Load Growth Outlook
Q: What's driving the revised 2% load growth outlook?
A: Duke expects 2% load growth in 2024, an acceleration from the previous 0.5% to 1%. This is underpinned by economic development projects in late-stage construction, normalization of residential usage post-COVID, and optimism among existing commercial and industrial customers. Over the long term, customer migration and strong economic development give confidence to raise the growth rate. ()

Capital Expenditure Expectations
Q: Can you elaborate on the $8 billion CapEx increase and potential upside?
A: The $8 billion increase reflects an early estimate of the Carolina IRP filing. Duke acknowledges an increase in megawatts and higher prices for certain resources. The capital plan is subject to refinement as they move through regulatory processes in the Carolinas, Indiana, and Florida, with a wealth of opportunities indicating strong growth across service territories. ()

Nuclear PTC Impact
Q: How is the nuclear PTC affecting FFO and what's the risk of IRA repeal?
A: Duke tested the transferability market with a pilot transaction in 2023, with discounts within their planning range, indicating a developing market. They are engaged with policymakers to support infrastructure needs and believe there's strong support to continue, reducing costs to customers. Even if credits are impacted, Duke aims to maintain a minimum 14% credit metric and adjust plans accordingly. ()

Dividend Payout Ratio and EPS Growth
Q: How should we think about the 5% to 7% EPS CAGR and the payout ratio?
A: Duke is confident in its 5% to 7% growth rate, backed by a solid capital plan and regulatory mechanisms. The payout ratio is expected to decline over the next five years, going below 70% in 2024. The company remains committed to growing the dividend but believes maintaining a 60% to 70% payout ratio provides financial flexibility for dividends, capital, and growth. ()

Financing and Equity Plan
Q: What's the breakdown between DRIP and ATM in the equity plan?
A: Duke's equity plan includes about $200 million per year from the Dividend Reinvestment Plan (DRIP), representing approximately 40% of the annual equity issuance. ()

Rate Base Growth and Nuclear PTC
Q: What factors are impacting the forecasted rate base reduction?
A: The rate base reflects capital offset by tax attributes. The nuclear PTCs are amortized over four years, reducing rate base. This approach allows Duke to grow while maintaining a strong balance sheet, facilitated by a constructive settlement in North Carolina. ()

Timing of Gas Plant Investments
Q: When are the gas plants in the Carolinas expected online?
A: The combined cycle plants are targeted for 2028 and 2029. Capital spend will ramp up within the five-year period, with the largest expenditure in the last couple of years of construction. ()

Load Growth Across Territories
Q: Is load growth concentrated in certain service territories?
A: The Carolinas see the largest portion of economic development prospects, but there is healthy growth across all jurisdictions. Indiana is experiencing growth in manufacturing economic development, and Florida continues strong customer migration and commercial business support. Residential growth is stronger in the Carolinas and Florida, while commercial and industrial growth is good in the Midwest and the Carolinas. ()

Financing Additional CapEx Opportunities
Q: How are you thinking about financing new CapEx opportunities?
A: Duke plans to run through capital optimization and allocation, focusing on areas delivering most customer value and best returns. They will refine capital plans in the Carolinas this year and Indiana next year, maintaining commitment to growth and a strong balance sheet. It's premature to discuss incremental equity needs per dollar of CapEx. ()

Florida Regulatory Strategy
Q: Any change in your approach to settlements in Florida?
A: There is no change in regulatory strategy. Duke has a history of engaging with intervening parties and will continue to do so in Florida. They recognize Florida as a constructive jurisdiction understanding the need for infrastructure to balance the state's growth and maintain reliability. ()

Timing of Indiana Rate Case
Q: What are your thoughts on the timing of the Indiana rate case?
A: Duke periodically evaluates capital investment and rate case cycles. While they have substantial investment in riders covering 80% of investment, a general base rate case is needed for the remaining 20%. They are assessing the right timing in relation to other initiatives in Indiana and will keep investors updated. ()

Components of 'Other' in Earnings Bridge
Q: What's driving the $0.12 'Other' in the earnings bridge?
A: The primary driver is tax optimization. In 2023, Duke had an outsized tax optimization opportunity as part of agility efforts to offset record mild weather impacts. In 2024, they expect a consistent level of tax optimization as in previous years. Approximately half of the $300 million agility efforts pursued in 2023 will be sustainable going forward. ()