Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following combined Management’s Discussion and Analysis of Financial Condition and Results of Operations is separately filed by Duke Energy and Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana and Piedmont. However, none of the registrants make any representation as to information related solely to Duke Energy or the Subsidiary Registrants of Duke Energy other than itself.

DUKE ENERGY

Duke Energy is an energy company headquartered in Charlotte, North Carolina. Duke Energy operates in the U.S. primarily through its subsidiaries, Duke Energy Carolinas, 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 the Subsidiary Registrants, which along with Duke Energy are collectively referred to as the Duke Energy Registrants.

Management’s Discussion and Analysis should be read in conjunction with the Condensed Consolidated Financial Statements and Notes for the three months ended March 31, 2024, and with Duke Energy’s Annual Report on Form 10-K for the year ended December 31, 2023.

Executive Overview

Advancing Our Clean Energy Transition. During the three months ended March 31, 2024, we continued to execute on our clean energy transition, remaining focused on reliability and affordability while delivering increasingly clean energy and providing strong, sustainable value for shareholders, customers, communities and employees.

• In January 2024, we filed supplemental modeling and analysis with the NCUC and PSCSC related to our combined systemwide Carolinas Resource Plan filed in August 2023. These updates were necessary due to substantially increased load forecasts resulting from continued economic development successes in the Carolinas occurring since the systemwide integrated resource plan was prepared. In March 2024, we filed for CPCNs for new generation facilities at the sites of the current Marshall Steam Station and Roxboro Plant in the Carolinas. Our energy transition strategy continues to focus on delivering a path to cleaner energy in a manner that protects grid reliability and affordability, all while meeting the energy demands of the growing and economically vibrant communities that we serve.

• As we continue to strengthen our grid and bring clean energy resources online, our customers are important partners in our clean energy future. In January 2024, we received approval for PowerPairSM, a new incentive-based pilot program for installing home solar generation with battery energy storage in our Duke Energy Carolinas and Duke Energy Progress North Carolina service territories. Enrollment options for residential customers that participate in the pilot include a one-time incentive of up to $9,000 for the installation of a solar plus battery system.

Regulatory Activity. During the three months ended March 31, 2024, we continued to move our regulatory strategy forward. See Note 4 to the Condensed Consolidated Financial Statements, "Regulatory Matters," for additional information.

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

• Duke Energy Florida filed a three-year rate plan that would begin in January 2025, once its current base rate settlement agreement concludes at the end of 2024, and proposed approximately $4.9 billion in investments to reduce outages, expand solar generation, and increase generation unit efficiency. The overall additional base rate revenue requirement would be $820 million over the three-year period and, if approved by the FPSC, will facilitate improved grid reliability for a growing customer base, reduced fuel consumption at existing power plants, and the construction of 14 new solar plants, providing 1,050 MW of clean energy to Florida's grid.

• Duke Energy Indiana filed a general rate case with the IURC requesting an overall increase in revenues of $492 million. This is the first base rate case filed by Duke Energy Indiana since 2019 and reflects strategic investments to improve grid reliability and security, serve a growing customer base, and meet environmental regulations. These investments, which include approximately 345 miles of new power lines expected to be constructed through 2025, will support the more than 60,000 new customers anticipated since our last base rate case.

• Piedmont filed a general rate case with the NCUC requesting an overall increase in revenues of $159 million. This is the first base rate case filed by Piedmont in North Carolina since 2021 and reflects significant investments to support ongoing service reliability, system growth, and compliance with federal pipeline safety regulations in addition to two energy reliability centers in eastern North Carolina.

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

• In January 2024, Duke Energy Carolinas filed a South Carolina rate case requesting an overall increase in revenues of approximately $323 million, prior to proposed mitigation efforts including the acceleration of the return of certain EDIT balances. This is the first base rate case filed by Duke Energy Carolinas in the state since 2018 and reflects the South Carolina retail allocation of significant investments, including approximately $1.5 billion of transmission and distribution assets and certain coal ash related compliance costs.

Matters Impacting Future Results

The matters discussed herein could materially impact the future operating results, financial condition and cash flows of the Duke Energy Registrants and Business Segments.

MD&A			MATTERS IMPACTING FUTURE RESULTS

Regulatory Matters

Coal Ash Costs

Future spending of coal ash costs, including amounts recorded for depreciation and liability accretion, is expected to be recovered in future rate cases or rider filings. The majority of spend is expected to occur over the next 10 years.

Duke Energy Indiana has interpreted the CCR Rule to identify the coal ash basin sites impacted and has assessed the amounts of coal ash subject to the rule and established methods of compliance. Interpretation of the requirements of the CCR Rule is subject to further legal challenges and regulatory approvals, which could result in additional coal ash basin closure requirements, higher costs of compliance and greater asset retirement obligations. Additionally, Duke Energy Indiana has retired facilities that are not subject to the CCR Rule. Duke Energy Indiana may incur costs at these facilities to comply with environmental regulations or to mitigate risks associated with on-site storage of coal ash. For more information, see "Other Matters" and Note 4 to the Condensed Consolidated Financial Statements, "Regulatory Matters."

Fuel Cost Recovery

As a result of rapidly rising commodity costs during 2022, including natural gas, fuel and purchased power prices in excess of amounts included in fuel-related revenues led to an increase in the under collection of fuel costs from customers in jurisdictions including Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida. These amounts have been deferred in regulatory assets and impacted the cash flows of the registrants, including increased borrowings to temporarily finance related expenditures until recovery. Regulatory filings have been made and approved for recovery of all remaining uncollected 2022 fuel costs. Across all jurisdictions, Duke Energy is currently on pace to recover approximately $1.9 billion of deferred fuel costs in 2024.We anticipate being in line with our historical average balance of deferred fuel costs by the end of this year.

Environmental Regulations

In April 2024, the EPA issued a final rule under the Resource Conservation and Recovery Act, which significantly expands the scope of the CCR Rule by establishing regulatory requirements for inactive surface impoundments at retired generating facilities and previously unregulated coal ash sources at regulated facilities. The EPA also issued a final rule under section 111 of the Clean Air Act regulating GHG emissions from existing coal-fired and new natural gas-fired power plants. Duke Energy is reviewing these final rules and analyzing the potential impacts they could have on the Company, which could be material. Cost recovery for future expenditures will be pursued through the normal ratemaking process with federal and state utility commissions, which permit recovery of necessary and prudently incurred costs associated with Duke Energy’s regulated operations. Duke Energy is evaluating potential legal challenges to the final rules. For more information, see "Other Matters."

Supply Chain

The Company continues to monitor the ongoing stability of markets for key materials and other developments, including public policy outcomes, that could disrupt or impact the Company's supply chain and, as a result, may impact Duke Energy's execution of its capital plan, future financial results or the achievement of its clean energy goals.

Goodwill

The Duke Energy Registrants performed their annual goodwill impairment tests as of August 31, 2023. As of this date, all of the Duke Energy Registrants' reporting units' estimated fair values materially exceeded the carrying values except for the GU&I reporting unit of Duke Energy Ohio. While no goodwill impairment charges were recorded in 2023, the potential for continued interest rate pressures, and the related impact on the weighted average cost of capital, without timely or adequate updates to the regulated allowed return on equity or deteriorating economic conditions impacting GU&I's future cash flows or equity valuations of peer companies could impact the estimated fair value of GU&I, and goodwill impairment charges could be recorded in the future.

Other

Duke Energy continues to monitor general market conditions, including the potential for continued interest rate pressures on the Company's cost of capital, which may impact Duke Energy's execution of its capital plan, future financial results, or the achievement of its clean energy goals.

Results of Operations

Non-GAAP Measures

Management’s Discussion and Analysis includes financial information prepared in accordance with GAAP in the U.S., as well as certain non-GAAP financial measures, adjusted earnings and adjusted EPS, discussed below. Non-GAAP financial measures are numerical measures of financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures should be viewed as a supplement to, and not a substitute for, financial measures presented in accordance with GAAP. Non-GAAP measures presented may not be comparable to similarly titled measures used by other companies because other companies may not calculate the measures in the same manner.

Management evaluates financial performance in part based on non-GAAP financial measures, including adjusted earnings and adjusted EPS. Adjusted earnings and adjusted EPS represent income from continuing operations available to Duke Energy Corporation common stockholders in dollar and per share amounts, adjusted for the dollar and per share impact of special items. As discussed below, special items represent certain charges and credits, which management believes are not indicative of Duke Energy's ongoing performance. The most directly comparable GAAP measures for adjusted earnings and adjusted EPS are GAAP Reported Earnings (Loss) and GAAP Reported Earnings (Loss) Per Share, respectively.

Discontinued operations primarily represents the operating results and impairments recognized related to the sale of the Commercial Renewables business disposal group.

MD&A			DUKE ENERGY

Three Months Ended March 31, 2024, as compared to March 31, 2023

GAAP reported EPS was $1.44 for the first quarter of 2024 compared to $1.01 in the first quarter of 2023. In addition to the drivers below, GAAP reported EPS increased primarily due to impairments on the sale of the Commercial Renewables business in the prior year.

As discussed above, management also evaluates financial performance based on adjusted EPS. Duke Energy’s first quarter 2024 adjusted EPS was $1.44 compared to $1.20 for the first quarter of 2023. The increase in adjusted EPS was primarily due to improved weather and favorable rate case impacts along with growth from riders and other margin, partially offset by higher interest expense.

The following table reconciles non-GAAP measures, including adjusted EPS, to their most directly comparable GAAP measures.

			Three Months Ended March 31,
			2024												2023
(in millions, except per share amounts)			Earnings						EPS						Earnings						EPS
GAAP Reported Earnings/GAAP Reported EPS			$	1,099					$	1.44					$	765					$	1.01
Adjustments:
Discontinued Operations(a)			3						—						145						0.19
Adjusted Earnings/Adjusted EPS			$	1,102					$	1.44					$	910					$	1.20

(a)Recorded in Loss from Discontinued Operations, net of tax, and Net (Income) Loss Attributable to Noncontrolling Interests.

SEGMENT RESULTS

The remaining information presented in this discussion of results of operations is on a GAAP basis. Management evaluates segment performance based on segment income. Segment income is defined as income from continuing operations net of income attributable to noncontrolling interests and preferred stock dividends. Segment income includes intercompany revenues and expenses that are eliminated in the Condensed Consolidated Financial Statements.

Duke Energy's segment structure includes the following segments: EU&I and GU&I. The remainder of Duke Energy’s operations is presented as Other. See Note 3 to the Condensed Consolidated Financial Statements, “Business Segments,” for additional information on Duke Energy’s segment structure.

Electric Utilities and Infrastructure

									Three Months Ended March 31,
(in millions)																					2024						2023						Variance
Operating Revenues																					$	6,803					$	6,398					$	405
Operating Expenses
Fuel used in electric generation and purchased power																					2,355						2,396						(41)
Operation, maintenance and other																					1,316						1,269						47
Depreciation and amortization																					1,225						1,096						129
Property and other taxes																					337						348						(11)
Impairment of assets and other charges																					1						7						(6)
Total operating expenses																					5,234						5,116						118
Gains on Sales of Other Assets and Other, net																					6						1						5
Operating Income																					1,575						1,283						292
Other Income and Expenses, net																					131						130						1
Interest Expense																					499						452						47
Income Before Income Taxes																					1,207						961						246
Income Tax Expense																					173						149						24
Less: Income Attributable to Noncontrolling Interest																					13						21						(8)
Segment Income																					$	1,021					$	791					$	230
Duke Energy Carolinas GWh sales																					22,388						20,919						1,469
Duke Energy Progress GWh sales																					16,128						15,345						783
Duke Energy Florida GWh sales																					8,839						8,990						(151)
Duke Energy Ohio GWh sales																					5,780						5,642						138
Duke Energy Indiana GWh sales																					7,475						7,350						125
Total Electric Utilities and Infrastructure GWh sales																					60,610						58,246						2,364
Net proportional MW capacity in operation																					54,504						54,314						190

MD&A			SEGMENT RESULTS — ELECTRIC UTILITIES AND INFRASTRUCTURE

The residential decoupling mechanism adjusts for variations in residential use per customer, including those due to weather and conservation, and is calculated based on an annual target revenue-per-customer.

Three Months Ended March 31, 2024, as compared to March 31, 2023

EU&I’s results were driven by higher revenues from rate cases across multiple jurisdictions, improved weather, and higher weather-normal retail sales volumes, partially offset by higher depreciation related to additional plant in service. The following is a detailed discussion of the variance drivers by line item.

Operating Revenues. The variance was driven primarily by:

• a $149 million increase in retail sales due to improved weather compared to prior year, including impacts of decoupling;

• a $147 million increase due to higher pricing from jurisdictional rate cases primarily at Duke Energy Carolinas, Duke Energy Progress and Duke Energy Kentucky;

• a $40 million increase in weather-normal retail sales volumes;

• a $39 million increase in rider revenues primarily due to a decrease in the return of EDIT to customers at Duke Energy Carolinas; and

• a $36 million increase in storm revenues at Duke Energy Florida due to Hurricane Idalia collections.

Partially offset by:

• a $49 million decrease in fuel revenues primarily due to net lower fuel cost recovery in the current year.

Operating Expenses*.* The variance was driven primarily by:

*•*a $129 million increase in depreciation and amortization primarily due to lower amortization of the DOE settlement regulatory liability and higher depreciable base at Duke Energy Florida, and higher depreciable base and higher net amortizations driven by the North Carolina rate cases at Duke Energy Carolinas and Duke Energy Progress; and

*•*a $47 million increase in operation, maintenance and other primarily driven by higher storm amortization at Duke Energy Florida, higher storm and nuclear outage costs at Duke Energy Progress, and higher storm costs at Duke Energy Carolinas.

Partially offset by:

*•*a $41 million decrease in fuel used in electric generation and purchased power due to lower deferred fuel amortization and lower fuel prices and volumes at Duke Energy Indiana, Duke Energy Florida and Duke Energy Ohio, partially offset by change in generation mix and higher recovery of fuel expense at Duke Energy Carolinas and Duke Energy Progress; and

• an $11 million decrease in property and other taxes primarily due to lower franchise and gross receipts tax, driven by lower revenues and lower property taxes at Duke Energy Florida.

Interest Expense. The variance was primarily driven by higher outstanding debt balances and interest rates.

Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income, partially offset by an increase in the amortization of EDIT. The ETRs for the three months ended March 31, 2024, and 2023, were 14.3% and 15.5%, respectively. The decrease in the ETR was primarily due to an increase in the amortization of EDIT.

MD&A			SEGMENT RESULTS — GAS UTILITIES AND INFRASTRUCTURE

Gas Utilities and Infrastructure

									Three Months Ended March 31,
(in millions)																					2024						2023						Variance
Operating Revenues																					$	902					$	911					$	(9)
Operating Expenses
Cost of natural gas																					232						298						(66)
Operation, maintenance and other																					129						119						10
Depreciation and amortization																					98						85						13
Property and other taxes																					46						31						15
Impairment of assets and other charges																					—						1						(1)
Total operating expenses																					505						534						(29)
Operating Income																					397						377						20
Other Income and Expenses, net																					17						23						(6)
Interest Expense																					61						50						11
Income Before Income Taxes																					353						350						3
Income Tax Expense																					69						63						6
Segment Income																					$	284					$	287					$	(3)
Piedmont LDC throughput (dekatherms)																					163,265,015						161,463,793						1,801,222
Duke Energy Midwest LDC throughput (Mcf)																					33,197,651						31,814,967						1,382,684

Three Months Ended March 31, 2024, as compared to March 31, 2023

GU&I’s results were impacted primarily by margin growth, partially offset by higher interest expense and operation, maintenance and other expense. The following is a detailed discussion of the variance drivers by line item.

Operating Revenues. The variance was driven primarily by:

• a $66 million decrease due to lower natural gas costs passed through to customers, lower rates, and decreased off-system sales natural gas costs.

Partially offset by:

• a $21 million increase due to higher base rates, primarily from the Duke Energy Ohio rate case, partially offset by lower rider revenues at Duke Energy Ohio;

• a $16 million increase due to Tennessee ARM revenues;

• a $9 million increase due to customer growth; and

• an $8 million increase due to North Carolina IMR.

Operating Expenses. The variance was driven primarily by:

• a $66 million decrease in cost of natural gas due to lower natural gas costs passed through to customers, lower rates, and decreased off-system sales natural gas costs.

Partially offset by:

• a $15 million increase in property and other taxes due to property tax true ups in the prior year and higher property tax in current year;

• a $13 million increase in depreciation and amortization due to higher depreciable base, lower CEP deferrals, an increase in rider amortization and higher depreciation for Foothills and Upper Piedmont projects; and

• a $10 million increase in operations, maintenance and other primarily due to higher outside services, labor and service company costs.

Other Income and Expenses, Net. The decrease was primarily due to lower production at SustainRNG.

Interest Expense. The increase was primarily due to higher outstanding debt balances and interest rates.

Income Tax Expense**.** The increase in tax expense was primarily due to a decrease in the amortization of EDIT and an increase in pretax income. The ETRs for the three months ended March 31, 2024, and 2023, were 19.5% and 18.0%, respectively. The increase in the ETR was primarily due to a decrease in the amortization of EDIT.

MD&A			SEGMENT RESULTS — GAS UTILITIES AND INFRASTRUCTURE

Other

									Three Months Ended March 31,
(in millions)																					2024						2023						Variance
Operating Revenues																					$	38					$	31					$	7
Operating Expenses																					56						29						27
Gains on Sales of Other Assets and Other, net																					5						6						(1)
Operating (Loss) Income																					(13)						8						(21)
Other Income and Expenses, net																					79						62						17
Interest Expense																					294						256						38
Loss Before Income Taxes																					(228)						(186)						(42)
Income Tax Benefit																					(64)						(57)						(7)
Less: Preferred Dividends																					39						39						—
Net Loss																					$	(203)					$	(168)					$	(35)

Three Months Ended March 31, 2024, as compared to March 31, 2023

Other's results were impacted by higher interest expense driven by higher outstanding long-term debt.

Operating Expenses. The increase was primarily driven by obligations to the Duke Energy Foundation and lower loss experience related to captive insurance claims in the prior year.

Other Income and Expenses, net. The increase was primarily due to higher yields on captive insurance investments and higher return on investments that fund certain employee benefit obligations.

Interest Expense. The increase was primarily due to higher outstanding long-term debt balances and interest rates.

Income Tax Benefit. The increase in the tax benefit was primarily due to higher pretax losses. The ETRs for the three months ended March 31, 2024, and 2023, were 28.1% and 30.6%, respectively. The decrease in the ETR was primarily due to tax levelization, partially offset by non-deductible interest on company owned life insurance in the prior year.

LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX

									Three Months Ended March 31,
(in millions)																					2024						2023						Variance
Loss From Discontinued Operations, net of tax																					$	(3)					$	(209)					$	206

Three Months Ended March 31, 2024, as compared to March 31, 2023

The variance was primarily driven by the impairment on the sale of the Commercial Renewables business recorded in the prior year.

DUKE ENERGY CAROLINAS

Results of Operations

			Three Months Ended March 31,
(in millions)			2024						2023						Variance
Operating Revenues			$	2,407					$	1,934					$	473
Operating Expenses
Fuel used in electric generation and purchased power			860						623						237
Operation, maintenance and other			451						440						11
Depreciation and amortization			397						366						31
Property and other taxes			94						95						(1)
Impairment of assets and other charges			1						2						(1)
Total operating expenses			1,803						1,526						277
Gains on Sales of Other Assets and Other, net			1						—						1
Operating Income			605						408						197
Other Income and Expenses, net			61						59						2
Interest Expense			180						160						20
Income Before Income Taxes			486						307						179
Income Tax Expense			56						35						21
Net Income			$	430					$	272					$	158

MD&A			DUKE ENERGY CAROLINAS

The following table shows the percent changes in GWh sales and average number of customers. The percentages for retail customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.

Increase (Decrease) over prior year			2024
Residential sales			6.9		%
General service sales			4.8		%
Industrial sales			(0.5)		%
Wholesale power sales			19.1		%
Joint dispatch sales			(0.3)		%
Total sales			7.0		%
Average number of customers			2.1		%

Three Months Ended March 31, 2024, as compared to March 31, 2023

Operating Revenues. The variance was driven primarily by:

• a $238 million increase in fuel revenues due to higher fuel rates and volumes;

• a $91 million increase in retail pricing due to rates from the North Carolina retail rate case;

• an $80 million increase in retail sales due to improved weather compared to prior year, including the impacts of decoupling;

• a $31 million increase in rider revenues primarily due to the decrease in the return of EDIT to customers compared to the prior year; and

• a $21 million increase in weather-normal retail sales volumes.

Operating Expenses**.** The variance was driven primarily by:

• a $237 million increase in fuel used in electric generation and purchased power primarily due to changes in the generation mix, the recovery of fuel expense and higher JDA purchased volumes and prices;

*•*a $31 million increase in depreciation and amortization primarily due to a higher depreciable base, and higher net amortizations driven by the North Carolina rate case; and

*•*an $11 million increase in operation, maintenance and other primarily due to higher storm costs.

Interest Expense. The increase was primarily due to higher outstanding debt balances and interest rates.

Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income, partially offset by an increase in the amortization of EDIT.

PROGRESS ENERGY

Results of Operations

			Three Months Ended March 31,
(in millions)			2024						2023						Variance
Operating Revenues			$	3,228					$	3,048					$	180
Operating Expenses
Fuel used in electric generation and purchased power			1,143						1,191						(48)
Operation, maintenance and other			628						568						60
Depreciation and amortization			587						504						83
Property and other taxes			158						168						(10)
Impairment of assets and other charges			—						5						(5)
Total operating expenses			2,516						2,436						80
Gains on Sales of Other Assets and Other, net			7						6						1
Operating Income			719						618						101
Other Income and Expenses, net			62						59						3
Interest Expense			260						246						14
Income Before Income Taxes			521						431						90
Income Tax Expense			86						72						14
Net Income			$	435					$	359					$	76

MD&A			PROGRESS ENERGY

Three Months Ended March 31, 2024, as compared to March 31, 2023

Operating Revenues. The variance was driven primarily by:

• a $63 million increase in retail sales due to improved weather compared to the prior year, including impacts of decoupling, at Duke Energy Progress;

• a $62 million increase in weather-normal retail sales volumes at Duke Energy Progress;

• a $44 million increase due to higher pricing from the North Carolina and South Carolina rate cases at Duke Energy Progress;

• a $36 million increase in storm revenues at Duke Energy Florida due to Hurricane Idalia collections; and

• a $10 million increase in wholesale revenues, net of fuel, due to higher capacity rates at Duke Energy Progress.

Partially offset by:

• a $46 million decrease in fuel and capacity revenues primarily due to lower rates at Duke Energy Florida, partially offset by an increase in fuel rates and volumes at Duke Energy Progress.

Operating Expenses. The variance was driven primarily by:

*•*an $83 million increase in depreciation and amortization due to lower amortization of the DOE settlement regulatory liability and higher depreciable base at Duke Energy Florida and higher depreciable base, and higher net amortizations driven by the North Carolina rate case, at Duke Energy Progress; and

*•*a $60 million increase in operation, maintenance and other primarily due to storm amortization at Duke Energy Florida and higher storm and nuclear outage costs at Duke Energy Progress.

Partially offset by:

• a $48 million decrease in fuel used in electric generation and purchased power primarily due to lower natural gas prices and the expiration of a purchased power contract in December 2023 at Duke Energy Florida, partially offset by higher volumes and prices, net of the recovery of fuel expense, at Duke Energy Progress; and

• a $10 million decrease in property and other taxes primarily due to lower franchise and gross receipts tax, driven by lower revenues and lower property taxes at Duke Energy Florida.

Interest Expense. The increase was primarily due to higher outstanding debt balances and interest rates at Duke Energy Progress.

Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income, partially offset by an increase in the amortization of EDIT.

DUKE ENERGY PROGRESS

Results of Operations

			Three Months Ended March 31,
(in millions)			2024						2023						Variance
Operating Revenues			$	1,788					$	1,533					$	255
Operating Expenses
Fuel used in electric generation and purchased power			620						545						75
Operation, maintenance and other			375						350						25
Depreciation and amortization			339						315						24
Property and other taxes			51						48						3
Impairment of assets and other charges			—						4						(4)
Total operating expenses			1,385						1,262						123
Gains on Sales of Other Assets and Other, net			1						—						1
Operating Income			404						271						133
Other Income and Expenses, net			36						29						7
Interest Expense			120						102						18
Income Before Income Taxes			320						198						122
Income Tax Expense			48						29						19
Net Income			$	272					$	169					$	103

MD&A			DUKE ENERGY PROGRESS

The following table shows the percent changes in GWh sales and average number of customers. The percentages for retail customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.

Increase (Decrease) over prior period			2024
Residential sales			5.9		%
General service sales			5.6		%
Industrial sales			(5.4)		%
Wholesale power sales			6.4		%
Joint dispatch sales			(3.2)		%
Total sales			5.1		%
Average number of customers			2.1		%

Three Months Ended March 31, 2024, as compared to March 31, 2023

Operating Revenues. The variance was driven primarily by:

• an $80 million increase in fuel revenues due to higher fuel rates and volumes;

• a $63 million increase in retail sales due to improved weather compared to prior year, including impacts of decoupling;

• a $62 million increase in weather-normal retail sales volumes;

• a $44 million increase due to higher pricing from the North Carolina and South Carolina rate cases; and

• a $10 million increase in wholesale revenues, net of fuel, due to higher capacity rates.

Operating Expenses. The variance was driven primarily by:

• a $75 million increase in fuel used in electric generation and purchased power primarily due to the recovery of fuel expenses and changes in the generation mix, partially offset by lower natural gas prices;

• a $25 million increase in operation, maintenance and other primarily due to higher storm costs and higher nuclear outage costs, net of levelization; and

*•*a $24 million increase in depreciation and amortization primarily due to a higher depreciable base, and higher net amortizations driven by the North Carolina rate case.

Interest Expense. The increase was driven primarily by higher outstanding debt balances and interest rates.

Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income, partially offset by an increase in the amortization of EDIT.

DUKE ENERGY FLORIDA

Results of Operations

			Three Months Ended March 31,
(in millions)			2024						2023						Variance
Operating Revenues			$	1,436					$	1,510					$	(74)
Operating Expenses
Fuel used in electric generation and purchased power			523						646						(123)
Operation, maintenance and other			251						213						38
Depreciation and amortization			248						190						58
Property and other taxes			106						120						(14)
Impairment of assets and other charges			—						1						(1)
Total operating expenses			1,128						1,170						(42)
Gains on Sales of Other Assets and Other, net			1						1						—
Operating Income			309						341						(32)
Other Income and Expenses, net			24						30						(6)
Interest Expense			111						115						(4)
Income Before Income Taxes			222						256						(34)
Income Tax Expense			43						51						(8)
Net Income			$	179					$	205					$	(26)

MD&A			DUKE ENERGY FLORIDA

The following table shows the percent changes in GWh sales and average number of customers. The percentages for retail customer classes represent billed sales only. Wholesale power sales include both billed and unbilled sales. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.

Increase (Decrease) over prior period			2024
Residential sales			(2.7)		%
General service sales			(2.4)		%
Industrial sales			1.5		%
Wholesale power sales			(6.2)		%
Total sales			(1.7)		%
Average number of customers			2.2		%

Three Months Ended March 31, 2024, as compared to March 31, 2023

Operating Revenues. The variance was driven primarily by:

• a $126 million decrease in fuel and capacity revenues primarily due to lower fuel and capacity rates billed to retail customers.

Partially offset by:

• a $36 million increase in storm revenues due to Hurricane Idalia collections; and

• a $15 million increase in other revenues due to higher residential fixed bill program revenues and higher Clean Energy Connection subscription revenues.

Operating Expenses. The variance was driven primarily by:

• a $123 million decrease in fuel used in electric generation and purchased power primarily due to lower natural gas prices and the expiration of a purchased power contract in December 2023; and

• a $14 million decrease in property and other taxes primarily due to lower franchise and gross receipts tax, driven by lower revenues and lower property taxes.

Partially offset by:

• a $58 million increase in depreciation and amortization primarily due to lower amortization of the DOE settlement regulatory liability and higher depreciable base; and

• a $38 million increase in operation, maintenance and other primarily due to storm amortization.

Income Tax Expense. The decrease in tax expense was primarily due to a decrease in pretax income.

DUKE ENERGY OHIO

Results of Operations

			Three Months Ended March 31,
(in millions)			2024						2023						Variance
Operating Revenues
Regulated electric			$	458					$	474					$	(16)
Regulated natural gas			220						235						(15)
Total operating revenues			678						709						(31)
Operating Expenses
Fuel used in electric generation and purchased power			138						176						(38)
Cost of natural gas			61						92						(31)
Operation, maintenance and other			126						123						3
Depreciation and amortization			99						90						9
Property and other taxes			102						80						22
Total operating expenses			526						561						(35)
Operating Income			152						148						4
Other Income and Expenses, net			6						8						(2)
Interest Expense			45						36						9
Income Before Income Taxes			113						120						(7)
Income Tax Expense			19						20						(1)
Net Income			$	94					$	100					$	(6)

MD&A			DUKE ENERGY OHIO

The following table shows the percent changes in GWh sales of electricity, dekatherms of natural gas delivered and average number of electric and natural gas customers. The percentages for retail customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.

			Electric			Natural Gas
Increase (Decrease) over prior year			2024			2024
Residential sales			2.4		%	3.8		%
General service sales			(1.8)		%	5.1		%
Industrial sales			(9.1)		%	6.0		%
Wholesale electric power sales			271.4		%	n/a
Other natural gas sales			n/a			4.0		%
Total sales			2.4		%	4.3		%
Average number of customers			1.0		%	1.0		%

Three Months Ended March 31, 2024, as compared to March 31, 2023

Operating Revenues. The variance was driven primarily by:

• an $84 million decrease in fuel-related revenues primarily due to lower retail sales volumes, as well as decreased natural gas costs.

Partially offset by:

• a $21 million increase due to higher pricing due to the Duke Energy Ohio natural gas rate case net of decreases in the Ohio CEP rider and Accelerated Main Replacement Program (AMRP) Rider;

• a $12 million increase due to higher pricing due to the Duke Energy Kentucky electric rate case;

• a $10 million increase in revenues related to higher Ohio Valley Electric Corporation (OVEC) rider collections and OVEC sales into PJM Interconnection, LLC (PJM); and

• an $8 million increase in the Distribution Capital Investment (DCI) rider.

Operating Expenses. The variance was driven primarily by:

• a $69 million decrease in fuel expense primarily driven by lower retail prices for natural gas and purchased power, and a decrease in purchased power volumes.

Partially offset by:

• a $22 million increase in property and other taxes primarily due to property tax true ups for prior years and higher property tax in current year, partially offset by Network Integration Transmission Service (NITS) deferral and franchise taxes; and

• a $9 million increase in depreciation and amortization primarily driven by an increase in distribution plant in service and depreciation rates resulting from the Duke Energy Kentucky electric rate case implemented in 2023 and CEP deferrals in 2024.

Interest Expense. The increase was primarily due to higher outstanding debt balances and interest rates.

DUKE ENERGY INDIANA

Results of Operations

			Three Months Ended March 31,
(in millions)			2024						2023						Variance
Operating Revenues			$	759					$	975					$	(216)
Operating Expenses
Fuel used in electric generation and purchased power			271						449						(178)
Operation, maintenance and other			180						184						(4)
Depreciation and amortization			169						158						11
Property and other taxes			14						18						(4)
Total operating expenses			634						809						(175)
Operating Income			125						166						(41)
Other Income and Expenses, net			13						14						(1)
Interest Expense			57						52						5
Income Before Income Taxes			81						128						(47)
Income Tax Expense			14						22						(8)
Net Income			$	67					$	106					$	(39)

MD&A			DUKE ENERGY INDIANA

The following table shows the percent changes in GWh sales and average number of customers. The percentages for retail customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities, public and private utilities and power marketers. Amounts are not weather-normalized.

Increase (Decrease) over prior year			2024
Residential sales			3.4		%
General service sales			(0.1)		%
Industrial sales			(5.1)		%
Wholesale power sales			15.3		%
Total sales			1.7		%
Average number of customers			1.6		%

Three Months Ended March 31, 2024, as compared to March 31, 2023

Operating Revenues. The variance was driven primarily by:

• a $172 million decrease in retail fuel revenues primarily due to lower fuel cost recovery driven by lower retail sales volumes and fuel prices;

• a $32 million decrease in weather-normal retail sales volumes; and

• an $11 million decrease in wholesale revenues, including fuel, primarily due to the expiration of a wholesale customer contract.

Operating Expenses. The variance was driven primarily by:

• a $178 million decrease in fuel used in electric generation and purchased power primarily due to lower deferred fuel amortization as well as lower purchased power expense, natural gas and coal costs.

Partially offset by:

• an $11 million increase in depreciation and amortization primarily due to a higher depreciable base and coal ash related amortization.

Income Tax Expense. The decrease in tax expense was primarily due to a decrease in pretax income, partially offset by a decrease in the amortization of EDIT.

PIEDMONT

Results of Operations

			Three Months Ended March 31,
(in millions)			2024						2023						Variance
Operating Revenues			$	676					$	675					$	1
Operating Expenses
Cost of natural gas			170						206						(36)
Operation, maintenance and other			95						89						6
Depreciation and amortization			62						57						5
Property and other taxes			15						16						(1)
Impairment of assets and other charges			—						1						(1)
Total operating expenses			342						369						(27)
Operating Income			334						306						28
Other Income and Expenses, net			17						16						1
Interest Expense			45						40						5
Income Before Income Taxes			306						282						24
Income Tax Expense			60						50						10
Net Income			$	246					$	232					$	14

MD&A			PIEDMONT

The following table shows the percent changes in dekatherms delivered and average number of customers. The percentages for all throughput deliveries represent billed and unbilled sales. Amounts are not weather-normalized.

Increase (Decrease) over prior year			2024
Residential deliveries			20.9		%
Commercial deliveries			19.2		%
Industrial deliveries			3.9		%
Power generation deliveries			(7.6)		%
For resale			4.1		%
Total throughput deliveries			1.1		%
Secondary market volumes			(11.6)		%
Average number of customers			1.5		%

The margin decoupling mechanism adjusts for variations in residential and commercial use per customer, including those due to weather and conservation. The weather normalization adjustment mechanisms mostly offset the impact of weather on bills rendered, but do not ensure full recovery of approved margin during periods when winter weather is significantly warmer or colder than normal.

Three Months Ended March 31, 2024, as compared to March 31, 2023

Operating Revenues. The variance was driven primarily by:

• a $16 million increase due to Tennessee ARM revenue recognition;

• a $9 million increase due to customer growth;

• an $8 million increase due to North Carolina IMR; and

• a $7 million increase due to South Carolina RSA.

Partially offset by:

• a $36 million decrease due to lower natural gas costs passed through to customers, lower rates, and decreased off-system sales natural gas costs.

Operating Expenses. The variance was driven primarily by:

• a $36 million decrease in the cost of natural gas due to lower natural gas costs passed through to customers, lower rates, and decreased off-system sales natural gas costs.

Partially offset by:

• a $6 million increase in operations, maintenance and other primarily due to higher outside services and software projects; and

• a $5 million increase in depreciation and amortization due to additional plant in service.

Interest Expense. The increase was primarily due to higher outstanding debt balances and interest rates.

Income Tax Expense**.** The increase in tax expense was primarily due to an increase in pretax income and a decrease in the amortization of EDIT.

LIQUIDITY AND CAPITAL RESOURCES

Sources and Uses of Cash

Duke Energy relies primarily upon cash flows from operations, debt and equity issuances and its existing cash and cash equivalents to fund its liquidity and capital requirements. Duke Energy’s capital requirements arise primarily from capital and investment expenditures, repaying long-term debt and paying dividends to shareholders. Additionally, due to its existing tax attributes and projected tax credits to be generated relating to the IRA, Duke Energy does not expect to be a significant federal cash taxpayer until around 2030. Duke Energy’s Annual Report on Form 10-K for the year ended December 31, 2023, included a summary and detailed discussion of projected primary sources and uses of cash for 2024 to 2026.

As part of the ATM program, in March 2024, Duke Energy executed an equity forward sales agreement. Settlement of the forward sales agreement is expected to occur during or prior to December 2024. See Note 14 to the Condensed Consolidated Financial Statements, “Stockholders’ Equity” for further details.

As of March 31, 2024, Duke Energy had $459 million of cash on hand and $5.1 billion available under its $9 billion Master Credit Facility. Duke Energy expects to have sufficient liquidity in the form of cash on hand, cash from operations and available credit capacity to support its funding needs.

As discussed in Note 12 to the Condensed Consolidated Financial Statements, "Variable Interest Entities," Duke Energy terminated and repaid CRC in March 2024 and Duke Energy Florida terminated and repaid DEFR in April 2024. As a result of these repayments, CRC and DEFR have ceased operations and no longer acquire the receivables of Duke Energy’s subsidiaries. Duke Energy Carolinas and Duke Energy Progress continue to evaluate financing opportunities and anticipate termination and repayment of the borrowing facilities of DERF and DEPR prior to their scheduled termination dates in January 2025 and April 2025, respectively.

MD&A			LIQUIDITY AND CAPITAL RESOURCES

Refer to Note 6 to the Condensed Consolidated Financial Statements, "Debt and Credit Facilities," for information regarding Duke Energy's debt issuances and maturities, and available credit facilities including the Master Credit Facility. Additionally, see Note 2 to the Condensed Consolidated Financial Statements, "Dispositions," for the timing and use of proceeds from the sale of certain Commercial Renewables assets to affiliates of Brookfield and ArcLight Capital Partners, LLC.

Cash Flow Information

The following table summarizes Duke Energy’s cash flows.

						Three Months Ended
						March 31,
(in millions)						2024						2023
Cash flows provided by (used in):
Operating activities						$	2,474					$	1,483
Investing activities						(3,342)						(3,209)
Financing activities						1,029						1,747
Net increase in cash, cash equivalents and restricted cash						161						21
Cash, cash equivalents and restricted cash at beginning of period						357						603
Cash, cash equivalents and restricted cash at end of period						$	518					$	624

OPERATING CASH FLOWS

The following table summarizes key components of Duke Energy’s operating cash flows.

						Three Months Ended
						March 31,
(in millions)						2024						2023						Variance
Net income						$	1,151					$	761					$	390
Non-cash adjustments to net income						1,586						1,556						30
Payments for asset retirement obligations						(115)						(117)						2
Working capital						(338)						(861)						523
Other assets and Other liabilities						190						144						46
Net cash provided by operating activities						$	2,474					$	1,483					$	991

The variance is primarily driven by:

• a $523 million decrease in net cash outflows from working capital accounts, primarily due to the recovery of deferred fuel costs and the timing of accruals and payments; and

• a $420 million increase in net income, after adjustment for non-cash items, primarily due to improved weather and favorable rate case impacts along with growth from riders and other margin, partially offset by higher interest expense.

INVESTING CASH FLOWS

The following table summarizes key components of Duke Energy’s investing cash flows.

						Three Months Ended
						March 31,
(in millions)						2024						2023						Variance
Capital, investment and acquisition expenditures						$	(3,215)					$	(3,152)					$	(63)
Other investing items						(127)						(57)						(70)
Net cash used in investing activities						$	(3,342)					$	(3,209)					$	(133)

The variance is primarily due to higher overall investments in the EU&I segment in the current year. Additionally, there were net proceeds of $76 million received in the prior year related to the sale of certain assets.

MD&A			LIQUIDITY AND CAPITAL RESOURCES

FINANCING CASH FLOWS

The following table summarizes key components of Duke Energy’s financing cash flows.

						Three Months Ended
						March 31,
(in millions)						2024						2023						Variance
Issuances of long-term debt, net						$	2,089					$	2,705					$	(616)
Notes payable, commercial paper and other short-term borrowings						(191)						(265)						74
Dividends paid						(806)						(815)						9
Contributions from noncontrolling interests						—						206						(206)
Other financing items						(63)						(84)						21
Net cash provided by financing activities						$	1,029					$	1,747					$	(718)

The variance was primarily due to:

• a $616 million decrease in proceeds from net issuances of long-term debt, primarily due to timing of issuances and redemptions of long-term debt; and

• a $206 million decrease in contributions from noncontrolling interests.

Partially offset by:

• a $74 million increase in net borrowings from notes payable and commercial paper.

OTHER MATTERS

Environmental Regulations

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 and result in new obligations of the Duke Energy Registrants. Refer to Note 4, "Regulatory Matters," in Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2023, for more information regarding potential plant retirements and Note 4, "Regulatory Matters," to the Condensed Consolidated Financial Statements, for further information regarding regulatory filings related to the Duke Energy Registrants.

In April 2024, the EPA issued a final rule under the Resource Conservation and Recovery Act, which significantly expands the scope of the CCR Rule by establishing regulatory requirements for inactive surface impoundments at retired generating facilities (Legacy CCR Surface Impoundments). The final rule also imposes a subset of the CCR Rule’s requirements, including groundwater monitoring, corrective action (where necessary), and in certain cases, closure, and post-closure care requirements, on previously unregulated coal ash sources at regulated facilities (CCR Management Units). CCR Management Units may include surface impoundments and landfills that closed prior to the effective date of the 2015 CCR Rule, inactive CCR landfills, and other areas where CCR is managed directly on the land at Duke Energy facilities. Duke Energy is reviewing the final rule and analyzing the potential impacts it could have on the Company, which could be material.

In April 2024, the EPA issued a final rule under section 111 of the Clean Air Act (EPA Rule 111) regulating GHG emissions from existing coal-fired and new natural gas-fired power plants, referred to as electric generating units (EGUs). EPA Rule 111 requires existing coal-fired power plants expected to operate in 2039 and beyond to reduce GHG emissions by 90% through the use of carbon capture and sequestration starting in 2032, subject to certain modifications for coal plants that retire sooner and co-fire natural gas. EPA Rule 111 also establishes GHG emissions reduction standards for new natural gas-fired EGUs, subject to carve-outs for smaller peaking units that fill gaps that cannot be met with renewables or storage. The EPA did not finalize emission guidelines for GHG emissions from existing fossil fuel-fired stationary combustion turbines and intends to address these is a future rulemaking. Duke Energy is reviewing the final rule and analyzing the potential impacts it could have on the Company, which could be material.

Cost recovery for future expenditures will be pursued through the normal ratemaking process with federal and state utility commissions, which permit recovery of necessary and prudently incurred costs associated with Duke Energy’s regulated operations. Duke Energy is evaluating potential legal challenges to the final rules.