Duke Energy responds to constructive Carolinas Resource Plan decision by North Carolina Utilities Commission
The North Carolina Utilities Commission (NCUC) has approved Duke Energy's Carolinas Resource Plan, which outlines significant clean energy expansion. The plan includes 3,460 MW of new solar, 1,100 MW of battery storage, 1,200 MW of onshore wind, and additional combustion and combined cycle units by 2031. The NCUC also approved development work for Bad Creek II, advanced nuclear capacity, and offshore wind projects. The commission increased the minimum planning reserve margin to 22% by 2031 and waived the requirement to achieve 70% carbon reduction by 2030, while maintaining focus on customer affordability with projected bill impacts of 0.9% by 2038.
La Commissione per i Servizi Pubblici della Carolina del Nord (NCUC) ha approvato il Piano delle Risorse della Carolina di Duke Energy, che prevede un significativo ampliamento delle energie rinnovabili. Il piano include 3.460 MW di nuova energia solare, 1.100 MW di accumulo su batteria, 1.200 MW di energia eolica onshore e ulteriori unità a combustione e a ciclo combinato entro il 2031. La NCUC ha anche approvato i lavori di sviluppo per Bad Creek II, la capacità nucleare avanzata e i progetti di energia eolica offshore. La commissione ha aumentato il margine minimo di riserva di pianificazione al 22% entro il 2031 e ha rinunciato all'obbligo di raggiungere una riduzione del carbonio del 70% entro il 2030, mantenendo però l'attenzione sull'accessibilità economica per i clienti, con un impatto sulle bollette previsto dello 0,9% entro il 2038.
La Comisión de Servicios Públicos de Carolina del Norte (NCUC) ha aprobado el Plan de Recursos de Carolina de Duke Energy, que detalla una expansión significativa de la energía limpia. El plan incluye 3,460 MW de nueva energía solar, 1,100 MW de almacenamiento en baterías, 1,200 MW de energía eólica en tierra y unidades adicionales de combustión y ciclo combinado para 2031. La NCUC también aprobó el trabajo de desarrollo para Bad Creek II, capacidad nuclear avanzada y proyectos de energía eólica marina. La comisión aumentó el margen mínimo de reserva de planeación al 22% para 2031 y eximió el requisito de lograr una reducción del 70% de carbono para 2030, mientras mantiene el enfoque en la asequibilidad para los clientes, con un impacto proyectado en las facturas del 0.9% para 2038.
노스캐롤라이나 유틸리티 위원회(NCUC)는 듀크 에너지의 캐롤라이나 자원 계획을 승인하였으며, 이는 청정 에너지의 큰 확장을 제시합니다. 이 계획은 3,460 MW의 새로운 태양광, 1,100 MW의 배터리 저장소, 1,200 MW의 육상 풍력 및 2031년까지 추가적인 연소 및 복합 사이클 유닛을 포함합니다. NCUC는 또한 배드 크릭 II 개발 작업, 고급 원자력 용량 및 해상 풍력 프로젝트도 승인하였습니다. 위원회는 2031년까지 최소 계획 예비 마진을 22%로 증가시켰으며, 2030년까지 70% 탄소 감소를 달성해야 한다는 요구사항을 면제하였으나, 고객의 경제적 부담을 고려하여 2038년까지 예측되는 청구서 영향을 0.9%로 유지하고 있습니다.
La Commission des services publics de la Caroline du Nord (NCUC) a approuvé le Plan des ressources de Duke Energy pour les Carolines, qui décrit une expansion significative de l'énergie propre. Le plan comprend 3.460 MW de nouvelle énergie solaire, 1.100 MW de stockage sur batterie, 1.200 MW d'énergie éolienne terrestre et d'autres unités de combustion et de cycle combiné d'ici 2031. La NCUC a également approuvé le travail de développement pour Bad Creek II, la capacité nucléaire avancée et des projets d'énergie éolienne offshore. La commission a augmenté la marge de réserve de planification minimum à 22% d'ici 2031 et a levé l'exigence d'atteindre une réduction de 70% des émissions de carbone d'ici 2030, tout en maintenant l'accent sur l'accessibilité financière pour les clients, avec un impact prévu sur les factures de 0,9% d'ici 2038.
Die Kommission für öffentliche Versorgungsunternehmen von North Carolina (NCUC) hat den Ressourcenplan von Duke Energy für die Carolinas genehmigt, der eine signifikante Erweiterung der sauberen Energie vorsieht. Der Plan umfasst 3.460 MW neuer Solarenergie, 1.100 MW Batteriespeicher, 1.200 MW Onshore-Windenergie und zusätzliche Verbrennungs- und Kombikraftwerke bis 2031. Die NCUC genehmigte auch Entwicklungsarbeiten für Bad Creek II, fortgeschrittene Kernkapazität und Offshore-Windprojekte. Die Kommission erhöhte die minimale Planungsreserve auf 22% bis 2031 und hob die Anforderung auf, bis 2030 eine Reduktion des Kohlenstoffs um 70% zu erreichen, während sie den Fokus auf die Erschwinglichkeit für die Kunden mit prognostizierten Auswirkungen auf die Rechnungen von 0,9% bis 2038 beibehält.
- Approval of comprehensive clean energy expansion plan
- Significant capacity additions across multiple energy sources
- Approved development of advanced nuclear and offshore wind projects
- Minimal projected bill impact of 0.9% through 2038
- Settlement agreement accepted in its entirety
- Waiver of 70% carbon reduction target by 2030
- Required increase in minimum planning reserve margin to 22%
- Substantial capital investment required for new infrastructure
Insights
This regulatory approval marks a significant milestone in Duke Energy's clean energy transition strategy. The NCUC's order approves substantial capacity additions including 3,460 MW of new solar, 1,100 MW of battery storage and 1,200 MW of onshore wind by 2033. The plan balances renewable expansion with reliability through approval of new gas turbines and combined cycle units.
The commission's decision to waive the 70% carbon reduction target by 2030 while maintaining the long-term trajectory provides Duke flexibility in implementation. The projected
The regulatory clarity from this order strengthens Duke's investment thesis. The approval of multiple generation assets creates a clear capital deployment runway, supporting Duke's rate base growth. The balanced approach between renewables and conventional generation helps maintain financial stability while pursuing clean energy goals.
Key financial aspects include approval of development costs for strategic projects and confirmation of coal retirement schedules. The modest projected rate impact suggests regulatory support for cost recovery, important for maintaining Duke's financial health. This regulatory outcome supports Duke's ability to maintain competitive rates while funding its ambitious transition plan.
Background
On Aug. 17, 2023, Duke Energy filed its proposed Carolinas Resource Plan with the North Carolina Utilities Commission (NCUC), two days after filing the same plan with the Public Service Commission of
Due to an unprecedented increase in projected customer demand seen in its fall load growth forecast, Duke Energy provided state regulators with supplemental modeling on Jan. 31, 2024. In July, just prior to the NCUC's evidentiary hearing on the plan, Duke Energy, the NCUC Public Staff, Walmart and the Carolinas Clean Energy Business Association reached a broad settlement on nearly all topics at issue in the Carolinas long-range plan.
Duke Energy Statement
"We believe this is a constructive outcome that allows us to deploy increasingly clean energy resources at a pace that protects affordability and reliability for our customers. The order confirms the importance of a diverse, 'all of the above' approach that is essential for long-term resource planning and helps us meet the energy needs of our region's growing economy. We look forward to thoroughly reviewing the NCUC order and incorporating it into our future resource planning."
NCUC Order
After gathering input from public hearings, evaluating our proposal and comprehensive modeling and settlement – along with modeling from Public Staff and targeted recommendations from intervenors – and conducting an extensive evidentiary hearing across two weeks, the NCUC issued its decision yesterday. The order accepts the July settlement in its entirety. The order recognizes the critical importance of maintaining affordable rates, as well as the need for Duke Energy to invest in its system to ensure reliable service, particularly as load grows in
Near-Term Resources
- Solar: 3,460 megawatts (MW) of new solar generation, beyond the NCUC's 2022 order – 6,700 MW total by 2031.
- Battery: 1,100 MW of battery energy storage, beyond the NCUC's 2022 order – 2,700 MW total by 2031.
- Onshore Wind: 1,200 MW of onshore wind in operation by 2033, including at least 300 MW in operation by 2031.
- Combustion Turbines (CTs): Four CTs by 2030 – 900 MW of additional CTs (two units) beyond the 800 MW (two units) in the NCUC's 2022 order.
- Combined Cycles (CCs): Three CC units by 2031 – 2,720 MW of additional CC capacity (CC2 and CC3) beyond the 1,200 MW (CC1) in the NCUC's 2022 order.
Long-Term Resources
- Bad Creek II: Approved continued development work, including requested
$165 million - Nuclear: Approved continued development work, including requested
$440 million - Offshore Wind: Approved continued development work through the Acquisition Request for Information (ARFI) to advance the evaluation of offshore wind's role in future resource plans, with results filed no later than July 30, 2025, and targeting between 800 and 1,100 MW of offshore wind by 2034 and 2,200 to 2,400 MW by 2035.
Modeling, Reserve Margin, Interim Carbon Reduction Target and Other Key Findings
- Confirmed Duke Energy's recommended portfolio, P3 Fall Base, as the "reference portfolio."
- Approved increase in the minimum planning reserve margin to
22% by 2031. - Waived the requirement to model
70% carbon reduction by 2030, agreed that the evidence in the case supported the decision to extend the date for achieving70% carbon reduction beyond 2032, and ordered Duke Energy to continue pursuing "all reasonable steps" to achieve70% carbon reduction by the earliest possible date. - Confirmed proposed coal retirement dates.
- Noted that "The Commission must be mindful of the impacts to customers when determining the appropriate action to take … to ensure that Duke, and
North Carolina , continue this trajectory of rates that are at or below the national average," highlighting the inflation-adjusted bill impact of the plan as a0.9% increase by 2038.
Next Steps
The PSCSC continues to deliberate on the resource plan and will issue an order on or before Nov. 26, 2024. Following that order, Duke Energy will immediately begin executing the plan while simultaneously developing the modeling required for our 2025 plan update in
Duke Energy Carolinas/Duke Energy Progress
Duke Energy Carolinas and Duke Energy Progress, subsidiaries of Duke Energy, own 34,500 megawatts of energy capacity, supplying electricity to 4.6 million residential, commercial and industrial customers across a 52,000-square-mile service area in
Duke Energy
Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in
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: Bill Norton
24-hour media line: 800.559.3853
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