Fourth Quarter 2023 Earnings Review and Business Update
Electric utilities & infrastructure recovery mechanisms
RECOVERY MECHANISMS FOR ELECTRIC CAPEX(1)
~90% of electric segment capital investments are eligible for modern recovery mechanisms, mitigating
regulatory lag
Includes recovery through riders, rate cases with forecasted test years, and multi-year rate plans
Majority of wholesale contracts are recovered through formula rate contracts
Residential decoupling mechanisms reduce volumetric margin exposure - will account for -20% of total retail
volumes once fully implemented
Recovery
Mechanisms
Multi-year rate plan
Forecasted rate case
Grid modernization
rider
Renewables rider
Environmental rider
Residential decoupling
Traditional rate making
Traditional rate making, ~10%
NC
SC
FL
IN
OH
KY
Forecasted rate case,
~5%
Wholesale
-10%
Multi-year
rate plan
Rider
-60%
~15%
(1) Based on 2024-2028 capital plan, subject to regulatory approval; per HB 951 certain North Carolina capital investments are not eligible for multi-year rate plan including large generation investments over $500 million
DUKE
ENERGY
FOURTH QUARTER 2023 EARNINGS REVIEW AND BUSINESS UPDATE
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