Duke Energy advances energy transition and positions company for long-term success, CEO tells shareholders at annual meeting

Rhea-AI Summary

Duke Energy, a Fortune 150 company, highlighted key achievements in 2023 during its annual shareholders meeting. The company successfully completed portfolio repositioning, added a record number of new customers, and secured regulatory approvals for significant investments. Duke Energy is focused on grid modernization and pursuing emerging technologies to reach climate goals. Operational excellence and safety are core priorities, with notable performance across the organization. Shareholders elected the Board of Directors and discussed key proposals at the meeting.

Positive

• Successfully completed portfolio repositioning by selling commercial renewables business and becoming a fully regulated company, focusing on regulated business investments.

• Added a record 195,000 new customers in 2023, projecting significant load growth through 2028.

• Received favorable rulings from state commissions in electric and gas rate cases, totaling $45 billion in rate base investments, supporting value delivery to customers and shareholders.

• Filed an updated Carolinas Resource Plan outlining the next 15 years of strategy in key jurisdictions.

• Pursuing grid modernization as a major focus in the capital plan, with plans to build the nation's first solar-to-hydrogen fueled turbine.

• Achieved operational excellence with outstanding performance in extreme weather conditions, strong nuclear fleet capacity factor, and best safety performance in company history.

Negative

• A nonbinding shareholder proposal for named executives to retain significant stock did not receive majority support.

• A second nonbinding shareholder proposal related to financial statement assumptions and climate change also did not receive majority support.

• Company moving from planning to execution phase of energy transition
• Reliability and affordability remain cornerstones of success

CHARLOTTE, N.C., May 9, 2024 /PRNewswire/ -- In 2023, Duke Energy (NYSE: DUK) executed its strategy, achieved significant regulatory and policy milestones, and ensured affordability and reliability for customers in the face of rapidly rising interest rates and extremely mild weather, CEO Lynn Good told investors during the company's annual shareholders meeting today. 

These accomplishments come at a critical time as the company enters a new era of record grid investments and generation build to meet customers' evolving needs and service the rapid growth in its service territories.

"I'm pleased with how the 27,000 teammates at Duke Energy built momentum for the future, navigating the challenges and emerging a stronger organization. We are excited about the path forward as a fully regulated utility and look forward to capitalizing on the unprecedented growth and investment opportunities ahead," Good said. 

Good cited several strategic milestones in 2023 that set the company up for success:

• "We completed our portfolio repositioning work, as we sold our commercial renewables business and became a fully regulated company. This strategic move allows us to focus on the significant investment opportunities within our regulated businesses."
• "We added 195,000 new customers in 2023 alone – the largest customer increase in company history. And we are projecting average overall load growth of 1.5% to 2% per year through 2028."
• "We saw constructive outcomes from state commissions in five electric rate cases and one natural gas rate case. These rulings in the Carolinas, Kentucky and Ohio equate to $45 billion of historic and future rate base investments and also recognize the higher cost of capital. This will help us continue to deliver value to customers and shareholders."
• "We also filed an updated Carolinas Resource Plan in August 2023 that outlines the road ahead for the next 15 years in our largest jurisdictions."
• "We are taking a systematic approach to updating the grid – the largest focus of our capital plan over the next five years – because transforming and readying our system starts with the grid."
• "Duke Energy is also pursuing emerging technologies needed in the 2030s and beyond to reach our climate goals, including plans to build and operate the nation's first solar-to-100% hydrogen fueled turbine, expected to be operational by year-end."

Operational excellence and safety underpin Duke Energy's strategic progress

Recently appointed President Harry Sideris, who oversees the company's electric and gas utilities, joined Good for the meeting and reinforced the strength of the company's fundamentals.

"I continue to be impressed by this team and their commitment to excellence as we serve our investors, customers and communities and know our ongoing focus will yield consistently strong results," said Sideris.

Sideris covered several key accomplishments:

• "Our generation fleet performed well during extreme weather conditions last year including historic storms in Indiana and Florida."
• "Outstanding performance continued across our organization, with our nuclear fleet achieving a capacity factor of 96% – the 25th consecutive year above 90%."
• "And I'm particularly proud to report 2023 marked the best safety performance in Duke Energy history."

Other business

Also at today's meeting:

• Good and Sideris fielded shareholder questions on a range of topics. The company will post responses to questions on its website.
• Shareholders elected all 14 nominees to the company's Board of Directors.
• A nonbinding shareholder proposal regarding a requirement for named executives to retain significant stock did not receive the support of a majority of votes cast.
• A second nonbinding shareholder proposal regarding financial statement assumptions and climate change did not receive the support of a majority of votes cast.

A replay of the meeting will be posted on Duke Energy's investors page.

Duke Energy

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. The company's electric utilities serve 8.4 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 54,800 megawatts of energy capacity. Its natural gas utilities serve 1.7 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky.

Duke Energy is executing an ambitious clean energy transition, keeping reliability, affordability and accessibility at the forefront as the company works toward net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050. The company is investing in major electric grid upgrades and cleaner generation, including expanded energy storage, renewables, natural gas and nuclear.

More information is available at duke-energy.com and the Duke Energy News Center. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook, and visit illumination for stories about the people and innovations powering our energy transition.

Contact: Gillian Moore
24-Hour: 800.559.3853

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SOURCE Duke Energy

FAQ

What were some key milestones achieved by Duke Energy in 2023?

In 2023, Duke Energy completed portfolio repositioning, added a record number of new customers, received favorable rulings in rate cases, filed an updated Carolinas Resource Plan, and initiated grid modernization efforts.

What are Duke Energy's goals for clean energy transition?

Duke Energy aims to achieve net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050.

What were the outcomes of the shareholder proposals discussed at the annual meeting?

Two nonbinding shareholder proposals related to executive stock retention and financial assumptions regarding climate change did not receive majority support from votes cast.