Duke Energy Corporation (Holding Company) · NYSE:DUK

Duke Energy Corporation (Holding Company) — Corporate Update (September 2023)

80 slides from Duke Energy Corporation (Holding Company)'s corporate update, Sep 7, 2023

  1. Slide 1: Duke Energy Carolinas Collaborative Meeting

    Duke Energy Carolinas Collaborative Meeting September 7, 2023

  2. Slide 2: Agenda

    Agenda  Introductions and Safety Minute  Portfolio Review  Regulatory Update  Residential Programs  Recovery filings  SC Pilot programs update (HEUP and ToB)  Mechanism review  Nonresidential Program Update  Program filings –  IRA Guidance o ToB Pilot and Program  Wrap Up and Scheduling o

  3. Slide 3: Safety – Driving

    Safety – Driving It’s deer migration and mating season! • Slow down. If you see deer warning signs or you know there are deer around, reduce your speed. • Always wear your seatbelt. Your seatbelt is your best protection from injuries in the event of a crash. • Watch for eyes reflecting in your headl

  4. Slide 4: 2023 Priorities

    2023 Priorities  Income-qualified programming and LIAC recommendations  Multifamily pilot program Keep these priorities in mind  Low-income carve out in market rate programs during the program review  Mechanism review  Determine appropriate use of NEB  Developing guidelines for expedited regul

  5. Slide 5: Regulatory Update

    Regulatory Update North Carolina South Carolina  DEP Filing - E-2 sub 1322  DEP Filing – 2023-213-E  Filed June 13  Filed July 1  Comments from intervenors due October 15 Program filings:  ToB Pilot and Program  PowerShare Mandatory Plus  Approved August 23 in NC  Goal to file in September

  6. Slide 6: Portfolio Performance

    Portfolio Performance (= DUKE wv

  7. Slide 7: DEC Collaborative Report: 2023 Portfolio Summary

    Mid-Year 2023 DEC Collaborative Report 2023 Portfolio Summary Demand (MW) Actual Total Annual Energy Sales Actual Expenditures Performance Incentives Energy (mwh) % of Energy Sales Jurisdiction DEC UCT Score TRC Score 1,177.40 547,374 $60,356,353 $37,434,166 25,173,622 Company Statistics Prior Year

  8. Slide 8: DEC 2023 EE Portfolio Expenditures by Program

    Mid-Year 2023 DEC Collaborative Report 2023 EE Portfolio Expenditures by Program Program Program Type Actual Costs Budget Costs % Jurisdiction DEC 2023 EE Portfolio Expenditure Summary by Cost Type Cost Category %of Total Budget Costs Actual Costs % of Total Energy Assessments Program Energy Efficie

  9. Slide 9: DEC Collaborative Report

    Mid-Year 2023 DEC Collaborative Repo erection DEC All Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023 $163,675,385 $60,356,353 789,719 547,374 993.11 117740 119% 107,057,365 36,869,430

  10. Slide 10: DEC Portfolio Energy Savings

    Mid-Year 2023 DEC Collaborative Report Report Veer Jurscetion 2023 DEC Residential Portfolio Energy Savings Non-Residential Portfolio Energy Savings Eneray Efficient Appliances | | 12.27% Non-Residential Smart Save Business Energy Saver Prog. 24.02% Multi-Family Energy Erficien 1.92% Residential Sma

  11. Slide 11: DEC Lifetime Savings by Program

    DEC Lifetime Savings by Program DEC 2023 YTD June Program Msr Life MWh Net FR @ Plant Residential Energy Efficient Appliances and Devices 791,149 NonResidential Smart $aver® Energy Efficient Lighting Products 655,699 NonResidential Smart $aver® Performance Incentive 467,871 My Home Energy Report 364

  12. Slide 12: DEP Collaborative Report: 2023 Portfolio Summary

    Mid-Year 2023 DEP Collaborative Report 2023 Portfolio Summary Performance Incentives Demand (MW) Actual Actual Expenditures Total Annual Energy Sales % of Energy Sales Energy (mwh) Jurisdiction DEP UCT Score TRC Score 422.38 283,038 $42,672,483 $30,977,615 14,696,823 2% Company Statistics Prior Year

  13. Slide 13: DEP 2023 EE Portfolio Expenditures by Program

    Mid-Year 2023 DEP Collaborative Report 2023 EE Portfolio Expenditures by Program Program Program Type Actual Costs Budget Costs Energy Education Program for Schools Energy Efficient Lighting Low Income Weatherization Pilot Multi-Family My Home Energy Report Neighborhood Energy Saver Residential Ener

  14. Slide 14: DEP Collaborative Report

    Mid-Year 2023 DEP Collaborative Report erection DEP All Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023 $92,623,356 $42,672,483 365,925 283,038 527.32 422.38 69,110,074 29,411,518 2022

  15. Slide 15: DEP Portfolio Energy Savings

    Mid-Year 2023 DEP Collaborative Report Report Veer Jursetion 2023 DEP Residential Portfolio Energy Savings Non-Residential Portfolio Energy Savings Residential New Construct Hi 5.30% Small Business Energy Saver Residential Energy Assessm. | 1.21% Non-Residential Smart$aver. J Neighborhood Energy Sav

  16. Slide 16: DEP Lifetime Savings by Program

    DEP Lifetime Savings by Program DEP 2023 YTD June Program Msr Life MWh Net FR @ Plant Energy Efficient Lighting 600,441 Residential New Construction 392,185 NonResidential Smart $aver® Energy Efficient Products and Assessment 253,780 My Home Energy Report 191,416 Business Energy Saver 161,005 Reside

  17. Slide 17: Savings as a Percent of Gross Retail Sales

    Savings as a Percent of Gross Retail Sales Sum of Actual Annual Prior Year Retail Row Labels Energy Savings (Net at Sales Gross 1% Goal Plant) (kwh at plant) DEC 2019 858,638,336 81,399,234,148 1.05% 2020 647,843,719 80,109,037,686 0.81% 2021 645,050,386 75,506,398,814 0.85% 2022 671,150,220 78,549,

  18. Slide 18: Residential Program Update

    Residential Program Update =, DUKE ww

  19. Slide 19: Income-Qualified Programs

    Income-Qualified Programs

  20. Slide 20: Neighborhood Energy Savers & Weatherization

    Neighborhood Energy Savers & Weatherization NES • Kick-off event • Direct mail (letters and reminder post cards) • Door hangers • Press releases and/or neighborhood flyers • Community presentations and partnerships • Inclusion in community publications such as newsletters, etc. Through June 2023  K

  21. Slide 21: Weatherization, WERP and RRP outreach

    Weatherization WERP and RRP In addition to agency outreach efforts • Direct mail • Door hangers • Community presentations and partnerships • direct mail campaign to approximately 14,000 income-qualified customers. HEUP • Direct mail • Three-tiered email strategy with links, QR codes and guide to the

  22. Slide 22: DEC Collaborative Report

    Mid-Year 2023 DEC Collaborative Repo Product erection Multiple selections DEC All Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023 $16,178,471 $4,823,413 12,423 3,393 3.05 115 16,345 7.3

  23. Slide 23: DEP Collaborative Report

    Mid-Year 2023 DEP Collaborative Report Product erection Multiple selections DEP All Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023 $3,419,755 $2,321,507 4,629 2,864 0.94 6,400 4,740 20

  24. Slide 24: Programs that are free to Participants

    Programs that are free to Participants

  25. Slide 25: DEC Collaborative Report

    Mid-Year 2023 DEC Collaborative Repo Product erection Multiple selections DEC All Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023 $3,267,171 $1,183,211 18,591 8,482 153 440,728 123,110

  26. Slide 26: DEP Multi-Family

    Mid-Year 2023 DEP Collaborative Report Product erection Multi-Family DEP Multi-Family Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023 $2,073,496 $691,091 9,203 4,223 114 0.68 284,437 73

  27. Slide 27: DEP My Home Energy Report

    Mid-Year 2023 DEP Collaborative Report Product erection My Home Energy Report DEP My Home Energy Report Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2016 $8,770,681 $5,890,093 133,917 102

  28. Slide 28: DEC Collaborative Report

    Mid-Year 2023 DEC Collaborative Repo Product erection Multiple selections DEC All Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023 $2,234,205 $513,928 13,528 2,637 19% -2.30 0.45 26,670

  29. Slide 29: DEP Energy Education Program for Schools

    Mid-Year 2023 DEP Collaborative Report Product erection Energy Education Program for Schools DEP Energy Education Program for Schools Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023 $99

  30. Slide 30: DEC Collaborative Report

    Mid-Year 2023 DEC Collaborative Repo Product erection Multiple selections DEC All Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023 $5,627,652 $1,041,135 19% 14,844 2,251 15% 177 0.25 125

  31. Slide 31: DEP Residential Energy Assessments

    Mid-Year 2023 DEP Collaborative Report Product erection Residential Energy Assessments DEP Residential Energy Assessments Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023 $3,999,768 $942

  32. Slide 32: Programs with Participant Costs

    Programs with Participant Costs

  33. Slide 33: DEC Energy Efficient Appliances and Devices

    Mid-Year 2023 DEC Collaborative Repo Product erection Energy Efficient Appliances and Devices DEC Energy Efficient Appliances and Devices Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023

  34. Slide 34: DEP Collaborative Report

    Mid-Year 2023 DEP Collaborative Report Product erection Multiple selections DEP All Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023 $4,152,406 $1,102,609 16,115 7,073 2.73 0.88 383,379

  35. Slide 35: Retail Lighting

    Retail Lighting  DEC Retail Lighting is included in EE Appliances and Devices Program.  Retail Lighting as a stand-alone program was discontinued July 1, 2023. 48

  36. Slide 36: DEP Energy Efficient Lighting

    Mid-Year 2023 DEP Collaborative Report Product erection Energy Efficient Lighting DEP Energy Efficient Lighting Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2016 $13,508,880 $17,441,878 1

  37. Slide 37: Residential Smart $aver

    Residential Smart $aver  Information to educate customers about the Program and encourage participation and Trade Ally enrollment links are available on the Program’s website.  Improvements were also made the Smart Saver website to improve the visibility and ease for trade allies to learn about ou

  38. Slide 38: DEC Collaborative Report

    Mid-Year 2023 DEC Collaborative Repo Product erection Multiple selections DEC All Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023 $7,424,637 $2,844,763 7524 3,807 51% 2.03 1.01 23,240 9

  39. Slide 39: DEP Collaborative Report

    Mid-Year 2023 DEP Collaborative Report Product erection Multiple selections DEP All Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023 $4,106,463 $1,292,662 31% 6,303 1,810 1.74 0.51 20,21

  40. Slide 40: DEC Residential New Construction

    Mid-Year 2023 DEC Collaborative Repo Product erection Residential New Construction DEC Residential New Construction Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual % Budget Actual % Budget Actual % 2023 $11,506,518 $1,

  41. Slide 41: DEP Residential New Construction

    Mid-Year 2023 DEP Collaborative Report Product erection Residential New Construction DEP Residential New Construction Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023 $20,473,764 $13,960

  42. Slide 42: Demand Response

    Demand Response

  43. Slide 43: DEC PowerManager

    Mid-Year 2023 DEC Collaborative Repo Product erection PowerManager DEC PowerManager Program Budget, Savings & Number of Measures io Energy Savings Demand Savings Participants 2023 $19,895,473 $4,714,212 481.41 586.50 122% 461,451 549,491 119% 2022 $19,286,677 $17,825,199 92% 599.07 573.83 96% 581,22

  44. Slide 44: DEP EnergyWise

    Mid-Year 2023 DEP Collaborative Report Product erection EnergyWise DEP EnergyWise Program Budget, Savings & Number of Measures io Energy Savings Demand Savings Participants 2023 $13,784,340 $7,101,503 416.18 331.72 402,028 322,521 2022 $13,261,914 $15,304,162 115% 474.28 447.76 94% 459,963 456446 99

  45. Slide 45: SC Pilot Programs Update

    SC Pilot Programs Update (= DUKE wv

  46. Slide 46: 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

  47. Slide 47: 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

  48. Slide 48: SC Meter Conservation Charge – Approved Rate of Return

    SC Meter Conservation Charge – Approved Rate of Return Background Approach  The statute requires that the utilities’ approved rate of return for the cost of ToB measures must be “a fixed DRAFT FOR DISCUSSION ONLY rate over the term of the agreement and must not exceed four percent above the stated

  49. Slide 49: High-Energy Use Pilot overview

    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

  50. Slide 50: South Carolina Update

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

  51. Slide 51: Eligibility Scope

    Eligibility Scope At or below 200% of FPL Electric Energy Usage Eligibility In DEP South Threshold Options Carolina Average kWh usage Need EE Upgrades kWh usage by sqft May Need kWh usage by income H&S Repairs

  52. Slide 52: Average kWh Usage

    Average kWh Usage Top 50% There is an estimated 78K income qualified customer in DEP South Carolina: The top 50% has an average usage of 18,880 kWh annually

  53. Slide 53: Average kWh Usage

    Average kWh Usage Remove Outliers By removing the top 4% of high kWh usage and bottom 1% of low kWh usage there are an estimated 74.3K homes with: Average kWh usage at 12,342 annually. The average usage for customer greater than 12,342 kWh annually is 17,618.

  54. Slide 54: kWh Usage by SQFT

    kWh Usage by SQFT Homes with greater than 17,800 kWh annually by sqft Total homes: 17,932 Homes with sqft data: 9,365 Avg annual kWh usage: 23,248 Avg sqft: 1,883 Avg kWh per sqft: 14

  55. Slide 55: kWh Usage by SQFT

    kWh Usage by SQFT Above average Energy Intensity in homes less than 17,800 kWh annually Homes kWh per 14 sqft or greater: 1,691 Homes with sqft data: 1,641 Avg annual kWh usage: 14,980 Avg sqft: 876 Avg kWh per sqft: 18

  56. Slide 56: kWh Usage by Income Range

    kWh Usage by Income Range At or below The highest is 28K annually. $50K The average is 13,415 annually annually. The average usage for For customers making less customer greater than than $50K per year there 13,415 is: 18,395. are strong concentrations of higher kwh usage. By removing the top 3.6% o

  57. Slide 57: kWh Usage by Income Range

    kWh Usage by Income Range Family of 5 with electric bills greater than 6% of income For customers making less than $70K per year using more than 32,437 kWh annually: The average is 34,813 annually. Monthly bill exceeds $350 monthly.

  58. Slide 58: The Customer

    The Customer 60% and 6% When income qualified customers consistently experience electric energy bills that are greater than 6% of their income, they have a higher risk of disconnection due to energy vulnerability.

  59. Slide 59: Nonresidential Program Update

    Nonresidential Program Update

  60. Slide 60: Prescriptive Programs

    Prescriptive Programs

  61. Slide 61: DEC Collaborative Report

    Mid-Year 2023 DEC Collaborative Repo Product erection Multiple selections DEC All Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023 $13,027,318 $6,007,964 61,580 25,573 W701 5.31 58,868,5

  62. Slide 62: DEP Small Business Energy Saver

    Mid-Year 2023 DEP Collaborative Report Product erection Small Business Energy Saver DEP Small Business Energy Saver Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023 $8,484,471 $3,019,778

  63. Slide 63: DEC Collaborative Report

    Mid-Year 2023 DEC Collaborative Repo Product erection Multiple selections DEC All Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023 $36,641,356 $10,945,984 208,699 45,364 37.64 811 15,934

  64. Slide 64: DEP Non-Residential Smart$aver Prescriptive

    Mid-Year 2023 DEP Collaborative Report Product erection Multiple selections DEP Non-Residential Smart$aver Prescriptive Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023 $14,970,120 $4,08

  65. Slide 65: Custom Programs

    Custom Programs

  66. Slide 66: DEC Collaborative Report

    Mid-Year 2023 DEC Collaborative Repo Product erection Multiple selections DEC All Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023 $10,349,514 $1,775,272 17% 32,170 4316 13% 4,59 0.79 21

  67. Slide 67: DEP Non-Residential Smart$aver Custom

    Mid-Year 2023 DEP Collaborative Report Product erection Non-Residential Smart$aver Custom DEP Non-Residential Smart$aver Custom Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023 $5,240,92

  68. Slide 68: DEC Collaborative Report

    Mid-Year 2023 DEC Collaborative Repo Product erection Multiple selections DEC All Program Budget, Savings & Number of Measures io Energy Savings Demand Savings Participants 2023 $740,439 $191,231 2,764 0.32 0.00 1,752 2022 $1,491,649 $257,878 17% 5,350 822 15% 0.61 0.06 10% 3,408 0% 2021 $1,106,646

  69. Slide 69: Mid-Year 2023 DEC Collaborative Report

    Product Jurisdiction Mid-Year 2023 DEC Collaborative Repo Multiple selections DEC All Program Budget, Savings & Number of Measures io Energy Savings Demand Savings Participants 2023 $1,586,660 $3,383,226 213% 12,765 31,191 174 119% 15,138,247 2022 $2,120,079 $2,362,687 111% 7,050 3,676 52% 0.80 548

  70. Slide 70: DEP Collaborative Report

    Mid-Year 2023 DEP Collaborative Report Product erection Multiple selections DEP All Program Budget, Savings & Number of Measures io Energy Savings Demand Savings Participants 2023 $842,985 $53,008 6,222 071 0.02 7,608,600 2022 $442,995 $105,218 24% 2,544 275 11% 029 0.01 3% 3,064,165 0% 2021 $646,50

  71. Slide 71: Demand Response

    Demand Response

  72. Slide 72: DEC EnergyWise for Business

    Mid-Year 2023 DEC Collaborative Repo Product erection EnergyWise for Business DEC EnergyWise for Business Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023 $1,804,572 $1,364,896 12.22 6.8

  73. Slide 73: DEP EnergyWise for Business

    Mid-Year 2023 DEP Collaborative Report Product erection EnergyWise for Business DEP EnergyWise for Business Program Budget, Savings & Number of Measures Expenditures Energy Savings Demand Savings Participants Budget Actual Budget ‘Actual Budget Actual Budget Actual 2023 $1,195,721 $508,151 118 1 477

  74. Slide 74: DEC PowerShare

    Mid-Year 2023 DEC Collaborative Repo Product erection PowerShare DEC PowerShare Program Budget, Savings & Number of Measures io Energy Savings Demand Savings Participants 2023 $13,093,567 $8,710,417 330.91 488.24 148% 310,343 457,432 147% 2022 $12,910,020 $17,870,297 138% 320.24 426.83 133% 301,488

  75. Slide 75: DEP Commercial, Industrial, & Governmental Demand Response

    Mid-Year 2023 DEP Collaborative Report Product erection Commercial, Industrial, & Governmental Demand Response “ DEP Commercial, Industrial, & Governmental Demand Response Program Budget, Savings & Number of Measures io Energy Savings Demand Savings Participants 2023 $2,678,427 $1,359,233 51% 40.11

  76. Slide 76: Comments on ACEEE 2023 Scorecard

    Comments on ACEEE 2023 Scorecard

  77. Slide 77: ACEEE 2023 Scorecard

    ACEEE 2023 Scorecard  ACEEE evaluated 53 of the country’s largest utilities  These company’s account for ~58% of total electricity sales in USA  Possibility of scoring 100 points First, the utility would need to spend at least 9% of its revenue on energy efficiency programs, and at least one-quar

  78. Slide 78: ACEEE 2023 Scorecard Results

    ACEEE 2023 Scorecard Performance Programs Group Group Enabling Group Total Score (54 points) (20 pts) (26 pts) (100 pts) Duke NC 8.5 13.5 9 31 Duke SC 7 12.5 9 28.5 Duke Progress 7 13.5 9 29.5 Issues: • Divisions between states • Scores reflect not only the utilities themselves, but also the legisla

  79. Slide 79: ACEEE 2023 Scorecard Quotes

    ACEEE 2023 Scorecard  “Consequently, the scores and rankings that utilities earn on this Utility Scorecard reflect not only the utilities themselves, but also the legislative and regulatory environments within which they operate.” (p. 8)  “We included both of the Duke Energy subsidiaries in North

  80. Slide 80: Wrap Up, Scheduling, Topics for Future Collaborative Meetings

    Wrap Up, Scheduling, Topics for Future Collaborative Meetings

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