The Duke Energy Registrants face risks from implementing their clean energy transition strategy, including uncertain federal and state policies affecting fuel costs and generation technologies. Significant storm damage and associated restoration costs pose a near-term liquidity risk. Environmental regulations, particularly the 2024 CCR Rule, increase potential remediation costs and legal challenges. Goodwill impairment is a possibility, especially for Duke Energy Ohio's Gas Utilities and Infrastructure segment. The document also notes risks related to supply chain disruptions and interest rate pressures.
Financial Upside
The Registrants anticipate revenue increases from rate cases in multiple jurisdictions, including those related to the 2021 Settlement and recent rate cases in South Carolina, North Carolina, and other states. Higher retail sales volumes and favorable weather conditions are also expected to contribute to revenue growth. The sale of Commercial Renewables assets to Brookfield is expected to generate proceeds. The Registrants are also pursuing new clean energy initiatives, such as PowerPair, and expect to recover storm costs through various mechanisms.
