Fourth Quarter 2023 Earnings Review and Business Update
Gas utilities & infrastructure
GAS UTILITIES WITH LOW
VOLUMETRIC EXPOSURE DUE TO
MOSTLY FIXED MARGINS...
14%
73%
87%
MOSTLY
FIXED
MARGINS
13%
MARGIN STABILIZING MECHANISMS
1. Purchased Gas
Adjustment
2. Uncollectible Recovery
3. Integrity Management Rider
("IMR")
All States
All States
North Carolina
4. Margin Decoupling
Fixed
Margin
Semi-fixed
Margin
Volumetric
Margin
5. Weather Normalization
...WITH EARNINGS DRIVEN BY
INVESTMENT AND STRONG
RESIDENTIAL CUSTOMER GROWTH
1.9%
1.7%
1.3%
1.2%
1.3%
~1.5% Customer Growth CAGR(1)
2019
2020
2021
2022
2023
6. Rate Stabilization Act
7. Annual Review Mechanism
8. Accelerated Main
Replacement Program Rider(2)
9. Capital Expenditure Rider
10. Pipeline Modernization
Mechanism
11. Fixed Customer Charge (3)
North Carolina
South Carolina,
Tennessee and
Kentucky
South Carolina
Tennessee
Ohio
Ohio
Kentucky
All States
(1) Piedmont CAGR: 1.9%, Midwest LDC CAGR 0.8%
(2) Accelerated Main Replacement Program Rider sunset in 2023
(3) In Ohio, the Modified Straight Fixed Variable Rate provides ~60% of margin
DUKE
ENERGY.
FOURTH QUARTER 2023 EARNINGS REVIEW AND BUSINESS UPDATE
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