Duke Energy responds to constructive Carolinas Resource Plan decision by North Carolina Utilities Commission

Core Viewpoint - Duke Energy's Carolinas Resource Plan has received approval from the North Carolina Utilities Commission (NCUC), allowing the company to advance its clean energy initiatives while ensuring affordability and reliability for customers [1][4]. Background - Duke Energy submitted its Carolinas Resource Plan on August 17, 2023, outlining a strategy for cleaner energy in North and South Carolina while maintaining grid reliability and competitive rates [2]. - The company provided supplemental modeling to state regulators on January 31, 2024, due to an unprecedented increase in projected customer demand [3]. NCUC Order - The NCUC's order accepts the July settlement, emphasizing the importance of affordable rates and the need for Duke Energy to invest in its system to ensure reliable service as demand grows [5]. - The order directs Duke Energy to pursue specific near-term actions to maintain reliable service and keep rates below the national average [5]. Near-Term Resources - The NCUC approved the following near-term resource additions: - Solar: 3,460 MW of new solar generation, totaling 6,700 MW by 2031 - Battery: 1,100 MW of battery energy storage, totaling 2,700 MW by 2031 - Onshore Wind: 1,200 MW operational by 2033, with at least 300 MW by 2031 - Combustion Turbines: Four CTs by 2030, adding 900 MW beyond the previous order - Combined Cycles: Three CC units by 2031, adding 2,720 MW beyond the previous order [6]. Long-Term Resources - The NCUC approved continued development for: - Bad Creek II: $165 million in early development costs - Nuclear:$440 million in early development costs, targeting 300 MW by 2034 and 600 MW by 2035 - Offshore Wind: Evaluation of offshore wind's role, targeting 800 to 1,100 MW by 2034 and 2,200 to 2,400 MW by 2035 [7]. Modeling and Key Findings - The NCUC confirmed Duke Energy's recommended portfolio as the "reference portfolio" and increased the minimum planning reserve margin to 22% by 2031 [8]. - The requirement for a 70% carbon reduction by 2030 was waived, with an agreement to pursue this goal as soon as possible [8]. - The plan anticipates a 0.9% increase in inflation-adjusted bills by 2038 [8]. Next Steps - The Public Service Commission of South Carolina (PSCSC) will issue an order on or before November 26, 2024, after which Duke Energy will begin executing the plan and developing the modeling for the 2025 plan update [9]. Company Overview - Duke Energy, a Fortune 150 company, serves 8.4 million customers across multiple states and owns 54,800 MW of energy capacity [11]. - The company is focused on a clean energy transition, targeting net-zero carbon emissions from electricity generation by 2050 and investing in grid upgrades and cleaner generation [12].