Duke Energy Corporation (Holding Company)

Thank you, Lydia, and good morning, everyone. Welcome to Duke Energy's first quarter 2024 earnings review and business update. Leading our call today is Lynn Good, chair and CEO, along with Harry Sedaris, president, and Brian Savoy, CFO. Today's discussion will include the use of non-GAAP financial measures and forward-looking information. Actual results may differ from forward-looking statements due to factors disclosed in today's materials and in Duke Energy's SEC filings. The appendix of today's presentation includes supplemental information, along with a reconciliation of non-GAAP financial measures. With that, let me turn the call over to Lynn.

Thank you. Good morning, everyone. Today we announced first quarter adjusted earnings per share of $1.44, delivering a strong start to the year. These results are 24 cents above last year, driven by growth from rate activity across our jurisdictions, strengthening retail volumes, and improved weather. We remain confident in our outlook and are reaffirming our 2024 guidance range of 585 to 610 and our long-term EPS growth rate of 5% to 7% through 2028. We have a clear path forward as a fully regulated utility operating in some of the most attractive and fastest growing areas of the country. Our strategy will drive continued growth underpinned by our five-year $73 billion capital plan, efficient recovery mechanisms, and track record of constructive regulatory outcomes. Moving to slide five, our jurisdictions are experiencing unprecedented growth from population migration and economic development. We're committed to meeting these increasing customer demands through an all-of-the-above strategy that preserves affordability and reliability as we decarbonize. In doing so, 2024 marks an important stage in our fleet transition as we move from the planning phase to project execution. In Florida, we're on track to have 1500 megawatts of utility-owned solar in service by year end. And in our recently filed 10-year site plan, we expect to more than triple the amount of solar on our system by 2033. In the Carolinas, we're completing annual solar procurements that will add approximately 1500 megawatts to the grid each year beginning in 2027. These investments are part of our goal to have 30,000 megawatts of regulated renewables on our system by 2035. In the Carolinas, we filed certificates of public convenience and necessity in March to build more than two gigawatts of new advanced class natural gas generation. The filings with the NCUC include two simple cycle combustion turbines and one combined cycle plant consistent with the Carolinas Resource Plan. Pending regulatory approvals, construction is planned to start in 2026, with all units operational by the end of 2028. Each of these new facilities will be sited in existing coal plants and will provide needed dispatchable generation when those units retire. We recognize there's a lot of attention on natural gas and its role in achieving net zero. We believe natural gas must be a part of not just Duke's, but our nation's energy transition strategy. In the face of unprecedented demand from AI data centers, chip manufacturers, and other economic development, natural gas remains an essential tool to provide reliable and affordable energy for customers and complements our substantial investments in renewables and energy storage. As you know, EPA recently released rules that place limits on certain base load generation sources. While the fate of this rule will soon be in the hands of the courts, We will continue to advocate for solutions to reliably and affordably serve the growing energy needs of our customers and communities. As we step into this period of significant infrastructure build for the company, we recently appointed Harry Sedaris president of Duke Energy. As president, Harry has responsibility for all of our electric and gas utilities, including all aspects of operations and regulatory activities. Harry is a 28-year company veteran and has an exceptional track record of accomplishment and leadership across many functions. He began his career in generation, led environmental health and safety, served as the president of our Florida utility, and most recently led transmission, distribution, and customer operations, including economic development. Harry is a trusted member of the executive leadership team, and in his new role, he remains committed to delivering value to our customers and our investors. I'm pleased to introduce him for the first time on an earnings call and his new role as president. And with that, Gary, I'll turn it over to you to go through the jurisdictional highlights.

Thank you, Lynn, for the introduction. I'm excited for the new role and look forward to leading our utilities and operations through this important time in our energy transition. Turning to slide six, meeting our customers' expectations requires collaboration with regulators, policymakers, and other stakeholders. and we continue to make great progress across our jurisdictions. Starting with South Carolina, hearings begin May 20th in our Duke Energy Carolina's rate case. Since our last rate case in 2018, our rate base has increased by almost $2 billion, driven by investments to improve reliability and resiliency and meet the growing energy needs of our customers. We expect new rates to be implemented August 1st. Shifting to Florida, In April, we filed our next three-year multi-year rate plan that will begin in 2025. The plan includes grid investments to enhance reliability, decrease outages, and shorten restoration times, building on Duke Energy's Florida's best reliability year in over a decade in 2023. The filing also covers investments to add new solar and battery, as well as improve the efficiency of our current generation assets. Even with the requested base rate increases, we expect overall customer bills to decrease in 2025 as fuel under recovery, storm restoration costs and legacy purchase powered contracts expire at the end of the year. In Indiana, we filed our first rate case in four years in April. Since our last case, we've invested more than $1.6 billion to support the state's growing population and increase the resiliency and security of the grid. The case includes a four-test year and two rate step-ups starting in the first quarter of 2025, smoothing the impact to customers. And finally, Piedmont Natural Gas also filed a rate case in North Carolina in April. The request covers significant infrastructure investments to comply with federal safety regulations, enhance the customer experience, and provide safe, reliable natural gas service. As part of the filing, Piedmont is also requesting concurrent rate reductions for pass-through natural gas costs, which will help mitigate the impacts to the customer bill. We plan to implement interim rates November 1st with the final order expected in January. We've made great progress in the first quarter, advancing rate cases and fleet transition projects across our footprint. As we embark on this period of significant infrastructure build,