Duke Energy CORP
For the period ended Sep 30, 2024. Filed Nov 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 7, 2024
DUK$127.78-1.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-06.
0001326160-24-000167
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0001326160-24-000181
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 238 previous paragraphs and 260 current paragraphs.
75 unchanged; 104 reworded; 65 added; 44 removed; 15 previous and 16 current paragraphs rearranged.
Tables are not compared: 41 previous and 43 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (65)
Current report
Operational Excellence, Safety and Reliability. The reliable and safe operation of our power generating facilities, electric distribution system and natural gas infrastructure in our communities continues to be foundational to serving our customers, our financial results, and our credibility with stakeholders. In recent months, we have responded to several unprecedented and catastrophic weather events across our service territories.
Current report
In August 2024, Hurricane Debby made landfall in Florida as a Category 1 storm, impacting the Duke Energy Florida territory as well as the Duke Energy Carolinas and Duke Energy Progress territories in North Carolina and South Carolina and causing approximately 700,000 customer outages. In late September 2024, Hurricane Helene made landfall in Florida as a Category 4 storm and subsequently impacted all of Duke Energy's service territories as the storm moved inland, with the most severe damage occurring in Florida and the Carolinas. Approximately 3.5 million customers were impacted by Hurricane Helene across Duke Energy's system, the largest number of companywide outages from a single event on our system ever reported. Then, in October 2024, Hurricane Milton made landfall in Florida as a Category 3 storm, causing severe damage across our Florida service territory as a result of high winds, rain and flooding and resulting in more than 1 million customer outages.
Current report
In such extreme circumstances, our immediate priority is, and always will be, executing the extensive storm preparation and response work to ensure the safe, timely, and efficient restoration of service to impacted customers as quickly as possible. Round-the-clock power restoration efforts continued following the historic damage inflicted by these storms with lineworkers, tree trimmers and removal experts, state department of transportation workers and countless others, working to repair and, in certain areas, completely rebuild, the critical electricity infrastructure that powers and supports the communities we serve. We've also seen the benefits of ongoing grid hardening investments, leveraging self-healing technologies and remote restoration capabilities to automate the rerouting of power, more effectively deploy resources, and reduce the frequency or duration of outages for many of our customers during severe weather events.
Current report
We will continue the important work of rebuilding our communities in the weeks and months ahead, including power infrastructure in the hardest-hit areas of our service territories. We also plan to work with our state commissions to appropriately track and recover storm costs under approved regulatory frameworks on a timely basis. We will also remain focused on balancing the bill impacts on our customers from such catastrophic events, including seeking insurance recovery and exploring the potential securitization of related costs in certain jurisdictions, as appropriate. For more information, see "Matters Impacting Future Results," "Liquidity and Capital Resources," and Notes 4 and 6 to the Condensed Consolidated Financial Statements, "Regulatory Matters" and "Debt and Credit Facilities."
Current report
Storm Cost Recovery
Current report
Beginning in the third quarter of 2024, a series of major storm events occurred that resulted in significant damage to utility infrastructure within our service territories and primarily impacted Duke Energy Carolinas', Duke Energy Progress' and Duke Energy Florida's electric utility operations. Hurricanes Debby, Helene and Milton caused widespread outages and included unprecedented damage to certain assets, including the hardest-hit areas on the western coast of Florida and certain regions in western North Carolina and upstate South Carolina. Appropriate storm cost recovery mechanisms are in place to track and recover incremental costs from such events. Funding restoration activities and, in some cases, the complete rebuild of critical infrastructure, for a series of sequential events of this magnitude has resulted in incremental financing needs until cost recovery occurs and may impact the near-term results of operations, financial position, or cash flows of the impacted registrants. For more information related to storm cost estimates, regulatory asset deferrals, and financing activities, see "Liquidity and Capital Resources" and Notes 4 and 6 to the Condensed Consolidated Financial Statements, "Regulatory Matters" and "Debt and Credit Facilities."
Current report
•System Post-Implementation Costs represents the net impact of charges related to nonrecurring customer billing adjustments as a result of implementation of a new customer system.
Current report
•Preferred Redemption Costs represents charges related to the redemption of Series B Preferred Stock.
Current report
(b)Net of $5 million tax benefit. $17 million recorded within Operating Revenues, $1 million recorded within Operations, maintenance and other and $3 million recorded within Other Income and expenses.
Current report
(c)Recorded within Preferred Redemption Costs.
Current report
(b)Net of $5 million tax benefit. $17 million recorded within Operating Revenues, $1 million recorded within Operations, maintenance and other and $3 million recorded within Other Income and expenses.
Current report
(c)Recorded within Preferred Redemption Costs.
Current report
•a $96 million increase in weather-normal retail sales volumes; and
Current report
•a $92 million decrease in storm revenues at Duke Energy Florida;
Current report
•a $51 million decrease in rider revenues primarily due to a decrease in the return of EDIT to customers at Duke Energy Carolinas;
Current report
•a $32 million decrease in retail sales due to unfavorable weather compared to prior year, including the impacts of decoupling; and
Current report
•a $47 million decrease in property and other taxes due to lower property taxes and lower franchise and gross receipts tax driven by lower revenues at Duke Energy Florida; and
Current report
Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income and the decrease in the amortization of EDIT. The ETRs for the three months ended September 30, 2024, and 2023, were 14.1% and 13.2%, respectively. The increase in the ETR is primarily due to a decrease in the amortization of EDIT.
Current report
•a $259 million increase in retail sales due to improved weather compared to prior year, including the impacts of decoupling;
Current report
•a $204 million increase in weather-normal retail sales volumes;
Current report
•a $50 million increase in rider revenues primarily for the Distribution Capital Investment Riderat Duke Energy Ohio.
Current report
•a $330 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
Current report
•a $62 million decrease in impairment of assets and other charges primarily related to the prior year North Carolina rate case impacts at Duke Energy Carolinas and Duke Energy Progress;
Current report
•a $44 million decrease in property and other taxes due to lower property taxes and lower franchise and gross receipts tax driven by lower revenues at Duke Energy Florida; and
Current report
Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income. The ETRs for the nine months ended September 30, 2024, and 2023, were 14.8% and 14.4%, respectively.
Current report
•a $4 million increase due to the North Carolina IMR; and
Current report
•a $4 million increase due to Tennessee ARM revenue.
Current report
•a $10 million increase in operations, maintenance and other primarily due to higher employee-related costs, higher operating costs for new RNG projects and higher spend for outside services.
Current report
Other Income and Expenses, net. The decrease was primarily due to the revision in the prior year related to the Atlantic Coast Pipeline (ACP) ARO closure cost.
Current report
Income Tax (Benefit) Expense. The increase in tax benefit was primarily due to a decrease in pretax income. The ETRs for the three months ended September 30, 2024, and 2023, were 35.9% and 6.3%, respectively. The increase in the ETR was primarily due to the amortization of EDIT in relation to pretax losses.
Current report
•a $21 million increase due to Tennessee ARM revenue;
Current report
•a $16 million increase due to the North Carolina IMR;
Current report
•a $16 million increase due to unregulated RNG revenue; and
Current report
•a $27 million increase in operations, maintenance and other primarily due to higher operating costs for new RNG projects, higher employee-related costs, higher IT project costs and higher spend for outside services.
Current report
Other Income and Expenses, Net. The decrease was primarily due to the revision in the prior year related to the ACP ARO closure cost and lower revenue in the current year at SustainRNG.
Current report
Income Tax Benefit. The decrease in the tax benefit was primarily due to the benefits associated with the tax efficiency efforts in the prior year. The ETRs for the three months ended September 30, 2024, and 2023, were 28.3% and 90.1%, respectively. The decrease in the ETR was primarily due to benefits associated with tax efficiency efforts in the prior year. In 2023, the Company evaluated the deductibility of certain items spanning periods 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 adjustment in the prior year of approximately $120 million.
Current report
Preferred Redemption Costs. The increase was due to the redemption of the Company’s Series B Preferred Stock.
Current report
Operating Revenues. The increase was primarily driven by favorable premiums related to captive insurance.
Current report
Other Income and Expenses, net. The variance was primarily due to higher return on investments that fund certain employee benefit obligations and higher yields on captive insurance investments.
Current report
Income Tax Benefit. The decrease in the tax benefit was primarily due to the benefits associated with tax efficiency efforts in the prior year, partially offset by an increase in pretax losses. The ETRs for the nine months ended September 30, 2024, and 2023, were 28.6% and 49.1%, respectively. The decrease in the ETR was primarily due to benefits associated with tax efficiency efforts in the prior year. In 2023, the Company evaluated the deductibility of certain items spanning periods 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 adjustment in the prior year of approximately $120 million.
Showing the first 40 of 65 passages. Open the source sections for the rest.
Removed paragraphs (44)
Previous report
•a $142 million increase in retail sales due to improved weather compared to prior year, including the impacts of decoupling;
Previous report
•a $69 million increase in weather-normal retail sales volumes;
Previous report
•a $62 million increase in rider revenues primarily due to a decrease in the return of EDIT to customers at Duke Energy Carolinas; and
Previous report
•a $71 million decrease in storm revenues at Duke Energy Florida.
Previous report
Interest Expense. The variance was primarily driven by higher outstanding debt balances and interest rates.
Previous report
•a $291 million increase in retail sales due to improved weather compared to prior year, including the impacts of decoupling;
Previous report
•a $109 million increase in weather-normal retail sales volumes;
Previous report
•a $101 million increase in rider revenues primarily due to a decrease in the return of EDIT to customers at Duke Energy Carolinas; and
Previous report
•a $35 million decrease in storm revenues at Duke Energy Florida.
Previous report
•a $187 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;
Previous report
•a $31 million increase in impairment of assets and other charges primarily related to the South Carolina rate case order at Duke Energy Carolinas.
Previous report
Interest Expense. The variance was primarily driven by higher outstanding debt balances and interest rates.
Previous report
•a $3 million increase due to Tennessee ARM revenues.
Previous report
•an $8 million increase in property and other taxes due to a higher base upon which property taxes are levied; and
Previous report
•a $7 million increase in operations, maintenance and other primarily due to higher outside services, labor and service company costs.
Previous report
Other Income and Expenses, net. The decrease was primarily due to lower production and higher labor expense at SustainRNG.
Previous report
•a $17 million increase due to Tennessee ARM revenues;
Previous report
•a $67 million decrease due to lower natural gas costs passed through to customers and lower rates of natural gas costs.
Previous report
•a $17 million increase in operations, maintenance and other primarily due to higher outside services, labor and service company costs.
Previous report
•a $67 million decrease due to lower natural gas costs passed through to customers and lower rates of natural gas costs.
Previous report
Other Income and Expenses, Net. The decrease was primarily due to lower production and higher labor expense at SustainRNG.
Previous report
Other Income and Expenses, net. The increase was primarily due to higher equity earnings from the National Methanol Company (NMC) investment.
Previous report
Income Tax Benefit. The increase in the tax benefit was primarily due an increase in pretax losses and tax levelization. The ETRs for the three months ended June 30, 2024, and 2023, were 29.3% and 23.8%, respectively. The increase in the ETR was primarily due to tax levelization and non-deductible interest on Company-owned life insurance in the prior year.
Previous report
Income Tax Benefit. The increase in the tax benefit was primarily due to an increase in pretax losses and non-deductible interest on Company-owned life insurance in the prior year. The ETRs for the six months ended June 30, 2024, and 2023, were 28.7% and 27.2%, respectively. The increase in the ETR was primarily due to non-deductible interest on Company-owned life insurance in the prior year.
Previous report
•a $188 million increase due to higher pricing from the North Carolina rate case;
Previous report
•a $146 million increase in retail sales due to improved weather compared to prior year, including the impacts of decoupling;
Previous report
•a $55 million increase in depreciation and amortization primarily due to a higher depreciable base, and higher net amortizations driven by the North Carolina rate case;
Previous report
•a $34 million increase in operation, maintenance and other primarily due to higher storm costs; and
Previous report
•a $28 million increase in impairment of assets and other charges primarily related to the South Carolina rate case order.
Previous report
•a $35 million decrease in storm revenues at Duke Energy Florida;
Previous report
•a $13 million decrease in franchise taxes revenue primarily due to decreased revenues over prior year at Duke Energy Florida; and
Previous report
•a $109 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 net amortizations driven by the North Carolina rate case at Duke Energy Progress.
Previous report
•a $17 million decrease in property and other taxes primarily due to lower property taxes and lower franchise and gross receipts tax, driven by lower revenues at Duke Energy Florida.
Previous report
•a $70 million increase due to higher pricing from the North Carolina and South Carolina rate cases; and
Previous report
•a $34 million increase in depreciation and amortization primarily due to higher net amortizations driven by the North Carolina rate case.
Previous report
•a $29 million increase due to higher pricing from the 2021 Settlement;
Previous report
•a $22 million increase in retail sales due to improved weather compared to prior year; and
Previous report
•a $75 million increase in depreciation and amortization primarily due to lower amortization of the DOE settlement regulatory liability and higher depreciable base.
Previous report
Interest Expense. The variance is primarily due to higher outstanding debt balances and interest rates.
Previous report
•a $17 million increase due to Tennessee ARM revenues;
Showing the first 40 of 44 passages. Open the source sections for the rest.
Reworded paragraphs (104)
Previous wording
Management’s Discussion and Analysis should be read in conjunction with the Condensed Consolidated Financial Statements and Notes for the six months ended June 30, 2024, and with Duke Energy’s Annual Report on Form 10-K for the year ended December 31, 2023.
Current wording
Management’s Discussion and Analysis should be read in conjunction with the Condensed Consolidated Financial Statements and Notes for the nine months ended September 30, 2024, and with Duke Energy’s Annual Report on Form 10-K for the year ended December 31, 2023.
Previous wording
Advancing Our Clean Energy Transition. During the six months ended June 30, 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.
Current wording
Advancing Our Clean Energy Transition. During the nine months ended September 30, 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.
Previous wording
Regulatory Activity. During the six months ended June 30, 2024, we continued to move our regulatory strategy forward. See Note 4 to the Condensed Consolidated Financial Statements, "Regulatory Matters," for additional information.
Current wording
Regulatory Activity. During the nine months ended September 30, 2024, we continued to move our regulatory strategy forward. See Note 4 to the Condensed Consolidated Financial Statements, "Regulatory Matters," for additional information.
Previous wording
•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, andproposed approximately $4.9 billion in incremental investments to reduce outages, expand solar generation, and increase generation unit efficiency. In July 2024, we reached a constructive comprehensive settlement with certain parties on the rate plan which, if approved by the FPSC, will allow us to continue making important investments to reduce outages, shorten response times, meet future energy demands, increase clean, solar generation and explore innovative technologies to generate cost savings for our customers.
Current wording
•Duke Energy Florida filed a three-year rate plan that will begin in January 2025, once its current base rate settlement agreement concludes at the end of 2024, andproposed approximately $4.9 billion in incremental investments to reduce outages, expand solar generation, and increase generation unit efficiency. In August 2024, the FPSC approved our constructive comprehensive settlement with certain parties, allowing us to continue making important investments to reduce outages, shorten response times, meet future energy demands, increase clean, solar generation and explore innovative technologies to generate cost savings for our customers.
Previous wording
•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.
Current wording
•Piedmont filed a general rate case with the NCUC, its first base rate case in North Carolina since 2021, reflecting 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. In September 2024, we reached a constructive comprehensive settlement with certain parties. Revised interim rates were effective November 1, 2024, subject to refund and pending NCUC approval of the settlement and a final order.
Previous wording
In April 2024, the EPA issued the 2024 CCR Rule under the Resource Conservation and Recovery Act, which significantly expands 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. Duke Energy is participating in and monitoring legal challenges to the 2024 CCR Rule.
Current wording
In April 2024, the EPA issued the 2024 CCR Rule under the Resource Conservation and Recovery Act, which significantly expands 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. Duke Energy is participating in legal challenges to the 2024 CCR Rule.
Previous wording
Cost recovery for future expenditures is anticipated and 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. The majority of spend is expected to occur over the next 10 years. For more information, see "Other Matters" and Notes 4 and 7 to the Condensed Consolidated Financial Statements, "Regulatory Matters" and "Asset Retirement Obligations."
Current wording
Cost recovery for future expenditures is anticipated and 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. The majority of spend is expected to occur over the next 10 years. For more information, see "Other Matters" and Notes 4 and 7 to the Condensed Consolidated Financial Statements, "Regulatory Matters" and "Asset Retirement Obligations."
Previous wording
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 those served by 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 and we anticipate being in line with our historical average balance of deferred fuel costs by the end of this year.
Current wording
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 those served by 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 $1.8 billion of deferred fuel costs in 2024 and we anticipate being in line with our historical average balance of deferred fuel costs by the end of this year.
Previous wording
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. Duke Energy is analyzing the potential impacts the rule could have on the Company, which could be material and may influence the timing, nature, and magnitude of future generation investments in our service territories. 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 participating in and monitoring legal challenges to the final rule. For more information, see "Other Matters."
Current wording
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. Duke Energy is analyzing the potential impacts the rule could have on the Company, which could be material and may influence the timing, nature, and magnitude of future generation investments in our service territories. 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. Duke Energy is participating in legal challenges to the final rule. For more information, see "Other Matters."
Previous wording
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.
Current wording
The Duke Energy Registrants performed their annual goodwill impairment tests as of August 31, 2024. 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 2024, the potential for 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.
Previous wording
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.
Current wording
Duke Energy continues to monitor general market conditions, including the potential for 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.
Previous wording
•Regulatory Matters primarily represents impairment charges related to Duke Energy Carolinas' South Carolina rate case order.
Current wording
•Regulatory Matters primarily represents impairment charges related to Duke Energy Carolinas' South Carolina rate case order in 2024 and the Duke Energy North Carolina rate case settlement and Duke Energy Progress' North Carolina rate case order in 2023.
Previous wording
GAAP reported EPS was $1.13 for thethree months ended June 30, 2024 compared to a GAAP reported loss per share of $(0.32) for thethree months ended June 30, 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.
Current wording
GAAP reported EPS was $1.60 for thethree months ended September 30, 2024, compared to $1.59 for thethree months ended September 30, 2023. In addition to the drivers below, GAAP reported EPS increased primarily due to higher impairments on the sale of the Commercial Renewables business in the prior year.
Previous wording
As discussed above, management also evaluates financial performance based on adjusted EPS. Duke Energy’s adjusted EPS was $2.62 for the six months ended June 30, 2024, compared to $2.10 for the six months ended June 30, 2023. The increase in adjusted EPS was primarily due to growth from rate increases and riders andimproved weather, partially offset by higher interest expense.
Current wording
As discussed above, management also evaluates financial performance based on adjusted EPS. Duke Energy’s third quarter 2024 adjusted EPS was $1.62 compared to $1.94 for the third quarter of 2023. The decrease in adjusted EPS was primarily due to a higher effective tax rate, storm costs, interest expense, and depreciation expense on a growing asset base, partially offset by growth from rate increases and riders.
Previous wording
(a)Net of $8 million tax benefit. $42 million recorded within Impairment of assets and other charges, $2 million within Operations, maintenance and other, and an $11 million reduction recorded within Interest Expense.
Current wording
(a)Net of $27 million tax benefit. $95 million recorded within Impairment of assets and other charges and $16 million recorded within Operations, maintenance and other.
Previous wording
(b)Recorded in Loss from Discontinued Operations, net of tax, and Net (Income) Loss Attributable to Noncontrolling Interests.
Current wording
(d)Recorded in Income (Loss) from Discontinued Operations, net of tax, and Net Income Attributable to Noncontrolling Interests.
Previous wording
GAAP Reported EPS was $2.57 for the six months ended June 30, 2024, compared to $0.69 for the six months ended June 30, 2023. In addition to the drivers below, GAAP reported EPS increased primarilydue to impairments on the sale of the Commercial Renewables business in the prior year.
Current wording
GAAP Reported EPS was $4.17 for the nine months ended September 30, 2024, compared to $2.27 for the nine months ended September 30, 2023. In addition to the drivers below, GAAP reported EPS increased primarilydue to higher impairments on the sale of the Commercial Renewables business in the prior year.
Previous wording
As discussed above, management also evaluates financial performance based on adjusted EPS. Duke Energy’s second quarter 2024 adjusted EPS was $1.18 compared to $0.91 for the second quarter of 2023. The increase in adjusted EPS was primarily due to growth from rate increases and riders, higher sales volumes and favorable weather, partially offset by higher interest expense and higher depreciation on a growing asset base.
Current wording
As discussed above, management also evaluates financial performance based on adjusted EPS. Duke Energy’s adjusted EPS was $4.24 for the nine months ended September 30, 2024, compared to $4.05 for the nine months ended September 30, 2023. The increase in adjusted EPS was primarily due to growth from rate increases and riders, higher sales volumes and favorable weather, partially offset by a higher effective tax rate, interest expense, and depreciation expense on a growing asset base.
Previous wording
(b)Recorded in Loss from Discontinued Operations, net of tax, and Net (Income) Loss Attributable to Noncontrolling Interests.
Current wording
(d)Recorded in Income (Loss) from Discontinued Operations, net of tax, and Net Income Attributable to Noncontrolling Interests.
Previous wording
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. The following is a detailed discussion of the variance drivers by line item.
Current wording
EU&I’s results were driven by higher revenues from rate cases across multiple jurisdictions and higher weather-normal retail sales volumes, offset by higher depreciation. The following is a detailed discussion of the variance drivers by line item.
Previous wording
•a $159 million increase due to higher pricing from jurisdictional rate cases primarily at Duke Energy Carolinas and Duke Energy Progress and the 2021 Settlement at Duke Energy Florida;
Current wording
•a $152 million increase due to higher pricing from jurisdictional rate cases primarily at Duke Energy Carolinas and Duke Energy Progress and the 2021 Settlement at Duke Energy Florida;
Previous wording
•a $150 million increase in fuel revenues primarily due to net higher fuel cost recovery in the current year;
Current wording
•a $94 million increase in fuel revenues primarily due to net higher fuel cost recovery in the current year.
Previous wording
•a $12 million decrease in weather-normal retail sales volumes.
Current wording
•a $12 million decrease in franchise tax revenue primarily due to decreased revenues over prior year at Duke Energy Florida.
Previous wording
•a $58 million increase in depreciation and amortization primarily due to higher depreciable base and higher net amortizations driven by the North Carolina rate cases at Duke Energy Carolinas and Duke Energy Progress, and lower amortization of the DOE settlement regulatory liability and higher depreciable base at Duke Energy Florida; and
Current wording
•a $143 million increase in depreciation and amortization primarily due to higher depreciable base and higher net amortizations driven by the North Carolina rate cases at Duke Energy Carolinas and Duke Energy Progress and lower amortization of the DOE settlement regulatory liability and higher depreciable base at Duke Energy Florida; and
Previous wording
•a $189 million increase in fuel used in electric generation and purchased power due to higher recovery of fuel expense at Duke Energy Carolinas and Duke Energy Progress, partially offset by lower deferred fuel amortization and lower fuel prices and volumes at Duke Energy Florida, Duke Energy Ohio and Duke Energy Indiana;
Current wording
•a $73 million increase in fuel used in electric generation and purchased power due to higher recovery of fuel expense at Duke Energy Carolinas and Duke Energy Progress, partially offset by lower deferred fuel amortization and lower fuel prices and volumes at Duke Energy Florida, Duke Energy Ohio and Duke Energy Indiana.
Previous wording
•a $37 million increase in impairments of assets and other charges primarily related to the South Carolina rate case order at Duke Energy Carolinas.
Current wording
•a $93 million decrease in impairments of assets and other charges primarily related to the prior year rate case impacts at Duke Energy Carolinas and Duke Energy Progress;
Previous wording
•a $79 million decrease in operation, maintenance and other primarily driven by lower storm amortization at Duke Energy Florida, lower storm and nuclear outage costs at Duke Energy Progress, partially offset by higher storm costs at Duke Energy Carolinas.
Current wording
•an $11 million decrease in operation, maintenance and other primarily driven by lower storm amortization at Duke Energy Florida, lower storm and nuclear outage costs at Duke Energy Progress, partially offset by higher storm costs at Duke Energy Carolinas.
Previous wording
•a $306 million increase due to higher pricing from jurisdictional rate cases primarily at Duke Energy Carolinas, Duke Energy Progress and Duke Energy Kentucky and the 2021 Settlement at Duke Energy Florida;
Current wording
•a $458 million increase due to higher pricing from jurisdictional rate cases primarily at Duke Energy Carolinas, Duke Energy Progress and Duke Energy Kentucky and the 2021 Settlement at Duke Energy Florida;
Previous wording
•a $101 million increase in fuel revenues primarily due to net higher fuel cost recovery in the current year;
Current wording
•a $195 million increase in fuel revenues primarily due to net higher fuel cost recovery in the current year;
Previous wording
•a $23 million increase in other revenues at Duke Energy Florida.
Current wording
•a $63 million increase in other revenues for customer programs at Duke Energy Florida; and
Previous wording
•a $148 million increase in fuel used in electric generation and purchased power due to higher recovery of fuel expense at Duke Energy Carolinas and Duke Energy Progress, partially offset by lower deferred fuel amortization and lower fuel prices and volumes at Duke Energy Indiana, Duke Energy Florida and Duke Energy Ohio; and
Current wording
•a $221 million increase in fuel used in electric generation and purchased power due to higher recovery of fuel expense at Duke Energy Carolinas and Duke Energy Progress, partially offset by lower deferred fuel amortization and lower fuel prices and volumes at Duke Energy Indiana, Duke Energy Florida and Duke Energy Ohio.
Previous wording
•a $32 million decrease in operation, maintenance and other primarily driven by lower storm amortization at Duke Energy Florida and lower outage work at Duke Energy Indiana, partially offset by higher storm costs at Duke Energy Carolinas.
Current wording
•a $43 million decrease in operation, maintenance and other primarily driven by lower storm amortization at Duke Energy Florida and lower outage work at Duke Energy Indiana, partially offset byhigher employee-related expenses, higher customer charge-offs and higher storm costs at Duke Energy Carolinas.
Previous wording
•a $6 million increase due to higher base rates, primarily from the Duke Energy Ohio rate case, partially offset by lower rider revenues as Duke Energy Ohio;
Current wording
•a $5 million increase due to higher base rates, primarily from the Duke Energy Ohio rate case, partially offset by lower rider revenue at Duke Energy Ohio;
Previous wording
•a $6 million increase due to unregulated Renewable Natural Gas (RNG) revenue;
Current wording
•a $4 million increase due to unregulated Renewable Natural Gas (RNG) revenue;
Previous wording
•a $13 million decrease in franchise tax revenue primarily due to decreased revenues over prior year.
Current wording
•a $13 million increase in cost of natural gas due to higher volumes and higher rates passed through to customers;
Previous wording
•a $12 million increase in depreciation and amortization due to higher depreciable base and lower CEP deferrals;
Current wording
•a $12 million increase in depreciation and amortization due to higher depreciable base; and
Previous wording
•a $26 million increase due to higher base rates, primarily from the Duke Energy Ohio rate case, partially offset by lower rider revenues as Duke Energy Ohio;
Current wording
•a $31 million increase due to higher base rates, primarily from the Duke Energy Ohio rate case, partially offset by lower rider revenue at Duke Energy Ohio;
Previous wording
•a $9 million increase due to rate stabilization mechanisms in South Carolina.
Current wording
•a $10 million increase due to rate stabilization mechanisms in South Carolina.
Previous wording
•a $66 million increase in rider revenues primarily due to the decrease in the return of EDIT to customers compared to the prior year; and
Current wording
•a $66 million decrease due to lower natural gas costs passed through to customers and lower rates, partially offset by higher volumes.
Previous wording
•a $25 million increase in depreciation and amortization due to higher depreciable base, higher depreciation for certain unregulated RNG projects and lower CEP deferrals;
Current wording
•a $37 million increase in depreciation and amortization due to higher depreciable base, higher depreciation for certain unregulated RNG projects and lower CEP deferrals;
Showing the first 40 of 104 pairs. Open the source sections for the rest.
Rearranged current paragraphs (16)
Current report — wording carried from elsewhere
Note: Total EPS may not foot due to rounding.
Current report — wording carried from elsewhere
(a)Net of $8 million tax benefit and $27 million tax benefit for the nine months ended September 30, 2024, and 2023, respectively. $42 million recorded within Impairment of assets and other charges, $2 million within Operations, maintenance and other, and an $11 million reduction recorded within Interest Expense for the nine months ended September 30, 2024. $95 million recorded within Impairment of assets and other charges and $16 million recorded within Operations, maintenance and other for the nine months ended September 30, 2023.
Current report — wording carried from elsewhere
•a $127 million decrease in storm revenues at Duke Energy Florida.
Current report — wording carried from elsewhere
•a $150 million increase due to higher pricing from the North Carolina and South Carolina rate cases at Duke Energy Progress and the 2021 Settlement at Duke Energy Florida;
Current report — wording carried from elsewhere
•a $127 million decrease in storm revenues at Duke Energy Florida; and
Current report — wording carried from elsewhere
•a $25 million decrease in franchise tax revenue primarily due to decreased revenues over prior year at Duke Energy Florida.
Current report — wording carried from elsewhere
Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income, partially offset by an increase in PTCs.
Current report — wording carried from elsewhere
•a $99 million increase in weather-normal retail sales volumes;
Current report — wording carried from elsewhere
•a $25 million decrease in franchise tax revenue primarily due to decreased revenues over prior year.
Current report — wording carried from elsewhere
•a $12 million increase in retail sales due to improved weather compared to prior year.
Current report — wording carried from elsewhere
•a $16 million increase due to improved weather compared to prior year; and
Current report — wording carried from elsewhere
•a $16 million increase in retail sales due to improved weather compared to prior year.
Current report — wording carried from elsewhere
Other Income and Expenses, net. The decrease was primarily due to lower intercompany interest income.
Current report — wording carried from elsewhere
•a $16 million increase due to North Carolina IMR;
Current report — wording carried from elsewhere
•a $16 million increase in depreciation and amortization due to higher depreciable base.
Current report — wording carried from elsewhere
•a $36 million decrease in cost of natural gas due to lower natural gas costs passed through to customers and lower rates, partially offset by higher volumes.
Rearranged previous paragraphs (15)
Previous report — wording carried elsewhere
(a)Net of $8 million tax benefit. $42 million recorded within Impairment of assets and other charges, $2 million within Operations, maintenance and other, and an $11 million reduction recorded within Interest Expense.
Previous report — wording carried elsewhere
•a $38 million increase in other revenues at Duke Energy Florida.
Previous report — wording carried elsewhere
Gains on Sales of Other Assets and Other, net. The decrease was primarily due to the sale of the Mint Street parking deck in the prior year at Duke Energy Carolinas.
Previous report — wording carried elsewhere
•a $4 million increase due to North Carolina IMR; and
Previous report — wording carried elsewhere
•a $12 million increase due to North Carolina IMR; and
Previous report — wording carried elsewhere
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX
Previous report — wording carried elsewhere
•a $31 million increase in weather-normal retail sales volumes.
Previous report — wording carried elsewhere
•a $93 million increase in retail sales due to improved weather compared to prior year, including the impacts of decoupling;
Previous report — wording carried elsewhere
•a $93 million increase in weather-normal retail sales volumes;
Previous report — wording carried elsewhere
•a $9 million increase due to improved weather compared to prior year.
Previous report — wording carried elsewhere
Interest Expense. The increase was primarily driven by higher outstanding debt balances and interest rates.
Previous report — wording carried elsewhere
•a $14 million increase in depreciation and amortization primarily due to a higher depreciable base.
Previous report — wording carried elsewhere
•a $12 million increase due to customer growth;
Previous report — wording carried elsewhere
•a $12 million increase due to North Carolina IMR; and
Previous report — wording carried elsewhere
•a $10 million increase in depreciation and amortization due to additional plant in service; and