Duke Energy Corporation (holding Company) · NYSE:DUK

Duke Energy Corporation (holding Company) — Investor Presentation (September 2017)

84 slides from Duke Energy Corporation (holding Company)'s investor presentation, Sep 7, 2017

  1. Slide 1: Fall Update 2017

    fy DUKE we” ENERGY. DUKE ENERGY

  2. Slide 2: Safe Harbor statement

    Safe Harbor statement This presentation includes forward-looking statements within the meaning of the federal securities laws. Actual results could differ materially from such forward-looking statements. The factors that could cause actual results to differ are discussed in the Appendix herein and i

  3. Slide 3: Duke Energy – A large scale, highly regulated energy infrastructure company

    Duke Energy – A large scale, highly regulated energy infrastructure company HEADQUARTERED IN ELECTRIC UTILITIES CHARLOTTE, NC & INFRASTRUCTURE  Operating in six constructive jurisdictions, with attractive allowed ROEs, serving 7.5 million retail customers  Below average customer rates(1)  Balance

  4. Slide 4: The leading energy infrastructure company

    The leading energy infrastructure company Large-scale U.S. electric and Constructive regulatory gas utility creating a cleaner jurisdictions in desirable energy future communities INVESTING IN INFRASTRUCTURE OUR CUSTOMERS VALUE. DELIVERING SUSTAINABLE GROWTH. Proven track record of Solid long-term i

  5. Slide 5: The next decade

    The next decade ACHIEVE TOP QUARTILE CUSTOMER SATISFACTION MODERNIZE THE GENERATE EXPAND NATURAL GAS ENERGY GRID CLEANER ENERGY INFRASTRUCTURE $25 B $11 B 15% INVESTMENTS IN INVESTMENTS IN PROPORTION OF OUR GRID MODERNIZATION CLEANER GENERATION BUSINESS MIX FROM GAS OVER 10 YEARS OVER 10 YEARS(1) IN

  6. Slide 6: Our investor proposition

    Our investor proposition A SOLID LONG-TERM HOLDING 4.1% ~8-10% 4 -6% DIVIDEND YIELD(1) zzz ATTRACTIVE HIGHLY WITH DIVIDEND RISK-ADJUSTED ACHIEVABLE GROWTH TOTAL SHAREHOLDER EPS GROWTH COMMITMENT(2) RETURN(3) THROUGH 2021(4) SUPPORTED BY THE STRENGTH OF OUR BALANCE SHEET (1) As of Aug. 31, 2017 (2) 4

  7. Slide 7: Dividend growth commitment

    91 years of consecutive quarterly cash dividends paid 70 - 75% DUK ANNUALIZED EXPECTED PAYOUT RATIO DIVIDEND PER SHARE(2) THROUGH 2021(1) 4 - 6% ANNUAL DIVIDEND GROWTH ~75% $3.18 $3.30 $3.42 $3.56 OF TSR ACHIEVED 2014 2015 2016 2017E THROUGH DIVIDEND REINVESTMENT OVER LAST 20 YEARS (1) Based on adju

  8. Slide 8: Complementary businesses with strong growth opportunities

    Complementary businesses with strong growth opportunities ELECTRIC UTILITIES 2017 ADJUSTED 2017-2021 2017 – 2021 & INFRASTRUCTURE EPS CONTRIBUTION(1) GROWTH CAPITAL ADJUSTED EPS CAGR(1) Consolidated 4-6% 89% $30 B 8-12% 10-12% GAS UTILITIES & INFRASTRUCTURE 8% $6 B 4-5% COMMERCIAL RENEWABLES 3% $1 B

  9. Slide 9: Consolidated financial plan underpinned by significant growth capital

    Consolidated financial plan underpinned by significant growth capital 2017 - 2021 2017 – 2021 BALANCED GROWTH ADJUSTED EPS CAGR(1) CAPITAL PLAN(2) Consolidated Electric 4-6% 4 - 6% Distribution 36% 8-12% Commercial Renewables, 3% GROWTH IN EPS(1) Electric 10-12% $37 B LDC Infrastructure, 4% THROUGH

  10. Slide 10: Robust growth capital plan driving electric earnings base growth

    Robust growth capital plan driving electric earnings base growth 2017 - 2021 2017 - 2021 ELECTRIC UTILITIES & REGULATED ELECTRIC INFRASTRUCTURE EARNINGS BASE(2) GENERATE GROWTH CAPITAL PLAN(1) CLEANER ENERGY Electric $74 Generation $71 28% $67 $64 Electric Distribution $30 B $60 45% $57 MODERNIZE TH

  11. Slide 11: Our generation investments result in significantly reduced emissions

    Our generation investments result in significantly reduced emissions FUEL DIVERSITY (MWh OUTPUT) GENERATE 28% CLEANER ENERGY 34% 61% $11 B INVESTMENTS IN 28% 35% CLEANER GENERATION OVER 10 YEARS(1) 5% 35% 32% 34% 28% CO2 REDUCTION BY 2026(4) 2% 4% 9% FROM 2005 LEVELS 2005(2) 2016(2) 2026(3) Coal / O

  12. Slide 12: Investing in cleaner energy for a low-carbon future

    Investing in cleaner energy for a low-carbon future SOLAR / HYDRO / CHP $100 M (various) LEE CC GENERATE $600 M (2017) CLEANER ENERGY WESTERN CAROLINAS MODERNIZATION $3.3 B $1.1 B (2019) TO BE INVESTED IN SOLAR / HYDRO / CHP REGULATED $400 M (various) NATURAL GAS-FIRED GENERATION OVER 5 YEARS(1) OSP

  13. Slide 13: Continuing to invest in the grid, with an emerging focus on the Carolinas

    Continuing to invest in the grid, with an emerging focus on the Carolinas 2017 - 2021 SPEND BY CATEGORY(1) AMI DEPLOYMENT TODAY DE OHIO 100% DE CAROLINAS 30% DE KENTUCKY 27% DE INDIANA 4% DE FLORIDA 4% MODERNIZE THE DE PROGRESS 4% ENERGY GRID Smarter $10 B Targeted Advanced Metering 13% Grid OF GRID

  14. Slide 14: Managing regulatory lag to earn our allowed ROEs

    Managing regulatory lag to earn our allowed ROEs CUSTOMER GROWTH ADJUSTED AND VOLUME TRENDS(1) BOOK ROEs(1,2) 1.3% 10.6% 1.2% 1.2% 10.0% 1.0% Carolinas EARNING 10.4% 10.0–10.5% ALLOWED ROEs 0.6% 0.6% 0.5% 11.2% WITH NO SIGNIFICANT 11.8% 0.2% Florida 11.4% RATE CASES SINCE 2013 11.0–11.5% 2014 2015 2

  15. Slide 15: Recovery of electric investments through frequent rate activity

    Recovery of electric investments through frequent rate activity JURISDICTION 2017 2018 2019 2020 2021 KEY DRIVERS  2017: Lee CCGT, solar, coal ash, nuclear DEC – NC Filed 8/25/17 Planning for multiple rate cases  2018-2021: Grid modernization  2018-2021: Grid modernization, coal ash DEC – SC Plan

  16. Slide 16: Robust growth capital plan driving gas earnings base growth

    Robust growth capital plan driving gas earnings base growth 2017 - 2021 2017 - 2021 GROWTH CAPITAL PLAN(1) REGULATED GAS EARNINGS BASE(2) EXPAND NATURAL GAS INFRASTRUCTURE LDC $8.7 $8.8 $8.2 $6 B Infrastructure 23% $7.3 GROWTH CAPITAL PLAN Gas $6.0 Electric $5.2 FOR GAS UTILITIES AND Midstream $6 B

  17. Slide 17: Stable-margin LDCs with strong customer growth

    Stable-margin LDCs with strong customer growth LOW VOLUMETRIC CUSTOMER MIX EXPOSURE DUE TO MOSTLY AS OF JUNE 30, 2017 FIXED MARGINS… 8% 14% Industrial EXPAND NATURAL GAS <1% INFRASTRUCTURE 78% Commercial 1.6 M 9% Residential Power Gen 90% 90% & Other <1% RESIDENTIAL Fixed Semi-fixed Volumetric CUSTO

  18. Slide 18: Enabling clean energy through midstream pipeline investments

    Enabling clean energy through midstream pipeline investments Constitution Pipeline  24% joint owner with projected investment of up to $225 million(1)  Permitting still pending; projected in service as early as the 1H of 2019 EXPAND NATURAL GAS INFRASTRUCTURE Atlantic Coast Pipeline  47% joint ow

  19. Slide 19: Scale and expertise from a decade of commercial renewables growth

    Scale and expertise from a decade of commercial renewables growth BUILDING SCALE SINCE ENTERING COMMERCIAL RENEWABLES SPACE IN 2007…  Invested more than $5 billion over the past 10 years Wind MW 2,893  Long-term power purchase Solar MW 2,350 GENERATE agreements with creditworthy CLEANER ENERGY 1,5

  20. Slide 20: Appendix materials

    Appendix materials Item Slide(s) 2017 guidance support 21-35 Financing assumptions 36-43 Regulatory overview 44-50 Electric Utilities & Infrastructure supplement 51-54 Gas Utilities & Infrastructure supplement 55-57 Commercial Renewables supplement 58-60 DUKE ENERGY FALL UPDATE 2017 20

  21. Slide 21: 2017 guidance support

    2017 guidance support DUKE ENERGY FALL UPDATE 2017 21

  22. Slide 22: Duke Energy business segment structure

    Duke Energy business segment structure Duke Energy Electric Utilities Gas Utilities Commercial Other & Infrastructure & Infrastructure Renewables North and South Duke Energy Carolinas Piedmont Natural Gas Carolina North and South Commercial Duke Energy Progress Carolina Pipelines (1) Duke Energy Flo

  23. Slide 23: Key 2017 earnings sensitivities

    Key 2017 earnings sensitivities(1) Driver EPS Impact 1% change in earned return on equity +/- $0.40 Electric Utilities & $1 billion change in rate base +/- $0.08 Infrastructure 1% change in Electric Utilities volumes +/- $0.10 1% change in earned return on equity +/- $0.04 Gas Utilities & $200 milli

  24. Slide 24: 2016 – 2017 adjusted diluted EPS waterfall

    2016 – 2017 adjusted diluted EPS waterfall Electric Utilities Gas Utilities Commercial Share dilution 2016 Weather International & Infrastructure & Infrastructure Renewables & Other ($0.14) ($0.35) $0.26 $0.19 $0.04 ($0.09) ▲ Normal wind conditions ▲ New wind resources $0.04 ▲ Full year of Piedmont

  25. Slide 25: YTD 2016 – YTD 2017 adjusted diluted EPS waterfall

    YTD 2016 – YTD 2017 adjusted diluted EPS waterfall Previously YTD 2017 Electric Utilities Gas Utilities Commercial Change in Other(1) Disposed Weather Impact & Infrastructure & Infrastructure Renewables Share Count Businesses $0.02 ($0.08) ($0.03) $0.16 $2.35 ▲ Higher earnings from increased $2.29 ▼

  26. Slide 26: Key 2017 adjusted earnings guidance assumptions

    Key 2017 adjusted earnings guidance assumptions ($ in millions) Original 2017 2017 YTD assumptions (1) (thru 6/30/2017) Adjusted segment income/(expense) (2): Electric Utilities & Infrastructure $3,109 $1,364 Gas Utilities & Infrastructure $282 $160 Commercial Renewables $99 $51 Other ($268) ($142)

  27. Slide 27: Electric utilities quarterly weather impacts

    Electric utilities quarterly weather impacts Weather segment 2017 2016 income to normal: Pretax impact Weighted avg. EPS impact – Pretax impact Weighted avg. EPS impact – diluted shares favorable / shares favorable / (unfavorable) (unfavorable) First Quarter ($175) 700 ($0.15) ($10) 689 ($0.01) Seco

  28. Slide 28: Weather normalized volume trends, by electric jurisdiction

    Weather normalized volume trends, by electric jurisdiction Rolling Twelve Months, as of June 30, 2017 Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Electric Carolinas Progress Florida Indiana Ohio/Kentucky Utilities 2.7% 2.4% 1.4% 1.3% 1.3% 1.2% 1.1% 1.0% 0.9% 0.9% 1.0% 0.8% 0.5% 0.6%

  29. Slide 29: Regulated utilities end of year earnings base

    Regulated utilities end of year earnings base(1) Electric Utilities Earnings Base ($ in billions) 2016A 2017E 2018E 2019E 2020E 2021E Duke Energy Carolinas $20.8 $21.8 $23.0 $24.2 $25.6 $27.1 Duke Energy Progress 14.5 15.3 16.7 17.9 19.0 19.9 Duke Energy Florida 11.4 12.4 12.9 13.6 14.3 15.4 Duke In

  30. Slide 30: Capital expenditures profile

    Capital expenditures profile(1) ($ in millions) Electric Utilities & Infrastructure 2016A 2017E 2018E 2019E 2020E 2021E 2017 - 2021 (2) Electric Generation $ 1,766 $ 1,725 $ 1,550 $ 1,700 $ 1,600 $ 1,750 $ 8,325 Electric T ransmission 641 725 725 700 750 675 3,575 Electric Distribution 1,106 1,750 2

  31. Slide 31: Capital expenditures by utility

    Capital expenditures by utility(1) ($ in millions) Duke Energy Carolinas 2016A 2017E 2018E 2019E 2020E 2021E 2017 - 2021 Electric Generation $663 $500 $450 $675 $675 $825 $3,125 Electric T ransmission 214 75 75 75 50 50 $325 Electric Distribution 392 700 1,250 1,225 1,150 1,225 $5,550 Environmental(

  32. Slide 32: Capital expenditures by utility (continued)

    Capital expenditures by utility (continued)(1) ($ in millions) Duke Energy Florida 2016A 2017E 2018E 2019E 2020E 2021E 2017 - 2021 Electric Generation $660 $550 $250 $300 $250 $475 $1,825 Electric T ransmission 183 250 225 275 300 200 $1,250 Electric Distribution 166 250 275 400 450 475 $1,850 Envir

  33. Slide 33: Capital expenditures by utility (continued)

    Capital expenditures by utility (continued)(1) ($ in millions) Duke Energy OH/KY Electric 2016A 2017E 2018E 2019E 2020E 2021E 2017 - 2021 Electric Generation $0 $25 $25 $25 $0 $0 $75 Electric T ransmission 75 125 150 100 125 100 600 Electric Distribution 168 225 225 250 250 250 1,200 (2) Environment

  34. Slide 34: Environmental compliance expenditures by category

    Environmental compliance expenditures by category(1) ($ in millions) Total Project Spend 2017 – 2021 Coal Ash Closure Costs Category 2017 – 2021 Costs To Date(3) Plan Air (MATS) $110 Duke Energy Carolinas $2,620 $460 $1,140 Water (316b) $320 Duke Energy Progress $2,550 $310 $1,420 Waste (conversions

  35. Slide 35: Financing assumptions

    Financing assumptions DUKE ENERGY FALL UPDATE 2017 35

  36. Slide 36: Simplified financing structure

    Simplified financing structure Duke Energy (HoldCo) Cinergy Corp. Progress Energy (HoldCo) (HoldCo) (1) Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Piedmont Natural Carolinas Ohio Indiana Progress Florida Gas Commercial Paper and LT Financings Duke Energy Duke Energy Renewables Money

  37. Slide 37: Credit ratings (as of July 31, 2017)

    Credit ratings (as of July 31, 2017) Holding Companies Operating Companies Fitch Moody's S&P Moody's S&P DUKE ENERGY Negative Stable Stable DUKE ENERGY CAROLINAS Stable Stable Senior Unsecured Debt BBB+ Baa1 BBB+ Senior Secured Debt Aa2 A Senior Unsecured Debt A1 A- Commercial Paper F-2 P-2 A-2 DUKE

  38. Slide 38: Credit metrics

    Credit metrics(1) Committed to maintaining quality, investment-grade ratings (2) FFO/Debt 31% 31% 29% 27% 26% 26% 25% 24% 21% 22% 21% 21% 21% 22% 21% 20% 20% 18% 17% 14% 14% 2015A 2016A 2017E 2015A 2016A 2017E 2015A 2016A 2017E 2015A 2016A 2017E 2015A 2016A 2017E 2015A 2016A 2017E 2015A 2016A 2017E

  39. Slide 39: 2017 Financing plan: maintaining the strength of our balance sheet

    2017 Financing plan: maintaining the strength of our balance sheet FORECASTED 2017 KEY MESSAGES SUMMARY CASH FLOWS (1)  Committed to maintaining strong credit quality, Adjusted net income (based on midpoint of 2017 guidance range) $ 3,225 including investment-grade ratings Depreciation & amortizati

  40. Slide 40: 2017 financing plan (as of June 30, 2017)

    2017 financing plan (as of June 30, 2017) ($ in millions) $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $- Holding Duke Duke Duke Duke Duke Duke Piedmont Renewables Company Energy Energy Energy Energy Energy Energy Carolinas Progress Florida Indiana Ohio Kentucky 2017 Maturities and Debt Reduction(

  41. Slide 41: Access to capital – 2017 long-term debt financing activity

    Access to capital – 2017 long-term debt financing activity Credit Ratings Amount Entity Date Issued (M/S&P, unless Term Type Rate ($ in millions) otherwise noted) $650 DE Florida January 2017 A1/A 10 Year First Mortgage Bond Fixed – 3.200% $250 DE Florida January 2017 A1/A 3 Year First Mortgage Bond

  42. Slide 42: Liquidity summary (as of June 30, 2017)

    Liquidity summary (as of June 30, 2017) ($ in millions) Duke Duke Duke Duke Duke Duke Piedmont Duke Energy Energy Energy Energy Energy Energy Natural Energy Carolinas Progress Florida Indiana Ohio Kentucky Gas Total Master Credit Facility (1) $ 3,150 $ 1,350 $ 1,250 $ 700 $ 600 $ 300 $ 150 $ 500 $ 8

  43. Slide 43: Regulatory overview

    Regulatory overview DUKE ENERGY FALL UPDATE 2017 43

  44. Slide 44: Rate case activity and timeline

    Rate case activity and timeline Evidentiary Pre-Filing Filed Rate Intervenor Duke Rebuttal Hearings Notes Notice Case Testimony Testimony Begin • Docket: E-2 Sub 1142 DEP • Base rate case May 2, 2017 June 1, 2017 Oct. 20, 2017 Nov. 6, 2017 Nov. 20, 2017 • Requested rates effective NC Feb. 1, 2018 •

  45. Slide 45: Over $1 billion of rate requests underway in North Carolina

    Over $1 billion of rate requests underway in North Carolina Duke Energy Duke Energy Progress Carolinas Retail revenue increase requested $477 M (+14.9%) $647 M (+13.6%) Return on equity requested 10.75% ENGAGE Equity component of capital structure 53% STAKEHOLDERS Proposed rate base(1) ~$8.1 B ~$13.

  46. Slide 46: Favorable settlement reached in Duke Energy Florida

    Favorable settlement reached in Duke Energy Florida MAJOR PROVISIONS OF THE SETTLEMENT Base Rate Adjustments  Base rate increases of $67M per year 2019-2021  Solar Generation Base Rate Adjustment: DEF has opportunity to recover 700 ENGAGE STAKEHOLDERS MW of solar 2019-2021, with base rate adjustme

  47. Slide 47: Current electric rate information by jurisdiction

    Current electric rate information by jurisdiction North South Ohio Kentucky Florida Indiana Carolina Carolina (Electric) (Electric) $15.7 B (1) (DEC) Retail Rate Base $10.0 B (2) $7.1 B (3) $1.1 B $600 M (4) $8.0 B (1) (DEP) $1.5 B (DEC) 3Q 2016 $0.4 M Wholesale Rate Base $1.1 B (2) $600 M $0 $2.9 B

  48. Slide 48: Current electric rate information by jurisdiction (continued)

    Current electric rate information by jurisdiction (continued) General Rate Case Provisions North South Ohio Kentucky Florida Indiana Carolina Carolina (Electric) (Electric) Notice of Intent Required? Yes Yes Yes Yes(1) Yes Yes Notice Period 30 Days 30 Days 60 Days Varies 30 Days 28 Days Historical A

  49. Slide 49: Current gas rate information by jurisdiction

    Current gas rate information by jurisdiction North South Ohio Kentucky Tennessee Carolina Carolina (Gas) (Gas) Rate Base ($M) $1,822 $224 $349 $900(1) $200(2) Allowed ROE 10.0% 10.2% 10.2% 9.84% 10.38% Allowed Equity 50.7% 53.0% 52.7% 53.3% 50.8% Effective Date of 1/1/14 11/1/16(3) 3/1/12 12/1/13 1/

  50. Slide 50: Electric Utilities and Infrastructure Supplement

    Electric Utilities and Infrastructure Supplement DUKE ENERGY FALL UPDATE 2017 50

  51. Slide 51: A portfolio of attractive utilities in constructive jurisdictions

    Electric utilities and infrastructure A portfolio of attractive utilities in constructive jurisdictions COMPETITIVE REGULATED ELECTRIC EIGHT UTILITIES IN CUSTOMER RATES 2016 EARNINGS BASE HIGH-QUALITY Avg. ¢/kWh Retail Rates DEO - Electric DEK - Electric REGIONS OF THE U.S. (12 mos. ending 6/30/16)(

  52. Slide 52: Regulatory modernization remains a top priority

    Regulatory modernization remains a top priority H.B. 589 – COMPETITIVE ENERGY SOLUTIONS FOR NC  Pursued in parallel to Avoided Cost docket at N.C. Utilities Commission  Reforms the Public Utility Regulatory Policy Act (PURPA) process in North Carolina, ENGAGE setting a clear path for more reliable

  53. Slide 53: Our grid modernization core categories

    Our grid modernization core categories TARGETED UNDERGROUNDING Move hard-to-access services underground to improve reliability SELF-OPTIMIZATION TRANSMISSION Add connectivity, capacity and IMPROVEMENTS control so the grid can self- Substation and transmission identify problems and react line upgrade

  54. Slide 54: Gas Utilities and Infrastructure Supplement

    Gas Utilities and Infrastructure Supplement DUKE ENERGY FALL UPDATE 2017 54

  55. Slide 55: Constructive LDC regulatory environment

    Constructive LDC regulatory environment North Carolina Regulatory North Carolina IMR Highlights  On September 4, 2015, Piedmont reached an IMR settlement with the NC Public Staff  Allows revenue decoupling mechanisms  Settlement seeks to create regulatory certainty, balance  Integrity Management

  56. Slide 56: Constructive LDC regulatory environment (continued)

    Constructive LDC regulatory environment (continued) South Carolina Regulatory Highlights Margin Stabilizing Mechanisms  Gas utilities are permitted to adjust rates annually under the Rate Stabilization Act (RSA) if earned ROE is outside a band of 1. Purchased Gas Adjustment All States ±50 basis poi

  57. Slide 57: Commercial Renewables Supplement

    Commercial Renewables Supplement DUKE ENERGY FALL UPDATE 2017 57

  58. Slide 58: Duke Energy commercial renewables asset locations

    Duke Energy commercial renewables asset locations(1) (1) A full list of generation facilities can be found at https://www.duke-energy.com//_/media/pdfs/our-company/renewables-n-america-facilities.pdf DUKE ENERGY FALL UPDATE 2017 58

  59. Slide 59: Duke Energy's accounting for renewable tax credits

    Duke Energy’s accounting for renewable tax credits INVESTMENT TAX CREDITS HIGH LEVEL ITC EXAMPLE  Current ITC available is 30 percent for wind and Project Cost $500 million solar projects 30% ITC Cash Benefit $150 million  The solar ITC will step down from 30% to 10%* Life of Asset 20 Years  ITCs

  60. Slide 60: Investor Relations contacts

    Mike Callahan, Vice President Investor Relations  Michael.Callahan@duke-energy.com  (704) 382-0459 Mike Switzer, Director Investor Relations  Mike.Switzer@duke-energy.com  (704) 382-6473 Chris Bauer, Manager Investor Relations  Chris.Bauer@duke-energy.com  (704) 382-5826 For additional informa

  61. Slide 61: Safe Harbor statement

    Safe Harbor statement Safe Harbor statement This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management’s beliefs and assumptions and can o

  62. Slide 62: Non-GAAP Reconciliations: Adjusted Diluted EPS

    Duke Energy Corporation Non-GAAP Reconciliations Fall Update 2017 Adjusted Diluted Earnings per Share (EPS) The materials for Duke Energy Corporation’s (Duke Energy) Fall Update 2017 include a discussion of adjusted diluted EPS for the quarter-to-date and year-to-date periods ended June 30, 2017 and

  63. Slide 63: Adjusted Segment Income and Adjusted Other Net Expense

    special items for future periods, such as legal settlements, the impact of regulatory orders or asset impairments. Adjusted Segment Income and Adjusted Other Net Expense, and Forecasted Adjusted Segment Income and Forecasted Adjusted Other Net Expense The materials for Duke Energy’s Fall Update 2017

  64. Slide 64: Adjusted Book ROE and FFO Ratios

    periods, information to reconcile it to the most directly comparable GAAP financial measure is not available at this time, as management is unable to project all special items, as discussed above under Adjusted Diluted EPS Guidance. Adjusted Book Return on Equity (ROE) The materials for Duke Energy’

  65. Slide 65: Non-Rider Recoverable O&M

    Non-Rider Recoverable O&M The materials for Duke Energy’s Fall Update 2017 include a discussion of Duke Energy’s non-rider recoverable operating, maintenance and other expenses (O&M) for the years ended December 31, 2016, 2015 and 2014, as well as the forecasted year ended December 31, 2017. Non-rid

  66. Slide 66: Reported to Adjusted Earnings Reconciliation – Twelve Months 2016

    DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Twelve Months Ended December 31, 2016 (Dollars in millions, except per-share amounts) Special Items Costs to Cost Commercial International Reported Achieve Savings Renewables Energy Discontinued Total Adjusted Earnings Mergers Init

  67. Slide 67: Reported to Adjusted Earnings Reconciliation – Three Months June 2017

    DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Three Months Ended June 30, 2017 (Dollars in millions, except per-share amounts) Special Item Reported Costs to Achieve Discontinued Total Adjusted Earnings Piedmont Merger Operations Adjustments Earnings SEGMENT INCOME Electric Ut

  68. Slide 68: Reported to Adjusted Earnings Reconciliation – Six Months June 2017

    DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Six Months Ended June 30, 2017 (Dollars in millions, except per-share amounts) Special Item Reported Costs to Achieve Discontinued Total Adjusted Earnings Piedmont Merger Operations Adjustments Earnings SEGMENT INCOME Electric Util

  69. Slide 69: Reported to Adjusted Earnings Reconciliation – Three Months June 2016

    DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Three Months Ended June 30, 2016 (Dollars in millions, except per-share amounts) Special Items Costs to Cost International Reported Achieve Savings Energy Discontinued Total Adjusted Earnings Mergers Initiatives Operations Operatio

  70. Slide 70: Reported to Adjusted Earnings Reconciliation – Six Months June 2016

    DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Six Months Ended June 30, 2016 (Dollars in millions, except per-share amounts) Special Items Costs to Cost International Reported Achieve Savings Energy Discontinued Total Adjusted Earnings Mergers Initiatives Operations Operations

  71. Slide 71: Adjusted Effective Tax Reconciliation

    DUKE ENERGY CORPORATION ADJUSTED EFFECTIVE TAX RECONCILIATION June 2017 (Dollars in Millions) Six Months Ended June 30, 2017 Balance Effective Tax Rate Reported Income From Continuing Operations Before Income Taxes $ 2,079 Costs to Achieve Piedmont Merger 46 Noncontrolling Interests (4) Adjusted Pre

  72. Slide 72: Available Liquidity Reconciliation

    Duke Energy Corporation Available Liquidity Reconciliation As of June 30, 2017 (In millions) Cash and Cash Equivalents $ 298 Less: Certain Amounts Held in Foreign Jurisdictions (65) Less: Unavailable Domestic Cash (39) 194 Plus: Remaining Availability under Master Credit Facilities and other facilit

  73. Slide 73: Operations, Maintenance and Other Expense

    Duke Energy Corporation Operations, Maintenance and Other Expense (In millions) Actual Actual Actual Forecast December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 Operation, maintenance and other(a) $5,506 $5,539 $6,085 $6,201 Adjustments: Costs to Achieve, Mergers(b) (178) (69) (

  74. Slide 74: 2017 Forecasted Cash Flow Reconciliation

    Duke Energy Corporation 2017 Forecasted Cash Flow Reconciliation, Required by SEC Regulation G ($ in millions) Forecast 2017 Primary Sources: Adjusted net income (1) (a) $ 3,225 Depreciation & amortization (a) 4,100 Deferred and accrued taxes (a) 1,450 Other sources / (uses), net (a) (940) Total Sou

  75. Slide 75: Adjusted Book Return on Equity – 2014

    DUKE ENERGY CORPORATION ADJUSTED BOOK RETURN ON EQUITY (ROEs) For the period ended December 31, 2014 dollars in millions Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Ohio Reportable Carolinas Progress Total Carolinas Florida Indiana Segments Reported Net Income 2014 $ 1,072 $ 467 $ 1,

  76. Slide 76: Adjusted Book Return on Equity – 2015

    DUKE ENERGY CORPORATION ADJUSTED BOOK RETURN ON EQUITY (ROEs) For the period ended December 31, 2015 dollars in millions Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Ohio Reportable Carolinas Progress Total Carolinas Florida Indiana Segments Reported Net Income 2015 $ 1,081 $ 566 $ 1,

  77. Slide 77: Adjusted Book Return on Equity – 2016

    DUKE ENERGY CORPORATION ADJUSTED BOOK RETURN ON EQUITY (ROEs) For the period ended December 31, 2016 dollars in millions Duke Energy Duke Energy Duke Energy Duke Energy Duke Energy Ohio Reportable Carolinas Progress Total Carolinas Florida Indiana Segments Reported Net Income 2016 $ 1,166 $ 599 $ 1,

  78. Slide 78: FFO to Debt Calculation – Duke Energy Corporation

    FFO to Debt Calculation Duke Energy Corporation (in millions) Years Ended December 31, 2017 2016 2015 Forecast Actual Actual Cash From Operations $ 6,734 $ 6,798 $ 6,676 Working capital adjustment (1) 184 (345) (181) Capitalized Interest (124) (100) (98) CR3 securitization adjustment (55) (35) - Oth

  79. Slide 79: FFO to Debt Calculation – Duke Energy Carolinas

    FFO to Debt Calculation Duke Energy Carolinas (in millions) Years Ended December 31, 2017 2016 2015 Forecast Actual Actual Cash From Operations $ 2,556 $ 2,976 $ 2,373 Working capital adjustment (1) 88 (333) 128 Capitalized Interest (46) (38) (38) Funds From Operations 2,598 2,605 2,463 ARO spend -

  80. Slide 80: FFO to Debt Calculation – Duke Energy Progress

    FFO to Debt Calculation Duke Energy Progress (in millions) Years Ended December 31, 2017 2016 2015 Forecast Actual Actual Cash From Operations $ 1,305 $ 1,932 $ 1,594 Working capital adjustment (1) 106 (502) (219) Capitalized Interest (22) (17) (20) Other 3 2 2 Funds From Operations 1,392 1,415 1,35

  81. Slide 81: FFO to Debt Calculation – Duke Energy Florida

    FFO to Debt Calculation Duke Energy Florida (in millions) Years Ended December 31, 2017 2016 2015 Forecast Actual Actual Cash From Operations $ 1,155 $ 844 $ 1,373 Working capital adjustment (1) 3 252 (159) Capitalized Interest (27) (14) (4) CR3 securitization adjustment (55) (35) - Other 14 13 12 F

  82. Slide 82: FFO to Debt Calculation – Duke Energy Indiana

    FFO to Debt Calculation Duke Energy Indiana (in millions) Years Ended December 31, 2017 2016 2015 Forecast Actual Actual Cash From Operations $ 1,065 $ 871 $ 1,176 Working capital adjustment (1) (78) 132 (225) Capitalized Interest (15) (7) (6) Funds From Operations 972 996 945 ARO spend - 46 19 ARO

  83. Slide 83: FFO to Debt Calculation – Duke Energy Ohio

    FFO to Debt Calculation Duke Energy Ohio (in millions) Years Ended December 31, 2017 2016 2015 Forecast Actual Actual Cash From Operations $ 425 $ 425 $ 667 Working capital adjustment (1) 73 15 (91) Capitalized Interest (9) (8) (10) Funds From Operations 489 432 566 ARO spend - 5 4 ARO spend, net of

  84. Slide 84: FFO to Debt Calculation – Piedmont Natural Gas

    FFO to Debt Calculation Piedmont Natural Gas (in millions) Years Ended December 31, October 31, 2017 2016 2015 Forecast Actual Actual Cash From Operations $ 405 $ 308 $ 372 Working capital adjustment (1) 94 101 (37) Funds From Operations 499 409 335 ARO spend - 6 6 ARO spend, net of tax at 38% - 4 4

Duke Energy — Investor Presentation (September 2017) on 6ix