Duke Energy Advances Energy Transition and Positions Company for Long-Term Success, CEO Tells Shareholders at Annual Meeting
Duke Energy (NYSE: DUK) is advancing its energy transition, emphasizing reliability and affordability amidst regulatory and policy achievements in 2023.
CEO Lynn Good highlighted strategic milestones including the sale of its commercial renewables business, which repositions Duke as a fully regulated company, and the addition of 195,000 new customers. Key rate case outcomes in multiple states support $45 billion in rate base investments. The company's updated Carolinas Resource Plan outlines a 15-year roadmap for growth.
Duke Energy plans significant grid updates and emergent technologies like a solar-to-100% hydrogen fueled turbine by year-end. Operational excellence includes a 96% nuclear fleet capacity factor and record safety performance in 2023.
Shareholders elected all 14 board nominees, while two nonbinding proposals did not pass. A replay of the meeting will be available on the company’s investor page.
- Duke Energy added 195,000 new customers in 2023, the largest in company history.
- Completion of the commercial renewables sale repositions Duke as a fully regulated company.
- Constructive outcomes from state commissions support $45 billion in rate base investments.
- The updated Carolinas Resource Plan outlines a 15-year growth roadmap.
- Plans to build a solar-to-100% hydrogen fueled turbine by year-end.
- The nuclear fleet achieved a 96% capacity factor for the 25th consecutive year.
- Record safety performance marked in 2023.
- Rising interest rates and mild weather pose challenges in maintaining affordability and reliability.
- Two nonbinding shareholder proposals did not receive majority support.
Insights
Financial Performance and Strategic Moves: Duke Energy's transition to becoming a fully regulated utility, coupled with the sale of its commercial renewables business, is a strategic shift that positions the company to focus more on stable, regulated earnings. The addition of
The projected average load growth of
Operational Excellence: Duke Energy's consistent operational performance, notably in its nuclear fleet achieving a 96% capacity factor and the best safety performance in history, showcases the company's efficiency and reliability. This operational stability is essential for investor confidence, indicating robust management and a strong operational foundation.
Grid Investments and Emerging Technologies: The systematic approach to grid updates and investment in emerging technologies, such as the solar-to-hydrogen turbine, demonstrates Duke's commitment to innovation and sustainability. These initiatives are important for meeting future energy demands and achieving climate goals, which are increasingly important factors for investors looking at long-term viability and ESG performance.
Regulatory Environment and Market Expansion: Duke Energy's constructive outcomes from state commissions in multiple rate cases indicate a supportive regulatory environment, which is vital for the company's growth and stability. This regulatory backing ensures that Duke can continue making significant investments without facing undue regulatory hurdles. The addition of 195,000 new customers in 2023, the largest in company history, signals strong market penetration and growth potential in its service territories.
Energy Transition and Customer Needs: Moving to the execution phase of its energy transition, Duke is proactively addressing the evolving energy needs of its customers. The focus on grid modernization and the integration of renewable energy sources position the company well to meet future demand and regulatory requirements. This strategic focus on a cleaner energy portfolio aligns with broader industry trends and consumer preferences, enhancing Duke's market position.
Long-Term Strategic Planning: The updated Carolinas Resource Plan and the focus on emerging technologies for the 2030s and beyond highlight Duke's forward-looking approach. Investing in innovative technologies, such as the solar-to-hydrogen turbine, ensures that Duke remains at the forefront of the energy transition. This long-term planning is essential for maintaining competitive advantage and meeting regulatory and market expectations for sustainability and reliability.
- Company moving from planning to execution phase of energy transition
- Reliability and affordability remain cornerstones of success
CHARLOTTE, NC / ACCESSWIRE / May 23, 2024 / 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% to2% 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 above90% ." - "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.
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SOURCE: Duke Energy
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