The company entered into an agreement to sell a 19.7% indirect interest in Duke Energy Florida for $6 billion and Piedmont’s Tennessee Business for $2.48 billion. These proceeds are expected to efficiently fund the expanded 2025-2029 capital plan of $87 billion, displacing planned long-term debt and common equity issuances through 2029.

Duke Energy is progressing with plans to construct new hydrogen-capable combined cycle units, including a 1,360-MW unit in Person County, NC, and two 1x1 units (1,476 MW total) for the Cayuga CC Project in Indiana, estimated at $3.3 billion. These investments are part of the broader strategy to modernize energy infrastructure and meet future demand.

The NRC issued subsequent renewed licenses for the Oconee nuclear plant, allowing an additional 20 years of operation to 2053 and 2054, making it the first Duke Energy nuclear facility approved for 80 years of operation. An application for Robinson's license renewal, extending operations to 2050, has also been filed.

Management secured constructive rate case orders in multiple jurisdictions, including a $768 million total retail revenue increase for Duke Energy Carolinas and a $494 million total for Duke Energy Progress over three years. These approvals enable timely recovery of critical investments and operational costs.

The company successfully obtained regulatory approvals for storm cost recovery, including $1.1 billion for Duke Energy Florida and securitization of $584 million and $461 million for North Carolina storm costs for Duke Energy Carolinas and Duke Energy Progress, respectively. This demonstrates effective management of significant weather-related financial challenges.

Despite a $455 million increase in consolidated operation, maintenance, and other expenses, management maintained focus on operational excellence, handling a new summertime record for electricity usage in June 2025. The company is actively managing planning reserves and optimizing outage scheduling to meet customer commitments.

The EPA's 2024 CCR Rule significantly expands regulatory requirements for coal ash impoundments, and new EPA Rule 111 regulates GHG emissions from power plants, both of which Duke Energy is legally challenging. The proposed repeal of EPA Rule 111 in June 2025 introduces further regulatory uncertainty.

The company faces several legal proceedings, including the Mooresville Coal Ash Class Action and the Nuclear Compensation Class Action, seeking unspecified monetary damages. Additionally, the Indiana Court of Appeals reversed a prior IURC order on coal ash recovery costs, creating uncertainty regarding cost recovery.

Management continues to monitor the stability of markets for key materials and supplies, noting that new or escalating tariffs, executive orders, or legislation could disrupt the supply chain. Furthermore, general market conditions, including interest rate pressures, could impact capital plan execution and financial results.

Duke Energy continues to demonstrate strong customer acquisition, with average customer numbers increasing across all major subsidiaries for the six months ended June 30, 2025, including 2.0% for Duke Energy Carolinas and 1.7% for Piedmont. This indicates a robust and expanding customer base.

Total sales volumes increased by 1.9% for Duke Energy Carolinas, 5.7% for Duke Energy Progress, and 5.8% for Duke Energy Indiana for the six months ended June 30, 2025. This growth, particularly in residential and commercial sectors, reflects healthy demand and effective market engagement.

The company's ability to secure favorable rate case outcomes across multiple states (e.g., North Carolina, South Carolina, Florida, Indiana, Ohio, Kentucky) underscores a supportive regulatory environment. This enables the recovery of significant capital investments and operational costs, reinforcing the company's financial stability and competitive standing as a regulated utility.

Consolidated operation, maintenance, and other expenses increased by $455 million (16.86%) to $3,154 million for the six months ended June 30, 2025, compared to the prior year. This rise was primarily driven by higher storm amortization, increased costs for customer programs and services, litigation, environmental costs, and employee-related expenses.

Fuel used in electric generation and purchased power decreased by $586 million (12.84%) to $3,977 million for the six months ended June 30, 2025. This reduction was primarily due to lower fuel cost recovery and the expiration of certain contracts in the prior year, providing some offset to rising O&M and depreciation costs.

Depreciation and amortization expenses increased by $299 million (10.7%) to $3,095 million for the six months ended June 30, 2025. This increase is attributed to a higher depreciable asset base across all jurisdictions and higher depreciation rates resulting from recent rate case approvals, indicating significant ongoing capital investments.

The company is actively pursuing the construction of hydrogen-capable combined cycle natural gas units, including a 1,360-MW unit in Person County, NC, and the $3.3 billion Cayuga CC Project (1,476 MW) in Indiana. These projects highlight a commitment to advanced, cleaner generation technologies.

The NRC's approval of Oconee nuclear plant's license renewal for an additional 20 years, allowing 80 years of operation, and the pending application for Robinson's renewal, underscore the company's strategy to leverage existing reliable, carbon-free generation assets for decades to come.

Amazon's planned $10 billion investment in a high-tech cloud computing and AI innovation campus in Richmond County, NC, leverages Duke Energy's Site Readiness Program. This collaboration demonstrates the company's role in attracting significant technology-driven economic development to its service territories.

Duke Energy has an expanded $87 billion capital plan for 2025-2029, with capital expenditures for the first six months of 2025 reaching $6,428 million, up from $6,204 million YoY. The company is funding this through strategic dispositions, including a $6 billion minority interest sale in Duke Energy Florida and the $2.48 billion sale of Piedmont’s Tennessee Business, aiming to reduce reliance on new debt and equity.

The company issued $3,850 million in long-term debt during the first six months of 2025 and is utilizing an ATM offering program for up to $1.5 billion in common stock. Additionally, the Master Credit Facility capacity was increased to $10 billion and extended to March 2030, ensuring sufficient liquidity to support ongoing capital needs.

Dividends paid to common stockholders amounted to $1,610 million for the six months ended June 30, 2025, a slight increase from $1,590 million in the prior year. This consistent payout demonstrates management's commitment to returning value to shareholders while simultaneously funding significant growth initiatives.

North Carolina's HB951 and the subsequent SB266 legislation reinforce the 2050 carbon neutrality goal for electric generation, providing a clear framework for the company's clean energy transition. The company's investments in hydrogen-capable natural gas plants and nuclear license renewals align with these long-term environmental objectives.

The completion of 10 new solar generating facilities (749 MW) under Florida's Clean Energy Connection program by the end of 2024, at a cost of approximately $1.1 billion, demonstrates concrete steps in expanding renewable energy sources. This initiative contributes to the company's clean energy commitments and offers subscription-based solar access to customers.

The company is actively engaged in coal ash remediation efforts, with ongoing costs and legal challenges related to the expanded 2024 CCR Rule. While these efforts are necessary for environmental compliance, the associated litigation and potential for unrecovered costs represent a financial and operational challenge.

The company's service territories are experiencing accelerating investment opportunities and significant customer growth, evidenced by Amazon's $10 billion AI innovation campus in Richmond County, NC. This economic development is contributing to higher weather-normal retail sales volumes and overall demand for electricity.

Constructive rate case orders and legislative support, such as the South Carolina Energy Security Act (Act 41) streamlining new generation project approvals, provide a stable regulatory environment. This enables the company to recover costs for critical infrastructure investments and ensures financial predictability.

The company acknowledges that sustained economic downturns, inflation, tariffs, or fuel costs could reduce customer usage. Additionally, ongoing monitoring of global supply chains for disruptions due to external events like military conflicts or federal actions highlights persistent macroeconomic risks.