DUKE ENERGY FLORIDA, LLC
For the period ended Mar 31, 2026. Filed May 5, 2026.
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.
Mar 31, 2026 · Filed May 5, 2026
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 2025-09-30; filed 2025-11-07.
0001326160-25-000192
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-05.
0001326160-26-000026
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 249 previous paragraphs and 183 current paragraphs.
49 unchanged; 59 reworded; 70 added; 129 removed; 12 previous and 5 current paragraphs rearranged.
Tables are not compared: 42 previous and 38 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 (70)
Current report
•During the first quarter, revised base rates went into effect for several of our jurisdictions including both Duke Energy Carolinas' and Duke Energy Progress' South Carolina service territories, as well as Duke Energy Kentucky's natural gas business. In March, Duke Energy Progress filed its first request under South Carolina’s electric Rate Stabilization Adjustment framework to facilitate timely cost recovery of the important grid investments we continue to make and to improve reliability across the service territory. Additionally, Duke Energy Ohio's electric business and Piedmont's South Carolina natural gas business filed new base rate applications in March and April, respectively. Our regulatory efforts will continue to focus on securing the critical investments necessary to provide customer value, delivering reliable natural gas and electric service and ensuring timely cost recovery across all of our jurisdictions.
Current report
•The FERC issued an order authorizing the proposal to combine our two electric utilities that operate in the Carolinas as consistent with the public interest. The companies also reached comprehensive settlements with intervenors in North Carolina and South Carolina resolving all issues related to the proposed combination, and received approvals from both the NCUC and the PSCSC. The targeted effective date of the combination is January 1, 2027.
Current report
Economic Development. Load growth across our service territories continues to be driven by a combination of population growth, economic development and increasing electrification, including growing demand from data centers. Data center‑related demand continues to contribute to this accelerated load growth as we expand our portfolio of data center electric service agreements, increasing contracted capacity while maintaining a disciplined approach focused on aligning incremental infrastructure investments with the customers driving the growth. These arrangements are designed to support system reliability and continued investment while helping manage cost impacts for other customers. These trends continue to support Duke Energy’s long‑term regulated capital plan while balancing reliability, customer value and growth.
Current report
Operational Excellence. The reliable and safe operation of our power generating facilities, electric transmission and distribution systems and natural gas infrastructure continues to be foundational to serving our customers, our financial results and our credibility with our communities and stakeholders. Operational excellence is especially critical to successfully navigate effective storm response and to efficiently provide the continuity of service our customers demand, regardless of weather or circumstance.
Current report
In late January, Winter Storm Fern moved across the eastern U.S., impacting all of our service territories. During the sustained subfreezing temperatures, customer energy use surged across the Carolinas and energy demand reached a new winter peak, the highest on record across our Carolinas' system. In addition to effectively managing the grid during this peak demand, we also proactively implemented storm preparation and response measures, including pre‑staging crews and equipment, coordination of mutual‑assistance resources and leveraging established restoration processes. We have previously experienced the benefit of these processes in supporting grid reliability and the achievement of timely and effective restoration for our customers during significant weather events that result in outages stemming from severe cold weather and ice.
Current report
Duke Energy Objectives and Beyond. Looking ahead to the remainder of 2026, we remain focused on providing exceptional value for our customers and on the effective execution of our strategic priorities, including the advancement of key regulatory initiatives and the planning and construction of the critical infrastructure investments our communities depend on. Through a continued emphasis on safety, reliability and disciplined capital allocation, we are well positioned to continue to support our customers and communities while creating long‑term value for our shareholders.
Current report
•Legal and Regulatory Settlements represent the impact of charges related to legal settlements as well as regulatory matters related to the establishment of a regulatory liability associated with an energy efficiency program at Duke Energy Carolinas and Duke Energy Progress.
Current report
•Asset Sales represent the impact of gains on sale of assets related to Piedmont's Tennessee business and certain renewable natural gas investments.
Current report
Discontinued Operations represents the resolution of an outstanding liability related to the Commercial Renewables Disposal Groups.
Current report
(b) Net of $196 million tax expense which includes the impact of nondeductible goodwill related to the sale of Piedmont's Tennessee business. $374 million recorded within Gains on Sales of Other Assets and Other, net and $7 million recorded within Property and other taxes.
Current report
(c) Recorded in Income from Discontinued Operations, net of tax.
Current report
•a $37 million increase in retail sales due to improved weather compared to the prior year;
Current report
•a $35 million increase in wholesale revenues, net of fuel, due to higher capacity volumes and rates;
Current report
•an $18 million increase in other revenues primarily due to higher transmission revenues at Duke Energy Florida, Duke Energy Carolinas and Duke Energy Progress, partially offset by Duke Energy Ohio; and
Current report
•a $17 million increase in storm recovery revenues at Duke Energy Florida.
Current report
•a $321 million increase in fuel used in electric generation and purchased power primarily due tohigher natural gas prices and higher purchased power costs, partially offset bylower fuel cost recovery;
Current report
•a $285 million increase in operation, maintenance and other primarily due to a legal settlement and higher storm costs in the current year at Duke Energy Carolinas and Duke Energy Progress;
Current report
Interest Expense. The increase was primarily due to higher outstanding debt balances, as well asa higher prior year return on deferred storm costs anda higher return on the deferred nuclear PTC liabilityat Duke Energy Carolinas.
Current report
GU&I’s results were primarily driven by the gain on sale of Piedmont's Tennessee business and customer growth in the Carolinas. The following is a detailed discussion of the variance drivers by line item.
Current report
•a $151 million increase in cost of natural gas revenues primarily due to higher commodity prices;
Current report
•a $17 million increase due to customer growth in North Carolina and South Carolina and the North Carolina Integrity Management Rider (IMR); and
Current report
•a $12 million increase primarily due to higher pricing from the 2025 Duke Energy Kentucky natural gas rate case.
Current report
•a $10 million increase in operations, maintenance and other primarily due to higher environmental reserves; and
Current report
•a $10 million increase in property and other taxes due to higher franchise taxes.
Current report
Gains on Sales of Other Assets and Other, net. The increase was primarily due to the sale of Piedmont's Tennessee business, net of allocated goodwill.
Current report
Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income and non-deductible goodwill associated with the sale of Piedmont's Tennessee business. The ETRs for the three months ended March 31, 2026, and 2025, were 35.6% and 20.7%, respectively. The increase in the ETR was primarily due to non-deductible goodwill associated with the sale of Piedmont's Tennessee business.
Current report
Operating Expenses. The decrease was primarily due to lower contributions to the Duke Energy Foundation and lower loss experience related to captive insurance claims.
Current report
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX
Current report
The increase was primarily due to the resolution of an outstanding liability related to the Commercial Renewables Disposal Groups.
Current report
•a $160 million increase in fuel revenues due to higher fuel rates and JDA sales;
Current report
•a $46 million increase due to higher pricing from the impacts of new rates implemented for the North Carolina MYRP and the 2025 South Carolina rate case;
Current report
•a $28 million increase in weather-normal retail sales volumes; and
Current report
•a $129 million increase in operation, maintenance and other primarily due toincreased costs related to a legal settlement and higher storm costs in the current year associated with Winter Storm Fern;
Current report
Interest Expense. The increase was primarily due to higher outstanding debt balances, a higher prior year return on deferred storm costs and a higher return on the deferred nuclear PTC liability.
Current report
Income Tax Expense. The decrease in tax expense was primarily due to an increase in the amortization of nuclear PTCs and a decrease in pretax income, partially offset by a decrease in the amortization of EDIT.
Current report
•a $233 million increase in fuel revenues primarily due to higher fuel rates and JDA sales at Duke Energy Progress and fuel volumes and billing rates at Duke Energy Florida;
Current report
•a $28 million increase in retail sales due to improved weather compared to the prior year;
Current report
•a $17 million increase in storm recovery revenues at Duke Energy Florida;
Current report
•a $16 million increase in other revenues due to higher transmission revenues; and
Current report
•a $16 million increase in wholesale revenues, net of fuel, due to higher capacity volumes and rates at Duke Energy Progress.
Showing the first 40 of 70 passages. Open the source sections for the rest.
Removed paragraphs (129)
Previous report
Acting on Investment Opportunities. We operate in some of the most attractive jurisdictions in the country and the affordable, reliable power we provide continues to play a key role in bringing business and job growth to our region. Our service territories continue to experience accelerating investment opportunities driven by a deepening economic development pipeline and significant customer growth. To efficiently fund this growth and the related capital required in the coming years, we entered into two strategic transactions in the third quarter of 2025.
Previous report
In August 2025, we entered into an investment agreement to receive $6 billion in exchange for a 19.7% indirect investment in Duke Energy Florida. Subject to regulatory approvals, the transaction is expected to be completed through a series of closings starting in 2026 through mid-2028. In July 2025, we announced the sale of Piedmont’s Tennessee business to Spire Inc. for $2.48 billion. Subject to regulatory approvals, we expect to complete the Piedmont transaction on March 31, 2026. Proceeds from both transactions will support Duke Energy’s expanded capital plan and replaces certain originally planned long-term debt and common equity issuances through 2029.
Previous report
•In January 2025, Piedmont and Duke Energy Indiana received constructive orders on their general rate cases from the NCUC and IURC, respectively. New rates were effective in November 2024 for Piedmont and late February 2025 for Duke Energy Indiana. New rates were also effective in January 2025 for Duke Energy Florida's new three-year rate plan. In June 2025, Duke Energy Progress filed a South Carolina base rate case and Duke Energy Kentucky filed a natural gas base rate case. In July 2025, Duke Energy Carolinas filed a South Carolina base rate case. In October 2025, Duke Energy Kentucky received a constructive order on its electric base rate case filed last December and Duke Energy Progress reached a comprehensive settlement in its South Carolina base rate case. Our regulatory efforts continue to focus on securing critical investments for reliable customer service while ensuring timely cost recovery across our service territories.
Previous report
•We reached key milestones to recover costs related to critical storm restoration activities from the 2024 historic storm season while also seeking to minimize customer bill impacts resulting from hurricanes Debby, Helene and Milton. In February 2025, the FPSC voted to approve Duke Energy Florida's storm cost recovery of approximately $1.1 billion over 12 months beginning in March 2025. During 2025, Duke Energy Carolinas and Duke Energy Progress reached constructive settlements in Phase 2 proceedings and financing orders have been issued by both the NCUC and PSCSC. In Septe mber 2025, we issued North Carolina storm recovery bonds and expect to securitize the related South Carolina storm costs by the end of 2025.
Previous report
•In July 2025, Duke Energy Carolinas filed its final license application with the FERC to extend the operating license for the Bad Creek Pumped Storage Hydroelectric Station. Located in South Carolina, Bad Creek is designed to produce significant amounts of energy when our customers need it most, performing a vital role on the company's system since 1991. If approved, the application would extend plant operations for an additional 50 years through 2077.
Previous report
•In August 2025, we filed applications with the NCUC, PSCSC and FERC to combine our utilities that operate in the Carolinas, by which Duke Energy Progress will merge into Duke Energy Carolinas. This proposed transaction would result in a single electric utility serving our North Carolina and South Carolina service territories. The single utility’s ability to plan, execute and operate resources more efficiently is expected to result in substantial cost savings to benefit customers by reducing the overall costs to serve. The targeted effective date is January 1, 2027, subject to regulatory approvals.
Previous report
Operational Excellence. In June 2025, as the summer's first heat wave brought triple-digit temperatures to parts of North Carolina and South Carolina, our customers set a new summertime record for electricity usage, surpassing the previous summertime record set in July 2024. We maintain our focus on operational excellence and prepare for extreme weather by identifying potential risks, effectively maintaining adequate short-term planning reserves, leveraging outage scheduling optimization and controlling planned and emergent equipment issues.
Previous report
Economic Development. In June 2025, the governor of North Carolina announced Amazon is planning to invest an estimated $10 billion to launch a new high-tech cloud computing and artificial intelligence innovation campus in Richmond County, North Carolina. The site selected for this project was included in Duke Energy's Site Readiness Program in 2019, a program that helps state, regional and local economic development partners increase the competitiveness of potential industrial land. These new data centers will be located in Duke Energy Progress' service territory and the investment is expected to be among the largest in North Carolina's history, a testament to the impactful and ongoing work of continuing to bring economic development success to the vibrant communities we proudly serve.
Previous report
Storm Cost Recovery
Previous report
From August through October 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. Regulatory filings have been made for recovery of storm costs across all jurisdictions and full recovery is expected by early 2026. For more information related to storm costs, regulatory asset deferrals and financing activities, see "Liquidity and Capital Resources" and Notes 4, 6 and 13 to the Condensed Consolidated Financial Statements, "Regulatory Matters," "Debt and Credit Facilities" and Variable Interest Entities."
Previous report
Minority Interest in Florida Progress
Previous report
In August 2025, Duke Energy, Progress Energy and Florida Progress entered into an investment agreement for Florida Progress to receive $6 billion in exchange for a 19.7% indirect investment in Duke Energy Florida. The transaction is subject to the satisfaction of certain customary conditions described in the investment agreement, including receipt of the approval of the FERC and completion of review by CFIUS, as well as approval, or a determination that the transaction does not require approval, by the NRC. The transaction is expected to be completed through a series of closings through June 30, 2028. Termination of the transaction under certain specified circumstances could require the investor to pay a $240 million termination fee to Progress Energy and result in Duke Energy seeking alternative funding sources through 2029, including additional long-term debt and common equity issuances. For additional information, see Note 2 to the Condensed Consolidated Financial Statements, “Dispositions.”
Previous report
Sale of Piedmont's Tennessee Business
Previous report
In July 2025, Piedmont entered into a purchase agreement to sell Piedmont’s Tennessee business. Completion of the transaction is subject to customary closing conditions, including approval from the TPUC and expiration or termination of the applicable waiting period under the HSR. The HSR waiting period for the transaction expired in September 2025. There is no assurance of the transaction as failure to obtain related approvals or to satisfy conditions in the purchase agreement could result in termination of the transaction. The purchase agreement contains termination rights and Spire Inc. may be required to pay a termination fee equal to 6.5% of the purchase price under certain circumstances that result in termination of the transaction. Termination of the purchase agreement could also result in Duke Energy seeking alternative funding sources for its 2025-2029 capital and investment expenditures plan, including additional long-term debt and common equity issuances. Completion of the transaction could impact the operating revenues and profitability of Piedmont, including potential recognition of a gain on sale. In the third quarter of 2025, Duke Energy and Piedmont reclassified the Piedmont Tennessee Disposal Group to assets held for sale. For additional information, see Note 2 to the Condensed Consolidated Financial Statements, “Dispositions.”
Previous report
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 capital plan execution, future financial results or the ability to execute onthe Company's vision for a smarter energy future.
Previous report
•Regulatory Matters primarily represents impairment charges related to the 2024 Duke Energy Carolinas' South Carolina rate case order.
Previous report
•System Post-Implementation Costs represents the net impact of charges related to nonrecurring customer billing adjustments as a
Previous report
result of implementation of a new customer system.
Previous report
•Preferred Redemption Costs represents charges related to the redemption of Series B Preferred Stock.
Previous report
Discontinued operations primarily represents the operating results of Duke Energy's Commercial Renewables Disposal Groups.
Previous report
(b) Recorded within Preferred Redemption Costs.
Previous report
(c) Recorded in Income (Loss) from Discontinued Operations, net of tax.
Previous report
GAAP Reported EPS was $4.81 for the nine months ended September 30, 2025, compared to $4.17 for the nine months ended September 30, 2024. In addition to the drivers below, GAAP reported EPS increased primarily due to impairments related to the 2024 South Carolina rate case in the prior year, the net impact of charges related to nonrecurring customer billing adjustments in the prior year and charges related to the redemption of Series B Preferred Stock in the prior year.
Previous report
(a)Net of $8 million tax benefit. $42 million recorded within Impairment of assets and other charges, $2 million within Operations,
Previous report
maintenance and other, and an $11 million reduction recorded within Interest Expense.
Previous 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.
Previous report
(c) Recorded within Preferred Redemption Costs.
Previous report
(d) Recorded in Income (Loss) from Discontinued Operations, net of tax.
Previous report
•a $341 million increase in operation, maintenance and other primarily driven by higher storm amortization at Duke Energy Florida, increased costs related to customer products and services programs at Duke Energy Carolinas, higher plant maintenance at Duke Energy Indiana and higher employee-related expenses across all jurisdictions, partially offset by lower storm costs in the current year at Duke Energy Progress, Duke Energy Carolinas and Duke Energy Ohio;
Previous report
•a $49 million increase in property and other taxes due to a higher base on which property taxes are levied and higher sales and use tax refunds in the prior year at Duke Energy Carolinas and Duke Energy Progress.
Previous report
•a $355 million decrease in fuel used in electric generation and purchased power primarily due tohigher recovery of fuel expense in the prior year at Duke Energy Carolinas and Duke Energy Progress and lower fuel cost recovery and lower purchased power driven by the expiration of contractsin the prior year at Duke Energy Florida, partially offset byhigher fuel costs and purchased power at Duke Energy Ohio.
Previous report
Other Income and Expense. The increase was primarily driven byhigher AFUDC equity base and rates comp ared to the prior year across all jurisdictions.
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•a $550 million increase in storm recovery revenues at Duke Energy Florida;
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•a $244 million increase in weather-normal retail sales volumes;
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•a $112 million increase in rider revenues primarily due to the SPP at Duke Energy Florida, the North Carolina Municipal Power Agency (NCEMPA) rider at Duke Energy Progress, as well as the Uncollectible Expense Riders and Distribution Capital Investment Rider and higher OVEC rider collections and OVEC sales into PJM at Duke Energy Ohio;
Previous report
•an $82 million increase in other revenues due to higher transmission revenues across all jurisdictions and higher Clean Energy Connection subscription revenues at Duke Energy Florida; and
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•a $60 million increase in retail sales due to favorable weather compared to prior year.
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•a $978 million decrease in fuel revenues primarily due to net lower rates in the current year, partially offset by higher volumes.
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•a $781 million increase in operation, maintenance and other primarily driven by higher storm amortization at Duke Energy Florida, increased litigation and environmental costs, as well as joint owner reimbur sements in the prior year at Duke Energy Carolinas, anincrease in TDSIC rider amortizations at Duke Energy Indiana, increased customer products and services program costs and higher employee-related expenses across all jurisdictions, partially offset by lower storm costs in the current year at Duke Energy Progress, Duke Energy Carolinas and Duke Energy Florida;
Previous report
•a $940 million decrease in fuel used in electric generation and purchased power primarily due to lower fuel cost recovery and lower purchased power driven by the expiration of contractsin the prior year at Duke Energy Florida and higher recovery of fuel expense in the prior year at Duke Energy Carolinas, partially offset by higher fuel costs and purchased power at Duke Energy Progress and Duke Energy Ohio; and
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Reworded paragraphs (59)
Previous 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, 2025, and with Duke Energy’s Annual Report on Form 10-K for the year ended December 31, 2024.
Current wording
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, 2026, and with Duke Energy’s Annual Report on Form 10-K for the year ended December 31, 2025.
Previous wording
Both of these transactions, along with our unwavering focus on operational excellence and value creation, demonstrate our continued ability to meet the unprecedented long-term growth anticipated across our service territories. See Note 2 to the Condensed Consolidated Financial Statements, "Dispositions," for further information.
Current wording
Executing on Strategic Transactions. Our service territories continue to experience accelerating investment opportunities driven by a deepening economic development pipeline and significant customer growth. In March, we closed on two previously announced strategic transactions to efficiently fund this growth and the related capital that will be required in the coming years. On March 3, 2026, we completed the first closing of a minority investment in Florida Progress, the holding company of Duke Energy Florida, by an affiliate of Brookfield Super-Core Infrastructure Partners. The initial investment resulted in the transfer of a 9.19% ownership interest for approximately $2.8 billion in cash proceeds, with additional staged investments anticipated through 2028. On March 31, 2026, following approval by the TPUC, we closed on the sale of Piedmont's Tennessee business with Spire, Inc., and received approximately $2.5 billion in cash proceeds. Closing on both transactions, along with our unwavering focus on operational excellence and value creation, demonstrates our continued ability to meet the unprecedented long-term growth anticipated across our service territories. See Note 2 to the Condensed Consolidated Financial Statements, "Dispositions," for further information.
Previous wording
Building a Smarter Energy Future. During the nine months ended September 30, 2025, we continued to move our regulatory strategy forward and execute on investments for building a smarter energy future while maintaining our focus on safety and operational excellence, our customers, growth of our business as well as the engagement and empowerment of our employees. These priorities enable us to provide strong, sustainable value for our employees, customers, communities and shareholders.
Current wording
Constructive Regulatory and Legislative Outcomes. During the three months ended March 31, 2026, we continued to move our regulatory strategy forward and execute on investments for building a smarter energy future while maintaining our focus on safety and operational excellence, our customers, growth of our business as well as the engagement and empowerment of our employees. These priorities enable us to provide strong, sustainable value for our customers, communities, employees and shareholders.
Previous wording
•In October 2025, Duke Energy Progress received an order from the NCUC granting the CPCN for the second CC unit in Person County and Duke Energy Indiana received an order from the IURC granting the CPCN for the Cayuga CC project. Also in October 2025, Duke Energy Carolinas filed for a CECPCN with the PSCSC for a new CC unit in Anderson County, South Carolina. These advanced natural gas plants, along with our planned CTs, will provide critical generation as we continue to modernize our energy infrastructure in the coming years.
Current wording
•Duke Energy Carolinas received CECPCN approval from the PSCSC for a new CC unit in Anderson County, South Carolina. This advanced natural gas plant, along with our planned CTs and other CCs, will provide critical generation as we continue to modernize our energy infrastructure in the coming years. The PSCSC also accepted our latest Carolinas systemwide resource plan in April.
Previous wording
•Our nuclear sites continue to positively impact the customers we serve by safely producing clean, reliable and low-cost electricity, as well as providing economic benefits for our local communities that includes thousands of well-paying jobs and significant tax benefits. During 2025, we continue to sell nuclear PTCs to further reduce the cost of electricity for our customers. Additionally, in March 2025, the NRC issued a subsequent license renewal for Oconee that allows an additional 20 years of operation through 2054. Oconee is the first Duke Energy nuclear facility to reach this significant approval milestone to permit extension of its operations to 80 years. In April 2025, we submitted an application to the NRC for Robinson to extend the plant's operations an additional 20 years through 2050.
Current wording
•Our nuclear sites continue to serve customers by safely producing clean, reliable and low-cost electricity, as well as providing economic benefits for our local communities, such as thousands of well-paying jobs and significant tax benefits. In February, we announced that our nuclear fleet achieved a new all-time reliability record for systemwide capacity factor. In April, the NRC issued a subsequent license renewal for Robinson, which provides for a 20-year extension of nuclear operations at the plant through 2050. Also in April, we executed a multi-year agreement to sell up to $3.1 billion of net tax credits with expected proceeds through 2029, including nuclear PTCs, in continued support of providing low-cost electricity to our customers.
Previous wording
See Notes 4 and 17 to the Condensed Consolidated Financial Statements, "Regulatory Matters" and "Income Taxes," for additional information.
Current wording
See Notes 4 and 16 to the Condensed Consolidated Financial Statements, "Regulatory Matters" and "Income Taxes," along with "Other Matters," for additional information.
Previous wording
The matters discussed herein could materially impact the future operating results, financial condition and cash flows of the Duke Energy Registrants and Business Segments.
Current wording
The matters discussed herein could materially impact the future operating results, financial condition and cash flows of the Duke Energy Registrants.
Previous wording
In April 2024, the EPA issued the 2024 CCR Rule, 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.
Current wording
In April 2024, the EPA issued the 2024 CCR Rule, 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. Additionally, in April 2026, the EPA proposed to rescind or modify certain aspects of the 2015 CCR Rule, as amended by the 2024 CCR Rule. Duke Energy is reviewing the proposed rule and analyzing the potential impacts it could have on the Company, which could be material.
Previous wording
In April 2024, the EPA issued final rules 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 rules 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 rules. In June 2025, the EPA proposed to repeal EPA Rule 111 as well as an alternative proposal for a narrower set of requirements. For more information, see "Other Matters."
Current wording
In April 2024, the EPA issued final rules 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. Compliance with EPA Rule 111 as issued would have a material impact on 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 rules. In June 2025, the EPA published a proposed rule to repeal EPA Rule 111 as well as an alternative proposal to repeal a narrower set of requirements. For more information, see "Other Matters."
Previous wording
The Company continues to monitor the ongoing stability of markets for key materials and supplies, including potential restrictions on the trade of certain rare earth materials and technologies used in electric utility infrastructure. Public policy outcomes, including potential impacts from new or escalating tariffs or other actions from federal executive orders, federal legislation or other rulemakings, could disrupt or impact Duke Energy's supply chain, future financial results, capital plan execution or the ability to execute on the Company's vision for a smarter energy future.
Current wording
The Company continues to monitor the ongoing stability of markets for key materials and supplies, including potential impacts on prices or availability of goods resulting from global conflicts and war or restrictions on the trade of certain rare earth materials and technologies used in electric utility infrastructure. While recent judicial rulings invalidated the authority of the U.S. executive branch to impose certain tariffs, certain ongoing public policy outcomes, including impacts from new or revised tariffs or other actions from federal executive orders, federal legislation or other rulemakings, could disrupt or impact Duke Energy's supply chain, future financial results, capital plan or execution on the Company's energy modernization strategy.
Previous wording
The Duke Energy Registrants performed their annual goodwill impairment tests as of August 31, 2025. 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 have been recorded in the accompanying Condensed Consolidated Statements of Operations, 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.
Current wording
The Duke Energy Registrants performed their annual goodwill impairment tests as of August 31, 2025. As of that 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. No goodwill impairment charges were recorded in the accompanying Condensed Consolidated Statements of Operations. However, deteriorating economic conditions that adversely affect GU&I's future cash flows or peer company equity valuations could reduce the estimated fair value of GU&I below its carrying amount, potentially resulting in goodwill impairment charges in future periods.
Previous wording
GAAP reported EPS was $1.81 for the three months ended September 30, 2025, compared to $1.60 for the three months ended September 30, 2024. In addition to the drivers below, GAAP reported EPS increased primarily due to the net impact of charges related to nonrecurring customer billing adjustments in the prior year and charges related to the redemption of Series B Preferred Stock in the prior year.
Current wording
GAAP reported EPS was $1.97 for the three months ended March 31, 2026, compared to $1.76 for the three months ended March 31, 2025. In addition to the drivers below, GAAP reported EPS increased primarily due to the gain on sale of Piedmont's Tennessee business, partially offset by charges related to legal and regulatory settlements.
Previous wording
As discussed above, management also evaluates financial performance based on adjusted EPS. Duke Energy’s adjusted EPS was $1.81 for the three months ended September 30, 2025, compared to $1.62 for the three months ended September 30, 2024. The increase in adjusted EPS was primarily due to the implementation of new rates and riders, along with higher sales volumes, partially offset by higher interest expense, milder weather, and higher depreciation and property taxes 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 $1.93 for the three months ended March 31, 2026, compared to $1.76 for the three months ended March 31, 2025. The increase in adjusted EPS was primarily due to the recovery of infrastructure investments to reliably serve customers in our growing jurisdictions, along with improved weather, partially offset by higher operation and maintenance expense, including storm costs, as well as higher depreciation on a growing asset base.
Previous wording
(a)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 wording
(a)Net of $47 million tax benefit. $172 million recorded within Operations, maintenance and other and $25 million recorded within Operating Revenues.
Previous wording
EU&I’s results were driven by higher revenues from rate cases across multiple jurisdictions and higher weather-normal retail sales volumes, partially offset by higher operation and maintenance and depreciation expenses. The following is a detailed discussion of the variance drivers by line item.
Current wording
EU&I’s results were primarily driven by higher revenues from rate cases across multiple jurisdictions, improved weather and higher weather-normal retail sales volumes, partially offset by higher operation and maintenance and depreciation expenses. The following is a detailed discussion of the variance drivers by line item.
Previous wording
•a $329 million decrease in fuel revenues primarily due to net lower rates in the current year.
Current wording
•a $286 million increase in fuel revenues primarily due to net higher fuel rates in the current year;
Previous wording
•a $238 million increase due to higher pricing from jurisdictional rate cases primarily at Duke Energy Carolinas, Duke Energy Indiana, Duke Energy Florida and Duke Energy Progress;
Current wording
•a $202 million increase due to higher pricing from jurisdictional rate cases primarily at Duke Energy Indiana, Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida;
Previous wording
•a $34 million increase in operations, maintenance and other primarily due to higher customer IT system costs, employee-related expenses and Tennessee divestitures fees; and
Current wording
•a $34 million increase in weather-normal retail sales volumes;
Previous wording
•a $96 million increase in depreciation and amortization primarily due to higher depreciable base across all jurisdictions and higher depreciation rates driven by rate cases; and
Current wording
•a $164 million increase in depreciation and amortization primarily due to higher depreciable base across all jurisdictions and higher depreciation rates driven by rate cases; and
Previous wording
•a $110 million increase in property and other taxes due to a higher base on which property taxes are levied.
Current wording
•a $15 million increase in property and other taxes due to a higher base on which property taxes are levied at Duke Energy Florida.
Previous wording
Income Tax (Benefit) Expense. The decrease in the tax benefit was primarily due to a decrease in pretax losses and the amortization of EDIT. The ETRs for the three months ended September 30, 2025, and 2024, were 27.8% and 35.9%, respectively. The decrease in the ETR was primarily due to AFUDC equity and the amortization of EDIT in relation to pretax losses.
Current wording
Income Tax Expense. The decrease in tax expense was primarily due to an increase in the amortization of nuclear PTCs and a decrease in pretax income, partially offset by a decrease in the amortization of EDIT. The ETRs for the three months ended March 31, 2026, and 2025, were 9.0% and 12.7%, respectively. The decrease in the ETR was primarily due to an increase in the amortization of nuclear PTCs, partially offset by a decrease in the amortization of EDIT.
Previous wording
•a $214 million increase in the cost of natural gas primarily due to higher commodity prices;
Current wording
•a $151 million increase in the cost of natural gas primarily due to higher commodity prices;
Previous wording
Other's results were primarily driven by lower interest income, higher interest expense and lower equity earnings from the NMC investment, partially offset by impacts from the redemption of the Company’s Series B Preferred Stock in the prior year.
Current wording
Other's results were primarily driven by higher interest expense and lower equity earnings from the NMC investment, partially offset by lower contributions to the Duke Energy Foundation and lower loss experience related to captive insurance claims.
Previous wording
Other Income and Expenses, net. The decrease was primarily driven by lower money pool interest income.
Current wording
Other Income and Expenses, net. The decrease was primarily driven by lower equity earnings from the NMC investment.
Previous wording
Interest Expense. The increase was primarily driven by higher outstanding debt balances, current year return on deferred nuclear PTC liability, absence of prior year return on deferred South Carolina grid costs, partially offset by lower intercompany interest expense andcurrent year return on deferred storm costs at Duke Energy Carolinas and Duke Energy Progress.
Current wording
Interest Expense. The increase was primarily due to higher outstanding debt balances.
Previous wording
•a $12 million increase in operations, maintenance and other primarily due to higher customer information technology (IT) system costs.
Current wording
•a $12 million increase in retail sales due to improved weather compared to the prior year.
Previous wording
•a $451 million decrease in fuel used in electric generation and purchased power primarily due to the increased recovery of fuel cost in the prior year, partially offset by higher purchased power costs, including JDA, natural gas prices and volumes; and
Current wording
•a $128 million increase in fuel used in electric generation and purchased power primarily due to higher purchased power costs, including JDA, and natural gas prices, partially offset by lower fuel cost recovery and the prior year retirement of renewable energy credits; and
Previous wording
•a $94 million increase in weather-normal retail sales volumes; and
Current wording
•a $94 million increase in depreciation and amortization primarily due to the prior year retirement of renewable energy credits, higher depreciable base and the impact of new rates implemented for the North Carolina MYRP.
Previous wording
•a $253 million increase due to higher pricing from the 2024 Duke Energy Florida rate case and Duke Energy Progress Year 2 of the North Carolina MYRP;
Current wording
•a $73 million increase due to higher pricing from the new rates implemented for the North Carolina MYRP and the 2025 South Carolina rate case at Duke Energy Progress and Year 2 of the 2024 Duke Energy Florida rate case;
Previous wording
•a $90 million increase in rider revenues primarily due to higher rates for the SPP at Duke Energy Florida and NCEMPA rider at Duke Energy Progress;
Current wording
•a $20 million increase in rider revenues primarily due to higher rates for the SPP at Duke Energy Florida;
Previous wording
•a $115 million increase in depreciation and amortization due to higher depreciable base at Duke Energy Florida and Duke Energy Progress and Year 2 of the North Carolina MYRP at Duke Energy Progress; and
Current wording
•a $51 million increase in depreciation and amortization due to higher depreciable base at Duke Energy Florida and Duke Energy Progress and the impacts of new rates implemented for the North Carolina MYRP at Duke Energy Progress.
Previous wording
•a $15 million increase due to transmission revenues from higher network demand and rates.
Current wording
•a $15 million increase in retail sales due to improved weather compared to the prior year; and
Previous wording
•a $23 million increase in operation, maintenance and other primarily due to increased costs related to customer products and services and higher employee-related expenses, partially offset by lower storm costs in the current year.
Current wording
•a $110 million increase in operation, maintenance and other primarily due to increased costs related to a legal settlement and higher storm costs in the current year associated with Winter Storm Fern; and
Previous wording
•a $29 million increase in retail sales due to improved weather compared to prior year; and
Current wording
•a $29 million increase in depreciation and amortization primarily due to higher depreciable base and the impacts of new rates implemented for the North Carolina MYRP.
Previous wording
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 nuclear PTCs, investment tax credits and EDIT. The ETRs for the three months ended September 30, 2025, and 2024, were 13.5% and 14.1%, respectively.
Current wording
Income Tax Expense. The decrease in tax expense was primarily due to an increase in the amortization of nuclear PTCs.
Previous wording
•a $159 million increase due to higher pricing from the 2024 Florida rate case;
Current wording
•a $29 million increase due to higher pricing from Year 2 of the 2024 Florida rate case;
Previous wording
•a $46 million increase in other revenues due to higher transmission revenues primarily from higher demand and rates and Clean Energy Connection subscription revenues; and
Current wording
•a $27 million increase in other revenues due to higher transmission revenues primarily from higher demand and rates;
Previous wording
•a $64 million increase in rider revenues primarily due to higher rates for the SPP;
Current wording
•a $20 million increase in rider revenues primarily due to higher rates for the SPP;
Previous wording
•a $455 million decrease in fuel used in electric generation and purchased power primarily due to lower fuel cost recovery and lower purchased power costs driven by the expiration of contracts in the prior year, partially offset by higher fuel costs driven by higher natural gas prices.
Current wording
•a $67 million increase in fuel used in electric generation and purchased power primarily due to higher fuel costs driven by higher natural gas and coal prices and higher purchased power costs, partially offset by lower fuel cost recovery;
Previous wording
•a $38 million increase in weather-normal retail sales volumes; and
Current wording
•a $38 million increase in operation, maintenance, and other primarily due to higher storm amortization and environmental reserves;
Showing the first 40 of 59 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Interest Expense. The increase was primarily due to higher outstanding debt balances and interest rates at Duke Energy Florida.
Current report — wording carried from elsewhere
•a $13 million increase in retail sales due to improved weather compared to the prior year.
Current report — wording carried from elsewhere
Income Tax Expense. The increase in tax expense was primarily due to an increase in pretax income.
Current report — wording carried from elsewhere
On February 5, 2025, the EPA requested the Court to withhold issuing an opinion and place the case in a 60-day abeyance to allow time for new EPA leadership to review the issues and EPA Rule 111 to determine how they wish to proceed. On February 19, 2025, the Court granted EPA’s request. On April 21, 2025, the EPA filed a motion with the Court requesting a continuing abeyance while it conducts a new notice-and-comment rulemaking to reconsider the challenged EPA Rule 111. As part of this request, the EPA indicated it intended to issue a final rule by December 2025. On April 25, 2025, the Court granted the EPA’s motion and ordered that the litigation continue to remain in abeyance pending further order of the Court.
Current report — wording carried from elsewhere
On June 17, 2025, the EPA published a proposed rule to repeal EPA Rule 111 based on a finding that fossil fuel-fired power plants “do not contribute significantly to dangerous air pollution” under the meaning of section 111 of the Clean Air Act. The EPA also published an alternative proposal to repeal a narrower set of requirements leaving in place only GHG emission standards for new and reconstructed stationary combustion turbine electric generating units. Comments on the proposed rule were due by August 7, 2025. The Duke Energy Registrants will continue to monitor the rule as issued and actions of the court and will evaluate the impacts of any final rule or EPA actions once available.
Rearranged previous paragraphs (12)
Previous report — wording carried elsewhere
As discussed above, management also evaluates financial performance based on adjusted EPS. Duke Energy’s adjusted EPS was $4.81 for the nine months ended September 30, 2025, compared to $4.24 for the nine months ended September 30, 2024. The increase in adjusted EPS was primarily due to the implementation of new rates and riders, along with higher retail sales volumes, partially offset by higher interest expense, operation and maintenance expense, and depreciation and property taxes on a growing asset base.
Previous report — wording carried elsewhere
The following table reconciles non-GAAP measures, including adjusted EPS, to their most directly comparable GAAP measures.
Previous report — wording carried elsewhere
Note: Total EPS may not foot due to rounding.
Previous report — wording carried elsewhere
•a $286 million increase in storm recovery revenues at Duke Energy Florida;
Previous report — wording carried elsewhere
EU&I’s results were driven by higher revenues from rate cases across multiple jurisdictions, higher weather-normal retail sales volumes and higher transmission revenues, partially offset by higher operation and maintenance and depreciation expenses. The following is a detailed discussion of the variance drivers by line item.
Previous report — wording carried elsewhere
•a $735 million increase due to higher pricing from jurisdictional rate cases primarily at Duke Energy Carolinas, Duke Energy Indiana, Duke Energy Florida and Duke Energy Progress;
Previous report — wording carried elsewhere
•a $361 million increase in depreciation and amortization primarily due to higher depreciable base across all jurisdictions and higher depreciation rates driven by rate cases; and
Previous report — wording carried elsewhere
•a $54 million increase in property and other taxes primarily due to higher base upon which property taxes are levied at Duke Energy Florida and Duke Energy Progress.
Previous report — wording carried elsewhere
•a $94 million increase due to higher pricing from Year 2 of the North Carolina MYRP;
Previous report — wording carried elsewhere
•a $23 million increase in weather-normal retail sales volumes.
Previous report — wording carried elsewhere
•a $20 million increase in weather-normal retail sales volumes; and
Previous report — wording carried elsewhere
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.