Duke Energy Corporation (holding Company) · NYSE:DUK

Duke Energy Corporation (holding Company) — Corporate Update (July 2023)

72 slides from Duke Energy Corporation (holding Company)'s corporate update, Jul 12, 2023

1. Slide 1: Duke Energy Carolinas Collaborative Meeting

   Duke Energy Carolinas Collaborative Meeting July 12, 2023

2. Slide 2: Safety

   Safety National Safety Council - Vehicle Theft Prevention Month (Link) A motor vehicle was stolen every 32 seconds in the When parking, choose a spot that's bright, Away from danger, day or night. United States in 2022. Turn off your engine, step out with care, Use common sense when parking and exit

3. Slide 3: Agenda

   Agenda  Introductions and Safety Minute  Review 2023 Priorities  Regulatory Update  NEB Study Next Steps  Recovery filings  Power Pair / Battery DR  Mechanism Review  Building Energy Code Study with SEEA  Federal funding  High Energy Use Pilot  Programs filed –  Tariff On-bill Pilot for

4. Slide 4: Regulatory Update

   Regulatory Update North Carolina South Carolina  DEP Filing - E-2 sub 1322  DEP Filing – 2023-213-E  Filed June 15  Filed July 1  Hearing in September if necessary  Comments due October 15  Mechanism Docket  Filed April 30  Addressing limited issues requested by the NCUC Program filings: 

5. Slide 5: Income Qualified Demand Response + Energy Efficiency

   Income Qualified To expand the Duke Energy Demand Response portfolio in the Carolinas to reach Demand Response income qualified customers by providing smart thermostats and installation at no cost + Energy Efficiency as an added incentive to enroll through Income Qualified Energy Efficiency Programs

6. Slide 6: Goals for Income Qualified Customers

   Income Qualified Demand Response 4 Goals for Income Qualified Customers + Energy Efficiency Access to Smart Thermostat & Lower Electricity Bill Driving Internet Connectivity  $75 bill credit upon installation  Smart home automation often starts with smart  $25 bill credit on each anniversary of e

7. Slide 7: Income Qualified Demand Response New Program

   Income Qualified Demand Response New Program + Energy Efficiency YES Option 1 Thermostat Demand Response HVAC NES Team will partner with Power Manager/EnergyWise Home to offer Demand Response products with NES measures using the NES Customer applies for Model for Income Verification. Has home NO Aff

8. Slide 8: New DEC PowerShare Mandatory Plus Option

   New DEC PowerShare Mandatory Plus Option • Introducing a new option that provides system operators access to a firm non-emergency resource that… • Allows up to 100 hours of economic dispatch per calendar year with day-ahead notification (by 2pm) • Pays a recurring incremental monthly incentive and i

9. Slide 9: DEC Wx Incentive Changes for HVAC & REFRPL

   DEC Wx Incentive Changes for HVAC & REFRPL Current Incentives Future Incentives Tier I $600 maximum Tier I $600 maximum (no change) Tier II $4,000 maximum Tier II $4,000 maximum (no change) REFRPL $1,080 maximum REFRPL $1,000 maximum HVAC Replacement $6,000 maximum HVAC Replacement $6,500 maximum

10. Slide 10: Multifamily Program Updates

    Measure DEC UCT DEP UCT Water Heater Wrap 2.52 2.71 Hot Water Heater Turndown 2.74 2.90 4ft T8 Lamp 1.85 1.99 Weatherstripping-Door 1.83 1.87 Weatherstripping-Window 1.46 1.52 Caulking-Door 1.58 1.65 Caulking-Window 1.26 1.36 Furnace Filter Whistle 3.82 4.04 *Preliminary Results • Loss of lighting h

11. Slide 11: Home Energy House Call Program Enhancements

    Home Energy House Call Program Enhancements Duke Energy proposes to expand successful Home Energy House Call program to serve DEC and DEP customers not previously served residing in condos, townhomes, manufactured/mobile homes, and renters of single-family homes. In Q1 2024, these customers will be

12. Slide 12: 2023 Priorities

    2023 Priorities  Income-qualified programming and LIAC recommendations  Multifamily pilot program Keep these priorities in mind as  Low-income carve out in market rate programs we address each of the agenda  Mechanism review items today  Determine appropriate use of NEB  Developing guidelines

13. Slide 13: NEB Next Steps

    NEB Next Steps = DUKE we

14. Slide 14: NEB Study Approach was Conservative

    NEB Study Approach was Conservative  Tight budget, scope limited to secondary sources  Effects ID’dbeyond scope of study (time & budget); e.g., omitted economic / jobs impacts)  Hierarchy of developing estimates did not always find strong estimates that could be well-adapted for Carolinas; omitte

15. Slide 15: NEB Results to Consider

    NEB Results to Consider Key Results: Highest multipliers in each column highlighted •Columns are the NEB values (returns) on expenditures and the returns over energy savings –for TRC and ALL NEBs (incl. societal) Highest NEB values per dollar spent: •MFDI & SS •MyHERwhen adding societal NEBs Highest

16. Slide 16: Key Results

    Estimated Multiplicative “Adders” Key Results •Measured NEBs can justify substantially higher multipliers than those currently used in states. •Higher for programs with water, HVAC measures •Adder for Low income ~14% higher just for utility financial effects. •Measured NEBs are included in TRMs in s

17. Slide 17: NEB Incorporation Strategies

    NEB Incorporation Strategies Multiple uses –recommendations from estimated valuesUse rankings of specific NEBsmarketing End-use results can be used to optimize program measure mix Use $ and % program refinements, ROI, incentive levels Use $ and % program C/E calculations –using only the RELE

18. Slide 18: Power Pair/ Battery Demand Response

    Power Pair/ Battery Demand Response

19. Slide 19: PowerPair and Battery Control Program

    PowerPairSM and Battery Control Program July 29, 2023

20. Slide 20: Filing Strategy

    Filing Strategy Power Manager & EnergyWise Home Battery PowerPairSM Control • Pilot; Filed under REPS in NC DEP & DEC • Program (Battery Control Events); Filed under DSM/EE in NC DEP & DEC • Available to homeowners who install and operate new solar panel and battery storage systems • Modification of

21. Slide 21: Power Manager & EnergyWise Home Battery Control

    Power Manager & EnergyWise Home Battery Control Program Description Program Components A residential program (NC DEP & DEC) designed to $6.50/kW-DC continuous discharge Incentives adjusted by battery capability factor, offer customers ongoing incentive payments in paid as offset to monthly electrici

22. Slide 22: Battery Control Program Details

    Battery Control Program Details  Participation  Battery System Parameters • PowerPairSM /REPS filing Net Metering Bridge Rider • Must allow for remote communication and control by participants and customers with non-new home battery Duke Energy or third party acting on Duke Energy’s behalf storage

23. Slide 23: Customer Value – PowerPair with Battery Control Program

    Customer Value – PowerPairSM with Battery Control Program  Installs 10kW solar PV system + 13.5kWh/7.5kW battery storage  Installation Incentive: • Solar: 10kW*$0.36/W = $3,600 • Battery: 13.5kWh*$240/kWh = $3,240  DR Incentive: • Battery Capability Factor = 56.7% • $6.50/kW * 7.5kW * 56.7% = $33

24. Slide 24: Customer Value – Battery Control Program Only

    Customer Value – Battery Control Program Only  Owns 7.5kW battery storage  DR Incentive: • Battery Capability Factor = 56.7% • $6.50/kW * 7.5kW * 56.7% = $332/yr  DR Incentive paid to customer each year as monthly credit on electric bill  Paid DR Incentive even for opt out events, up to max  $3

25. Slide 25: Building Energy Codes in SC

    Building Energy Codes in SC Sydney Roberts, Ph.D. – Southeast Energy Efficiency Alliance

26. Slide 26: South Carolina Energy Code Field Study

    South Carolina Energy Code Field Study Sydney G. Roberts, Ph.D. Maggie Kelley Riggins 26 26 26

27. Slide 27: Our Mission, Vision, Values

    OUR MISSION To optimize the use and impact of energy to enhance the quality of life in the Southeast. OUR VISION All people in the Southeast live and work in healthy and resilient buildings, utilize clean and affordable transportation, and thrive in a robust and equitable economy. OUR VALUES Take In

28. Slide 28: Our Core Services

    OUR CORE SERVICES Research Facilitation Consultation & Program Education Management & Financial Services 28

29. Slide 29: Why Residential Energy Code?

    Why Residential Energy Code? 29

30. Slide 30: Codes as a Lever for Equity

    Codes as a Lever for Equity • Raise housing standard for all households. • Improve knowledge, skills and abilities of workforce. • Decrease energy burden. • Improve indoor environmental quality. Justice 40 Disadvantaged Communities • Level the playing field. https://screeningtool.geoplatform.gov/en/

31. Slide 31: Modeled Impact of Code Update

    Modeled Impact of Code Update Energy codes decrease energy use and costs, reduce utility-related GHG emissions, and create jobs by returning dollars to the local economy. • Net annual cash flow savings of $455. • Two (2) years to positive savings. • 33,860 Metric tons CO2 emission reduction (1 year)

32. Slide 32: What is an Energy Code Field Study?

    What is an Energy Code Field Study? 32

33. Slide 33: Energy Code Field Studies

    Energy Code Field Studies Explore energy savings opportunities from enhanced code compliance. The project’s primary goals were to: 1. Identify opportunities to lower household utility bills by increasing compliance. 2. Project long-term energy, cost and GHG savings. 3. Identify training priorities.

34. Slide 34: Residential Energy Field Study Dashboard

    Residential Energy Field Study Dashboard https://public.tableau.com/app/profile/doebecp/viz/ResidentialEnergyCodeFieldStudyDashboard/IntrotoFieldStudies 34

35. Slide 35: Georgia Example

    Georgia Example 1st Year Potential Savings with 100% Compliance (GA) ne Ceiling Insulation Duct Tightness Lighting $0 $200,000 $400,000 $600,000 $800,000 Economic Savings ($) SSEEA SOUTHEAST ENERGY EFFICIENCY ALUANCE 35

36. Slide 36: Creating a State Baseline

    Creating a State Baseline Where are we now and where is there room for improvement? Statistical Analysis • Examination of the set and distribution of observations Energy Analysis • Modeling of energy consumption for a simulated population of homes Savings Analysis • Projection of savings associated

37. Slide 37: Novel Equity Analysis

    Novel Equity Analysis • Selection of sampling plan o Risk factors for energy and housing inequities. o Climate & Economic Justice Screening Tool. • Data items o Deployment of advanced technologies. o Electrification. o Health, safety and durability measures. • Data analysis including equity dimensio

38. Slide 38: SC Field Study Goals

    SC Field Study Goals 38

39. Slide 39: SC Residential Energy Code Field Study Goals

    SC Residential Energy Code Field Study Goals • Provide data to inform development of resources and funding for energy efficiency in South Carolina. • Assist in identifying opportunities for targeted training, outreach, and education in order to reduce energy use in homes. • Help increase energy savi

40. Slide 40: State Energy Plan and Executive Order 2023-18

    State Energy Plan and Executive Order 2023-18 In 2019, the energy office launched the South Carolina Energy Efficiency Roadmap Initiative. Roadmap Objectives: • Expanding the coordination, engagement, and education of thought leaders, policy makers, and all levels of consumers on energy efficiency i

41. Slide 41: Opportunities to Get Involved

    Opportunities to Get Involved 41

42. Slide 42: Continued Outreach

    Continued Outreach • Spread the word and build support. • Upcoming association or organization meetings? • Conferences or events? • Other stakeholders to contact? 42

43. Slide 43: 2023 Southeast Energy Summit

    2023 Southeast Energy Summit Register today at southeastenergysummit.com 43

44. Slide 44: Thank You!

    Thank You! Visit us at seealliance.org to learn more about our team, programs and services. Sign up to receive updates on events and announcements from SEEA at seealliance.org/learnmore. Become a member! Contact Jamie Fitzsimons, director of membership and corporate development at jfitzsimons@seeall

45. Slide 45: High Energy Use Pilot in SC

    High Energy Use Pilot in SC (= DUKE wv

46. Slide 46: High-Energy Use Pilot Locations

    NC DEC: SC DEP: Mecklenburg Sumter , Forsyth and County Guilford Counties. The High-Energy Use Pilot will install deep home retrofits at no cost to the customers with the aim of reducing energy bills for individual high electricity, low-income customers

47. Slide 47: North Carolina Update

    North Carolina Update bs DUKE HIGH ENERGY USAGE Se” ENERGY. | ASSISTANCE

48. Slide 48: High-Energy Use Pilot

    Promotional Information will be sent to Customers who HIGH-ENERGY USE meet these requirements: PILOT Vendor Conducts H&S Audit Health & Safety Requirement 1 Usage Eligibility: Health and Concerns? • Minimum of 17,800 KWH Safety Audit & Annually “As Found” Energy Efficiency Requirement 2 Income Eligi

49. Slide 49: City/County Journey

    City/County Journey Health & Safety Mitigation and Energy Efficiency Measure Retrofit

50. Slide 50: Health and Safety Audit

    Health and Safety Audit  Audit Started  Weekly operational meetings with Forsyth County and the City of Winston-Salem.  Forsyth County and the City of Winston-Salem has provided a list of customers with Health and Safety complete.  Forsyth County Commission approved additional $190K for H&S miti

51. Slide 51: Document & Refer

    Document & Refer H&S Audit Process Forsyth County and City of Greensboro Health and Safety is not funded for mitigation in the following areas: Guilford County & Mecklenburg County Refer to Community & Economic Development to Subcontract Repairs Health and Safety Work Refer to Community Housing Comp

52. Slide 52: Repair & Invoice

    Repair & Invoice H&S Audit Process City of Charlotte Health and Safety is not funded for mitigation in the following areas: Guilford County & Mecklenburg County Health and Safety Work Complete Duke Energy pays vendor Grant to City/County funds for H&S Repairs (Grant) Duke Energy H&S Repairs and EE U

53. Slide 53: City/County Journey: Data Sharing and Reporting

    City/County Journey Data Sharing and Reporting

54. Slide 54: DATA Journey and Sharing

    DATA Journey and Sharing Pre-Qualified for Income Verification by City/County for EE Measures Health & Safety Work Completed Homeowner/Renter participated in County/City funded Low Income Program in the Last 12 months Duke Energy will When EM&V is completed on the Pilot, kWh savings have access to t

55. Slide 55: DATA Sharing and Reporting

    DATA Sharing and Reporting For H&S Funded Repairs and EE Upgrades Share aggregated EE Savings across all upgraded homes Internal process as defined by the County/City EM&V Grant to fund to non-profit organization and refer H&S Provide detailed invoices City/County funds for H&S repairs Grant to H&S

56. Slide 56: South Carolina Update

    South Carolina Update bs DUKE HIGH ENERGY USAGE Se” ENERGY. | ASSISTANCE

57. Slide 57: High-Energy Use Pilot

    Promotional Information will be sent to Customers who HIGH-ENERGY USE meet these requirements: PILOT Vendor Conducts H&S Audit Health & Safety Requirement 1 Usage Eligibility: Health and Concerns? • Higher than Average KWH Safety Audit & Annually “As Found” Energy Efficiency Requirement 2 Income Eli

58. Slide 58: Learnings & Strategy

    Learnings & Strategy Sumter City Sumter United and County Ministries Met with both mangers of the Met with the team at Sumter City and County. These areas United Ministries and they are have strong relationship and excited to partner with Duke collaborate on home repair. Energy. They complete about

59. Slide 59: Tariff On-bill Pilot in SC

    Tariff On-bill Pilot in SC = DUKE wv

60. Slide 60: DEP SC Tariff On-Bill Pilot

    DEP SC Tariff On-Bill Pilot EE/DSM Collaborative Design Discussion July 2023

61. Slide 61: Discussion Topics

    Discussion Topics . 1 Background & Approach 2 Timeline & Key Activities 3 Discussion: SC Rules 61

62. Slide 62: DEP SC Tariff On-Bill Pilot Overview

    DEP SC Tariff On-Bill Pilot Overview . Background Pilot Overview Approach • Duke Energy will fund the installation of • DEP Rate Case Settlement Agreements energy efficiency improvements that a • Use existing EE/DSM Collaborative residential customer pays for over time meetings to discuss design; ho

63. Slide 63: Timeline - DEP SC Improve & Save Pilot

    Timeline - DEP SC Improve & Save Pilot . Data Gathering & Analysis Program Design & Tariff Development Filing Build Launch April - July July - November December Upon Regulatory TBD 2023 2023 2023 Approval 2024 63

64. Slide 64: Key Activities

    Key Activities . Data Gathering & Analysis Phase  Legal Analysis  Understanding the Customer  Preliminary EM&V Considerations  Learnings from Similar SC Programs & Pilots 64

65. Slide 65: SC Meter Conservation Charge Rules

    DRAFT FOR DISCUSSION SC Meter Conservation Charge Rules PURPOSES ONLY . As the first step in our analysis, we need to understand SECTION 58-37-50 requirements. What is similar to the NC Program? What is Different from the NC Program? Group Questions/Items to Evaluate? ToB Monthly Charge • Charge sta

66. Slide 66: Understanding the Customer

    Understanding the Customer  Among the high energy users surveyed, those in lower income categories and with smaller homes may represent the best targeting opportunity for this program.  While two-thirds of customers indicate that a down payment would not affect their likelihood to participate in t

67. Slide 67: Next Steps

    Next Steps . Data Gathering & Analysis Phase  Continue data analysis to understand customers and market size  Continue evaluating target participation #s  Gather learnings from similar SC programs & pilots  Preliminary EM&V Considerations Upcoming Decisions  Length of Pilot (3 years?) based on

68. Slide 68: Low Income Program Roundtable

    Low Income Program Roundtable

69. Slide 69: Income-Qualified Programs

    Income-Qualified Programs Weatherization  existing, individually metered single-family homes, condominiums, and mobile homes  Tier 1 provides up to $600 for energy efficiency services; and Tier 2 provides up to $4,000 for energy efficiency services, including insulation and up to $10,000 when HVAC

70. Slide 70: Other Income-Qualified EE/DR

    Other Income-Qualified EE/DR  Pay-for-Performance Pilot  High Energy Use Pilot  Was in Buncombe County  Currently in 3 NC counties; in development in SC  Worked with nonprofit partners  Goal is to determine if health and safety repairs  Paid for energy savings from Tier 1 and 2 can be perform

71. Slide 71: EE/DR Roundtable – Where should we focus in the future?

    EE/DR Roundtable – Where should we focus in the future?  Stacking programs with local/federal gov’t opportunities  Be prepared to use utility incentives for cost sharing requirements if needed  Are there additional steps with NEBs to “level-up” IQ programs?  Not with UCT as screen  Like the emp

72. Slide 72: Wrap Up, Scheduling, Topics for Future Collaborative Meetings

    Wrap Up, Scheduling, Topics for Future Collaborative Meetings Carolinas DSM/EE Collaborative - Duke Energy (duke-energy.com)

Duke Energy — Corporate Update (July 2023) on 6ix