Alexander Weintraub

Alexander Weintraub inquired about the CapEx outlook, the confidence in integrating incremental data center opportunities into the plan, and how customer protections are ensured without a blanket large load tariff. He also asked about the delta between the 9.6% rate base CAGR and the 5-7% EPS CAGR, and if that gap could narrow before 2028.

Answer

President and CEO Harry Sideris expressed high confidence in the 5-7% growth rate and CapEx plan, noting that signed data center ESAs are already under construction. EVP and CFO Brian Savoy added that 4.5 GW of data center load is secured under ESAs, with a pipeline of 9 GW, and that contract provisions like minimum billing and capital advances protect existing customers. Brian Savoy explained the delta between rate base and EPS CAGR is due to holding company financing and revenue acceleration from data centers ramping up in 2028, reiterating confidence in the 6-7% EPS CAGR.

Alexander Weintraub asked about the confidence in Duke Energy's increased CapEx outlook, specifically regarding data center opportunities and the certainty of signed Electric Service Agreements (ESAs) given instances of data centers pulling out of other states. He also inquired about customer protections without a blanket large load tariff. Additionally, he questioned the delta between the 9.6% rate base CAGR and the 5%-7% EPS growth rate, asking if this gap could narrow before 2028.

Answer

President and CEO Harry Sideris expressed high confidence in the CapEx plan and 5%-7% growth, noting signed ESAs are for projects already under construction. Executive Vice President and CFO Brian Savoy added that ESAs provide high confidence by risk-adjusting load forecasts to minimum billing demands, with 4.5 GW signed and a 9 GW pipeline, driving an earnings inflection point in 2028. Savoy explained the delta between rate base and EPS CAGR is due to holding company funding and equity/debt drag, but revenue acceleration from new customers in 2028 supports the top half of the EPS growth range.