energy has the ability to refinance these short-term obligations on a long-term basis. The following tables show short-term obligations classified as long-term debt.

			Balance at December 31, 2025 and 2024
									Duke						Duke						Duke						Duke
			Duke						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Progress						Ohio						Indiana
Tax-exempt bonds			$	312					$	—					$	—					$	27					$	285
Commercial paper(a)			625						300						150						25						150
Total			$	937					$	300					$	150					$	52					$	435

(a) Progress Energy amounts are equal to Duke Energy Progress amounts.

FINANCIAL STATEMENTS			DEBT AND CREDIT FACILITIES

Summary of Significant Debt Issuances

The following tables summarize significant debt issuances (in millions).

															Year Ended December 31, 2025
																					Duke						Duke						Duke						Duke						Duke						Duke
			Maturity						Interest						Duke						Energy						Energy						Energy						Energy						Energy						Energy
Issuance Date			Date						Rate						Energy						(Parent)						Carolinas						Progress						Florida						Ohio						Indiana
Unsecured Debt
August 2025(e)			September 2030						5.410		%				$	68					$	—					$	—					$	—					$	—					$	68					$	—
August 2025(e)			September 2035						6.010		%				43						—						—						—						—						43						—
August 2025(e)			September 2037						6.110		%				40						—						—						—						—						40						—
September 2025(f)			September 2035						4.950		%				1,000						1,000						—						—						—						—						—
September 2025(f)			September 2055						5.700		%				750						750						—						—						—						—						—
Secured Debt
September 2025(g)			July 2037						4.226		%				200						—						200						$	—					—						—						—
September 2025(g)			January 2048						5.070		%				382						—						382						—						—						—						—
September 2025(g)			January 2048						4.890		%				461						—						—						461						—						—						—
November 2025(g)			March 2046						4.898		%				561						—						561						—						—						—						—
First Mortgage Bonds
January 2025(a)			March 2030						4.850		%				$	400					$	—					$	400					$	—					$	—					$	—					$	—
January 2025(a)			March 2035						5.250		%				700						—						700						—						—						—						—
March 2025(b)			March 2027						4.350		%				500						—						—						500						—						—						—
March 2025(b)			March 2035						5.050		%				850						—						—						850						—						—						—
March 2025(b)			March 2055						5.550		%				750						—						—						750						—						—						—
May 2025(c)			May 2055						5.900		%				300						—						—						—						—						—						300
June 2025(d)			June 2035						5.300		%				350						—						—						—						—						350						—
November 2025(c)			December 2030						4.200		%				500						—						—						—						500						—						—
November 2025(c)			December 2035						4.850		%				600						—						—						—						600						—						—
Total issuances															$	7,005					$	1,750					$	2,243					$	2,561					$	1,100					$	501					$	300

(a)Proceeds were used to repay the $500 million DERF accounts receivable securitization facility due January 2025, to pay down short-term debt and for general company purposes.

(b)Proceeds were used to repay the $400 million DEPR accounts receivable securitization facility due April 2025, to pay down short-term debt and for general company purposes.

(c)Proceeds were used to pay down short-term debt and for general company purposes.

(d)Proceeds were used to repay $150 million of maturities due June 2025, to pay down short-term debt and for general corporate purposes.

(e)Proceeds were used to repay $95 million of maturities due October 2025, repay $45 million of maturities due January 2026, pay down short-term debt and for general corporate purposes.

(f)Proceeds were used to repay $650 million of maturities due September 2025, repay $500 million of maturities due December 2025, to pay down short-term debt and for general corporate purposes.

(g)Proceeds were used to recover previously incurred storm costs, repay the Duke Energy Carolinas and Duke Energy Progress term loan facilities and for general company purposes.

FINANCIAL STATEMENTS			DEBT AND CREDIT FACILITIES

															Year Ended December 31, 2024
																					Duke						Duke						Duke						Duke						Duke						Duke
			Maturity						Interest						Duke						Energy						Energy						Energy						Energy						Energy						Energy
Issuance Date			Date						Rate						Energy						(Parent)						Carolinas						Progress						Florida						Ohio						Indiana						Piedmont
Unsecured Debt
January 2024(a)			January 2027						4.850		%				$	600					$	600					$	—					$	—					$	—					$	—					$	—					$	—
January 2024(a)			January 2029						4.850		%				650						650						—						—						—						—						—						—
April 2024(e)			April 2031						5.648		%				815						815						—						—						—						—						—						—
June 2024(d)			June 2034						5.450		%				750						750						—						—						—						—						—						—
June 2024(d)			June 2054						5.800		%				750						750						—						—						—						—						—						—
June 2024(h)			July 2031						5.900		%				80						—						—						—						—						80						—						—
June 2024(h)			July 2034						6.000		%				95						—						—						—						—						95						—						—
June 2024(h)			July 2039						6.170		%				50						—						—						—						—						50						—						—
August 2024(d)			February 2035						5.100		%				375						—						—						—						—						—						—						375
August 2024(i)			September 2054						6.450		%				1,000						1,000						—						—						—						—						—						—
Secured Debt
April 2024(f)			March 2044						5.404		%				177						—						—						177						—						—						—						—
First Mortgage Bonds
January 2024(b)			January 2034						4.850		%				575						—						575						—						—						—						—						—
January 2024(b)			January 2054						5.400		%				425						—						425						—						—						—						—						—
March 2024(b)			March 2034						5.250		%				300						—						—						—						—						—						300						—
March 2024(c)			March 2034						5.100		%				500						—						—						500						—						—						—						—
March 2024(d)			March 2054						5.550		%				425						—						—						—						—						425						—						—
April 2024(g)			April 2074						3.981		%				173						—						—						—						173						—						—						—
Total issuances															$	7,740					$	4,565					$	1,000					$	677					$	173					$	650					$	300					$	375

(a)Proceeds were used to repay the remaining $1 billion outstanding on Duke Energy (Parent)'s variable rate Term Loan Facility due March 2024, pay down a portion of short-term debt and for general corporate purposes. Duke Energy (Parent)'s Term Loan Facility was terminated in March 2024 in conjunction with the payoff of remaining borrowings.

(b)Proceeds were used to pay down a portion of short-term debt and for general company purposes.

(c)Proceeds were used to fund eligible green energy projects, pay down a portion of short-term debt and for general company purposes.

(d)Proceeds were used to pay down a portion of short-term debt and for general corporate purposes.

(e)In April 2024, Duke Energy issued 750 million euros aggregate principal amount of 3.75% senior notes due April 2031. Duke Energy's obligations under its euro-denominated fixed-rate notes were effectively converted to fixed-rate U.S. dollars at issuance through cross-currency swaps, mitigating foreign currency exchange risk associated with the interest and principal payments. The $815 million equivalent in U.S. dollars were used to repay a portion of a $1 billion debt maturity due April 2024, pay down short-term debt and for general corporate purposes. See Note 15 for additional information.

(f)Proceeds were used to finance the South Carolina portion of restoration expenditures related to the following storms: Pax, Ulysses, Matthew, Florence, Michael, Dorian, Izzy and Jasper. See Notes 4 and 18 for more information.

(g)Debt has a floating interest rate. Proceeds were used to pay down a portion of the DEFR accounts receivable securitization facility due in April 2024, and for general company purposes. See Note 18 for more information.

(h)Debt issued by Duke Energy Kentucky with proceeds used to pay down a portion of short-term debt and for general corporate purposes.

(i)Duke Energy issued $1 billion of fixed-to-fixed reset rate junior subordinated debentures (the debentures) with proceeds used to redeem Duke Energy’s outstanding Series B Preferred Stock and for general corporate purposes. The debentures will bear interest at 6.45% until September 1, 2034, and thereafter the interest rate will reset every five years to the five-year U.S. Treasury rate plus a spread of 2.588%. The debentures have early redemption options and are callable on or after June 2034 for 100% of the principal plus accrued interest. See Note 20 for additional information.

Duke Energy (Parent) Convertible Senior Notes

In April 2023, Duke Energy (Parent) completed the sale of $1.7 billion 4.125% Convertible Senior Notes due April 2026 (convertible notes). The convertible notes are senior unsecured obligations of Duke Energy, and will mature on April 15, 2026, unless earlier converted or repurchased in accordance with their terms. The convertible notes bear interest at a fixed rate of 4.125% per year, payable semiannually in arrears on April 15 and October 15 of each year, beginning on October 15, 2023. Proceeds were used to repay a portion of outstanding commercial paper and for general corporate purposes.

On January 15, 2026, Duke Energy made an election that upon conversion of the convertible notes the company will pay cash equal to the principal amount of the notes and deliver shares of common stock for any conversion value in excess of the principal amount. The delivery of common stock will be based upon a daily conversion value calculated on a proportionate basis for each trading day in the applicable 25 trading day observation period.

FINANCIAL STATEMENTS			DEBT AND CREDIT FACILITIES

On or after January 15, 2026, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the convertible notes may convert all or any portion of their convertible notes at their option at any time at the conversion rate then in effect. Duke Energy will settle conversions of the convertible notes by paying cash up to the aggregate principal amount of the convertible notes to be converted and delivering shares of Duke Energy's common stock, $0.001 par value per share in respect of the remainder, if any, of its conversion obligation in excess of the aggregate principal amount of the convertible notes being converted.

The conversion rate for the convertible notes is initially 8.4131 shares of Duke Energy's common stock per $1,000 principal amount of convertible notes. The initial conversion price of the convertible notes represents a premium of approximately 25% over the last reported sale price of Duke Energy’s common stock on the NYSE on April 3, 2023. The conversion rate and the corresponding conversion price will not be adjusted for any accrued and unpaid interest but will be subject to adjustment in some instances, such as stock splits or share combinations, certain distributions to common stockholders, or tender offers at off-market rates. The changes in the conversion rates are intended to make convertible note holders whole for changes in the fair value of Duke Energy common stock resulting from such events. Duke Energy may not redeem the convertible notes prior to the maturity date and payments due as a result of a conversion of a convertible note would not constitute an event of default under the Master Credit Facility.

Duke Energy issued the convertible notes pursuant to an indenture, dated as of April 6, 2023, by and between Duke Energy and The Bank of New York Mellon Trust Company, N.A., as trustee. The terms of the convertible notes include customary fundamental change provisions that require repayment of the notes with interest upon certain events, such as a stockholder approved plan of liquidation or if Duke Energy's common stock ceases to be listed on the NYSE.

AVAILABLE CREDIT FACILITIES

Master Credit Facility

In March 2025, Duke Energy extended the termination date of its existing Master Credit Facility to March 2030 and increased its capacity from $9 billion to $10 billion. The Duke Energy Registrants, excluding Progress Energy, have borrowing capacity under the Master Credit Facility up to a specified sublimit for each borrower. Duke Energy has the unilateral ability at any time to increase or decrease the borrowing sublimits of each borrower, subject to a maximum sublimit for each borrower. The amount available under the Master Credit Facility has been reduced to backstop issuances of commercial paper, certain letters of credit and variable-rate demand tax-exempt bonds that may be put to the Duke Energy Registrants at the option of the holder.

The table below includes borrowing sublimits and available capacity under these credit facilities.

			December 31, 2025
									Duke						Duke						Duke						Duke						Duke						Duke
			Duke						Energy						Energy						Energy						Energy						Energy						Energy
(in millions)			Energy						(Parent)						Carolinas						Progress						Florida						Ohio						Indiana						Piedmont
Facility size(a)			$	10,000					$	3,425					$	1,650					$	1,675					$	700					$	700					$	850					$	1,000
Reduction to backstop issuances
Commercial paper(b)			(2,144)						(1,019)						(300)						(150)						—						(34)						(260)						(381)
Outstanding letters of credit			(7)						(2)						(4)						(1)						—						—						—						—
Tax-exempt bonds			(81)						—						—						—						—						—						(81)						—
Available capacity			$	7,768					$	2,404					$	1,346					$	1,524					$	700					$	666					$	509					$	619

(a) Represents the sublimit of each borrower.

(b) Duke Energy issued $625 million of commercial paper and loaned the proceeds through the money pool to Duke Energy Carolinas, Duke Energy Progress, Duke Energy Ohio and Duke Energy Indiana. The balances are classified as Long-Term Debt Payable to Affiliated Companies in the Consolidated Balance Sheets.

Term Loan Facilities

Duke Energy (Parent)

Duke Energy (Parent) entered into a Term Loan Credit Facility (facility) with commitments totaling $1.4 billion that matured in March 2024. In January 2024, Duke Energy (Parent) repaid the remaining $1 billion outstanding on the facility.

In March 2024, Duke Energy (Parent) entered into a 364-day term loan facility with commitments totaling $700 million. In April 2024, $500 million was drawn under the facility with borrowings used for general corporate purposes. During the second quarter of 2024, Duke Energy (Parent) terminated the facility and repaid the $500 million in outstanding borrowings.

In September 2025, Duke Energy (Parent) entered into a 364-day term loan facility with commitments totaling $2 billion. As of December 31, 2025, $2.0 billion was drawn under the term loan facility, which was classified as Current maturities of long-term debt on the Consolidated Balance Sheets. Borrowings were used to pay down short-term debt and for general corporate purposes.

FINANCIAL STATEMENTS			DEBT AND CREDIT FACILITIES

Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida

In November 2024, Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida entered into term loan facilities intended to meet incremental financing needs resulting from expenditures for the restoration of service and rebuilding of infrastructure related to hurricanes Debby, Helene and Milton as described in Note 4. Duke Energy Carolinas and Duke Energy Progress entered into two-year term loan facilities with commitments totaling $700 million and $250 million, respectively. Duke Energy Florida entered into a 364-day term loan facility with commitments totaling $800 million. As of December 31, 2024, $455 million and $185 million in borrowings under the term loan facilities for Duke Energy Carolinas and Duke Energy Progress, respectively, were classified as Long-Term Debt and $100 million in borrowings for Duke Energy Florida were classified as Current maturities of long-term debt on the Consolidated Balance Sheets.

In September 2025, Duke Energy Carolinas and Duke Energy Progress repaid their respective term loan facilities. In the third quarter of 2025, Duke Energy Florida repaid $450 million of borrowings on its outstanding term loan facility. The remaining $350 million was repaid in October 2025.

Piedmont

In August 2025, Piedmont entered into a 364-day term loan facility with commitments totaling $450 million. As of December 31, 2025, $450 million was drawn under the term loan facility, which was classified as Current maturities of long-term debt on the Consolidated Balance Sheets. Borrowings were used to repay $150 million of maturities due September 2025, to pay down short-term debt and for general corporate purposes.

Other Debt Matters

In September 2025, Duke Energy filed a Form S-3 with the SEC. Under this Form S-3, which is uncapped, the Duke Energy Registrants, excluding Progress Energy and Piedmont, may issue debt and other securities in the future at amounts, prices and with terms to be determined at the time of future offerings. The registration statement was filed to replace a similar prior filing upon expiration of its three-year term and also allows for the issuance of common and preferred stock by Duke Energy.

Also in September 2025, Duke Energy filed a Form S-3 with the SEC that allows Duke Energy to sell up to $4 billion of variable denomination floating-rate demand notes, called PremierNotes. The Form S-3 states that no more than $2 billion of the notes will be outstanding at any particular time. The notes are offered on a continuous basis and bear interest at a floating rate per annum determined by the Duke Energy PremierNotes Committee, or its designee, on a weekly basis. The interest rate payable on notes held by an investor may vary based on the principal amount of the investment. The notes have no stated maturity date, are non-transferable and may be redeemed in whole or in part by Duke Energy or at the investor’s option at any time. The balance as of December 31, 2025, and 2024, was $1,110 million and $1,070 million, respectively. The notes are short-term debt obligations of Duke Energy and are reflected as Notes payable and commercial paper on Duke Energy’s Consolidated Balance Sheets.

Money Pool and Intercompany Credit Agreements

The Subsidiary Registrants, excluding Progress Energy, are eligible to receive support for their short-term borrowing needs through participation with Duke Energy and certain of its subsidiaries in a money pool arrangement. Under this arrangement, those companies with short-term funds may provide short-term loans to affiliates participating in this arrangement. The money pool is structured such that the Subsidiary Registrants, excluding Progress Energy, separately manage their cash needs and working capital requirements. Accordingly, there is no net settlement of receivables and payables between money pool participants. Duke Energy (Parent) may loan funds to its participating subsidiaries, but may not borrow funds through the money pool. Accordingly, as the money pool activity is between Duke Energy and its subsidiaries, all money pool balances are eliminated within Duke Energy’s Consolidated Balance Sheets.

Money pool receivable balances are reflected within Notes receivable from affiliated companies on the Subsidiary Registrants’ Consolidated Balance Sheets. Money pool payable balances are reflected within either Notes payable to affiliated companies or Long-Term Debt Payable to Affiliated Companies on the Subsidiary Registrants’ Consolidated Balance Sheets.

Restrictive Debt Covenants

The Duke Energy Registrants’ debt and credit agreements contain various financial and other covenants. Duke Energy's Master Credit Facility contains a covenant requiring the debt-to-total capitalization ratio not to exceed 65% for each borrower, excluding Piedmont, and 70% for Piedmont. Failure to meet those covenants beyond applicable grace periods could result in accelerated due dates and/or termination of the agreements. As of December 31, 2025, each of the Duke Energy Registrants were in compliance with all covenants related to their debt agreements. In addition, some credit agreements may allow for acceleration of payments or termination of the agreements due to nonpayment, or acceleration of other significant indebtedness of the borrower or some of its subsidiaries. None of the debt or credit agreements contain material adverse change clauses.

Other Loans

As of December 31, 2025, and 2024, Duke Energy had loans outstanding of $935 million, including $31 million at Duke Energy Progress, and $903 million, including $32 million at Duke Energy Progress, respectively, against the cash surrender value of life insurance policies it owns on the lives of its executives. The amounts outstanding were carried as a reduction of the related cash surrender value that is included in Other within Other Noncurrent Assets on the Consolidated Balance Sheets.

FINANCIAL STATEMENTS			GUARANTEES AND INDEMNIFICATIONS

8. GUARANTEES AND INDEMNIFICATIONS

Duke Energy has various financial and performance guarantees and indemnifications with non-consolidated entities, which are issued in the normal course of business. As discussed below, these contracts include performance guarantees, standby letters of credit, debt guarantees and indemnifications and include guarantees and indemnifications related to Commercial Renewables Disposal Groups as described in Note 2. Duke Energy enters into these arrangements to facilitate commercial transactions with third parties by enhancing the value of the transaction to the third party. At December 31, 2025, Duke Energy does not believe conditions are likely for significant performance under these guarantees. To the extent liabilities are incurred as a result of the activities covered by the guarantees, such liabilities are included on the accompanying Consolidated Balance Sheets.

On January 2, 2007, Duke Energy completed the spin-off of its previously wholly owned natural gas businesses to shareholders. Guarantees issued by Duke Energy or its affiliates, or assigned to Duke Energy prior to the spin-off, remained with Duke Energy subsequent to the spin-off. Guarantees issued by Spectra Energy Capital, LLC (Spectra Capital) or its affiliates prior to the spin-off remained with Spectra Capital subsequent to the spin-off, except for guarantees that were later assigned to Duke Energy. Duke Energy has indemnified Spectra Capital against any losses incurred under certain of the guarantee obligations that remain with Spectra Capital. At December 31, 2025, the maximum potential amount of future payments associated with these guarantees were $18 million, the majority of which expire by 2028.

In addition to the Spectra Capital guarantee above, Duke Energy has issued performance guarantees to customers and other third parties that guarantee the payment and performance of other parties, including certain non-wholly owned entities, as well as guarantees of debt of certain non-consolidated entities. If such entities were to default on payments or performance, Duke Energy would be required under the guarantees to make payments on the obligations of these entities. The maximum potential amount of future payments required under these guarantees that have capped maximums as of December 31, 2025, was $26 million of which all expire between 2026 and 2030. Additionally, certain guarantees that expire in 2026 have uncapped maximum potential payments; however, Duke Energy does not believe these guarantees will have a material effect on its results of operations, cash flows or financial position.

Duke Energy uses bank-issued standby letters of credit to secure the performance of wholly owned and non-wholly owned entities to a third party or customer. Under these arrangements, Duke Energy has payment obligations to the issuing bank that are triggered by a draw by the third party or customer due to the failure of the wholly owned or non-wholly owned entity to perform according to the terms of its underlying contract. At December 31, 2025, Duke Energy had issued a total of $335 million in letters of credit, which expire between 2026 and 2029. There are no unused amounts under these letters of credit.

Duke Energy recognized $1 million and $2 million as of December 31, 2025, and 2024, respectively, in Other within Other Noncurrent Liabilities on the Consolidated Balance Sheets, for the guarantees discussed above. As current estimates change, additional losses related to guarantees and indemnifications to third parties, which could be material, may be recorded by the Duke Energy Registrants in the future.

9. JOINT OWNERSHIP OF GENERATING AND TRANSMISSION FACILITIES

The Duke Energy Registrants maintain ownership interests in certain jointly owned generating and transmission facilities and are entitled to a share of the generating capacity and output of each unit equal to their respective ownership interests. The Duke Energy Registrants pay their ownership share of additional construction costs, fuel inventory purchases and operating expenses. The Duke Energy Registrants' share of revenues and operating costs of the jointly owned facilities is included within the corresponding line in the Consolidated Statements of Operations. Each participant in the jointly owned facilities must provide its own financing.

The following table presents the Duke Energy Registrants' interest of jointly owned plant or facilities and amounts included on the Consolidated Balance Sheets. All facilities are operated by the Duke Energy Registrants and are included in the EU&I segment.

			December 31, 2025
																					Construction
			Ownership						Property, Plant						Accumulated						Work in
(in millions except for ownership interest)			Interest						and Equipment						Depreciation						Progress
Duke Energy Carolinas
Catawba (units 1 and 2)(a)			19.25		%				$	1,067					$	600					$	28
W.S. Lee CC(b)			87.27		%				659						139						6
Duke Energy Indiana
Gibson (unit 5)(c)			50.05		%				491						295						1
Vermillion(d)			62.50		%				182						127						1
Transmission and local facilities(c)			Various						8,543						1,805						357

(a) Jointly owned with North Carolina Municipal Power Agency Number 1, NCEMC and PMPA.

(b) Jointly owned with NCEMC.

(c) Jointly owned with WVPA and IMPA.

(d) Jointly owned with WVPA.

10. ASSET RETIREMENT OBLIGATIONS

Duke Energy records an ARO when it has a legal obligation to incur retirement costs associated with the retirement of a long-lived asset and the obligation can be reasonably estimated. Certain assets of the Duke Energy Registrants have an indeterminate life, such as transmission and distribution facilities, and thus the fair value of the retirement obligation is not reasonably estimable. A liability for these AROs will be recorded when a fair value is determinable.

FINANCIAL STATEMENTS			ASSET RETIREMENT OBLIGATIONS

The Duke Energy Registrants’ regulated operations accrue costs of removal for property that does not have an associated legal retirement obligation based on regulatory orders from state commissions. These costs of removal are recorded as a regulatory liability in accordance with regulatory accounting treatment. The amount spent may be higher than the amount accrued and result in a net asset. See Note 4 for the estimated cost of removal without an associated legal retirement obligation, which are included in Regulatory assets or Regulatory liabilities, as appropriate, on the Consolidated Balance Sheets.

The following table presents the AROs recorded on the Consolidated Balance Sheets.

			December 31, 2025
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Decommissioning of nuclear power facilities			$	4,668					$	2,158					$	2,497					$	2,428					$	69					$	—					$	—					$	—
Closure of ash impoundments			4,607						1,610						1,838						1,814						24						64						1,095						—
Other			350						74						151						47						104						71						30						25
Total asset retirement obligation			$	9,625					$	3,842					$	4,486					$	4,289					$	197					$	135					$	1,125					$	25
Less: Current portion			579						245						196						194						2						6						133						—
Total noncurrent asset retirement obligation			$	9,046					$	3,597					$	4,290					$	4,095					$	195					$	129					$	992					$	25

Nuclear Decommissioning Liability

AROs related to nuclear decommissioning are based on site-specific cost studies. The NCUC and the PSCSC require Duke Energy Carolinas and Duke Energy Progress to update cost estimates for decommissioning their nuclear plants every five years. The nuclear decommissioning liabilities are assessed and updated based on changes in cash flows provided in new studies as well as annual assessments to evaluate whether any indicators suggest a change in the estimate of the ARO is necessary.

The following table summarizes information about the most recent site-specific nuclear decommissioning cost studies. Decommissioning costs are stated in 2023 or 2024 dollars, depending on the year of the cost study, and include costs to decommission plant components not subject to radioactive contamination.

									Decommissioning
(in millions)									Costs						Year of Cost Study
Duke Energy									$	8,972					2023 and 2024
Duke Energy Carolinas(a)									4,439						2023
Progress Energy									4,533						2024
Duke Energy Progress(b)									4,477						2024
Duke Energy Florida(c)									56						N/A

(a) Decommissioning costs for Duke Energy Carolinas reflect its ownership interest in jointly owned reactors. Other joint owners are responsible for decommissioning costs related to their interest in the reactors. Duke Energy Carolinas' site-specific nuclear decommissioning cost study and a funding study were filed with the NCUC and PSCSC in 2024.

(b) Duke Energy Progress' site-specific nuclear decommissioning cost study and a funding study were filed with the NCUC and PSCSC in 2025.

(c) During 2019, Duke Energy Florida reached an agreement to transfer decommissioning work for Crystal River Unit 3 to a third party and decommissioning costs are based on the agreement with this third party rather than a cost study. Regulatory approval was received from the NRC and the FPSC in April 2020 and August 2020, respectively. Duke Energy Florida provides the FPSC periodic reports on the status and progress of decommissioning activities.

Nuclear Decommissioning Trust Funds

Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida each maintain NDTFs that are intended to pay for the decommissioning costs of their respective nuclear power plants. The NDTF investments are managed and invested in accordance with applicable requirements of various regulatory bodies including the NRC, FERC, NCUC, PSCSC, FPSC and the IRS.

Use of the NDTF investments is restricted to nuclear decommissioning activities including license termination, spent fuel and site restoration. The license termination and spent fuel obligations relate to contaminated decommissioning and are recorded as AROs. The site restoration obligation relates to non-contaminated decommissioning and is recorded to cost of removal within Regulatory liabilities on the Consolidated Balance Sheets.

FINANCIAL STATEMENTS			ASSET RETIREMENT OBLIGATIONS

The following table presents the fair value of NDTF assets legally restricted for purposes of settling AROs associated with nuclear decommissioning. Duke Energy Florida entered into an agreement with a third party to decommission Crystal River Unit 3 and was granted an exemption from the NRC, which allows for use of the NDTF for all aspects of nuclear decommissioning. The entire balance of Duke Energy Florida's NDTF may be applied toward license termination, spent fuel and site restoration costs incurred to decommission Crystal River Unit 3 and is excluded from the table below. See Note 17 for additional information related to the fair value of the Duke Energy Registrants' NDTFs.

			December 31,
(in millions)			2025						2024
Duke Energy			$	11,373					$	10,044
Duke Energy Carolinas			6,453						5,687
Progress Energy			4,920						4,357
Duke Energy Progress			4,920						4,357

Nuclear Operating Licenses

As described in Note 4, Duke Energy Carolinas and Duke Energy Progress intend to seek renewal of operating licenses and 20-year license extensions for all of their nuclear stations. The following table includes the current expiration of nuclear operating licenses.

Unit			Year of Expiration
Duke Energy Carolinas
Catawba Units 1 and 2			2043
McGuire Unit 1			2041
McGuire Unit 2			2043
Oconee Units 1 and 2			2053
Oconee Unit 3			2054
Duke Energy Progress
Brunswick Unit 1			2036
Brunswick Unit 2			2034
Harris			2046
Robinson			2030

The NRC has acknowledged permanent cessation of operation and permanent removal of fuel from the reactor vessel at Crystal River Unit 3. Therefore, the license no longer authorizes operation of the reactor. During 2019, Duke Energy Florida entered into an agreement for the accelerated decommissioning of Crystal River Unit 3. Regulatory approval was received from the NRC and the FPSC in April 2020 and August 2020, respectively.

Closure of Ash Impoundments

The Duke Energy Registrants are subject to state and federal regulations covering the closure of coal ash impoundments, including federal CCR rules and the Coal Ash Act, and other agreements. In April 2024, the EPA issued the 2024 CCR Rule, which significantly expanded the scope of the 2015 CCR Rule by establishing regulatory requirements for inactive surface impoundments at retired generating facilities and previously unregulated coal ash sources at regulated facilities. AROs recorded on the Duke Energy Registrants' Consolidated Balance Sheets include the legal obligation for closure of coal ash basins and the disposal of related ash as a result of these regulations and agreements.

The ARO amount recorded on the Consolidated Balance Sheets is based upon estimated closure costs for impacted ash impoundments. The amount recorded represents the discounted cash flows for estimated closure costs based upon specific closure plans. Actual costs to be incurred will be dependent upon factors that vary from site to site. The most significant factors are the method and time frame of closure at the individual sites. Closure methods considered include removing the water from ash basins, consolidating material as necessary and capping the ash with a synthetic barrier. The ultimate method and timetable for closure will be in compliance with standards set by federal and state regulations and other agreements. The ARO amount will be adjusted as additional information is gained through the closure and post-closure process, including acceptance and approval of compliance approaches, which may change management assumptions, and may result in a material change to the balance. See the ARO Liability Rollforward section below for information on revisions made to the coal ash liability during 2025 and 2024.

Asset retirement costs associated with the AROs for operating plants and retired plants are included in Net property, plant and equipment and Regulatory assets, respectively, on the Consolidated Balance Sheets. See Note 4 for additional information on Regulatory assets related to AROs and Note 5 for additional information on commitments and contingencies.

Cost recovery for future expenditures will be pursued through the normal ratemaking process with federal and state utility commissions, which permit recovery of reasonable and prudently incurred costs associated with Duke Energy’s regulated operations. See Note 4 for additional information on recovery of coal ash costs.

FINANCIAL STATEMENTS			ASSET RETIREMENT OBLIGATIONS

ARO Liability Rollforward

The following tables present changes in the liability associated with AROs.

									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Balance at December 31, 2023			$	9,152					$	4,013					$	4,145					$	3,870					$	275					$	136					$	809					$	21
Accretion expense(a)			434						183						199						190						9						7						49						2
Liabilities settled(b)			(634)						(212)						(321)						(232)						(89)						(7)						(94)						—
Liabilities incurred in the current year			20						8						12						—						12						—						—						—
Revisions in estimates of cash flows(c)			1,016						(2)						513						506						7						3						504						1
Balance at December 31, 2024			9,988						3,990						4,548						4,334						214						139						1,268						24
Accretion expense(a)			474						188						219						211						8						7						65						1
Liabilities settled(b)			(584)						(227)						(245)						(203)						(42)						(6)						(106)						—
Liabilities incurred in the current year			18						1						17						5						12						—						—						—
Revisions in estimates of cash flows(c)			(271)						(110)						(53)						(58)						5						(5)						(102)						—
Balance at December 31, 2025			$	9,625					$	3,842					$	4,486					$	4,289					$	197					$	135					$	1,125					$	25

(a) Substantially all accretion expense has been deferred in accordance with regulatory accounting treatment.

(b) Amounts primarily relate to ash impoundment closures and nuclear decommissioning.

(c) The amounts recorded represent the discounted cash flows for estimated closure costs as evaluated on a site-by-site basis. The increases in 2024 primarily relate to additional scope requirements to regulate the disposal of CCR in landfills and surface impoundments as a result of the 2024 CCR Rule, including an increase in groundwater monitoring wells. The decreases in 2025 primarily relate to lower third-party markup and a shift in timing of costs to future years.

FINANCIAL STATEMENTS			PROPERTY, PLANT AND EQUIPMENT

11. PROPERTY, PLANT AND EQUIPMENT

The following tables summarize the property, plant and equipment for Duke Energy and its subsidiary registrants.

			December 31, 2025
			Average
			Remaining												Duke												Duke						Duke						Duke						Duke
			Useful Life						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			(Years)						Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Land									$	2,667					$	644					$	1,226					$	557					$	669					$	289					$	157					$	326
Plant – Regulated
Electric generation, distribution and transmission			38						145,947						52,259						66,751						37,561						29,190						7,945						18,992						—
Natural gas transmission and distribution			58						14,201						—						—						—						—						4,529						—						9,672
Other buildings and improvements			40						3,214						1,280						854						423						431						437						381						262
Nuclear fuel									3,683						2,128						1,555						1,555						—						—						—						—
Equipment			11						4,193						1,132						1,456						852						604						555						540						131
Construction in process									10,075						3,708						4,390						2,761						1,629						394						884						408
Other			11						6,429						1,362						2,115						1,466						637						478						287						526
Total property, plant and equipment(a)									190,409						62,513						78,347						45,175						33,160						14,627						21,241						11,325
Total accumulated depreciation – regulated(b)(c)									(59,441)						(20,658)						(25,425)						(16,980)						(8,437)						(3,812)						(7,492)						(2,168)
Total accumulated depreciation – other(d)									(1,009)						—						—						—						—						—						—						—
Total net property, plant and equipment									$	129,959					$	41,855					$	52,922					$	28,195					$	24,723					$	10,815					$	13,749					$	9,157

(a) Includes finance leases of $682 million, $349 million, $605 million, $478 million, $127 million and $13 million at Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana, respectively, primarily within Plant – Regulated. The Progress Energy, Duke Energy Progress and Duke Energy Florida amounts are net of $208 million, $203 million and $5 million, respectively, of accumulated amortization of finance leases.

(b) Includes $1,886 million, $1,064 million, $822 million and $822 million of accumulated amortization of nuclear fuel at Duke Energy, Duke Energy Carolinas, Progress Energy and Duke Energy Progress, respectively.

(c) Includes accumulated amortization of finance leases of $98 million and $5 million at Duke Energy Carolinas and Duke Energy Indiana, respectively.

(d) Includes accumulated amortization of finance leases of $35 million at Duke Energy.

FINANCIAL STATEMENTS			PROPERTY, PLANT AND EQUIPMENT

			December 31, 2024
			Average
			Remaining												Duke												Duke						Duke						Duke						Duke
			Useful Life						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			(Years)						Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Land									$	2,503					$	617					$	1,134					$	535					$	599					$	258					$	144					$	325
Plant – Regulated
Electric generation, distribution and transmission			37						137,836						49,547						62,351						35,633						26,718						7,634						18,304						—
Natural gas transmission and distribution			57						13,482						—						—						—						—						4,255						—						9,227
Other buildings and improvements			41						2,948						1,256						698						391						307						418						372						204
Nuclear fuel									3,518						2,003						1,515						1,515						—						—						—						—
Equipment			13						3,850						997						1,252						753						499						542						490						157
Construction in process									7,756						2,735						3,657						1,884						1,773						385						406						311
Other			10						6,844						1,227						1,953						1,349						594						426						254						488
Total property, plant and equipment(a)									178,737						58,382						72,560						42,060						30,490						13,918						19,970						10,712
Total accumulated depreciation – regulated(b)(c)									(55,143)						(19,090)						(23,586)						(15,930)						(7,650)						(3,674)						(6,848)						(2,041)
Total accumulated depreciation – other(d)									(1,968)						—						—						—						—						—						—						—
Total net property, plant and equipment									$	121,626					$	39,292					$	48,974					$	26,130					$	22,840					$	10,244					$	13,122					$	8,671

(a) Includes finance leases of $670 million, $336 million, $620 million, $512 million, $108 million, and $10 million at Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana, respectively, primarily within Plant – Regulated. The Progress Energy and Duke Energy Progress amounts are net of $159 million of accumulated amortization of finance leases.

(b) Includes $1,824 million, $1,010 million, $814 million and $814 million of accumulated amortization of nuclear fuel at Duke Energy, Duke Energy Carolinas, Progress Energy and Duke Energy Progress, respectively.

(c) Includes accumulated amortization of finance leases of $84 million and $4 million at Duke Energy Carolinas and Duke Energy Indiana, respectively.

(d) Includes accumulated amortization of finance leases of $25 million at Duke Energy.

The following table presents capitalized interest, which includes the debt component of AFUDC.

			Years Ended December 31,
(in millions)			2025						2024						2023
Duke Energy			$	182					$	201					$	201
Duke Energy Carolinas			66						61						62
Progress Energy			60						57						41
Duke Energy Progress			53						52						35
Duke Energy Florida			7						5						6
Duke Energy Ohio			10						14						16
Duke Energy Indiana			2						13						21
Piedmont			7						8						8

12. GOODWILL AND INTANGIBLE ASSETS

GOODWILL

Duke Energy

Duke Energy's Goodwill balance of $19.0 billion is allocated $17.4 billion to EU&I and $1.6 billion to GU&I on Duke Energy's Consolidated Balance Sheets at December 31, 2025, and 2024. There are no accumulated impairment charges.

In July 2025, Piedmont entered into a purchase agreement for the sale of Piedmont's Tennessee business. In the third quarter of 2025, Duke Energy reclassified the Piedmont Tennessee Disposal Group to assets held for sale. As a result, $294 million of Duke Energy’s Goodwill balance that is allocated to the Piedmont Tennessee Disposal Group was reclassified to noncurrent assets held for sale on Duke Energy's Consolidated Balance Sheets. See Note 2 for additional information.

FINANCIAL STATEMENTS			GOODWILL AND INTANGIBLE ASSETS

Duke Energy Ohio

Duke Energy Ohio's Goodwill balance of $920 million, allocated $596 million to EU&I and $324 million to GU&I, is presented net of accumulated impairment charges of $216 million on the Consolidated Balance Sheets at December 31, 2025, and 2024.

Progress Energy

Progress Energy's Goodwill is included in the EU&I segment and there are no accumulated impairment charges.

Piedmont

Piedmont's Goodwill is included in the GU&I segment and there are no accumulated impairment charges.

In July 2025, Piedmont entered into a purchase agreement for the sale of Piedmont's Tennessee business. In the third quarter of 2025, $10 million of Piedmont’s Goodwill balance that is allocated to the Piedmont Tennessee Disposal Group was reclassified to noncurrent assets held for sale on Piedmont's Consolidated Balance Sheets. See Note 2 for additional information.

Goodwill Impairment Testing

Duke Energy, Progress Energy, Duke Energy Ohio and Piedmont are required to perform an annual goodwill impairment test as of the same date each year and, accordingly, perform their annual impairment testing of goodwill as of August 31. Duke Energy, Progress Energy, Duke Energy Ohio and Piedmont update their test between annual tests if events or circumstances occur that would more likely than not reduce the fair value of a reporting unit below its carrying value. As the fair value for Duke Energy, Progress Energy, Duke Energy Ohio and Piedmont exceeded their respective carrying values at the date of the annual impairment analysis, no goodwill impairment charges were recorded in 2025.

INTANGIBLE ASSETS

The following tables show the carrying amount and accumulated amortization of intangible assets included in Other within Other Noncurrent Assets on the Consolidated Balance Sheets of the Duke Energy Registrants at December 31, 2025, and 2024.

			December 31, 2025
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Emission allowances			$	8					$	—					$	5					$	2					$	3					$	—					$	2					$	—
Renewable energy certificates			259						115						143						143						—						1						—						—
Other			47						—						5						1						4						—						—						22
Total gross carrying amounts			314						115						153						146						7						1						2						22
Accumulated amortization – other			(23)						—						(4)						—						(4)						—						—						(12)
Total intangible assets, net			$	291					$	115					$	149					$	146					$	3					$	1					$	2					$	10

			December 31, 2024
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Emission allowances			$	8					$	—					$	5					$	2					$	3					$	—					$	2					$	—
Renewable energy certificates			241						103						136						136						—						2						—						—
Other			47						—						5						1						4						—						—						22
Total gross carrying amounts			296						103						146						139						7						2						2						22
Accumulated amortization – other			(19)						—						(3)						—						(3)						—						—						(9)
Total intangible assets, net			$	277					$	103					$	143					$	139					$	4					$	2					$	2					$	13

Amortization Expense

Amortization expense amounts for other intangible assets are immaterial for the years ended December 31, 2025, 2024 and 2023, and are expected to be immaterial for the next five years as of December 31, 2025.

13. INVESTMENTS IN UNCONSOLIDATED AFFILIATES

EQUITY METHOD INVESTMENTS

Investments in affiliates that are not controlled by Duke Energy, but over which it has significant influence, are accounted for using the equity method.

FINANCIAL STATEMENTS			INVESTMENTS IN UNCONSOLIDATED AFFILIATES

The following table presents Duke Energy’s investments in unconsolidated affiliates accounted for under the equity method, as well as the respective equity in earnings (losses), by segment, for periods presented in this filing.

			Years Ended December 31,
			2025												2024																		2023
									Equity in												Equity in												Equity in
(in millions)			Investments						earnings						Investments						(losses) earnings												earnings
Electric Utilities and Infrastructure			$	—					$	—					$	28					$	(11)											$	7
Gas Utilities and Infrastructure			177						15						186						(48)												40
Other			153						36						139						50												66
Total			$	330					$	51					$	353					$	(9)											$	113

During the years ended December 31, 2025, 2024 and 2023, Duke Energy received distributions from equity investments of $30 million, $66 million and $50 million, respectively, which are included in Other assets within Cash Flows from Operating Activities on the Consolidated Statements of Cash Flows. During the years ended December 31, 2025, 2024 and 2023, Duke Energy received distributions from equity investments of $22 million, $25 million and $16 million, respectively, which are included in Return of investment capital within Cash Flows from Investing Activities on the Consolidated Statements of Cash Flows.

During the years ended December 31, 2025, 2024 and 2023, Piedmont received distributions from equity investments of $5 million, $9 million and $9 million, respectively, which are included in Other assets within Cash Flows from Operating Activities. During the years ended December 31, 2025, 2024 and 2023, Piedmont received distributions from equity investments of $2 million, $2 million and $1 million, respectively, which are included within Cash Flows from Investing Activities on the Consolidated Statements of Cash Flows.

Significant investments in affiliates accounted for under the equity method are discussed below.

Electric Utilities and Infrastructure

In January 2025, Duke Energy entered into an agreement to sell its indirect 50% ownership interest in DATC Path 15 Transmission LLC. Duke Energy recorded a pretax charge of $15 million in Equity in earnings (losses) of unconsolidated affiliates on Duke Energy's Consolidated Statements of Operations for the year ended December 31, 2024. The sale closed in March 2025.

In November 2024, Duke Energy sold its 50% interest in Pioneer, which also builds, owns and operates electric transmission facilities in North America. Proceeds from the sale approximated the carrying value of the investment.

Gas Utilities and Infrastructure

Pipeline Investments

Piedmont owns a 21.49% investment in Cardinal, an intrastate pipeline located in North Carolina.

Duke Energy owns a 7.5% interest in Sabal Trail, a 517-mile interstate natural gas pipeline, which provides natural gas to Duke Energy Florida and Florida Power and Light.

Storage Facilities

Piedmont owns a 45% interest in Pine Needle, an interstate LNG storage facility located in North Carolina, and a 50% interest in Hardy Storage, an underground interstate natural gas storage facility located in West Virginia.

Renewable Natural Gas Investments

Duke Energy has investments in various renewable natural gas projects. These investments include an interest in SustainRNG, a developer of renewable natural gas projects, as well as multiple project companies developed by SustainRNG. In December 2024, Duke Energy recorded a pretax charge of $54 million within Equity in earnings (losses) of unconsolidated affiliates on the Consolidated Statements of Operations, fully impairing Duke Energy's investments in the project companies. Duke Energy's remaining interest in SustainRNG was sold in January 2026, and net proceeds from the disposition were not material.

Other

Duke Energy has a 17.5% indirect economic ownership interest and a 25% board representation and voting rights interest in NMC, which owns and operates a methanol and MTBE business in Jubail, Saudi Arabia.

FINANCIAL STATEMENTS			RELATED PARTY TRANSACTIONS

14. RELATED PARTY TRANSACTIONS

The Subsidiary Registrants engage in related party transactions in accordance with the applicable state and federal commission regulations. Refer to the Consolidated Balance Sheets of the Subsidiary Registrants for balances due to or due from related parties. Transactions with related parties included in the Consolidated Statements of Operations and Comprehensive Income are presented in the following table.

			Years Ended December 31,
(in millions)			2025						2024						2023
Duke Energy Carolinas
Corporate governance and shared service expenses(a)			$	638					$	812					$	823
Indemnification coverages(b)			54						44						34
JDA revenue(c)			119						35						34
JDA expense(c)			349						187						177
Intercompany natural gas purchases(d)			6						12						11
Progress Energy
Corporate governance and shared service expenses(a)			$	591					$	709					$	736
Indemnification coverages(b)			63						57						47
JDA revenue(c)			349						187						177
JDA expense(c)			119						35						34
Intercompany natural gas purchases(d)			76						75						75
Duke Energy Progress
Corporate governance and shared service expenses(a)			$	342					$	426					$	434
Indemnification coverages(b)			26						23						20
JDA revenue(c)			349						187						177
JDA expense(c)			119						35						34
Intercompany natural gas purchases(d)			76						75						75
Duke Energy Florida
Corporate governance and shared service expenses(a)			$	249					$	283					$	302
Indemnification coverages(b)			37						34						27
Duke Energy Ohio
Corporate governance and shared service expenses(a)			$	260					$	304					$	294
Indemnification coverages(b)			6						6						5
Duke Energy Indiana
Corporate governance and shared service expenses(a)			$	293					$	355					$	365
Indemnification coverages(b)			9						10						8
Piedmont
Corporate governance and shared service expenses(a)			$	143					$	166					$	149
Indemnification coverages(b)			5						4						4
Intercompany natural gas sales(d)			82						87						86
Natural gas storage and transportation costs(e)			22						23						24

(a)The Subsidiary Registrants are charged their proportionate share of corporate governance and other shared services costs, primarily related to human resources, employee benefits, information technology, legal and accounting fees, as well as other third-party costs. These amounts are primarily recorded in Operation, maintenance and other on the Consolidated Statements of Operations and Comprehensive Income.

(b)The Subsidiary Registrants incur expenses related to certain indemnification coverages through Bison, Duke Energy’s wholly owned captive insurance subsidiary. These expenses are recorded in Operation, maintenance and other on the Consolidated Statements of Operations and Comprehensive Income.

(c)Duke Energy Carolinas and Duke Energy Progress participate in a JDA, which allows the collective dispatch of power plants between the service territories to reduce customer rates. Revenues from the sale of power and expenses from the purchase of power pursuant to the JDA are recorded in Operating Revenues and Fuel used in electric generation and purchased power, respectively, on the Consolidated Statements of Operations and Comprehensive Income.

(d)Piedmont provides long-term natural gas delivery service to certain Duke Energy Carolinas and Duke Energy Progress natural gas-fired generation facilities. Piedmont records the sales in Operating Revenues, and Duke Energy Carolinas and Duke Energy Progress record the related purchases as a component of Fuel used in electric generation and purchased power on their respective Consolidated Statements of Operations and Comprehensive Income.

(e)Piedmont has related party transactions as a customer of its equity method investments in Pine Needle, Hardy Storage and Cardinal natural gas storage and transportation facilities. These expenses are included in Cost of natural gas on Piedmont's Consolidated Statements of Operations and Comprehensive Income.

In addition to the amounts presented above, the Subsidiary Registrants have other affiliate transactions, including rental of office space, participation in a money pool arrangement, other operational transactions and their proportionate share of certain charged expenses. See Note 7 for more information regarding money pool. These transactions of the Subsidiary Registrants are incurred in the ordinary course of business and are eliminated in consolidation.

FINANCIAL STATEMENTS			RELATED PARTY TRANSACTIONS

As discussed in Note 18, certain trade receivables were previously sold by Duke Energy Ohio and Duke Energy Indiana to CRC, an affiliate formed by a subsidiary of Duke Energy. The proceeds obtained from the sales of receivables were largely cash but included a subordinated note from CRC for a portion of the purchase price. In March 2024, Duke Energy repaid all outstanding CRC borrowings and terminated the related CRC credit facility.

Intercompany Income Taxes

Duke Energy and the Subsidiary Registrants file a consolidated federal income tax return and other state and jurisdictional returns. The Subsidiary Registrants have a tax sharing agreement with Duke Energy for the allocation of consolidated tax liabilities and benefits. Income taxes recorded represent amounts the Subsidiary Registrants would incur as separate C-Corporations. The following table includes the balance of intercompany income tax receivables and payables for the Subsidiary Registrants.

			Duke						Duke			Duke			Duke			Duke
			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
December 31, 2025
Intercompany income tax payable			$	81		$	72		$	77		$	12		$	10		$	39		$	59
December 31, 2024
Intercompany income tax receivable			$	—		$	—		$	—		$	154		$	—		$	—		$	—
Intercompany income tax payable			419			169			315			—			43			110			43

15. DERIVATIVES AND HEDGING

The Duke Energy Registrants use commodity, interest rate and foreign currency contracts to manage commodity price risk, interest rate risk and foreign currency exchange rate risk. The primary use of commodity derivatives is to hedge the generation portfolio against changes in the prices of electricity and natural gas. Piedmont enters into natural gas supply contracts to provide diversification, reliability and natural gas cost benefits to its customers. Interest rate derivatives are used to manage interest rate risk associated with borrowings. Foreign currency derivatives are used to manage risk related to foreign currency exchange rates on certain issuances of debt.

All derivative instruments not identified as NPNS are recorded at fair value as assets or liabilities on the Consolidated Balance Sheets. Cash collateral related to derivative instruments executed under master netting arrangements is offset against the collateralized derivatives on the Consolidated Balance Sheets. The cash impacts of settled derivatives are recorded as operating activities on the Consolidated Statements of Cash Flows.

INTEREST RATE RISK

The Duke Energy Registrants are exposed to changes in interest rates as a result of their issuance or anticipated issuance of variable-rate and fixed-rate debt and commercial paper. Interest rate risk is managed by limiting variable-rate exposures to a percentage of total debt and by monitoring changes in interest rates. To manage risk associated with changes in interest rates, the Duke Energy Registrants may enter into interest rate swaps, U.S. Treasury lock agreements and other financial contracts. In anticipation of certain fixed-rate debt issuances, a series of forward-starting interest rate swaps or Treasury locks may be executed to lock in components of current market interest rates. These instruments are later terminated prior to or upon the issuance of the corresponding debt.

Cash Flow Hedges

For a derivative designated as hedging the exposure to variable cash flows of a future transaction, referred to as a cash flow hedge, the effective portion of the derivative's gain or loss is initially reported as a component of other comprehensive income and subsequently reclassified into earnings once the future transaction impacts earnings. Amounts for interest rate contracts are reclassified to earnings as interest expense over the term of the related debt. Gains and losses reclassified out of AOCI for the years ended December 31, 2025, 2024 and 2023, were not material. Duke Energy's interest rate derivatives designated as hedges include forward-starting interest rate swaps not accounted for under regulatory accounting.

Undesignated Contracts

Undesignated contracts primarily include contracts not designated as a hedge because they are accounted for under regulatory accounting or contracts that do not qualify for hedge accounting.

Duke Energy’s interest rate swaps for its regulated operations employ regulatory accounting. With regulatory accounting, the mark-to-market gains or losses on the swaps are deferred as regulatory liabilities or regulatory assets, respectively. Regulatory assets and liabilities are amortized consistent with the treatment of the related costs in the ratemaking process. The accrual of interest on the swaps is recorded as Interest Expense on the Duke Energy Registrant's Consolidated Statements of Operations and Comprehensive Income.

FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING

The following tables show notional amounts of outstanding derivatives related to interest rate risk.

			December 31, 2025
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Indiana						Ohio
Cash flow hedges			$	1,725					$	—					$	—					$	—					$	—					$	—					$	—
Undesignated contracts			3,852						2,175						1,325						650						675						325						27
Total notional amount			$	5,577					$	2,175					$	1,325					$	650					$	675					$	325					$	27

			December 31, 2024
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Indiana						Ohio
Cash flow hedges			$	2,825					$	—					$	—					$	—					$	—					$	—					$	—
Undesignated contracts			3,202						1,150						1,775						1,125						650						250						27
Total notional amount			$	6,027					$	1,150					$	1,775					$	1,125					$	650					$	250					$	27

COMMODITY PRICE RISK

The Duke Energy Registrants are exposed to the impact of changes in the prices of electricity purchased and sold in bulk power markets and natural gas purchases, including Piedmont's natural gas supply contracts. Exposure to commodity price risk is influenced by a number of factors including the term of contracts, the liquidity of markets and delivery locations. To manage risk associated with commodity prices, the Duke Energy Registrants may enter into long-term power purchase or sales contracts and long-term natural gas supply agreements.

Undesignated Contracts

For the Subsidiary Registrants, bulk power electricity and natural gas purchases flow through fuel adjustment clauses, formula-based contracts or other cost-sharing mechanisms. Differences between the costs included in rates and the incurred costs, including undesignated derivative contracts, are largely deferred as regulatory assets or regulatory liabilities. Piedmont policies allow for the use of financial instruments to hedge commodity price risks. The strategy and objective of these hedging programs are to use the financial instruments to reduce natural gas cost volatility for customers.

Volumes

The tables below include volumes of outstanding commodity derivatives. Amounts disclosed represent the absolute value of notional volumes of commodity contracts excluding NPNS. The Duke Energy Registrants have netted contractual amounts where offsetting purchase and sale contracts exist with identical delivery locations and times of delivery. Where all commodity positions are perfectly offset, no quantities are shown.

			December 31, 2025
									Duke												Duke												Duke						Duke
			Duke						Energy						Progress						Energy												Energy						Energy
			Energy						Carolinas						Energy						Progress												Ohio						Indiana						Piedmont
Electricity (GWh)			10,615						—						—						—												1,349						9,266						—
Natural gas (millions of Dth)			814						307						286						286												—						33						188

			December 31, 2024
									Duke												Duke												Duke						Duke
			Duke						Energy						Progress						Energy												Energy						Energy
			Energy						Carolinas						Energy						Progress												Ohio						Indiana						Piedmont
Electricity (GWh)			12,229						—						—						—												1,287						10,942						—
Natural gas (millions of Dth)			779						276						246						246												—						32						225

FOREIGN CURRENCY RISK

Duke Energy may enter into foreign currency derivatives to hedge exposure to changes in foreign currency exchange rates, such as that arising from the issuance of debt denominated in a currency other than U.S. dollars.

Fair Value Hedges

Derivatives related to existing fixed rate securities are accounted for as fair value hedges, where the derivatives’ fair value gains or losses and hedged items’ fair value gains or losses are both recorded directly to earnings on the same income statement line item, including foreign currency gains or losses arising from changes in the U.S. currency exchange rates. Duke Energy has elected to exclude the cross-currency basis spread from the assessment of effectiveness in the fair value hedges of its foreign currency risk and record any difference between the change in the fair value of the excluded components and the amounts recognized in earnings as a component of other comprehensive income or loss.

FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING

The following table shows Duke Energy's outstanding derivatives related to foreign currency risk.

																																										Fair Value Gain (Loss)****(a)
															Receive																					Hedge						(in millions)
			Pay Notional												Notional									Receive												Maturity						Years Ended December 31,
			(in millions)						Pay Rate						(in millions)									Rate												Date						2025			2024			2023
Fair value hedges
			$	645					4.75		%				600			euros						3.10		%										June 2028						$	84		$	(41)		$	17
			537						5.31		%				500			euros						3.85		%										June 2034						70			(34)			15
			815						5.65		%				750			euros						3.75		%										April 2031						104			(38)			—
Total			$	1,997											1,850			euros																								$	258		$	(113)		$	32

(a) Amounts are recorded in Other Income and expenses, net on the Consolidated Statement of Operations, which offsets an equal translation adjustment of the foreign denominated debt. See the Consolidated Statements of Comprehensive Income for amounts excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded.

LOCATION AND FAIR VALUE OF DERIVATIVE ASSETS AND LIABILITIES RECOGNIZED IN THE CONSOLIDATED BALANCE SHEETS

The following tables show the fair value and balance sheet location of derivative instruments. Although derivatives subject to master netting arrangements are netted on the Consolidated Balance Sheets, the fair values presented below are shown gross and cash collateral on the derivatives has not been netted against the fair values shown.

Derivative Assets						December 31, 2025
												Duke												Duke						Duke						Duke						Duke
						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)						Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Commodity Contracts
Not Designated as Hedging Instruments
Current						$	28					$	9					$	7					$	7					$	—					$	—					$	11					$	—
Noncurrent						28						12						16						16						—						—						—						—
Total Derivative Assets – Commodity Contracts						$	56					$	21					$	23					$	23					$	—					$	—					$	11					$	—
Interest Rate Contracts
Designated as Hedging Instruments
Current						$	25					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Noncurrent						20						—						—						—						—						—						—						—
Not Designated as Hedging Instruments
Current						$	63					$	34					$	29					$	29					$	1					$	—					$	—					$	—
Noncurrent						62						46						15						—						14						—						1						—
Total Derivative Assets – Interest Rate Contracts						$	170					$	80					$	44					$	29					$	15					$	—					$	1					$	—
Foreign Currency Contracts
Designated as Hedging Instruments
Noncurrent						156						—						—						—						—						—						—						—
Total Derivative Assets – Foreign Currency Contracts						$	156					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Total Derivative Assets						$	382					$	101					$	67					$	52					$	15					$	—					$	12					$	—

FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING

Derivative Liabilities						December 31, 2025
												Duke												Duke						Duke						Duke						Duke
						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)						Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Commodity Contracts
Not Designated as Hedging Instruments
Current						$	104					$	53					$	25					$	25					$	—					$	—					$	7					$	19
Noncurrent						106						32						21						21						—						—						—						53
Total Derivative Liabilities – Commodity Contracts						$	210					$	85					$	46					$	46					$	—					$	—					$	7					$	72
Interest Rate Contracts
Not Designated as Hedging Instruments
Current						—						3						(4)						(5)						1						—						2						—
Noncurrent						7						—						6						6						—						1						—						—
Total Derivative Liabilities – Interest Rate Contracts						$	7					$	3					$	2					$	1					$	1					$	1					$	2					$	—
Foreign Currency Contracts
Designated as Hedging Instruments
Current						$	27					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Total Derivative Liabilities – Foreign Currency Contracts						$	27					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Total Derivative Liabilities						$	244					$	88					$	48					$	47					$	1					$	1					$	9					$	72

Derivative Assets						December 31, 2024
												Duke												Duke						Duke						Duke						Duke
						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)						Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Commodity Contracts
Not Designated as Hedging Instruments
Current						$	49					$	20					$	17					$	17					$	—					$	1					$	8					$	1
Noncurrent						60						29						32						32						—						—						—						—
Total Derivative Assets – Commodity Contracts						$	109					$	49					$	49					$	49					$	—					$	1					$	8					$	1
Interest Rate Contracts
Designated as Hedging Instruments
Current						$	108					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Noncurrent						52						—						—						—						—						—						—						—
Not Designated as Hedging Instruments
Current						$	110					$	19					$	55					$	44					$	11					$	—					$	36					$	—
Noncurrent						50						26						23						16						7						—						—						—
Total Derivative Assets – Interest Rate Contracts						$	320					$	45					$	78					$	60					$	18					$	—					$	36					$	—
Foreign Currency Contracts
Designated as Hedging Instruments
Noncurrent						$	5					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Total Derivative Assets – Foreign Currency Contracts						$	5					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Total Derivative Assets						$	434					$	94					$	127					$	109					$	18					$	1					$	44					$	1

FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING

Derivative Liabilities						December 31, 2024
												Duke												Duke						Duke						Duke						Duke
						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)						Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Not Designated as Hedging Instruments
Current						$	108					$	57					$	32					$	32					$	—					$	—					$	3					$	16
Noncurrent						134						31						24						24						—						—						—						78
Total Derivative Liabilities – Commodity Contracts						$	242					$	88					$	56					$	56					$	—					$	—					$	3					$	94
Interest Rate Contracts
Not Designated as Hedging Instruments
Current						2						—						2						1						1						—						—						—
Noncurrent						1						—						—						—						—						1						—						—
Total Derivative Liabilities – Interest Rate Contracts						$	3					$	—					$	2					$	1					$	1					$	1					$	—					$	—
Foreign Currency Contracts
Designated as Hedging Instruments
Current						$	35					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Noncurrent						39						—						—						—						—						—						—						—
Total Derivative Liabilities – Foreign Currency Contracts						$	74					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Total Derivative Liabilities						$	319					$	88					$	58					$	57					$	1					$	1					$	3					$	94

OFFSETTING ASSETS AND LIABILITIES

The following tables present the line items on the Consolidated Balance Sheets where derivatives are reported. Substantially all of Duke Energy's outstanding derivative contracts are subject to enforceable master netting arrangements. The amounts shown are calculated by counterparty. Accounts receivable or accounts payable may also be available to offset exposures in the event of bankruptcy. These amounts are not included in the tables below.

Derivative Assets						December 31, 2025
												Duke												Duke						Duke						Duke						Duke
						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)						Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Current
Gross amounts recognized						$	116					$	43					$	36					$	36					$	1					$	—					$	11					$	—
Offset						(16)						(9)						(7)						(7)						—						—						—						—
Net amounts presented in Current Assets: Other						$	100					$	34					$	29					$	29					$	1					$	—					$	11					$	—
Noncurrent
Gross amounts recognized						$	266					$	58					$	31					$	16					$	14					$	—					$	1					$	—
Offset						(22)						(11)						(11)						(11)						—						—						—						—
Net amounts presented in Other Noncurrent Assets: Other						$	244					$	47					$	20					$	5					$	14					$	—					$	1					$	—

FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING

Derivative Liabilities						December 31, 2025
												Duke												Duke						Duke						Duke						Duke
						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)						Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Current
Gross amounts recognized						$	131					$	56					$	21					$	20					$	1					$	—					$	9					$	19
Offset						(16)						(9)						(7)						(7)						—						—						—						—
Cash collateral posted						(8)						(1)						—						—						—						—						(7)						—
Net amounts presented in Current Liabilities: Other						$	107					$	46					$	14					$	13					$	1					$	—					$	2					$	19
Noncurrent
Gross amounts recognized						$	113					$	32					$	27					$	27					$	—					$	1					$	—					$	53
Offset						(22)						(11)						(11)						(11)						—						—						—						—
Cash collateral posted						(1)						(1)						—						—						—						—						—						—
Net amounts presented in Other Noncurrent Liabilities: Other						$	90					$	20					$	16					$	16					$	—					$	1					$	—					$	53

Derivative Assets						December 31, 2024
												Duke												Duke						Duke						Duke						Duke
						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)						Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Current
Gross amounts recognized						$	267					$	39					$	72					$	61					$	11					$	1					$	44					$	1
Offset						(29)						(15)						(14)						(14)						—						—						—						—
Net amounts presented in Current Assets: Other						$	238					$	24					$	58					$	47					$	11					$	1					$	44					$	1
Noncurrent
Gross amounts recognized						$	167					$	55					$	55					$	48					$	7					$	—					$	—					$	—
Offset						(37)						(19)						(17)						(17)						—						—						—						—
Net amounts presented in Other Noncurrent Assets: Other						$	130					$	36					$	38					$	31					$	7					$	—					$	—					$	—

Derivative Liabilities						December 31, 2024
												Duke												Duke						Duke						Duke						Duke
						Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)						Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Current
Gross amounts recognized						$	145					$	57					$	34					$	33					$	1					$	—					$	3					$	16
Offset						(29)						(15)						(14)						(14)						—						—						—						—
Cash collateral posted						(3)						(2)						—						—						—						—						(1)						—
Net amounts presented in Current Liabilities: Other						$	113					$	40					$	20					$	19					$	1					$	—					$	2					$	16
Noncurrent
Gross amounts recognized						$	174					$	31					$	24					$	24					$	—					$	1					$	—					$	78
Offset						(37)						(19)						(17)						(17)						—						—						—						—
Cash collateral posted						(4)						(4)						—						—						—						—						—						—
Net amounts presented in Other Noncurrent Liabilities: Other						$	133					$	8					$	7					$	7					$	—					$	1					$	—					$	78

FINANCIAL STATEMENTS			DERIVATIVES AND HEDGING

OBJECTIVE CREDIT CONTINGENT FEATURES

Certain derivative contracts contain objective credit contingent features. These features include the requirement to post cash collateral or letters of credit if specific events occur, such as a credit rating downgrade below investment grade. The following tables show information with respect to derivative contracts that are in a net liability position and contain objective credit risk-related payment provisions.

			December 31, 2025
									Duke												Duke
			Duke						Energy						Progress						Energy
(in millions)			Energy						Carolinas						Energy						Progress
Aggregate fair value of derivatives in a net liability position			$	102					$	59					$	43					$	43
Fair value of collateral already posted			2						2						—						—
Additional cash collateral or letters of credit in the event credit risk-related contingent features were triggered			100						57						43						43

			December 31, 2024
									Duke												Duke
			Duke						Energy						Progress						Energy
(in millions)			Energy						Carolinas						Energy						Progress
Aggregate fair value of derivatives in a net liability position			$	101					$	52					$	49					$	49
Fair value of collateral already posted			6						6						—						—
Additional cash collateral or letters of credit in the event credit risk-related contingent features were triggered			95						46						49						49

The Duke Energy Registrants have elected to offset cash collateral and fair values of derivatives. For amounts to be netted, the derivative and cash collateral must be executed with the same counterparty under the same master netting arrangement.

16. INVESTMENTS IN DEBT AND EQUITY SECURITIES

Duke Energy’s investments in debt and equity securities are primarily comprised of investments held in (i) the NDTF at Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, (ii) the grantor trusts at Duke Energy Florida and Duke Energy Indiana related to OPEB plans and (iii) Bison. The Duke Energy Registrants classify investments in debt securities as AFS and investments in equity securities as FV-NI.

For investments in debt securities classified as AFS, the unrealized gains and losses are included in other comprehensive income until realized, at which time they are reported through net income. For investments in equity securities classified as FV-NI, both realized and unrealized gains and losses are reported through net income. Substantially all of Duke Energy’s investments in debt and equity securities qualify for regulatory accounting, and accordingly, all associated realized and unrealized gains and losses on these investments are deferred as a regulatory asset or liability.

Duke Energy classifies the majority of investments in debt and equity securities as long term, unless otherwise noted.

Investment Trusts

The investments within the Investment Trusts are managed by independent investment managers with discretion to buy, sell and invest pursuant to the objectives and guidelines set forth by the investment manager agreements and trust agreements. The Duke Energy Registrants have limited oversight of the day-to-day management of these investments. As a result, the ability to hold investments in unrealized loss positions is outside the control of the Duke Energy Registrants. Accordingly, all unrealized losses associated with debt securities within the Investment Trusts are recognized immediately and deferred to regulatory accounts where appropriate.

Other AFS Securities

Unrealized gains and losses on all other AFS securities are included in other comprehensive income until realized, unless it is determined the carrying value of an investment has a credit loss. The Duke Energy Registrants analyze all investment holdings each reporting period to determine whether a decline in fair value is related to a credit loss. If a credit loss exists, the unrealized credit loss is included in earnings. There were no material credit losses as of December 31, 2025, and 2024.

Other Investments amounts are recorded in Other within Other Noncurrent Assets on the Consolidated Balance Sheets.

FINANCIAL STATEMENTS			INVESTMENTS IN DEBT AND EQUITY SECURITIES

DUKE ENERGY

The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.

			December 31, 2025																		December 31, 2024
			Gross						Gross												Gross						Gross
			Unrealized						Unrealized												Unrealized						Unrealized
			Holding						Holding						Estimated						Holding						Holding						Estimated
(in millions)			Gains						Losses						Fair Value						Gains						Losses						Fair Value
NDTF
Cash and cash equivalents			$	—					$	—					$	175					$	—					$	—					$	139
Equity securities			6,041						14						8,519						5,753						61						8,233
Corporate debt securities			17						18						1,056						6						33						673
Municipal bonds			4						13						366						2						14						342
U.S. government bonds			31						39						2,487						3						84						1,806
Other debt securities			3						5						284						1						8						239
Total NDTF Investments			$	6,096					$	89					$	12,887					$	5,765					$	200					$	11,432
Other Investments
Cash and cash equivalents			$	—					$	—					$	53					$	—					$	—					$	47
Equity securities			57						—						139						39						4						160
Corporate debt securities			—						2						75						—						5						79
Municipal bonds			—						1						67						—						1						83
U.S. government bonds			—						4						59						—						5						59
Other debt securities			—						2						45						—						4						45
Total Other Investments			$	57					$	9					$	438					$	39					$	19					$	473
Total Investments			$	6,153					$	98					$	13,325					$	5,804					$	219					$	11,905

Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the years ended December 31, 2025, 2024 and 2023, were as follows.

			Years Ended December 31,
(in millions)			2025						2024						2023
FV-NI:
Realized gains			$	1,174					$	600					$	129
Realized losses			145						85						146
AFS:
Realized gains			67						28						44
Realized losses			77						67						140

DUKE ENERGY CAROLINAS

The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.

			December 31, 2025																		December 31, 2024
			Gross						Gross												Gross						Gross
			Unrealized						Unrealized												Unrealized						Unrealized
			Holding						Holding						Estimated						Holding						Holding						Estimated
(in millions)			Gains						Losses						Fair Value						Gains						Losses						Fair Value
NDTF
Cash and cash equivalents			$	—					$	—					$	92					$	—					$	—					$	62
Equity securities			3,533						10						4,896						3,386						33						4,751
Corporate debt securities			9						15						662						2						27						401
Municipal bonds			—						5						42						—						4						36
U.S. government bonds			16						26						1,403						—						50						991
Other debt securities			3						5						242						1						8						223
Total NDTF Investments			$	3,561					$	61					$	7,337					$	3,389					$	122					$	6,464

FINANCIAL STATEMENTS			INVESTMENTS IN DEBT AND EQUITY SECURITIES

Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the years ended December 31, 2025, 2024 and 2023, were as follows.

			Years Ended December 31,
(in millions)			2025						2024						2023
FV-NI:
Realized gains			$	693					$	298					$	82
Realized losses			77						40						79
AFS:
Realized gains			51						14						22
Realized losses			57						40						65

PROGRESS ENERGY

The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.

			December 31, 2025																		December 31, 2024
			Gross						Gross												Gross						Gross
			Unrealized						Unrealized												Unrealized						Unrealized
			Holding						Holding						Estimated						Holding						Holding						Estimated
(in millions)			Gains						Losses						Fair Value						Gains						Losses						Fair Value
NDTF
Cash and cash equivalents			$	—					$	—					$	83					$	—					$	—					$	77
Equity securities			2,508						4						3,623						2,367						28						3,482
Corporate debt securities			8						3						394						4						6						272
Municipal bonds			4						8						324						2						10						306
U.S. government bonds			15						13						1,084						3						34						815
Other debt securities			—						—						42						—						—						16
Total NDTF Investments			$	2,535					$	28					$	5,550					$	2,376					$	78					$	4,968
Other Investments
Cash and cash equivalents			$	—					$	—					$	34					$	—					$	—					$	23
Municipal bonds			—						—						24						—						—						24
Total Other Investments			$	—					$	—					$	58					$	—					$	—					$	47
Total Investments			$	2,535					$	28					$	5,608					$	2,376					$	78					$	5,015

Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the years ended December 31, 2025, 2024 and 2023, were as follows.

			Years Ended December 31,
(in millions)			2025						2024						2023
FV-NI:
Realized gains			$	481					$	302					$	47
Realized losses			68						45						67
AFS:
Realized gains			16						14						22
Realized losses			20						27						75

FINANCIAL STATEMENTS			INVESTMENTS IN DEBT AND EQUITY SECURITIES

DUKE ENERGY PROGRESS

The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.

			December 31, 2025																		December 31, 2024
			Gross						Gross												Gross						Gross
			Unrealized						Unrealized												Unrealized						Unrealized
			Holding						Holding						Estimated						Holding						Holding						Estimated
(in millions)			Gains						Losses						Fair Value						Gains						Losses						Fair Value
NDTF
Cash and cash equivalents			$	—					$	—					$	71					$	—					$	—					$	54
Equity securities			2,380						4						3,485						2,256						28						3,362
Corporate debt securities			8						3						375						4						6						256
Municipal bonds			4						8						324						2						10						306
U.S. government bonds			14						10						958						3						26						645
Other debt securities			—						—						41						—						—						14
Total NDTF Investments			$	2,406					$	25					$	5,254					$	2,265					$	70					$	4,637
Other Investments
Cash and cash equivalents			$	—					$	—					$	24					$	—					$	—					$	16
Total Other Investments			$	—					$	—					$	24					$	—					$	—					$	16
Total Investments			$	2,406					$	25					$	5,278					$	2,265					$	70					$	4,653

Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the years ended December 31, 2025, 2024 and 2023, were as follows.

			Years Ended December 31,
(in millions)			2025						2024						2023
FV-NI:
Realized gains			$	478					$	288					$	44
Realized losses			67						44						66
AFS:
Realized gains			15						13						20
Realized losses			19						26						70

FINANCIAL STATEMENTS			INVESTMENTS IN DEBT AND EQUITY SECURITIES

DUKE ENERGY FLORIDA

The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.

			December 31, 2025																		December 31, 2024
			Gross						Gross												Gross						Gross
			Unrealized						Unrealized												Unrealized						Unrealized
			Holding						Holding						Estimated						Holding						Holding						Estimated
(in millions)			Gains						Losses						Fair Value						Gains						Losses						Fair Value
NDTF
Cash and cash equivalents			$	—					$	—					$	12					$	—					$	—					$	23
Equity securities			128						—						138						111						—						120
Corporate debt securities			—						—						19						—						—						16
U.S. government bonds			1						3						126						—						8						170
Other debt securities			—						—						1						—						—						2
Total NDTF Investments**(a)**			$	129					$	3					$	296					$	111					$	8					$	331
Other Investments
Cash and cash equivalents			$	—					$	—					$	5					$	—					$	—					$	3
Municipal bonds			—						—						24						—						—						24
Total Other Investments			$	—					$	—					$	29					$	—					$	—					$	27
Total Investments			$	129					$	3					$	325					$	111					$	8					$	358

(a) During the years ended December 31, 2025, and 2024, Duke Energy Florida received reimbursements from the NDTF for costs related to ongoing decommissioning activity of Crystal River Unit 3.

Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the years ended December 31, 2025, 2024 and 2023, were immaterial.

DUKE ENERGY INDIANA

The following table presents the estimated fair value of investments in debt and equity securities; equity investments are measured at FV-NI and debt investments are classified as AFS.

			December 31, 2025																								December 31, 2024
			Gross						Gross																		Gross
			Unrealized						Unrealized																		Unrealized
			Holding						Holding						Estimated												Holding						Estimated
(in millions)			Gains						Losses						Fair Value												Losses						Fair Value
Investments
Cash and cash equivalents			$	—					$	—					$	—											$	—					$	1
Equity securities			6						—						53												4						89
Corporate debt securities			—						—						1												—						6
Municipal bonds			—						1						25												1						43
U.S. government bonds			—						—						3												—						7
Total Investments			$	6					$	1					$	82											$	5					$	146

Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the years ended December 31, 2025, 2024 and 2023, were immaterial.

FINANCIAL STATEMENTS			INVESTMENTS IN DEBT AND EQUITY SECURITIES

DEBT SECURITY MATURITIES

The table below summarizes the maturity date for debt securities.

			December 31, 2025
						Duke						Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Indiana
Due in one year or less			$	108		$	15		$	92		$	17		$	75		$	1
Due after one through five years			1,130			564			501			473			28			8
Due after five through 10 years			955			513			395			378			17			6
Due after 10 years			2,246			1,257			880			830			50			14
Total			$	4,439		$	2,349		$	1,868		$	1,698		$	170		$	29

17. FAIR VALUE MEASUREMENTS

Fair value is the exchange price to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. The fair value definition focuses on an exit price versus the acquisition cost. Fair value measurements use market data or assumptions market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs may be readily observable, corroborated by market data, or generally unobservable. Valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. A midmarket pricing convention (the midpoint price between bid and ask prices) is permitted for use as a practical expedient.

Fair value measurements are classified in three levels based on the fair value hierarchy as defined by GAAP. Certain investments are not categorized within the fair value hierarchy. These investments are measured at fair value using the net asset value per share practical expedient. The net asset value is derived based on the investment cost, less any impairment, plus or minus changes resulting from observable price changes for an identical or similar investment of the same issuer.

Fair value accounting guidance permits entities to elect to measure certain financial instruments that are not required to be accounted for at fair value, such as equity method investments or the Company’s own debt, at fair value. The Duke Energy Registrants have not elected to record any of these items at fair value.

Valuation methods of the primary fair value measurements disclosed below are as follows.

Investments in equity securities

The majority of investments in equity securities are valued using Level 1 measurements. Investments in equity securities are typically valued at the closing price in the principal active market as of the last business day of the quarter. Principal active markets for equity prices include published exchanges such as the NYSE and Nasdaq Stock Market. Foreign equity prices are translated from their trading currency using the currency exchange rate in effect at the close of the principal active market. There was no after-hours market activity that was required to be reflected in the reported fair value measurements.

Investments in debt securities

Most investments in debt securities are valued using Level 2 measurements because the valuations use interest rate curves and credit spreads applied to the terms of the debt instrument (maturity and coupon interest rate) and consider the counterparty credit rating. If the market for a particular fixed-income security is relatively inactive or illiquid, the measurement is Level 3.

Commodity derivatives

Commodity derivatives with clearinghouses are classified as Level 1. Commodity derivatives with observable forward curves are classified as Level 2. If forward price curves are not observable for the full term of the contract and the unobservable period had more than an insignificant impact on the valuation, the commodity derivative is classified as Level 3. In isolation, increases (decreases) in natural gas forward prices result in favorable (unfavorable) fair value adjustments for natural gas purchase contracts; and increases (decreases) in electricity forward prices result in unfavorable (favorable) fair value adjustments for electricity sales contracts. Duke Energy regularly evaluates and validates pricing inputs used to estimate the fair value of certain commodity contracts by a market participant price verification procedure. This procedure provides a comparison of internal forward commodity curves to market participant generated curves.

Interest rate derivatives

Most over-the-counter interest rate contract derivatives are valued using financial models that utilize observable inputs for similar instruments and are classified as Level 2. Inputs include forward interest rate curves, notional amounts, interest rates and credit quality of the counterparties.

Foreign currency derivatives

Most over-the-counter foreign currency derivatives are valued using financial models that utilize observable inputs for similar instruments and are classified as Level 2. Inputs include forward foreign currency rate curves, notional amounts, foreign currency rates and credit quality of the counterparties.

Other fair value considerations

See Note 2 for further information on the valuation of the Commercial Renewables Disposal Groups. See Note 12 for a discussion of the valuation of goodwill and intangible assets.

FINANCIAL STATEMENTS			FAIR VALUE MEASUREMENTS

DUKE ENERGY

The following tables provide recorded balances for assets and liabilities measured at fair value on a recurring basis on the Consolidated Balance Sheets. Derivative amounts in the tables below for all Duke Energy Registrants exclude cash collateral, which is disclosed in Note 15. See Note 16 for additional information related to investments by major security type for the Duke Energy Registrants.

			December 31, 2025
(in millions)			Total Fair Value			Level 1			Level 2			Level 3			Not Categorized
NDTF cash and cash equivalents			$	175		$	175		$	—		$	—		$	—
NDTF equity securities			8,519			8,494			3			—			22
NDTF debt securities			4,193			1,480			2,713			—			—
Other equity securities			139			139			—			—			—
Other debt securities			246			55			191			—			—
Other cash and cash equivalents			53			53			—			—			—
Derivative assets			382			2			371			9			—
Total assets			13,707			10,398			3,278			9			22
Derivative liabilities			(244)			(7)			(237)			—			—
Net assets			$	13,463		$	10,391		$	3,041		$	9		$	22

			December 31, 2024
(in millions)			Total Fair Value			Level 1			Level 2			Level 3			Not Categorized
NDTF cash and cash equivalents			$	139		$	139		$	—		$	—		$	—
NDTF equity securities			8,233			8,203			2			—			28
NDTF debt securities			3,060			1,022			2,038			—			—
Other equity securities			160			160			—			—			—
Other debt securities			266			52			214			—			—
Other cash and cash equivalents			47			47			—			—			—
Derivative assets			434			2			423			9			—
Total assets			12,339			9,625			2,677			9			28
Derivative liabilities			(319)			(3)			(316)			—			—
Net assets			$	12,020		$	9,622		$	2,361		$	9		$	28

The following table provides reconciliations of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.

									Derivatives (net)
									Years Ended December 31,
(in millions)									2025																		2024
Balance at beginning of period									$	9																	$	15
Purchases, sales, issuances and settlements:
Purchases									14																		29
Settlements									(6)																		(46)
Net transfers Out of Level 3									(7)																		—
Total (losses) gains included on the Consolidated Balance Sheet									(1)																		11
Balance at end of period									$	9																	$	9

FINANCIAL STATEMENTS			FAIR VALUE MEASUREMENTS

DUKE ENERGY CAROLINAS

The following tables provide recorded balances for assets and liabilities measured at fair value on a recurring basis on the Consolidated Balance Sheets.

			December 31, 2025
(in millions)			Total Fair Value			Level 1			Level 2						Not Categorized
NDTF cash and cash equivalents			$	92		$	92		$	—					$	—
NDTF equity securities			4,896			4,871			3						22
NDTF debt securities			2,349			776			1,573						—
Derivative assets			101			—			101						—
Total assets			7,438			5,739			1,677						22
Derivative liabilities			(88)			—			(88)						—
Net assets			$	7,350		$	5,739		$	1,589					$	22

			December 31, 2024
(in millions)			Total Fair Value			Level 1			Level 2						Not Categorized
NDTF cash and cash equivalents			$	62		$	62		$	—					$	—
NDTF equity securities			4,751			4,721			2						28
NDTF debt securities			1,651			520			1,131						—
Derivative assets			94			—			94						—
Total assets			6,558			5,303			1,227						28
Derivative liabilities			(88)			—			(88)						—
Net assets			$	6,470		$	5,303		$	1,139					$	28

PROGRESS ENERGY

The following table provides recorded balances for assets and liabilities measured at fair value on a recurring basis on the Consolidated Balance Sheets.

			December 31, 2025												December 31, 2024
(in millions)			Total Fair Value			Level 1			Level 2									Total Fair Value			Level 1			Level 2
NDTF cash and cash equivalents			$	83		$	83		$	—								$	77		$	77		$	—
NDTF equity securities			3,623			3,623			—									3,482			3,482			—
NDTF debt securities			1,844			704			1,140									1,409			502			907
Other debt securities			24			—			24									24			—			24
Other cash and cash equivalents			34			34			—									23			23			—
Derivative assets			67			—			67									127			—			127
Total assets			5,675			4,444			1,231									5,142			4,084			1,058
Derivative liabilities			(48)			—			(48)									(58)			—			(58)
Net assets			$	5,627		$	4,444		$	1,183								$	5,084		$	4,084		$	1,000

FINANCIAL STATEMENTS			FAIR VALUE MEASUREMENTS

DUKE ENERGY PROGRESS

The following table provides recorded balances for assets and liabilities measured at fair value on a recurring basis on the Consolidated Balance Sheets.

			December 31, 2025												December 31, 2024
(in millions)			Total Fair Value			Level 1			Level 2									Total Fair Value			Level 1			Level 2
NDTF cash and cash equivalents			$	71		$	71		$	—								$	54		$	54		$	—
NDTF equity securities			3,485			3,485			—									3,362			3,362			—
NDTF debt securities			1,698			597			1,101									1,221			365			856
Other cash and cash equivalents			24			24			—									16			16			—
Derivative assets			52			—			52									109			—			109
Total assets			5,330			4,177			1,153									4,762			3,797			965
Derivative liabilities			(47)			—			(47)									(57)			—			(57)
Net assets			$	5,283		$	4,177		$	1,106								$	4,705		$	3,797		$	908

DUKE ENERGY FLORIDA

The following table provides recorded balances for assets and liabilities measured at fair value on a recurring basis on the Consolidated Balance Sheets.

			December 31, 2025												December 31, 2024
(in millions)			Total Fair Value			Level 1			Level 2						Total Fair Value			Level 1			Level 2
NDTF cash and cash equivalents			$	12		$	12		$	—					$	23		$	23		$	—
NDTF equity securities			138			138			—						120			120			—
NDTF debt securities			146			107			39						188			137			51
Other debt securities			24			—			24						24			—			24
Other cash and cash equivalents			5			5			—						3			3			—
Derivative assets			15			—			15						18			—			18
Total assets			340			262			78						376			283			93
Derivative liabilities			(1)			—			(1)						(1)			—			(1)
Net assets			$	339		$	262		$	77					$	375		$	283		$	92

DUKE ENERGY OHIO

The recorded balances for assets and liabilities measured at fair value on a recurring basis on the Consolidated Balance Sheets were not material at December 31, 2025, and 2024.

DUKE ENERGY INDIANA

The following table provides recorded balances for assets and liabilities measured at fair value on a recurring basis on the Consolidated Balance Sheets.

			December 31, 2025															December 31, 2024
(in millions)			Total Fair Value			Level 1			Level 2			Level 3						Total Fair Value			Level 1			Level 2			Level 3
Other equity securities			$	53		$	53		$	—		$	—					$	89		$	89		$	—		$	—
Other debt securities			29			—			29			—						56			—			56			—
Other cash equivalents			—			—			—			—						1			1			—			—
Derivative assets			12			2			1			9						44			—			36			8
Total assets			94			55			30			9						190			90			92			8
Derivative liabilities			(9)			(7)			(2)			—						(3)			(3)			—			—
Net assets			$	85		$	48		$	28		$	9					$	187		$	87		$	92		$	8

FINANCIAL STATEMENTS			FAIR VALUE MEASUREMENTS

The following table provides a reconciliation of beginning and ending balances of assets and liabilities measured at fair value using Level 3 measurements.

			Derivatives (net)
			Years Ended December 31,
(in millions)			2025						2024
Balance at beginning of period			$	8					$	13
Purchases, sales, issuances and settlements:
Purchases			12						27
Settlements			(4)						(42)
Net transfers In (Out) of Level 3 due to observability of inputs			(7)						—
Total gains included on the Consolidated Balance Sheet			—						10
Balance at end of period			$	9					$	8

PIEDMONT

The following table provides recorded balances for assets and liabilities measured at fair value on a recurring basis on the Consolidated Balance Sheets.

			December 31, 2025												December 31, 2024
(in millions)			Total Fair Value			Level 1			Level 2									Total Fair Value			Level 1						Level 2
Derivative assets			$	—		$	—		$	—								$	1		$	1					$	—
Derivative liabilities			(72)			—			(72)									(94)			—						(94)
Net (liabilities) assets			$	(72)		$	—		$	(72)								$	(93)		$	1					$	(94)

QUANTITATIVE INFORMATION ABOUT UNOBSERVABLE INPUTS

The following tables include quantitative information about the Duke Energy Registrants' derivatives classified as Level 3.

			December 31, 2025
																					Weighted
			Fair Value																		Average
Investment Type			(in millions)			Valuation Technique			Unobservable Input			Range									Range
Duke Energy Indiana
FTRs			9			RTO auction pricing			FTR price – per MWh			(1.00)			–			14.63			1.13
Duke Energy
Total Level 3 derivatives			$	9

			December 31, 2024
																					Weighted
			Fair Value																		Average
Investment Type			(in millions)			Valuation Technique			Unobservable Input			Range									Range
Duke Energy Ohio
FTRs			$	1		RTO auction pricing			FTR price – per MWh			$	—		–			$	1.13		$	0.48
Duke Energy Indiana
FTRs			8			RTO auction pricing			FTR price – per MWh			(0.63)			–			9.24			0.94
Duke Energy
Total Level 3 derivatives			$	9

FINANCIAL STATEMENTS			FAIR VALUE MEASUREMENTS

OTHER FAIR VALUE DISCLOSURES

The fair value and book value of long-term debt, including current maturities, is summarized in the following table. Estimates determined are not necessarily indicative of amounts that could have been settled in current markets. Fair value of long-term debt uses Level 2 measurements.

			December 31, 2025												December 31, 2024
(in millions)			Book Value						Fair Value						Book Value						Fair Value
Duke Energy(a)			$	87,212					$	79,863					$	80,689					$	73,440
Duke Energy Carolinas			18,777						16,764						17,490						15,975
Progress Energy			26,848						24,957						24,496						22,548
Duke Energy Progress			13,896						12,445						12,504						11,009
Duke Energy Florida			11,307						10,720						10,348						9,752
Duke Energy Ohio			4,420						4,151						4,165						3,871
Duke Energy Indiana			5,093						4,646						4,798						4,329
Piedmont			4,251						3,960						4,003						3,584

(a) Book value of long-term debt includes $921 million and $1.0 billion as of December 31, 2025, and December 31, 2024, of unamortized debt discount and premium, net in purchase accounting adjustments related to the mergers with Progress Energy and Piedmont that are excluded from fair value of long-term debt.

At both December 31, 2025, and December 31, 2024, fair value of cash and cash equivalents, accounts and notes receivable, accounts payable, notes payable and commercial paper, and nonrecourse notes payable of VIEs are not materially different from their carrying amounts because of the short-term nature of these instruments and/or because the stated rates approximate market rates.

18. VARIABLE INTEREST ENTITIES

A VIE is an entity that is evaluated for consolidation using more than a simple analysis of voting control. The analysis to determine whether an entity is a VIE considers contracts with an entity, credit support for an entity, the adequacy of the equity investment of an entity and the relationship of voting power to the amount of equity invested in an entity. This analysis is performed either upon the creation of a legal entity or upon the occurrence of an event requiring reevaluation, such as a significant change in an entity’s assets or activities. A qualitative analysis of control determines the party that consolidates a VIE. This assessment is based on (i) what party has the power to direct the activities of the VIE that most significantly impact its economic performance and (ii) what party has rights to receive benefits or is obligated to absorb losses that could potentially be significant to the VIE. The analysis of the party that consolidates a VIE is a continual reassessment.

CONSOLIDATED VIEs

The obligations of the consolidated VIEs discussed in the following paragraphs are nonrecourse to the Duke Energy Registrants. The registrants have no requirement to provide liquidity to, purchase assets of or guarantee performance of these VIEs unless noted in the following paragraphs.

No financial support was provided to any of the consolidated VIEs during the years ended December 31, 2025, 2024 and 2023, or is expected to be provided in the future, that was not previously contractually required.

Receivables Financing – DERF/DEPR/DEFR

DERF, DEPR and DEFR were bankruptcy remote, special purpose subsidiaries of Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, respectively. DERF, DEPR and DEFR were wholly owned LLCs with separate legal existence from their parent companies, and their assets were not generally available to creditors of their parent companies. On a revolving basis, DERF, DEPR and DEFR bought certain accounts receivable arising from the sale of electricity and related services from their parent companies.

DERF, DEPR and DEFR borrowed amounts under credit facilities to buy these receivables. Borrowing availability from the credit facilities was limited to the amount of qualified receivables purchased, which generally excluded receivables past due more than a predetermined number of days and reserved for expected past-due balances. The sole source of funds to satisfy the related debt obligations were cash collections from the receivables. Amounts borrowed under the DERF, DEPR, and DEFR credit facilities were reflected on the Consolidated Balance Sheets as Current maturities of long-term debt as of December 31, 2024.

The most significant activity that impacted the economic performance of DERF, DEPR and DEFR were the decisions made to manage delinquent receivables. Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida were considered the primary beneficiaries and consolidated DERF, DEPR and DEFR, respectively, as they made those decisions.

In April 2024, Duke Energy Florida repaid all outstanding DEFR borrowings totaling $325 million and terminated the related DEFR credit facility. Additionally, Duke Energy Florida's related restricted receivables outstanding at DEFR at the time of termination totaled $459 million and were transferred back to Duke Energy Florida to be collected and reported as Receivables on the Consolidated Balance Sheets.

In January 2025, Duke Energy Carolinas repaid all outstanding DERF borrowings totaling $500 million and terminated the related DERF credit facility. Additionally, Duke Energy Carolinas' related restricted receivables outstanding at DERF at the time of termination totaled $1,081 million and were transferred back to Duke Energy Carolinas to be collected and reported as Receivables on the Consolidated Balance Sheets.

In March 2025, Duke Energy Progress repaid all outstanding DEPR borrowings totaling $400 million and terminated the related DEPR credit facility. Additionally, Duke Energy Progress' related restricted receivables outstanding at DEPR at the time of termination totaled $943 million and were transferred back to Duke Energy Progress to be collected and reporting as Receivables on the on the Consolidated Balance Sheets.

FINANCIAL STATEMENTS			VARIABLE INTEREST ENTITIES

Receivables Financing – CRC

CRC was a bankruptcy remote, special purpose entity indirectly owned by Duke Energy. On a revolving basis, CRC bought certain accounts receivable arising from the sale of electricity, natural gas and related services from Duke Energy Ohio and Duke Energy Indiana. CRC then borrowed amounts under a credit facility to buy the receivables from Duke Energy Ohio and Duke Energy Indiana. Borrowing availability from the credit facility was limited to the amount of qualified receivables sold to CRC, which generally excluded receivables past due more than a predetermined number of days and reserved for expected past-due balances. The sole source of funds to satisfy the related debt obligation was cash collections from the receivables.

The proceeds Duke Energy Ohio and Duke Energy Indiana received from the sale of receivables to CRC were approximately 75% cash and 25% in the form of a subordinated note from CRC. The subordinated note was a retained interest in the receivables sold.

CRC was considered a VIE because (i) equity capitalization was insufficient to support its operations, (ii) power to direct the activities that most significantly impact the economic performance of the entity was not held by the equity holder and (iii) deficiencies in net worth of CRC were funded by Duke Energy. The most significant activities that impacted the economic performance of CRC were decisions made to manage delinquent receivables. Duke Energy was considered the primary beneficiary and consolidated CRC as it made these decisions. Neither Duke Energy Ohio nor Duke Energy Indiana consolidated CRC.

In March 2024, Duke Energy repaid all outstanding CRC borrowings totaling $350 million and terminated the related CRC credit facility. Additionally, Duke Energy's related restricted receivables outstanding at CRC at the time of termination totaled $682 million, consisting of $316 million and $366 million of restricted receivables that were transferred back to Duke Energy Indiana and Duke Energy Ohio, respectively, to be collected and reported as Receivables on the Consolidated Balance Sheets.

Receivables Financing – Credit Facilities

The following table summarizes the amounts and expiration dates of the credit facilities and associated restricted receivables reported on the Consolidated Balance Sheets.

			Duke Energy						Duke Energy
			Carolinas						Progress
(in millions)			DERF						DEPR
Expiration date			(a)						(b)
Credit facility amount			(a)						(b)
Amounts borrowed at December 31, 2025			—						—
Amounts borrowed at December 31, 2024			500						400
Restricted Receivables at December 31, 2025			—						—
Restricted Receivables at December 31, 2024			1,054						835

(a) In January 2025, Duke Energy Carolinas repaid all outstanding DERF borrowing and terminated the related $500 million DERF credit facility.

(b) In March 2025, Duke Energy repaid all the outstanding DEPR borrowing and terminated the related $400 million DEPR credit facility.

Nuclear Asset-Recovery Bonds – Duke Energy Florida Project Finance

Duke Energy Florida Project Finance, LLC (DEFPF) is a bankruptcy remote, wholly owned special purpose subsidiary of Duke Energy Florida. DEFPF was formed in 2016 for the sole purpose of issuing nuclear asset-recovery bonds to finance Duke Energy Florida's unrecovered regulatory asset related to Crystal River Unit 3.

In 2016, DEFPF issued senior secured bonds and used the proceeds to acquire nuclear asset-recovery property from Duke Energy Florida. The nuclear asset-recovery property acquired includes the right to impose, bill, collect and adjust a non-bypassable nuclear asset-recovery charge from all Duke Energy Florida retail customers until the bonds are paid in full and all financing costs have been recovered. The nuclear asset-recovery bonds are secured by the nuclear asset-recovery property and cash collections from the nuclear asset-recovery charges are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to Duke Energy Florida.

DEFPF is considered a VIE primarily because the equity capitalization is insufficient to support its operations. Duke Energy Florida has the power to direct the significant activities of the VIE as described above and therefore Duke Energy Florida is considered the primary beneficiary and consolidates DEFPF.

FINANCIAL STATEMENTS			VARIABLE INTEREST ENTITIES

The following table summarizes the impact of DEFPF on Duke Energy Florida's Consolidated Balance Sheets.

			December 31,
(in millions)			2025			2024
Receivables of VIEs			$	3		$	—
Regulatory Assets: Current			62			61
Current Assets: Other			34			35
Other Noncurrent Assets: Regulatory assets			682			741
Other Noncurrent Assets: Other			7			7
Current Liabilities: Other			7			8
Current maturities of long-term debt			61			59
Long-Term Debt			712			773

Storm Recovery Bonds

Duke Energy Carolinas NC Storm Funding, LLC (DECNCSF), Duke Energy Carolinas NC Storm Funding II, LLC (DECNCSFII), Duke Energy Carolinas SC Storm Funding, LLC (DECSCSF), Duke Energy Progress NC Storm Funding, LLC (DEPNCSF), Duke Energy Progress NC Storm Funding II, LLC (DEPNCSFII) and Duke Energy Progress SC Storm Funding, LLC (DEPSCSF) are bankruptcy remote, wholly owned special purpose subsidiaries of Duke Energy Carolinas and Duke Energy Progress. DECNCSF and DEPNCSF were formed in 2021, DEPSCSF was formed in 2024 and DECNCSFII, DECSCSF and DEPNCSFII were formed in 2025, all for the sole purpose of issuing storm recovery bonds to finance certain of Duke Energy Carolinas’ and Duke Energy Progress’ unrecovered regulatory assets related to storm costs incurred in North Carolina and South Carolina.

In 2021, DECNCSF and DEPNCSF issued senior secured bonds, and used the proceeds to acquire storm recovery property from Duke Energy Carolinas and Duke Energy Progress. The storm recovery property was created by state legislation and NCUC financing orders for the purpose of financing storm costs incurred in 2018 and 2019. In April 2024, DEPSCSF issued $177 million of senior secured bonds and used the proceeds to acquire storm recovery property from Duke Energy Progress. The storm recovery property was created by state legislation and a PSCSC financing order for the purpose of financing storm costs incurred from 2014 through 2022. In September 2025, DECNCSFII issued $582 million of senior secured bonds and DEPNCSFII issued $461 million of senior secured bonds. In November 2025, DECSCSF issued $561 million of senior secured bonds. Proceeds were used to recover previously incurred storm costs, repay the Duke Energy Carolinas and Duke Energy Progress term loan facilities and for general company purposes. See Note 7 for more information.

The storm recovery property acquired includes the right to impose, bill, collect and adjust a non-bypassable charge from all Duke Energy Carolinas’ and Duke Energy Progress’ North Carolina and South Carolina retail customers until the bonds are paid in full and all financing costs have been recovered from each respective utility and jurisdiction. The storm recovery bonds are secured by the storm recovery property and cash collections from the storm recovery charges are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to Duke Energy Carolinas or Duke Energy Progress. These entities are considered VIEs primarily because their equity capitalization is insufficient to support their operations. Duke Energy Carolinas and Duke Energy Progress have the power to direct the significant activities of the VIEs as described above and therefore Duke Energy Carolinas and Duke Energy Progress are considered the primary beneficiaries. Duke Energy Carolinas consolidates DECNCSF, DECNCSFII and DECSCSF and Duke Energy Progress consolidates DEPNCSF, DEPNCSFII and DEPSCSF.

The following table summarizes the impact of these VIEs on Duke Energy Carolinas’ and Duke Energy Progress’ Consolidated Balance Sheets.

			December 31, 2025
			Duke Energy Carolinas									Duke Energy Progress
(in millions)			DECNCSF			DECNCSFII			DECSCSF			DEPNCSF			DEPNCSFII			DEPSCSF
Receivables of VIEs			1			3			—			4			3			2
Regulatory Assets: Current			12			29			31			39			23			8
Current Assets: Other			9			3			—			30			3			5
Other Noncurrent Assets: Regulatory assets			179			550			528			583			435			151
Other Noncurrent Assets: Other			1			3			3			4			2			1
Current maturities of long-term debt			11			2			3			35			1			5
Long-Term Debt			188			575			553			611			455			158

			December 31, 2024
			Duke Energy Carolinas			Duke Energy Progress
(in millions)			DECNCSF			DEPNCSF			DEPSCSF
Regulatory Assets: Current			$	12		$	39		$	8
Current Assets: Other			9			27			13
Other Noncurrent Assets: Regulatory assets			189			620			155
Other Noncurrent Assets: Other			1			4			1
Current maturities of long-term debt			10			34			9
Current Liabilities: Other			2			10			7
Long-Term Debt			198			646			163

FINANCIAL STATEMENTS			VARIABLE INTEREST ENTITIES

Procurement Company – Duke Energy Florida

Duke Energy Florida Purchasing Company, LLC (DEF ProCo) is a wholly owned special purpose subsidiary of Duke Energy Florida. DEF ProCo was formed in 2023 as the primary procurement agent for equipment, materials and supplies for Duke Energy Florida. DEF ProCo interacts with third-party suppliers on Duke Energy Florida’s behalf with credit and risk support provided by Duke Energy Florida. DEF ProCo is a qualified reseller under Florida tax law and conveys acquired assets to Duke Energy Florida through leases on each acquired asset.

This entity is considered a VIE primarily because the equity capitalization is insufficient to support their operations. Duke Energy Florida has the power to direct the significant activities of this VIE as described above and therefore Duke Energy Florida is considered the primary beneficiary and consolidates the procurement company.

The following table summarizes the impact of this VIE on Duke Energy Florida's Consolidated Balance Sheets.

			December 31,
(in millions)			2025			2024
Inventory			$	669		494
Accounts Payable			289			208

NON-CONSOLIDATED VIEs

Natural Gas Investments

Duke Energy has investments in various joint ventures including pipeline and renewable natural gas projects. These entities are considered VIEs due to having insufficient equity to finance their own activities without subordinated financial support. Duke Energy does not have the power to direct the activities that most significantly impact the economic performance, the obligation to absorb losses or the right to receive benefits of these VIEs and therefore does not consolidate these entities.

Non-consolidated VIEs are immaterial on the Condensed Consolidated Balance Sheets and the Duke Energy Registrants are not aware of any situations where the maximum exposure to loss significantly exceeds the carrying values.

CRC

See discussion under Consolidated VIEs for additional information related to CRC.

The following table shows sales and cash flows related to receivables sold and reflects CRC activity prior to its termination in March 2024.

									Duke Energy Ohio															Duke Energy Indiana
									Years Ended December 31,															Years Ended December 31,
(in millions)									2024						2023												2024						2023
Sales
Receivables sold									$	474					$	2,578											$	473					$	3,223
Loss recognized on sale									7						34												6						39
Cash flows
Cash proceeds from receivables sold									478						2,591												523						3,294
Collection fees received									—						1												—						2
Return received on retained interests									4						19												4						25

Cash flows from sales of receivables are reflected within Cash Flows From Operating Activities and Cash Flows from Investing Activities on Duke Energy Ohio’s and Duke Energy Indiana’s Consolidated Statements of Cash Flows.

Collection fees received in connection with servicing transferred accounts receivable were included in Operation, maintenance and other on Duke Energy Ohio’s and Duke Energy Indiana’s Consolidated Statements of Operations and Comprehensive Income. The loss recognized on sales of receivables was calculated monthly by multiplying receivables sold during the month by the required discount. The required discount was derived monthly utilizing a three-year weighted average formula that considered charge-off history, late charge history and turnover history on the sold receivables, as well as a component for the time value of money. The discount rate, or component for the time value of money, was the prior month-end Daily Simple SOFR plus a fixed rate of 1%.

19. REVENUE

Duke Energy recognizes revenue consistent with amounts billed under tariff offerings or at contractually agreed upon rates based on actual physical delivery of electric or natural gas service, including estimated volumes delivered when billings have not yet occurred. As such, the majority of Duke Energy’s revenues have fixed pricing based on the contractual terms of the published tariffs. Absent decoupling mechanisms, the variability in expected cash flows of the majority of Duke Energy's revenue is attributable to the customer’s volumetric demand and ultimate quantities of energy or natural gas supplied and used during the billing period. The stand-alone selling price of related sales are designed to support recovery of prudently incurred costs and an appropriate return on invested assets and are primarily governed by published tariff rates or contractual agreements approved by relevant regulatory bodies. As described in Note 1, certain excise taxes and franchise fees levied by state or local governments are required to be paid even if not collected from the customer. These taxes are recognized on a gross basis as part of revenues. Duke Energy elects to account for all other taxes net of revenues.

FINANCIAL STATEMENTS			REVENUE

Performance obligations are satisfied over time as energy or natural gas is delivered and consumed with billings generally occurring monthly and related payments due within 30 days, depending on regulatory requirements. In no event does the timing between payment and delivery of the goods and services exceed one year. Using this output method for revenue recognition provides a faithful depiction of the transfer of electric and natural gas service as customers obtain control of the commodity and benefit from its use at delivery. Additionally, Duke Energy has an enforceable right to consideration for energy or natural gas delivered at any discrete point in time and will recognize revenue at an amount that reflects the consideration to which Duke Energy is entitled for the energy or natural gas delivered.

As described above, the majority of Duke Energy’s tariff revenues are at will and, as such, related contracts with customers have an expected duration of one year or less and will not have future performance obligations for disclosure. Additionally, other long-term revenue streams, including wholesale contracts, generally provide services that are part of a single performance obligation, the delivery of electricity or natural gas. As such, other than material fixed consideration under long-term contracts, related disclosures for future performance obligations are also not applicable.

Duke Energy earns substantially all of its revenues through its reportable segments, EU&I and GU&I.

Electric Utilities and Infrastructure

EU&I earns the majority of its revenues through retail and wholesale electric service through the generation, transmission, distribution and sale of electricity. Duke Energy generally provides retail and wholesale electric service customers with their full electric load requirements or with supplemental load requirements when the customer has other sources of electricity.

Retail electric service is generally marketed throughout Duke Energy’s electric service territory through standard service offers. The standard service offers are through tariffs determined by regulators in Duke Energy's regulated service territory. Each tariff, which is assigned to customers based on customer class, has multiple components such as an energy charge, a demand charge, a basic facilities charge and applicable riders. Duke Energy considers each of these components to be aggregated into a single performance obligation for providing electric service, or in the case of distribution only customers in Duke Energy Ohio, for delivering electricity. Electricity is considered a single performance obligation satisfied over time consistent with the series guidance and is provided and consumed over the billing period, generally one month. Retail electric service is typically provided to at-will customers who can cancel service at any time, without a substantive penalty. Additionally, Duke Energy adheres to applicable regulatory requirements in each jurisdiction to ensure the collectability of amounts billed and appropriate mitigating procedures are followed when necessary. As such, revenue from contracts with customers for such contracts is equivalent to the electricity supplied and billed in that period (including unbilled estimates).

Wholesale electric service is generally provided under long-term contracts using cost-based pricing. FERC regulates costs that may be recovered from customers and the amount of return companies are permitted to earn. Wholesale contracts include both energy and demand charges. For full requirements contracts, Duke Energy considers both charges as a single performance obligation for providing integrated electric service. For contracts where energy and demand charges are considered separate performance obligations, energy and demand are each a distinct performance obligation under the series guidance and are satisfied as energy is delivered and stand-ready service is provided on a monthly basis. This service represents consumption over the billing period and revenue is recognized consistent with billings and unbilled estimates, which generally occur monthly. Contractual amounts owed are typically trued up annually based upon incurred costs in accordance with FERC published filings and the specific customer’s actual peak demand. Estimates of variable consideration related to potential additional billings or refunds owed are updated quarterly.

The majority of wholesale revenues are full requirements contracts where the customers purchase the substantial majority of their energy needs and do not have a fixed quantity of contractually required energy or capacity. As such, related forecasted revenues are considered optional purchases. Supplemental requirements contracts that include contracted blocks of energy and capacity at contractually fixed prices have the following estimated remaining performance obligations as of December 31, 2025:

			Remaining Performance Obligations
(in millions)			2026			2027			2028			2029			2030			Thereafter			Total
Duke Energy Carolinas			$	12		$	12		$	12		$	—		$	—		$	—		$	36
Progress Energy			43			43			13			13			14			29			155
Duke Energy Progress			6			6			6			6			7			14			45
Duke Energy Florida			37			37			7			7			7			15			110
Duke Energy Indiana			17			15			5			—			—			—			37

Revenues for block sales are recognized monthly as energy is delivered and stand-ready service is provided, consistent with invoiced amounts and unbilled estimates.

Gas Utilities and Infrastructure

GU&I earns its revenue through retail and wholesale natural gas service through the transportation, distribution and sale of natural gas. Duke Energy generally provides retail and wholesale natural gas service customers with all natural gas load requirements. Additionally, while natural gas can be stored, substantially all natural gas provided by Duke Energy is consumed by customers simultaneously with receipt of delivery.

FINANCIAL STATEMENTS			REVENUE

Retail natural gas service is marketed throughout Duke Energy's natural gas service territory using published tariff rates. The tariff rates are established by regulators in Duke Energy's service territories. Each tariff, which is assigned to customers based on customer class, have multiple components, such as a commodity charge, demand charge, customer or monthly charge and transportation costs. Duke Energy considers each of these components to be aggregated into a single performance obligation for providing natural gas service. For contracts where Duke Energy provides all of the customer’s natural gas needs, the delivery of natural gas is considered a single performance obligation satisfied over time, and revenue is recognized monthly based on billings and unbilled estimates as service is provided and the commodity is consumed over the billing period. Additionally, natural gas service is typically at will and customers can cancel service at any time, without a substantive penalty. Duke Energy also adheres to applicable regulatory requirements to ensure the collectability of amounts billed and receivable and appropriate mitigating procedures are followed when necessary.

Certain long-term individually negotiated contracts exist to provide natural gas service. These contracts are regulated and approved by state commissions. The negotiated contracts may have multiple components, including a natural gas and a demand charge, similar to retail natural gas contracts. Duke Energy considers each of these components to be a single performance obligation for providing natural gas service. This service represents consumption over the billing period, generally one month.

Fixed capacity payments under long-term contracts for the GU&I segment include minimum margin contracts and supply arrangements with municipalities and power generation facilities. Revenues for related sales are recognized monthly as natural gas is delivered and stand-ready service is provided, consistent with invoiced amounts and unbilled estimates. Estimated remaining performance obligations as of December 31, 2025, are as follows:

			Remaining Performance Obligations
(in millions)			2026			2027			2028			2029			2030			Thereafter			Total
Piedmont			$	54		$	48		$	45		$	44		$	42		$	109		$	342

Other

The remainder of Duke Energy’s operations is presented as Other, which does not include material revenues from contracts with customers.

Disaggregated Revenues

For the EU&I and GU&I segments, revenue by customer class is most meaningful to Duke Energy as each respective customer class collectively represents unique customer expectations of service, generally has different energy and demand requirements, and operates under tailored, regulatory approved pricing structures. Additionally, each customer class is impacted differently by weather and a variety of economic factors including the level of population growth, economic investment, employment levels, and regulatory activities in each of Duke Energy’s jurisdictions. As such, analyzing revenues disaggregated by customer class allows Duke Energy to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Disaggregated revenues are presented as follows:

			Year Ended December 31, 2025
						Duke						Duke			Duke			Duke			Duke
(in millions)			Duke			Energy			Progress			Energy			Energy			Energy			Energy
By market or type of customer			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Electric Utilities and Infrastructure
Residential			$	13,756		$	4,124		$	7,067		$	2,965		$	4,102		$	1,116		$	1,450		$	—
Commercial			8,337			2,885			3,825			1,732			2,093			603			1,024			—
Industrial			3,423			1,422			1,065			750			315			142			794			—
Wholesale			2,402			621			1,475			1,353			122			92			218			—
Other revenues			945			449			870			512			358			68			25			—
Total Electric Utilities and Infrastructure revenue from contracts with customers			$	28,863		$	9,501		$	14,302		$	7,312		$	6,990		$	2,021		$	3,511		$	—
Gas Utilities and Infrastructure
Residential			$	1,596		$	—		$	—		$	—		$	—		$	496		$	—		$	1,100
Commercial			808			—			—			—			—			181			—			627
Industrial			190			—			—			—			—			44			—			146
Power Generation			—			—			—			—			—			—			—			34
Other revenues			256			—			—			—			—			25			—			255
Total Gas Utilities and Infrastructure revenue from contracts with customers			$	2,850		$	—		$	—		$	—		$	—		$	746		$	—		$	2,162
Other
Revenue from contracts with customers			$	28		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Total revenue from contracts with customers			$	31,741		$	9,501		$	14,302		$	7,312		$	6,990		$	2,767		$	3,511		$	2,162
Other revenue sources(a)			$	496		$	212		$	207		$	74		$	115		$	30		$	33		$	75
Total revenues			$	32,237		$	9,713		$	14,509		$	7,386		$	7,105		$	2,797		$	3,544		$	2,237

FINANCIAL STATEMENTS			REVENUE

			Year Ended December 31, 2024
						Duke						Duke			Duke			Duke			Duke
(in millions)			Duke			Energy			Progress			Energy			Energy			Energy			Energy
By market or type of customer			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Electric Utilities and Infrastructure
Residential			$	12,901		$	4,150		$	6,592		$	2,872		$	3,720		$	1,009		$	1,149		$	—
Commercial			8,207			3,080			3,718			1,754			1,964			590			818			—
Industrial			3,427			1,488			1,066			742			324			149			724			—
Wholesale			2,205			547			1,414			1,268			146			51			194			—
Other revenues			1,029			350			674			343			331			89			107			—
Total Electric Utilities and Infrastructure revenue from contracts with customers			$	27,769		$	9,615		$	13,464		$	6,979		$	6,485		$	1,888		$	2,992		$	—
Gas Utilities and Infrastructure
Residential			$	1,320		$	—		$	—		$	—		$	—		$	427		$	—		$	893
Commercial			639			—			—			—			—			153			—			486
Industrial			158			—			—			—			—			33			—			125
Power Generation			—			—			—			—			—			—			—			33
Other revenues			126			—			—			—			—			26			—			100
Total Gas Utilities and Infrastructure revenue from contracts with customers			$	2,243		$	—		$	—		$	—		$	—		$	639		$	—		$	1,637
Other
Revenue from contracts with customers			$	38		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Total revenue from contracts with customers			$	30,050		$	9,615		$	13,464		$	6,979		$	6,485		$	2,527		$	2,992		$	1,637
Other revenue sources(a)			$	307		$	103		$	169		$	38		$	110		$	18		$	48		$	92
Total revenues			$	30,357		$	9,718		$	13,633		$	7,017		$	6,595		$	2,545		$	3,040		$	1,729

FINANCIAL STATEMENTS			REVENUE

			Year Ended December 31, 2023
						Duke						Duke			Duke			Duke			Duke
(in millions)			Duke			Energy			Progress			Energy			Energy			Energy			Energy
By market or type of customer			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Electric Utilities and Infrastructure
Residential			$	12,098		$	3,409		$	6,510		$	2,540		$	3,970		$	947		$	1,233		$	—
Commercial			7,895			2,670			3,762			1,588			2,174			552			911			—
Industrial			3,416			1,334			1,105			733			372			191			786			—
Wholesale			2,175			492			1,388			1,240			148			46			248			—
Other revenues			962			318			590			325			265			93			157			—
Total Electric Utilities and Infrastructure revenue from contracts with customers			$	26,546		$	8,223		$	13,355		$	6,426		$	6,929		$	1,829		$	3,335		$	—
Gas Utilities and Infrastructure
Residential			$	1,226		$	—		$	—		$	—		$	—		$	435		$	—		$	792
Commercial			605			—			—			—			—			154			—			450
Industrial			141			—			—			—			—			26			—			115
Power Generation			—			—			—			—			—			—			—			31
Other revenues			119			—			—			—			—			24			—			95
Total Gas Utilities and Infrastructure revenue from contracts with customers			$	2,091		$	—		$	—		$	—		$	—		$	639		$	—		$	1,483
Other
Revenue from contracts with customers			$	37		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Total revenue from contracts with customers			$	28,674		$	8,223		$	13,355		$	6,426		$	6,929		$	2,468		$	3,335		$	1,483
Other revenue sources(a)			$	386		$	65		$	189		$	62		$	107		$	39		$	64		$	145
Total revenues			$	29,060		$	8,288		$	13,544		$	6,488		$	7,036		$	2,507		$	3,399		$	1,628

(a) Other revenue sources include revenues from leases, derivatives and alternative revenue programs that are not considered revenues from contracts with customers. Alternative revenue programs in certain jurisdictions include regulatory mechanisms that periodically adjust for over or under collection of related revenues.

The following table presents the reserve for credit losses for trade and other receivables.

						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Balance at December 31, 2022			$	213		$	68		$	81		$	44		$	36		$	6		$	4		$	11
Write-Offs			(162)			(71)			(84)			(41)			(42)			—			—			(8)
Credit Loss Expense			99			35			48			12			37			3			1			5
Other Adjustments			52			24			29			29			—			—			—			—
Balance at December 31, 2023			$	202		$	56		$	74		$	44		$	31		$	9		$	5		$	8
Write-Offs			(131)			(55)			(73)			(45)			(28)			—			—			(3)
Credit Loss Expense			97			39			51			25			26			3			2			2
Other Adjustments			39			29			21			20			—			31			8			—
Balance at December 31, 2024			$	207		$	69		$	73		$	44		$	29		$	43		$	15		$	7
Write-Offs			(164)			(52)			(62)			(37)			(25)			(21)			(13)			(17)
Credit Loss Expense			106			26			39			16			23			15			13			14
Other Adjustments			45			12			15			15			—			14			—			2
Balance at December 31, 2025			$	194		$	55		$	65		$	38		$	27		$	51		$	15		$	6

Trade and other receivables are evaluated based on an estimate of the risk of loss over the life of the receivable and current and historical conditions using supportable assumptions. Management evaluates the risk of loss for trade and other receivables by comparing the historical write-off amounts to total revenue over a specified period. Historical loss rates are adjusted due to the impact of current conditions, as well as forecasted conditions over a reasonable time period. The calculated write-off rate can be applied to the receivable balance for which an established reserve does not already exist. Management reviews the assumptions and risk of loss periodically for trade and other receivables.

FINANCIAL STATEMENTS			STOCKHOLDERS' EQUITY

20. STOCKHOLDERS' EQUITY

Basic EPS is computed by dividing net income available to Duke Energy common stockholders, as adjusted for distributed and undistributed earnings allocated to participating securities and accumulated preferred dividends, by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income available to Duke Energy common stockholders, as adjusted for distributed and undistributed earnings allocated to participating securities and accumulated preferred dividends, by the diluted weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other agreements to issue common stock, such as convertible debt or equity forward sale agreements, are exercised or settled. Duke Energy applies the if-converted method for calculating any potential dilutive effect of the conversion of the outstanding convertible notes on diluted EPS, if applicable. Duke Energy’s participating securities are RSUs that are entitled to dividends declared on Duke Energy common stock during the RSUs vesting periods. Dividends declared on preferred stock are recorded on the Consolidated Statements of Operations as a reduction of net income to arrive at net income available to Duke Energy common stockholders. Dividends accumulated on preferred stock are an adjustment to net income used in the calculation of basic and diluted EPS.

The following table presents Duke Energy’s basic and diluted EPS calculations, the weighted average number of common shares outstanding and common and preferred share dividends declared.

			Years Ended December 31,
(in millions, except per share amounts)			2025						2024						2023
Net Income available to Duke Energy common stockholders			$	4,912					$	4,402					$	2,735
Less: Income (Loss) from discontinued operations attributable to Duke Energy common stockholders			1						7						(1,391)
Accumulated preferred stock dividends adjustment			—						14						—
Less: Impact of participating securities			6						6						6
Income from continuing operations available to Duke Energy common stockholders			$	4,905					$	4,403					$	4,120
Income (Loss) from discontinued operations, net of tax			$	1					$	10					$	(1,455)
Add: Loss (Income) attributable to NCI			—						(3)						64
Income (Loss) from discontinued operations attributable to Duke Energy common stockholders			$	1					$	7					$	(1,391)
Weighted average common shares outstanding – basic and diluted			777						772						771
EPS from continuing operations available to Duke Energy common stockholders
Basic and Diluted(a)			$	6.31					$	5.70					$	5.35
Earnings (Loss) Per Share from discontinued operations attributable to Duke Energy common stockholders
Basic and Diluted(a)			$	—					$	0.01					$	(1.81)
Potentially dilutive items excluded from the calculation(b)			2						2						2
Dividends declared per common share			$	4.22					$	4.14					$	4.06
Dividends declared on Series A preferred stock per depositary share(c)			$	1.437					$	1.437					$	1.437
Dividends declared on Series B preferred stock per share(d)			$	—					$	48.750					$	48.750

(a) For the year ended December 31, 2025, the convertible notes were included in the calculation of diluted EPS, but the impact was immaterial. For the years ended December 31, 2024, and 2023, the convertible notes were excluded from the calculations of diluted EPS because the effect was antidilutive.

(b) Performance stock awards were not included in the dilutive securities calculation because the performance measures related to the awards had not been met.

(c) 5.75% Series A Cumulative Redeemable Perpetual Preferred Stock dividends are payable quarterly in arrears on the 16th day of March, June, September and December. The preferred stock has a $25 liquidation preference per depositary share.

(d) 4.875% Series B Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock dividends were payable semiannually in arrears on the 16th day of March and September. The preferred stock was redeemed on September 16, 2024.

Common Stock

In November 2022, Duke Energy filed a prospectus supplement and executed an Equity Distribution Agreement (EDA) under which it could sell up to $1.5 billion of its common stock through an ATM offering program, including an equity forward sales component. Under the terms of the EDA, Duke Energy could issue and sell shares of common stock through September 2025.

In December 2024, Duke Energy physically settled equity forwards under the prior ATM program by delivering approximately 2.9 million shares of common stock in exchange for net cash proceeds of $297 million. Additionally, in December 2024, a fifth and final tranche of ATM equity issuances delivered 671,216 shares of common stock in exchange for net cash proceeds of $74 million, resulting in a total of 3.6 million shares of common stock issued in exchange for total cash proceeds of $371 million for the year ended December 31, 2024.

FINANCIAL STATEMENTS			STOCKHOLDERS' EQUITY

The following table shows ATM equity issuances pursuant to forward contracts executed during February and March 2025.

Tranche						Shares Priced			Initial Forward Price
1						1,710,979			$	116.02
2						1,262,618			$	117.94
3						1,264,410			$	117.79
Total						4,238,007

The equity forwards require Duke Energy to either physically settle the transactions by issuing shares in exchange for net proceeds at the then-applicable forward sale price specified by the agreements or net settle in whole or in part through the delivery or receipt of cash or shares. The settlement alternatives are at Duke Energy's election. No amounts have or will be recorded in Duke Energy's Consolidated Financial Statements with respect to the ATM offering until settlement of the equity forwards occurs, which is expected by December 31, 2026. The initial forward sale prices will be subject to adjustment on a daily basis based on a floating interest rate factor and will decrease by other fixed amounts specified in the relevant forward sale agreements. Until settlement of the equity forwards, earnings per share dilution resulting from the agreements, if any, will be determined under the treasury stock method.

Preferred Stock

On September 16, 2024, Duke Energy redeemed all 1 million outstanding shares of Series B Preferred Stock for a redemption price of $1,000 per share or $1 billion in total. Following the redemption, dividends ceased to accrue on the shares of Series B Preferred Stock, shares of the Series B Preferred Stock were no longer deemed outstanding and all rights of the holders of such shares of Series B Preferred Stock terminated. In conjunction with the redemption, Duke Energy recorded $16 million in preferred stock redemption costs, calculated as the difference of $11 million between the carrying value on the redemption date of the Series B Preferred Stock and the total amount of consideration paid to redeem, and including the recognition of an excise tax liability under the IRA of $5 million. The preferred stock redemption costs were recorded as a reduction to Retained earnings on Duke Energy Corporation's Consolidated Balance Sheets during the year ended December 31, 2024.

The Series A Preferred Stock has no maturity or mandatory redemption date, is not redeemable at the option of the holders and Duke Energy may call the preferred stock, in whole or in part, at any time at a redemption price of $25 per depositary share. Duke Energy is also required to redeem all accumulated and unpaid dividends if the call option is exercised.

Dividends issued on its Series A Preferred Stock are subject to approval by the Board of Directors. However, the deferral of dividend payments on the preferred stock prohibits the declaration of common stock dividends.

The Series A Preferred Stock rank, with respect to dividends and distributions upon liquidation or dissolution:

• senior to Common Stock and to each other class or series of capital stock established after the original issue date of the Series A Preferred Stock that is expressly made subordinated to the Series A Preferred Stock;

• on a parity with any class or series of capital stock established after the original issue date of the Series A Preferred Stock that is not expressly made senior or subordinated to the Series A Preferred Stock;

• junior to any class or series of capital stock established after the original issue date of the Series A Preferred Stock that is expressly made senior to the Series A Preferred Stock;

• junior to all existing and future indebtedness (including indebtedness outstanding under Duke Energy's credit facilities, unsecured senior notes, junior subordinated debentures and commercial paper) and other liabilities with respect to assets available to satisfy claims against Duke Energy; and

• structurally subordinated to existing and future indebtedness and other liabilities of Duke Energy's subsidiaries and future preferred stock of subsidiaries.

Holders of Series A Preferred Stock have no voting rights with respect to matters that generally require the approval of voting stockholders. The limited voting rights of holders of Series A Preferred Stock include the right to vote as a single class, respectively, on certain matters that may affect the preference or special rights of the preferred stock, except in the instance that Duke Energy elects to defer the payment of dividends for a total of six quarterly full dividend periods for Series A Preferred Stock. If dividends are deferred for a cumulative total of six quarterly full dividend periods for Series A Preferred Stock, whether or not for consecutive dividend periods, holders of the preferred stock have the right to elect two additional Board members to the Board of Directors.

21. SEVERANCE

During 2023, as Duke Energy transitioned from the foundational work of energy transition strategy planning to the launch of the largest power generation build period in its history, the Company streamlined certain functions and changed how it was structured and staffed to ensure the resulting organization reflected best-in-class standards, was optimally aligned with its jurisdictions, and was best positioned to serve customers, stakeholders and investors. As a result, Duke Energy extended involuntary severance benefits to certain employees in specific areas as a part of its organizational optimization. For the year ended December 31, 2023, Duke Energy recorded severance charges of approximately $97 million within Operation, maintenance and other on the Consolidated Statements of Operations. These charges, along with amortization of severance-related regulatory deferrals and the reversal of certain prior period severance costs, resulted in a total severance charge of $102 million in 2023.

FINANCIAL STATEMENTS			SEVERANCE

The following table presents the direct and allocated severance and related charges accrued by the Duke Energy Registrants within Operation, maintenance and other on the Consolidated Statements of Operations.

						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Year Ended December 31, 2025**(a)**			$	(8)		$	(2)		$	(5)		$	(2)		$	(3)		$	—		$	—		$	—
Year Ended December 31, 2024(a)			(28)			(11)			(9)			(5)			(4)			(2)			(4)			(2)
Year Ended December 31, 2023(b)			102			53			33			21			12			3			6			4

(a) Primarily related to adjustments associated with 2023 severance charges.

(b) Primarily related to the severance for 682 employees.

The table below presents the severance liability for past and ongoing severance plans including the plans described above.

						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Balance at December 31, 2023			$	102		$	35		$	16		$	8		$	8		$	1		$	4		$	2
Provision/Adjustments			(28)			(6)			(3)			(1)			(2)			(1)			(3)			(1)
Cash Reductions			(55)			(21)			(11)			(6)			(5)			—			(1)			(1)
Balance at December 31, 2024			$	19		$	8		$	2		$	1		$	1		$	—		$	—		$	—
Provision/Adjustments			(8)			(3)			(1)			(1)			—			—			—			—
Cash Reductions			(11)			(5)			(1)			—			(1)			—			—			—
Balance at December 31, 2025			$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

22. STOCK-BASED COMPENSATION

The Duke Energy Corporation 2023 Long-Term Incentive Plan (the 2023 Plan) provides for the grant of stock-based compensation awards to employees and outside directors. The 2023 Plan superseded the Duke Energy Corporation 2015 Long-Term Incentive Plan (the 2015 Plan). No additional grants will be made from the 2015 Plan. The 2023 Plan reserves 15 million shares of common stock for issuance. Duke Energy has historically issued new shares upon exercising or vesting of share-based awards. However, Duke Energy may use a combination of new share issuances and open market repurchases for share-based awards that are exercised or vest in the future. Duke Energy has not determined with certainty the amount of such new share issuances or open market repurchases.

The following table summarizes the total expense recognized by the Duke Energy Registrants, net of tax, for stock-based compensation.

			Years Ended December 31,
(in millions)			2025						2024						2023
Duke Energy			$	74					$	70					$	71
Duke Energy Carolinas			27						25						25
Progress Energy			29						28						28
Duke Energy Progress			18						17						17
Duke Energy Florida			11						11						11
Duke Energy Ohio			6						5						5
Duke Energy Indiana			8						7						7
Piedmont			4						4						4

Duke Energy's pretax stock-based compensation costs, the tax benefit associated with stock-based compensation expense and stock-based compensation costs capitalized are included in the following table.

			Years Ended December 31,
(in millions)			2025						2024						2023
RSU awards			$	58					$	49					$	54
Performance awards			44						47						43
Pretax stock-based compensation cost			$	102					$	96					$	97
Stock-based compensation costs capitalized			7						6						6
Stock-based compensation expense			$	95					$	90					$	91
Tax benefit associated with stock-based compensation expense			$	21					$	20					$	20

FINANCIAL STATEMENTS			STOCK-BASED COMPENSATION

RESTRICTED STOCK UNIT AWARDS

RSU awards generally vest over periods from immediate to three years. Fair value amounts are based on the market price of Duke Energy's common stock on the grant date. The following table includes information related to RSU awards.

			Years Ended December 31,
			2025						2024						2023
Shares granted (in thousands)			564						598						670
Fair value (in millions)			$	66					$	59					$	65

The following table summarizes information about RSU awards outstanding.

									Weighted Average
			Shares						Grant Date Fair Value
			(in thousands)						(per share)
Outstanding at December 31, 2024			1,059						$	98
Granted			564						117
Vested			(602)						99
Forfeited			(59)						109
Outstanding at December 31, 2025			962						108
RSU awards expected to vest			897						108

The total grant date fair value of shares vested during the years ended December 31, 2025, 2024 and 2023, was $59 million, $55 million and $52 million, respectively. At December 31, 2025, Duke Energy had $38 million of unrecognized compensation cost, which is expected to be recognized over a weighted average period of 23 months.

PERFORMANCE AWARDS

Stock-based performance awards generally vest after three years to the extent performance targets are met. The actual number of shares issued will range from zero to 200% of target shares, depending on the level of performance achieved.

Performance awards contain performance conditions and a market condition. The performance conditions are based on Duke Energy's cumulative adjusted EPS and total incident case rate (total incident case rate is one of our key employee safety metrics). The market condition is based on TSR of Duke Energy relative to a predefined peer group.

Relative TSR is valued using a path-dependent model that incorporates expected relative TSR into the fair value determination of Duke Energy’s performance-based share awards. The model uses three-year historical volatilities and correlations for all companies in the predefined peer group, including Duke Energy, to simulate Duke Energy’s relative TSR as of the end of the performance period. For each simulation, Duke Energy’s relative TSR associated with the simulated stock price at the end of the performance period plus expected dividends within the period results in a value per share for the award portfolio. The average of these simulations is the expected portfolio value per share. Actual life to date results of Duke Energy’s relative TSR for each grant are incorporated within the model. For performance awards granted in 2025, the model used a risk-free interest rate of 4.04%, which reflects the yield on three-year Treasury bonds as of the grant date, and an expected volatility of 18.8% based on Duke Energy's historical volatility over three years using daily stock prices.

The following table includes information related to stock-based performance awards.

			Years Ended December 31,
			2025						2024						2023
Shares granted assuming target performance (in thousands)			338						440						422
Fair value (in millions)			$	41					$	42					$	42

The following table summarizes information about stock-based performance awards outstanding and assumes payout at the target level.

									Weighted Average
			Shares						Grant Date Fair Value
			(in thousands)						(per share)
Outstanding at December 31, 2024			1,187						$	98
Granted			338						122
Vested			(382)						99
Forfeited			(36)						116
Outstanding at December 31, 2025			1,107						104
Stock-based performance awards expected to vest			1,079						104

FINANCIAL STATEMENTS			STOCK-BASED COMPENSATION

The total grant date fair value of shares vested during the years ended December 31, 2025, 2024 and 2023, was $38 million, $30 million and $31 million, respectively. At December 31, 2025, Duke Energy had $26 million of unrecognized compensation cost, which is expected to be recognized over a weighted average period of 22 months.

23. EMPLOYEE BENEFIT PLANS

DEFINED BENEFIT RETIREMENT PLANS

Duke Energy and certain subsidiaries maintain, and the Subsidiary Registrants participate in, qualified, non-contributory defined benefit retirement plans, which consist of the Duke Energy Retirement Cash Balance Plan (RCBP) and the Duke Energy Legacy Pension Plan (DELPP). These plans cover most employees using a cash balance formula. Under a cash balance formula, a plan participant accumulates a retirement benefit consisting of pay credits based upon a percentage of current eligible earnings, age or age and years of service and interest credits. Certain employees are eligible for benefits that use a final average earnings formula. Under these final average earnings formulas, a plan participant accumulates a retirement benefit equal to the sum of percentages of their (i) highest three-, four- or five-year average earnings, (ii) highest three-, four- or five-year average earnings in excess of covered compensation per year of participation (maximum of 35 years) or (iii) highest three-year average earnings times years of participation in excess of 35 years. Duke Energy also maintains, and the Subsidiary Registrants participate in, non-qualified, non-contributory defined benefit retirement plans that cover certain executives. The qualified and non-qualified, non-contributory defined benefit plans are closed to new participants.

Duke Energy uses a December 31 measurement date for its defined benefit retirement plan assets and obligations. Actuarial gains experienced by the defined benefit retirement plans in remeasuring plan assets as of December 31, 2025, were attributable to actual investment performance that exceeded expected investment performance. Actuarial losses experienced by the defined benefit retirement plans in remeasuring plan obligations as of December 31, 2025, were primarily attributable to the decrease in the discount rate used to measure plan obligations. Actuarial gains experienced by the defined benefit retirement plans in remeasuring plan obligations as of December 31, 2024, were primarily attributable to the increase in the discount rate used to measure plan obligations. Actuarial losses experienced by the defined benefit retirement plans in remeasuring plan assets as of December 31, 2024, were primarily attributable to actual investment performance that was less than expected investment performance.

As a result of the application of settlement accounting due to total lump-sum benefit payments exceeding the settlement threshold (defined as the sum of service cost and interest cost on projected benefit obligation components of net periodic benefit costs) for one of its qualified pension plans, Duke Energy recognized settlement charges of $72 million, of which $60 million was recorded to Regulatory Assets within Other Noncurrent Assets on the Consolidated Balance Sheets and $12 million was recorded to Other income and expenses, net, within the Consolidated Statement of Operations as of, and for the year ended, December 31, 2024.

Settlement charges recognized by the Subsidiary Registrants as of December 31, 2024, which represent amounts allocated by Duke Energy for employees of the Subsidiary Registrants and allocated charges for their proportionate share of settlement charges for employees of Duke Energy's shared services affiliate, and recorded to Regulatory Assets within Other Noncurrent Assets on the Consolidated Balance Sheets were $31 million for Duke Energy Carolinas, $23 million for Progress Energy, $16 million for Duke Energy Progress, $7 million for Duke Energy Florida, $3 million for Duke Energy Indiana and $4 million for Piedmont. Settlement charges recognized by the Subsidiary Registrants as of December 31, 2024, recorded to Other income and expenses, net, within the 2024 Consolidated Statements of Operations were $3 million for Duke Energy Carolinas, $5 million for Progress Energy, $5 million for Duke Energy Progress, $2 million for Duke Energy Ohio and $1 million for Piedmont.

The settlement charges reflect the recognition of a pro-rata portion of previously unrecognized actuarial losses, equal to the percentage of reduction in the projected benefit obligation resulting from total lump-sum benefit payments. Settlement charges recognized as a regulatory asset within Other Noncurrent Assets on the Consolidated Balance Sheets are amortized over the average remaining service period for participants in the plan. Amortization of settlement charges is disclosed in the tables below as a component of net periodic pension costs.

Net periodic benefit costs disclosed in the tables below represent the cost of the respective benefit plan for the periods presented prior to capitalization of amounts reflected as Net property, plant and equipment, on the Consolidated Balance Sheets. Only the service cost component of net periodic benefit costs is eligible to be capitalized. The remaining non-capitalized portions of net periodic benefit costs are classified as either: (1) service cost, which is recorded in Operation, maintenance and other on the Consolidated Statements of Operations; or as (2) components of non-service cost, which is recorded in Other income and expenses, net on the Consolidated Statements of Operations. Amounts presented in the tables below for the Subsidiary Registrants represent the amounts of pension and other post-retirement benefit cost allocated by Duke Energy for employees of the Subsidiary Registrants. Additionally, the Consolidated Statements of Operations of the Subsidiary Registrants also include allocated net periodic benefit costs for their proportionate share of pension and post-retirement benefit cost for employees of Duke Energy’s shared services affiliate that provide support to the Subsidiary Registrants. However, in the tables below, these amounts are only presented within the Duke Energy column (except for amortization of settlement charges). These allocated amounts are included in the governance and shared service costs discussed in Note 14.

Duke Energy’s policy is to fund amounts on an actuarial basis to provide assets sufficient to meet benefit payments to be paid to plan participants. The following table includes information related to the Duke Energy Registrants’ contributions to its qualified defined benefit pension plans.

									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Contributions Made:
2025			$	100					$	27					$	23					$	14					$	10					$	6					$	8					$	3
2024			100						26						23						14						9						5						8						3
2023			100						26						22						13						9						5						8						3

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

QUALIFIED PENSION PLANS

Components of Net Periodic Pension Costs

			Year Ended December 31, 2025
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Service cost			$	107					$	36					$	30					$	18					$	12					$	3					$	6					$	4
Interest cost on projected benefit obligation			329						79						103						46						57						17						26						10
Expected return on plan assets			(597)						(153)						(220)						(98)						(120)						(24)						(40)						(20)
Amortization of actuarial loss			61						15						19						10						9						2						5						4
Amortization of prior service credit			(13)						(1)						—						—						—						—						(2)						(7)
Amortization of settlement charges			25						12						7						5						2						—						2						4
Net periodic pension costs(a)(b)			$	(88)					$	(12)					$	(61)					$	(19)					$	(40)					$	(2)					$	(3)					$	(5)

			Year Ended December 31, 2024
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Service cost			$	114					$	37					$	32					$	19					$	13					$	3					$	6					$	4
Interest cost on projected benefit obligation			325						78						103						47						56						17						26						9
Expected return on plan assets			(613)						(161)						(217)						(99)						(116)						(25)						(42)						(20)
Amortization of actuarial loss			36						8						10						6						5						1						4						3
Amortization of prior service credit			(13)						(1)						—						—						—						—						(2)						(7)
Amortization of settlement charges(c)			32						12						10						9						2						2						2						5
Net periodic pension costs(a)(b)			$	(119)					$	(27)					$	(62)					$	(18)					$	(40)					$	(2)					$	(6)					$	(6)

			Year Ended December 31, 2023
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Service cost			$	117					$	38					$	33					$	19					$	13					$	3					$	6					$	4
Interest cost on projected benefit obligation			344						84						107						49						57						18						27						9
Expected return on plan assets			(588)						(160)						(198)						(93)						(104)						(24)						(40)						(20)
Amortization of actuarial loss			10						2						4						2						2						—						2						—
Amortization of prior service credit			(14)						(1)						—						—						—						—						(2)						(7)
Amortization of settlement charges			19						9						5						3						1						—						1						4
Net periodic pension costs(a)(b)			$	(112)					$	(28)					$	(49)					$	(20)					$	(31)					$	(3)					$	(6)					$	(10)

(a) Duke Energy amounts exclude $2 million, $2 million and $3 million for the years ended December 2025, 2024 and 2023, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

(b) Duke Energy Ohio amounts exclude $1 million, $1 million and $1 million for the years ended December 2025, 2024 and 2023, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

(c) Includes settlement charges not deferred as a regulatory asset.

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

Amounts Recognized in Accumulated Other Comprehensive Income and Regulatory Assets

			Year Ended December 31, 2025
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Regulatory assets, net decrease			$	(202)					$	(46)					$	(84)					$	(40)					$	(43)					$	(8)					$	(6)					$	(9)
Accumulated other comprehensive loss (income)
Deferred income tax benefit			$	3					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Amortization of prior year actuarial (losses) gains			(17)						—						(1)						—						—						—						—						—
Net amount recognized in accumulated other comprehensive income			$	(14)					$	—					$	(1)					$	—					$	—					$	—					$	—					$	—

			Year Ended December 31, 2024
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Regulatory assets, net increase			$	147					$	39					$	33					$	1					$	31					$	11					$	6					$	16
Accumulated other comprehensive loss (income)
Deferred income tax benefit			$	3					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Amortization of prior year service credit			1						—						—						—						—						—						—						—
Amortization of prior year actuarial losses			(12)						—						1						—						—						—						(2)						—
Net amount recognized in accumulated other comprehensive income			$	(8)					$	—					$	1					$	—					$	—					$	—					$	(2)					$	—

Reconciliation of Funded Status to Net Amount Recognized

			Year Ended December 31, 2025
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Change in Projected Benefit Obligation
Obligation at prior measurement date			$	5,980					$	1,444					$	1,875					$	838					$	1,027					$	309					$	471					$	181
Service cost			100						34						28						17						11						2						5						3
Interest cost			329						79						103						46						57						17						26						10
Actuarial loss (gain)			86						32						39						16						23						2						8						(2)
Benefits paid			(624)						(181)						(186)						(103)						(81)						(26)						(50)						(16)
Transfers			—						—						—						—						—						1						14						—
Obligation at measurement date			$	5,871					$	1,408					$	1,859					$	814					$	1,037					$	305					$	474					$	176
Accumulated Benefit Obligation at measurement date			$	5,839					$	1,408					$	1,846					$	813					$	1,023					$	300					$	469					$	176
Change in Fair Value of Plan Assets
Plan assets at prior measurement date			$	6,887					$	1,781					$	2,376					$	1,069					$	1,290					$	309					$	498					$	214
Employer contributions			100						27						23						14						10						6						8						3
Actual return on plan assets			847						214						323						145						176						31						52						28
Benefits paid			(624)						(181)						(186)						(103)						(81)						(26)						(50)						(16)
Transfers			—						—						—						—						—						1						14						—
Plan assets at measurement date			$	7,210					$	1,841					$	2,536					$	1,125					$	1,395					$	321					$	522					$	229
Funded status of plan			$	1,339					$	433					$	677					$	311					$	358					$	16					$	48					$	53

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

			Year Ended December 31, 2024
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Change in Projected Benefit Obligation
Obligation at prior measurement date			$	6,299					$	1,514					$	1,990					$	911					$	1,069					$	325					$	496					$	175
Service cost			107						36						30						18						12						3						6						4
Interest cost			325						78						103						47						56						17						26						9
Actuarial (gain)/loss			(106)						(13)						(50)						(27)						(22)						(3)						(16)						5
Benefits paid			(645)						(177)						(198)						(111)						(88)						(33)						(41)						(12)
Transfers			—						6						—						—						—						—						—						—
Obligation at measurement date			$	5,980					$	1,444					$	1,875					$	838					$	1,027					$	309					$	471					$	181
Accumulated Benefit Obligation at measurement date			$	5,948					$	1,444					$	1,861					$	838					$	1,013					$	304					$	466					$	181
Change in Fair Value of Plan Assets
Plan assets at prior measurement date			$	7,162					$	1,853					$	2,453					$	1,120					$	1,316					$	326					$	514					$	213
Employer contributions			100						26						23						14						9						5						8						3
Actual return on plan assets			270						73						98						46						53						11						17						10
Benefits paid			(645)						(177)						(198)						(111)						(88)						(33)						(41)						(12)
Transfers			—						6						—						—						—						—						—						—
Plan assets at measurement date			$	6,887					$	1,781					$	2,376					$	1,069					$	1,290					$	309					$	498					$	214
Funded status of plan			$	907					$	337					$	501					$	231					$	263					$	—					$	27					$	33

Amounts Recognized in the Consolidated Balance Sheets

			December 31, 2025
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Prefunded pension(a)			$	1,339					$	433					$	678					$	312					$	358					$	89					$	120					$	53
Noncurrent pension liability(b)			$	—					$	—					$	1					$	1					$	—					$	73					$	72					$	—
Net asset recognized			$	1,339					$	433					$	677					$	311					$	358					$	16					$	48					$	53
Regulatory assets			$	1,966					$	524					$	627					$	314					$	313					$	92					$	176					$	104
Accumulated other comprehensive income (loss)
Deferred income tax benefit			$	(21)					$	—					$	(1)					$	—					$	—					$	—					$	—					$	—
Net actuarial loss			98						—						3						—						—						—						—						—
Net amounts recognized in accumulated other comprehensive income			$	77					$	—					$	2					$	—					$	—					$	—					$	—					$	—

			December 31, 2024
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Prefunded pension(a)			$	907					$	337					$	501					$	231					$	263					$	74					$	101					$	33
Noncurrent pension liability(b)			$	—					$	—					$	—					$	—					$	—					$	74					$	74					$	—
Net asset recognized			$	907					$	337					$	501					$	231					$	263					$	—					$	27					$	33
Regulatory assets			$	2,168					$	570					$	711					$	354					$	356					$	100					$	182					$	113
Accumulated other comprehensive (income) loss
Deferred income tax benefit			$	(24)					$	—					$	(1)					$	—					$	—					$	—					$	—					$	—
Net actuarial loss			115						—						4						—						—						—						—						—
Net amounts recognized in accumulated other comprehensive income			$	91					$	—					$	3					$	—					$	—					$	—					$	—					$	—

(a) Included in Other within Other Noncurrent Assets on the Consolidated Balance Sheets.

(b) Included in Accrued pension and other post-retirement benefit costs on the Consolidated Balance Sheets.

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

Information for Plans with Accumulated Benefit Obligation in Excess of Plan Assets

																		December 31, 2025
																					Duke						Duke
																					Energy						Energy
(in millions)																					Ohio						Indiana
Projected benefit obligation																					$	112					$	216
Accumulated benefit obligation																					107						211
Fair value of plan assets																					39						145

						December 31, 2024
																					Duke						Duke
																					Energy						Energy
(in millions)																					Ohio						Indiana
Projected benefit obligation																					$	106					$	203
Accumulated benefit obligation																					101						197
Fair value of plan assets																					32						128

Assumptions Used for Pension Benefits Accounting

The discount rate used to determine the current year pension obligation and following year’s pension expense is based on a bond selection-settlement portfolio approach. This approach develops a discount rate by selecting a portfolio of high-quality corporate bonds that generate sufficient cash flow to provide for projected benefit payments of the plan. The selected bond portfolio is derived from a universe of non-callable corporate bonds rated Aa quality or higher. After the bond portfolio is selected, a single interest rate is determined that equates the present value of the plan’s projected benefit payments discounted at this rate with the market value of the bonds selected.

The RCBP contains a mostly active participant population while the DELPP contains a mostly inactive participant population. The average remaining service period for RCBP participants is nine years and the average life expectancy of DELPP participants is 15 years. Unrecognized net actuarial gains/losses and prior service credit are amortized over 11 years for Duke Energy and Duke Energy Carolinas, 14 years for Duke Energy Ohio, 13 years for Duke Energy Indiana, and nine years for Progress Energy, Duke Energy Progress, Duke Energy Florida and Piedmont.

The following tables present the assumptions or range of assumptions used for pension benefit accounting.

						December 31,
						2025												2024												2023
Benefit Obligations
Discount rate												5.50		%										5.70		%										5.40		%
Interest crediting rate												4.84		%										4.78		%										4.15		%
Salary increase						3.50		%	–			4.00		%				3.50		%	–			4.00		%				3.50		%	–			4.00		%
Net Periodic Benefit Cost
Discount rate												5.70		%				5.00		%	–			5.40		%										5.60		%
Interest crediting rate												4.78		%										4.15		%										4.35		%
Salary increase						3.50		%	–			4.00		%				3.50		%	–			4.00		%				3.50		%	–			4.00		%
Expected long-term rate of return on plan assets						8.50		%	–			7.00		%				8.50		%	–			7.00		%				6.50		%	–			8.25		%

Expected Benefit Payments

						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Years ending December 31,
2026			$	596		$	157		$	176		$	89		$	86		$	30		$	44		$	19
2027			578			150			173			86			87			29			43			18
2028			565			145			169			81			87			29			43			17
2029			540			135			165			77			87			28			43			16
2030			514			126			159			73			86			28			42			16
2031-2035			2,319			540			740			324			412			124			198			71

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

NON-QUALIFIED PENSION PLANS

The accumulated benefit obligation, which equals the projected benefit obligation for non-qualified pension plans, was $187 million for Duke Energy, $7 million for Duke Energy Carolinas, $69 million for Progress Energy, $22 million for Duke Energy Progress, $25 million for Duke Energy Florida, $2 million for Duke Energy Ohio, $1 million for Duke Energy Indiana and $2 million for Piedmont as of December 31, 2025.

Employer contributions, which equal benefits paid for non-qualified pension plans, were $29 million for Duke Energy, $1 million for Duke Energy Carolinas, $7 million for Progress Energy, $2 million for Duke Energy Progress and $3 million for Duke Energy Florida for the year ended December 31, 2025. Employer contributions were not material for Duke Energy Ohio, Duke Energy Indiana or Piedmont for the year ended December 31, 2025.

Net periodic pension costs for non-qualified pension plans were not material for the years ended December 31, 2025, 2024 or 2023.

OTHER POST-RETIREMENT BENEFIT PLANS

Duke Energy provides, and the Subsidiary Registrants participate in, some health care and life insurance benefits for retired employees on a contributory and non-contributory basis. Employees are eligible for these benefits if they have satisfied the applicable eligibility requirements (e.g., age and service) at retirement, as defined in the plans. The health care benefits include medical, dental, vision and prescription drug coverage and are subject to certain limitations, such as deductibles and copayments.

Duke Energy did not make any prefunding contributions to its other post-retirement benefit plans during the years ended December 31, 2025, 2024 or 2023.

Components of Net Periodic Other Post-Retirement Benefit Costs

			Year Ended December 31, 2025
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Service cost			$	2					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Interest cost on accumulated post-retirement benefit obligation			18						3						8						5						3						1						1						1
Expected return on plan assets			(12)						(8)						—						—						—						—						—						(2)
Amortization of actuarial (gain) loss			(3)						(1)						5						4						2						(1)						(1)						—
Amortization of prior service credit			(21)						(4)						(11)						(6)						(5)						—						(5)						—
Net periodic post-retirement benefit costs (a)(b) (c)			$	(16)					$	(10)					$	2					$	3					$	—					$	—					$	(5)					$	(1)

			Year Ended December 31, 2024
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Service cost			$	2					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Interest cost on accumulated post-retirement benefit obligation			17						3						7						4						3						1						1						1
Expected return on plan assets			(11)						(8)						—						—						—						—						—						(2)
Amortization of actuarial (gain) loss			(6)						(2)						8						6						2						(2)						(4)						—
Amortization of prior service credit			(21)						(4)						(11)						(6)						(5)						—						(5)						—
Net periodic post-retirement benefit costs(a)(b)			$	(19)					$	(11)					$	4					$	4					$	—					$	(1)					$	(8)					$	(1)

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

			Year Ended December 31, 2023
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Service cost			$	2					$	1					$	—					$	—					$	—					$	—					$	—					$	—
Interest cost on accumulated post-retirement benefit obligation			22						5						9						5						4						1						1						1
Expected return on plan assets			(11)						(7)						—						—						—						—						—						(2)
Amortization of actuarial (gain) loss			(6)						(3)						8						5						2						(2)						(3)						—
Amortization of prior service credit			(23)						(5)						(11)						(6)						(5)						—						(5)						—
Net periodic post-retirement benefit costs(a)(b)			$	(16)					$	(9)					$	6					$	4					$	1					$	(1)					$	(7)					$	(1)

(a) Duke Energy amounts exclude $3 million, $4 million and $4 million for the years ended December 2025, 2024 and 2023, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

(b) Duke Energy Ohio amounts exclude $1 million, $1 million and $1 million for the years ended December 2025, 2024 and 2023, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

(c) Duke Energy and Duke Energy Indiana amounts exclude $5 million for the year ended December 2025 of net periodic post-retirement benefit costs associated with a regulatory adjustment.

Amounts Recognized in Accumulated Other Comprehensive Income and Regulatory Assets and Liabilities

			Year Ended December 31, 2025
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Regulatory assets, net (decrease) increase			$	(11)					$	(17)					$	7					$	2					$	5					$	—					$	(3)					$	(1)
Regulatory liabilities, net (decrease) increase			$	(30)					$	(17)					$	(1)					$	(1)					$	—					$	(1)					$	(9)					$	1
Accumulated other comprehensive (income) loss
Amortization of prior year actuarial gain			(1)						—						—						—						—						—						—						—
Net amount recognized in accumulated other comprehensive income			$	(1)					$	—					$	—					$	—					$	—					$	—					$	—					$	—

			Year Ended December 31, 2024
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Regulatory assets, net (decrease) increase			$	(42)					$	(62)					$	23					$	17					$	5					$	(1)					$	(3)					$	—
Regulatory liabilities, net (decrease) increase			$	(76)					$	(71)					$	12					$	12					$	—					$	(3)					$	(12)					$	—
Accumulated other comprehensive (income) loss
Amortization of prior year actuarial gain			$	1					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Net amount recognized in accumulated other comprehensive income			$	1					$	—					$	—					$	—					$	—					$	—					$	—					$	—

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

Reconciliation of Funded Status to Accrued Other Post-Retirement Benefit Costs

			Year Ended December 31, 2025
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Change in Benefit Obligation
Post-retirement benefit obligation at prior measurement date			$	334					$	63					$	146					$	87					$	60					$	18					$	20					$	15
Service cost			2						—						—						—						—						—						—						—
Interest cost			18						3						8						5						3						1						1						1
Plan participants' contributions			1						—						—						—						—						—						—						—
Actuarial losses (gains)			1						(1)						2						2						1						—						1						1
Benefits paid			(35)						(8)						(14)						(8)						(6)						(2)						(3)						(2)
Post-retirement benefit obligation at measurement date			$	321					$	57					$	142					$	86					$	58					$	17					$	19					$	15
Change in Fair Value of Plan Assets
Plan assets at prior measurement date			$	161					$	107					$	(1)					$	—					$	—					$	7					$	—					$	29
Actual return on plan assets			18						10						—						—						—						1						—						4
Benefits paid			(35)						(8)						(14)						(8)						(6)						(2)						(3)						(2)
Employer contributions			26						3						13						8						6						2						3						1
Plan participants' contributions			1						—						—						—						—						—						—						—
Plan assets at measurement date			$	171					$	112					$	(2)					$	—					$	—					$	8					$	—					$	32
Funded status of plan			$	(150)					$	55					$	(144)					$	(86)					$	(58)					$	(9)					$	(19)					$	17

			Year Ended December 31, 2024
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Change in Benefit Obligation
Post-retirement benefit obligation at prior measurement date			$	347					$	69					$	146					$	84					$	60					$	19					$	24					$	15
Service cost			2						—						—						—						—						—						—						—
Interest cost			17						3						7						4						3						1						1						1
Plan participants' contributions			3						1						1						—						—						—						—						—
Actuarial losses (gains)			2						(2)						7						5						3						—						(2)						—
Benefits paid			(37)						(8)						(15)						(6)						(6)						(2)						(3)						(1)
Post-retirement benefit obligation at measurement date			$	334					$	63					$	146					$	87					$	60					$	18					$	20					$	15
Change in Fair Value of Plan Assets
Plan assets at prior measurement date			$	156					$	102					$	(1)					$	(1)					$	(1)					$	7					$	3					$	27
Actual return on plan assets			7						4						—						—						—						—						—						3
Benefits paid			(37)						(8)						(15)						(6)						(6)						(2)						(3)						(1)
Tax Refund			5						4						—						—						—						—						—						—
Employer contributions			27						4						14						7						7						2						—						—
Plan participants' contributions			3						1						1						—						—						—						—						—
Plan assets at measurement date			$	161					$	107					$	(1)					$	—					$	—					$	7					$	—					$	29
Funded status of plan			$	(173)					$	44					$	(147)					$	(87)					$	(60)					$	(11)					$	(20)					$	14

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

Amounts Recognized in the Consolidated Balance Sheets

			December 31, 2025
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Prefunded post-retirement benefit(a)			$	—					$	55					$	—					$	—					$	—					$	1					$	—					$	17
Current post-retirement liability(b)			8						—						5						3						2						1						—						—
Noncurrent post-retirement liability(c)			142						—						139						83						56						9						19						—
Net liability (asset) recognized			$	150					$	(55)					$	144					$	86					$	58					$	9					$	19					$	(17)
Regulatory assets			$	70					$	—					$	69					$	48					$	21					$	1					$	17					$	—
Regulatory liabilities			$	124					$	18					$	11					$	11					$	—					$	13					$	53					$	1
Accumulated other comprehensive (income) loss
Deferred income tax expense			$	3					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Net actuarial gain			(13)						—						(1)						—						—						—						—						—
Net amounts recognized in accumulated other comprehensive income			$	(10)					$	—					$	(1)					$	—					$	—					$	—					$	—					$	—

			December 31, 2024
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Prefunded post-retirement benefit(a)			$	—					$	44					$	—					$	—					$	—					$	1					$	—					$	14
Current post-retirement liability(b)			8						—						5						3						2						1						—						—
Noncurrent post-retirement liability(c)			165						—						142						84						58						11						20						—
Net liability (asset) recognized			$	173					$	(44)					$	147					$	87					$	60					$	11					$	20					$	(14)
Regulatory assets			$	81					$	17					$	62					$	46					$	16					$	1					$	20					$	1
Regulatory liabilities			$	154					$	35					$	12					$	12					$	—					$	14					$	62					$	—
Accumulated other comprehensive (income) loss
Deferred income tax expense			$	3					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Net actuarial gain			(12)						—						(1)						—						—						—						—						—
Net amounts recognized in accumulated other comprehensive income			$	(9)					$	—					$	(1)					$	—					$	—					$	—					$	—					$	—

(a) Included in Other within Other Noncurrent Assets on the Consolidated Balance Sheets.

(b) Included in Other within Current Liabilities on the Consolidated Balance Sheets.

(c) Included in Accrued pension and other post-retirement benefit costs on the Consolidated Balance Sheets.

Assumptions Used for Other Post-Retirement Benefits Accounting

The discount rate used to determine the current year other post-retirement benefits obligation and following year’s other post-retirement benefits expense is based on a bond selection-settlement portfolio approach. This approach develops a discount rate by selecting a portfolio of high-quality corporate bonds that generate sufficient cash flow to provide for projected benefit payments of the plan. The selected bond portfolio is derived from a universe of non-callable corporate bonds rated Aa quality or higher. After the bond portfolio is selected, a single interest rate is determined that equates the present value of the plan’s projected benefit payments discounted at this rate with the market value of the bonds selected.

The average remaining service period of active covered employees is seven years for Duke Energy, Duke Energy Carolinas and Duke Energy Florida, six years for Progress Energy, Duke Energy Ohio, Duke Energy Indiana and Piedmont and five years for Duke Energy Progress.

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

The following tables present the assumptions used for other post-retirement benefits accounting.

						December 31,
						2025												2024												2023
Benefit Obligations
Discount rate												5.50		%										5.70		%										5.40		%
Net Periodic Benefit Cost
Discount rate												5.70		%										5.40		%										5.60		%
Expected long-term rate of return on plan assets						2.50		%	–			8.50		%				2.75		%	–			8.50		%				4.00		%	–			8.25		%

Assumed Health Care Cost Trend Rate

			December 31,
			2025						2024
Health care cost trend rate assumed for next year – pre-65 trend			8.00		%				7.00		%
Health care cost trend rate assumed for next year – post-65 trend			8.00		%				—		%
Rate to which the cost trend is assumed to decline (the ultimate trend rate)			5.00		%				4.75		%
Year that rate reaches ultimate trend			2038						2034-2035

Expected Benefit Payments

						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Years ending December 31,
2026			$	54		$	13		$	18		$	11		$	7		$	3		$	4		$	2
2027			44			10			16			10			7			3			3			2
2028			38			8			15			9			6			2			2			2
2029			34			7			14			8			6			2			2			2
2030			31			6			14			8			5			2			2			2
2031-2035			121			20			58			35			23			6			7			6

PLAN ASSETS

Description and Allocations

Duke Energy Corporation Master Retirement Trust

Assets for both the qualified pension and other post-retirement benefits are maintained in the Duke Energy Corporation Master Retirement Trust. Approximately 98% of the Duke Energy Corporation Master Retirement Trust assets were allocated to qualified pension plans and approximately 2% were allocated to other post-retirement plans (comprised of 401(h) accounts), as of December 31, 2025, and 2024. The investment objective of the Duke Energy Corporation Master Retirement Trust is to invest in a diverse portfolio of assets that is expected to generate positive surplus return over time (i.e., asset growth greater than liability growth) subject to a prudent level of portfolio risk, for the purpose of enhancing the security of benefits for plan participants.

As of December 31, 2025, Duke Energy assumes qualified pension and other post-retirement plan assets will generate a long-term rate of return of 8.50% for the RCBP pension and RCBP 401(h) account assets and 7.00% for the DELPP pension and DELPP 401(h) account assets. The expected long-term rate of return was developed using a weighted average calculation of expected returns based primarily on future expected returns across asset classes considering the use of active asset managers, where applicable. The asset allocation targets were set after considering the investment objective and the risk profile. Equity securities are held for their higher expected returns. Debt securities are primarily held to hedge the qualified pension plan. Return seeking debt securities, hedge funds and other global securities are held for diversification. Investments within asset classes are diversified to achieve broad market participation and reduce the impact of individual managers or investments.

Effective January 1, 2026, the target asset allocation for the RCBP assets is 45% liability hedging and 55% return-seeking assets and the target asset allocation for the DELPP assets is 65% liability hedging assets and 35% return-seeking assets. Duke Energy periodically reviews its asset allocation targets, and over time, as the funded status of the benefit plans change, the target asset allocations of the plans may be changed as well.

Qualified pension and other post-retirement benefits for the Subsidiary Registrants are derived from the Duke Energy Corporation Master Retirement Trust, as such, each are allocated their proportionate share of the assets discussed below.

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

The following table includes the target asset allocations by asset class at December 31, 2025, and the actual asset allocations for the RCBP assets.

									Actual Allocation at
			Target						December 31,
			Allocation						2025						2024
Global equity securities			36		%				37		%				44		%
Global private equity securities			1		%				1		%				1		%
Debt securities			45		%				45		%				33		%
Return seeking debt securities			6		%				5		%				7		%
Hedge funds			5		%				5		%				5		%
Real assets and cash			7		%				7		%				10		%
Total			100		%				100		%				100		%

The following table includes the target asset allocations by asset class at December 31, 2025, and the actual asset allocations for the DELPP assets.

									Actual Allocation at
			Target						December 31,
			Allocation						2025						2024
Global equity securities			22		%				23		%				15		%
Debt securities			65		%				64		%				79		%
Return seeking debt securities			4		%				3		%				2		%
Hedge funds			5		%				5		%				—		%
Real assets and cash			4		%				5		%				4		%
Total			100		%				100		%				100		%

Other post-retirement assets

Duke Energy's other post-retirement assets are comprised of Voluntary Employees' Beneficiary Association (VEBA) trusts and 401(h) accounts held within the Duke Energy Corporation Master Retirement Trust. Duke Energy's investment objective is to achieve sufficient returns, subject to a prudent level of portfolio risk, for the purpose of promoting the security of plan benefits for participants.

The following table presents target and actual asset allocations for the VEBA trusts at December 31, 2025.

									Actual Allocation at
			Target						December 31,
			Allocation						2025						2024
U.S. equity securities			29		%				32		%				34		%
Non-U.S. equity securities			14		%				17		%				15		%
Real estate			4		%				7		%				7		%
Debt securities			48		%				28		%				31		%
Cash			5		%				16		%				13		%
Total			100		%				100		%				100		%

Fair Value Measurements

Duke Energy classifies recurring and nonrecurring fair value measurements based on the fair value hierarchy as discussed in Note 17.

Valuation methods of the primary fair value measurements disclosed below are as follows:

Investments in equity securities

Investments in equity securities are typically valued at the closing price in the principal active market as of the last business day of the reporting period. Principal active markets for equity prices include published exchanges such as NASDAQ and NYSE. Foreign equity prices are translated from their trading currency using the currency exchange rate in effect at the close of the principal active market. Prices have not been adjusted to reflect after-hours market activity. The majority of investments in equity securities are valued using Level 1 measurements. When the price of an institutional commingled fund is unpublished, it is not categorized in the fair value hierarchy, even though the funds are readily available at the fair value.

Investments in corporate debt securities and U.S. government securities

Most debt investments are valued based on a calculation using interest rate curves and credit spreads applied to the terms of the debt instrument (maturity and coupon interest rate) and consider the counterparty credit rating. Most debt valuations are Level 2 measurements. If the market for a particular fixed-income security is relatively inactive or illiquid, the measurement is Level 3. U.S. Treasury debt is typically Level 2.

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

Investments in short-term investment funds

Investments in short-term investment funds are valued at the net asset value of units held at year end and are readily redeemable at the measurement date. Investments in short-term investment funds with published prices are valued as Level 1. Investments in short-term investment funds with unpublished prices are valued as Level 2.

Duke Energy Corporation Master Retirement Trust

The following tables provide the fair value measurement amounts for the Duke Energy Corporation Master Retirement Trust qualified pension and other post-retirement assets.

			December 31, 2025
			Total Fair																								Not
(in millions)			Value						Level 1						Level 2						Level 3						Categorized**(b)**
Equity securities			$	2,630					$	2,428					$	202					$	—					$	—
Corporate debt securities			2,163						—						2,163						—						—
Short-term investment funds			355						—						355						—						—
Partnership interests			80						—						—						80						—
Hedge funds			301						—						—						—						301
U.S. government securities			1,609						—						1,609						—						—
Governments bonds – foreign			133						—						133						—						—
Cash			30						30						—						—						—
Government and commercial mortgage-backed securities			1						—						1						—						—
Net pending transactions and other investments			(6)						(7)						1						—						—
Total assets(a)			$	7,296					$	2,451					$	4,464					$	80					$	301

(a) Progress Energy, Duke Energy Carolinas, Duke Energy Florida, Duke Energy Progress, Duke Energy Indiana, Duke Energy Ohio and Piedmont were allocated approximately 34%, 26%, 19%, 15%, 7%, 4% and 4% respectively, of the Duke Energy Corporation Master Retirement Trust at December 31, 2025. Accordingly, all amounts included in the table above are allocable to the Subsidiary Registrants using these percentages.

(b) Certain investments that are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy.

			December 31, 2024
			Total Fair																								Not
(in millions)			Value						Level 1						Level 2						Level 3						Categorized**(b)**
Equity securities			$	2,461					$	2,216					$	231					$	—					$	14
Corporate debt securities			2,415						—						2,415						—						—
Short-term investment funds			310						—						310						—						—
Partnership interests			68						—						—						68						—
Hedge funds			164						—						—						—						164
U.S. government securities			1,398						—						1,398						—						—
Governments bonds – foreign			128						—						128						—						—
Cash			15						15						—						—						—
Government and commercial mortgage-backed securities			1						—						1						—						—
Net pending transactions and other investments			9						11						(2)						—						—
Total assets(a)			$	6,969					$	2,242					$	4,481					$	68					$	178

(a) Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont were allocated approximately 27%, 33%, 15%, 18%, 5%, 7% and 3%, respectively, of the Duke Energy Corporation Master Retirement Trust at December 31, 2024. Accordingly, all amounts included in the table above are allocable to the Subsidiary Registrants using these percentages.

(b) Certain investments that are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy.

FINANCIAL STATEMENTS			EMPLOYEE BENEFIT PLANS

The following table provides a reconciliation of beginning and ending balances of Duke Energy Corporation Master Retirement Trust qualified pension and other post-retirement assets at fair value on a recurring basis where the determination of fair value includes significant unobservable inputs (Level 3).

(in millions)			2025						2024
Balance at January 1			$	68					$	76
Sales			(14)						(10)
Total gains and other, net			26						2
Balance at December 31			$	80					$	68

Other post-retirement assets

The following tables provide the fair value measurement amounts for VEBA trust assets.

			December 31, 2025
			Total Fair
(in millions)			Value												Level 2
Cash and cash equivalents			$	4											$	4
Real estate			1												1
Equity securities			12												12
Debt securities			7												7
Total assets			$	24											$	24

			December 31, 2024
			Total Fair
(in millions)			Value												Level 2
Cash and cash equivalents			$	3											$	3
Real estate			1												1
Equity securities			10												10
Debt securities			6												6
Total assets			$	20											$	20

EMPLOYEE SAVINGS PLANS

Retirement Savings Plan

Duke Energy Corporation sponsors, and the Subsidiary Registrants participate in, an employee savings plan that covers substantially all U.S. employees. Most employees participate in a matching contribution formula where Duke Energy provides a matching contribution generally equal to 100% of employee before-tax and Roth 401(k) contributions of up to 6% of eligible pay per pay period. Dividends on Duke Energy shares held by the savings plans are charged to retained earnings when declared and shares held in the plans are considered outstanding in the calculation of basic and diluted EPS. For new and rehired employees who are not eligible to participate in Duke Energy’s defined benefit plans, an additional employer contribution of 4% of eligible pay per pay period, which is subject to a three-year vesting schedule, is provided to the employee’s savings plan account.

The following table includes pretax employer matching contributions made by Duke Energy and expensed by the Subsidiary Registrants.

									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Years ended December 31,
2025			$	272					$	90					$	77					$	47					$	30					$	7					$	17					$	15
2024			257						81						72						43						29						6						13						14
2023			238						75						62						40						22						6						13						13

24. INCOME TAXES

Inflation Reduction Act and the OBBBA

In August 2022, the IRA was signed into law. Among other provisions, the IRA implemented a new 15% corporate alternative minimum tax based on GAAP net income, with certain adjustments as defined by the IRA, and clean energy-related provisions. The IRA's clean energy provisions included, among other provisions, the extension and modification of existing investment and PTCs for projects placed in service through 2024 and introduced new technology-neutral clean energy-related tax credits beginning in 2025. In addition, the IRA created a new, zero-emission nuclear power PTC and a clean hydrogen PTC.

FINANCIAL STATEMENTS			INCOME TAXES

Duke Energy Carolinas has $913 million and $449 million of nuclear PTCs recorded on its consolidated balance sheets as of December 31, 2025, and 2024, respectively. Duke Energy Progress has $152 million and $73 million of nuclear PTCs recorded on its consolidated balance sheets as of December 31, 2025, and 2024, respectively. These amounts represent the estimated net realizable value of the PTCs, which were deferred to a regulatory liability. The Company will continue to assess its calculations and interpretations as new information and guidance becomes available.

In 2025, proceeds of $723 million were received, net of discount, related to the sale of tax credits, which primarily includes $530 million of nuclear power PTCs at Duke Energy Carolinas, $83 million of nuclear power PTCs at Duke Energy Progress and $69 million of solar PTCs at Duke Energy Florida. In 2024, net proceeds of $558 million were received related to the sale of tax credits, which primarily includes $428 million of nuclear power PTCs at Duke Energy Carolinas, $65 million of nuclear power PTCs at Duke Energy Progress, and $43 million of solar PTCs at Duke Energy Florida. See Note 4 for further details on the Subsidiary Registrants' regulatory process to pass the net realizable value back to customers over time, as applicable.

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, which among other things, modified tax legislation affecting clean energy tax credits. While transferability was preserved for tax credits established by the IRA, including the nuclear PTC, which remains available through 2032, the legislation phases out or terminates certain tax credits sooner than previously scheduled. To remain eligible for the PTC or ITC, solar and wind facilities must be placed in service by December 31, 2027, unless construction begins by July 4, 2026. For other types of facilities, the credits continue to be available at full value if construction begins by December 31, 2033, although there are new prohibited foreign entity restrictions. The OBBBA did not change the federal corporate income tax rate and did not require the remeasurement of deferred tax assets or liabilities. While there were no material current year impacts to the results of operations, financial position or cash flows for the Duke Energy Registrants as a result of the OBBBA being signed into law as of December 31, 2025, the Company will continue to evaluate the future impact of this tax law change as additional information and guidance becomes available.

Corporate Alternative Minimum Tax

On February 18, 2026, the U.S. Treasury Department published Notice 2026-7 (Notice) providing additional interim guidance on application of the Corporate Alternative Minimum Tax (CAMT) under the Internal Revenue Code. The notice includes adjustments to adjusted financial statement income that permit taxpayers to deduct certain tax-deductible repairs with respect to Section 168 property for CAMT purposes, as well as other adjustments related to capitalization differences. Duke Energy is evaluating the potential impact of this Notice on its CAMT liability for the current and prior taxable years, including any required financial statement adjustments, tax provision effects, or related disclosures. Duke Energy believes the interim guidance will impact the future tax liabilities but is unable to reasonably estimate the ultimate financial statement impact pending further analysis and any forthcoming proposed or final regulations.

Improvements to Income Tax Disclosures

In December 2023, the Financial Accounting Standards Board (FASB) issued new accounting guidance to enhance income tax disclosures by requiring consistent categorization and additional disaggregation of information in the rate reconciliation, as well as an annual disclosure of income taxes paid information disaggregated by jurisdiction. The Duke Energy Registrants adopted this guidance on a prospective basis as of January 1, 2025, in the Company's 2025 Form 10-K. This guidance impacted the financial statement disclosures with no impact on the results of operations, cash flows or financial condition.

Income Tax Expense

Components of Income Tax Expense

Tax benefit from discontinued operations, in the following tables, includes income tax benefits related to the Commercial Renewables Disposal Groups. See Note 2 for further details.

			Year Ended December 31, 2025
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Current income taxes
Federal(a)			$	(565)		$	(278)		$	134		$	(118)		$	264		$	66		$	125		$	65
State			(6)			30			21			(3)			74			2			13			7
Foreign			2			—			—			—			—			—			—			—
Total current income taxes			(569)			(248)			155			(121)			338			68			138			72
Deferred income taxes
Federal			1,101			432			259			319			(57)			(3)			(64)			37
State			135			27			76			29			9			3			11			3
Total deferred income taxes(b)			1,236			459			335			348			(48)			—			(53)			40
ITC amortization			(25)			(17)			(5)			(4)			(1)			—			(3)			—
Income tax expense from continuing operations			642			194			485			223			289			68			82			112

(a) Transferrable Federal credits under IRC Section 6418 are recorded net of discount in current Federal income tax expense.

(b) Total deferred income taxes include income tax attribute (generation)/utilization, under the tax sharing agreement, as follows:

Duke Energy: $354 million

Duke Energy Carolinas: $(36) million

Progress Energy: $(11) million

FINANCIAL STATEMENTS			INCOME TAXES

Duke Energy Progress: $(29) million

Duke Energy Florida: $4 million

Duke Energy Ohio: $(14) million

Duke Energy Indiana: $(45) million

Piedmont: $(2) million

			Year Ended December 31, 2024
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Current income taxes
Federal			$	(365)		$	178		$	359		$	373		$	14		$	52		$	70		$	40
State			31			75			34			40			(12)			3			12			(6)
Foreign			2			—			—			—			—			—			—			—
Total current income taxes			(332)			253			393			413			2			55			82			34
Deferred income taxes
Federal			858			10			(22)			(215)			181			8			(19)			40
State			81			(25)			59			(6)			86			1			8			21
Total deferred income taxes(a)			939			(15)			37			(221)			267			9			(11)			61
ITC amortization			(17)			(12)			(4)			(3)			(1)			—			—			—
Income tax expense from continuing operations			590			226			426			189			268			64			71			95
Tax benefit from discontinued operations			(50)			—			—			—			—			—			—			—
Total income tax expense included in Consolidated Statements of Operations			$	540		$	226		$	426		$	189		$	268		$	64		$	71		$	95

(a) Total deferred income taxes include the utilization of NOL carryforwards and tax credit carryforwards of $523 million at Duke Energy and $8 million at Duke Energy Indiana. In addition, total deferred income taxes include the generation of NOL carryforwards and tax credit carryforwards of $47 million at Duke Energy Carolinas, $85 million at Progress Energy, $66 million at Duke Energy Progress, $30 million at Duke Energy Florida, $26 million at Duke Energy Ohio, and $8 million at Piedmont.

			Year Ended December 31, 2023
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Current income taxes
Federal(b)			$	71		$	173		$	459		$	198		$	279		$	(46)		$	10		$	44
State			1			22			38			4			71			(3)			9			3
Foreign			3			—			—			—			—			—			—			—
Total current income taxes			75			195			497			202			350			(49)			19			47
Deferred income taxes
Federal			319			(43)			(154)			(69)			(89)			111			77			25
State			53			(7)			38			19			—			1			14			12
Total deferred income taxes(a)			372			(50)			(116)			(50)			(89)			112			91			37
ITC amortization			(9)			(4)			(4)			(3)			—			—			—			—
Income tax expense from continuing operations			438			141			377			149			261			63			110			84
Tax benefit from discontinued operations			(359)			—			—			—			—			—			—			—
Total income tax expense included in Consolidated Statements of Operations			$	79		$	141		$	377		$	149		$	261		$	63		$	110		$	84

(a) Total deferred income taxes includes the generation of NOL carryforwards and tax credit carryforwards of $214 million at Duke Energy and $54 million at Duke Energy Indiana. In addition, total deferred income taxes includes the generation of NOL carryforwards and tax credit carryforwards of $2 million at Duke Energy Carolinas, $116 million at Progress Energy, $59 million at Duke Energy Progress, $5 million at Duke Energy Florida, $22 million at Duke Energy Ohio, and $15 million at Piedmont.

(b) Total current federal income tax at Duke Energy includes corporate alternative minimum tax, net of tax credit utilization, of $69 million. In addition, under the IRA transferability provision, Progress Energy elected to sell $28 million of PTCs generated by Duke Energy Florida.

FINANCIAL STATEMENTS			INCOME TAXES

Duke Energy Income from Continuing Operations before Income Taxes

			Years Ended December 31,
(in millions)			2025						2024						2023
Domestic			$	5,674					$	5,145					$	4,700
Foreign			38						49						67
Income from continuing operations before income taxes			$	5,712					$	5,194					$	4,767

Statutory Rate Reconciliation

The following tables present a reconciliation of income tax expense at the U.S. federal statutory tax rate to the actual tax expense from continuing operations.

									Year Ended December 31, 2025
									Duke						Duke Energy						Progress						Duke Energy
($ in millions and effective tax rate in percent)									Energy						Carolinas						Energy						Progress
U.S. Federal statutory income tax									$	1,200		21.0		%	$	483		21.0		%	$	609		21.0		%	$	316		21.0		%
Federal
			Tax credits
						PTCs (solar)			(65)			(1.1)		%	—			—		%	(65)			(2.2)		%	(1)			—		%
						Amortization of PTCs (nuclear)			(36)			(0.6)		%	(36)			(1.6)		%	—			—		%	—			—		%
						Amortization of ITCs			(25)			(0.4)		%	(17)			(0.7)		%	(5)			(0.2)		%	(4)			(0.3)		%
						Other			(23)			(0.4)		%	(11)			(0.5)		%	(9)			(0.3)		%	(6)			(0.4)		%
			Nontaxable and Nondeductible
			Regulatory Deferrals
						AFUDC equity income			(68)			(1.2)		%	(30)			(1.3)		%	(25)			(0.9)		%	(21)			(1.4)		%
						AFUDC equity depreciation			46			0.8		%	19			0.8		%	19			0.7		%	11			0.7		%
						Amortization of EDIT			(466)			(8.2)		%	(260)			(11.3)		%	(118)			(4.1)		%	(96)			(6.4)		%
			Other						(27)			(0.5)		%	(1)			—		%	1			—		%	2			0.1		%
			Changes in valuation allowances						7			0.1		%	—			—		%	—			—		%	—			—		%
Foreign tax effects									(6)			(0.1)		%	—			—		%	—			—		%	—			—		%
Unrecognized tax benefits									(1)			—		%	—			—		%	(1)			—		%	(1)			—		%
Domestic state and local income taxes, net of federal effect(a)									106			1.8		%	47			2.0		%	79			2.7		%	23			1.5		%
Total									$	642		11.2		%	$	194		8.4		%	$	485		16.7		%	$	223		14.8		%

									Year Ended December 31, 2025
									Duke Energy						Duke Energy						Duke Energy
($ in millions and effective tax rate in percent)									Florida						Ohio						Indiana						Piedmont
U.S. Federal statutory income tax									$	311		21.0		%	$	85		21.0		%	$	127		21.0		%	$	116		21.0		%
Federal
			Tax credits
						PTCs (solar)			(64)			(4.3)		%	—			—		%	—			—		%	—			—		%
						Amortization of PTCs (nuclear)			—			—		%	—			—		%	—			—		%	—			—		%
						Amortization of ITCs			(1)			(0.1)		%	—			—		%	(3)			(0.5)		%	—			—		%
						Other			(3)			(0.2)		%	(1)			(0.2)		%	(1)			(0.2)		%	(1)			(0.2)		%
			Nontaxable and Nondeductible
			Regulatory Deferrals
						AFUDC equity income			(4)			(0.3)		%	(3)			(0.7)		%	(6)			(1.0)		%	(4)			(0.7)		%
						AFUDC equity depreciation			8			0.5		%	4			1.0		%	4			0.7		%	1			0.2		%
						Amortization of EDIT			(22)			(1.5)		%	(22)			(5.4)		%	(57)			(9.5)		%	(8)			(1.4)		%
			Other						(3)			(0.2)		%	0			—		%	0			(0.1)		%	0			(0.2)		%
			Changes in valuation allowances						—			—		%	—			—		%	—			—		%	—			—		%
Foreign tax effects									—			—		%	—			—		%	—			—		%	—			—		%
Unrecognized tax benefits									1			0.1		%	—			—		%	—			—		%	—			—		%
Domestic state and local income taxes, net of federal effect(a)									66			4.5		%	4			1.0		%	19			3.2		%	9			1.6		%
Total									$	289		19.5		%	$	68		16.7		%	$	82		13.6		%	$	112		20.3		%

(a) Jurisdictions that make up the majority of the registrant's respective domestic state income taxes, net of federal effect, are as follows:

• Duke Energy: North Carolina, South Carolina and Florida

• Duke Energy Carolinas: North Carolina and South Carolina

FINANCIAL STATEMENTS			INCOME TAXES

• Progress Energy: Florida and North Carolina

• Duke Energy Progress: North Carolina and South Carolina

• Duke Energy Florida: Florida

• Duke Energy Ohio: Kentucky

• Duke Energy Indiana: Indiana

• Piedmont: North Carolina, Tennessee and South Carolina

			Year Ended December 31, 2024
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Income tax expense, computed at the statutory rate of 21%			$	1,090		$	443		$	545		$	284		$	279		$	85		$	108		$	107
State income tax, net of federal income tax effect			88			40			73			27			58			3			16			12
Amortization of EDIT			(436)			(225)			(121)			(98)			(23)			(23)			(49)			(18)
AFUDC equity income			(48)			(24)			(16)			(13)			(3)			(1)			(3)			(4)
AFUDC equity depreciation			38			19			14			7			7			2			4			—
Production tax credits			(46)			—			(46)			—			(46)			—			—			—
Other tax credits			(43)			(23)			(16)			(12)			(4)			(1)			(2)			(2)
Other items, net			(53)			(4)			(7)			(6)			—			(1)			(3)			—
Income tax expense from continuing operations			$	590		$	226		$	426		$	189		$	268		$	64		$	71		$	95
Effective tax rate			11.4		%	10.7		%	16.4		%	14.0		%	20.2		%	15.8		%	13.9		%	18.7		%

			Year Ended December 31, 2023
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Income tax expense, computed at the statutory rate of 21%			$	1,001		$	338		$	490		$	241		$	268		$	83		$	128		$	97
State income tax, net of federal income tax effect			43			12			60			18			56			(2)			18			12
Amortization of EDIT			(388)			(197)			(114)			(91)			(23)			(22)			(33)			(20)
AFUDC equity income			(41)			(19)			(14)			(11)			(3)			(2)			(2)			(4)
AFUDC equity depreciation			37			18			13			6			7			2			4			—
Tax credits(b)			(63)			(11)			(46)			(7)			(39)			(2)			(2)			(1)
Interest on company-owned life insurance(a)			(114)			—			—			—			—			—			—			—
Other items, net			(37)			—			(12)			(7)			(5)			6			(3)			—
Income tax expense from continuing operations			$	438		$	141		$	377		$	149		$	261		$	63		$	110		$	84
Effective tax rate			9.2		%	8.8		%	16.2		%	13.0		%	20.4		%	15.9		%	18.1		%	18.1		%

(a) During 2023, the Company evaluated the deductibility of certain items spanning periods currently open under federal statute, including items related to interest on company-owned life insurance. As a result of this analysis, the Company recorded a favorable federal adjustment of approximately $114 million and a favorable state adjustment of approximately $6 million. The favorable state adjustment is included in State income tax, net of federal income tax effect, in the above table.

(b) Tax credits at Progress Energy and Duke Energy Florida include $28 million of certain eligible PTCs, net of discount, that were elected to be sold in 2023 under the transferability provisions of the IRA.

FINANCIAL STATEMENTS			INCOME TAXES

DEFERRED TAXES

Net Deferred Income Tax Liability Components

			December 31, 2025
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Deferred credits and other liabilities			$	254		$	217		$	82		$	49		$	33		$	23		$	15		$	21
Lease obligations			452			86			263			184			79			1			11			1
Pension, post-retirement and other employee benefits			20			—			—			—			—			3			—			—
Progress Energy merger purchase accounting adjustments(a)			210			—			—			—			—			—			—			—
Tax credits and NOL carryforwards			3,259			595			844			383			452			84			191			58
Investments and other assets			—			—			—			—			—			2			19			—
Other			36			2			4			3			1			4			(1)			7
Valuation allowance			(130)			(1)			—			—			—			—			—			—
Total deferred income tax assets			4,101			899			1,193			619			565			117			235			87
Investments and other assets			(2,452)			(1,545)			(829)			(790)			(54)			—			—			(68)
Pension post-retirement and other employee benefits			—			(43)			(57)			(13)			(48)			—			(3)			(6)
Accelerated depreciation rates			(12,629)			(3,219)			(5,171)			(1,914)			(3,301)			(1,414)			(1,701)			(1,072)
Regulatory assets and deferred debits, net			(1,397)			(283)			(712)			(544)			(167)			(44)			(56)			(12)
Total deferred income tax liabilities			(16,478)			(5,090)			(6,769)			(3,261)			(3,570)			(1,458)			(1,760)			(1,158)
Net deferred income tax liabilities			$	(12,377)		$	(4,191)		$	(5,576)		$	(2,642)		$	(3,005)		$	(1,341)		$	(1,525)		$	(1,071)

(a) Primarily related to lease obligations and debt fair value adjustments.

The following table presents the expiration of tax credits and NOL carryforwards.

			December 31, 2025
(in millions)			Amount						Expiration Year
General Business Credits			$	1,908					2032						—						2045
Foreign Tax Credits(c)			36						2027						—						2028
State Carryforwards and Credits(a)			265						2026						—						Indefinite
Corporate AMT Credits			1,038																		Indefinite
Foreign NOL carryforwards(b)			12						2027						—						2045
Total tax credits and NOL carryforwards			$	3,259

(a) A valuation allowance of $83 million has been recorded on the state NOL and attribute carryforwards, as presented in the Net Deferred Income Tax Liability Components table.

(b) A valuation allowance of $12 million has been recorded on the foreign NOL carryforwards, as presented in the Net Deferred Income Tax Liability Components table.

(c) A valuation allowance of $36 million has been recorded on the foreign tax credits, as presented in the Net Deferred Income Tax Liability Components table.

FINANCIAL STATEMENTS			INCOME TAXES

			December 31, 2024
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Deferred credits and other liabilities			$	284		$	217		$	84		$	43		$	41		$	17		$	15		$	40
Lease obligations			430			88			265			179			86			2			12			2
Pension, post-retirement and other employee benefits			89			(33)			(23)			(1)			(26)			6			1			(2)
Progress Energy merger purchase accounting adjustments(a)			227			—			—			—			—			—			—			—
Tax credits and NOL carryforwards			3,845			522			783			312			449			70			145			57
Regulatory liabilities and deferred credits			—			—			—			—			—			—			10			—
Other			35			11			5			3			2			4			—			8
Valuation allowance			(517)			—			—			—			—			—			—			—
Total deferred income tax assets			4,393			805			1,114			536			552			99			183			105
Investments and other assets			(2,114)			(1,350)			(724)			(671)			(69)			—			—			(48)
Accelerated depreciation rates			(11,942)			(3,203)			(4,608)			(1,624)			(3,047)			(1,361)			(1,677)			(1,019)
Regulatory assets and deferred debits, net			(1,761)			(304)			(1,045)			(585)			(460)			(52)			—			(56)
Total deferred income tax liabilities			(15,817)			(4,857)			(6,377)			(2,880)			(3,576)			(1,413)			(1,677)			(1,123)
Net deferred income tax liabilities			$	(11,424)		$	(4,052)		$	(5,263)		$	(2,344)		$	(3,024)		$	(1,314)		$	(1,494)		$	(1,018)

(a) Primarily related to lease obligations and debt fair value adjustments.

INCOME TAXES PAID

The following table presents income taxes paid.

			Year Ended December 31, 2025
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Federal
Internal Revenue Service – payments/(refunds)			58			561			424			211			202			100			182			55
Transferrable Credits – purchased/(sold)			(676)			(551)			(171)			(102)			(69)			—			—			—
Total Federal			(618)			10			253			109			133			100			182			55
State income tax payments/(refunds)
North Carolina			(4)			39			7			9			—			—			—			—
South Carolina			—			36			—			2			—			—			—			—
Florida			—			—			5			—			34			—			—			—
Indiana			—			—			—			—			—			—			26			—
Kentucky			1			—			—			—			—			3			—			—
Oklahoma			(4)			—			—			—			—			—			—			—
Other			—			—			—			—			—			—			—			—
Total State			(7)			75			12			11			34			3			26			—
Total Income Taxes Paid (net of refunds)			$	(625)		$	85		$	265		$	120		$	167		$	103		$	208		$	55

UNRECOGNIZED TAX BENEFITS

The following tables present changes to unrecognized tax benefits.

			Year Ended December 31, 2025
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Unrecognized tax benefits – January 1			$	74		$	25		$	29		$	22		$	7		$	2		$	3		$	13
Gross increases – current period tax positions			(2)			—			(1)			(2)			1			—			—			(1)
Unrecognized tax benefits – December 31			$	72		$	25		$	28		$	20		$	8		$	2		$	3		$	12

FINANCIAL STATEMENTS			INCOME TAXES

			Year Ended December 31, 2024
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Unrecognized tax benefits – January 1			$	62		$	21		$	24		$	18		$	6		$	2		$	3		$	11
Gross increases – current period tax positions			12			4			5			4			1			—			—			2
Unrecognized tax benefits – December 31			$	74		$	25		$	29		$	22		$	7		$	2		$	3		$	13

			Year Ended December 31, 2023
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Unrecognized tax benefits – January 1			$	65		$	17		$	19		$	13		$	5		$	1		$	2		$	9
Gross decreases – tax positions in prior periods			(15)			—			—			—			—			—			—			—
Gross increases – current period tax positions			12			4			5			5			1			1			1			2
Total changes			(3)			4			5			5			1			1			1			2
Unrecognized tax benefits – December 31			$	62		$	21		$	24		$	18		$	6		$	2		$	3		$	11

The following table includes additional information regarding the Duke Energy Registrants' unrecognized tax benefits at December 31, 2025.

			December 31, 2025
						Duke						Duke			Duke			Duke			Duke
			Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)			Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Amount that if recognized, would affect the effective tax rate or regulatory liability(a)			$	67		$	24		$	26		$	18		$	8		$	2		$	3		$	11

(a) The Duke Energy Registrants are unable to estimate the specific amounts that would affect the ETR versus the regulatory liability.

Duke Energy and its subsidiaries are no longer subject to federal, state, local or non-U.S. income tax examinations by tax authorities for years before 2019, aside from certain tax attributes carried forward for utilization in future years.

25. OTHER INCOME AND EXPENSES, NET

The components of Other income and expenses, net on the Consolidated Statements of Operations are as follows.

			Year Ended December 31, 2025
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Interest income			$	51					$	17					$	47					$	39					$	9					$	3					$	6					$	19
AFUDC equity			328						144						117						100						17						16						34						17
Post-in-service equity returns			47						26						19						19						—						—						2						—
Nonoperating income, other			243						71						104						38						64						5						19						5
Other income and expense, net			$	669					$	258					$	287					$	196					$	90					$	24					$	61					$	41

			Year Ended December 31, 2024
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Interest income			$	63					$	9					$	18					$	14					$	4					$	8					$	5					$	19
AFUDC equity			233						113						74						61						13						7						19						21
Post-in-service equity returns			52						31						20						20						—						1						1						—
Nonoperating income, other			313						94						123						48						69						3						37						14
Other income and expense, net			$	661					$	247					$	235					$	143					$	86					$	19					$	62					$	54

FINANCIAL STATEMENTS			OTHER INCOME AND EXPENSES, NET

			Year Ended December 31, 2023
									Duke												Duke						Duke						Duke						Duke
			Duke						Energy						Progress						Energy						Energy						Energy						Energy
(in millions)			Energy						Carolinas						Energy						Progress						Florida						Ohio						Indiana						Piedmont
Interest income			$	29					$	10					$	14					$	9					$	7					$	25					$	25					$	19
AFUDC equity			198						91						67						52						15						9						10						21
Post-in-service equity returns			39						19						19						19						—						1						—						—
Nonoperating income, other			332						118						101						44						56						6						41						17
Other income and expense, net			$	598					$	238					$	201					$	124					$	78					$	41					$	76					$	57

INDEPENDENT ACCOUNTANTS