Duke Energy (DUK) Q3 2026 Earnings Call: Q&A Summary

Q: Shar Pourreza with Wells Fargo asked how the Florida Public Service Commission's decision to delay the tariff impacts the opportunity set for large loads and if the company can continue as planned without it.

A: Harry Sideris, President and CEO, stated that management is making adjustments to the tariff and plans to refile it, while ongoing commercial discussions with customers continue with no slowdown in progress.

Q: Shar Pourreza with Wells Fargo asked if Duke Energy would consider a Genco type structure in Indiana to speed up time to market and bypass the CPCN process.

A: Harry Sideris, President and CEO, noted that the company always evaluates whether a Genco operation is needed and remains open to it if circumstances change, though it continues to successfully serve customers under the current model.

Q: Julien Dumoulin-Smith with Jefferies asked about confidence in the approval process for the North Carolina rate case settlement and how potential tweaks would be handled.

A: Harry Sideris, President and CEO, expressed strong confidence in getting the settlement approved given its balanced approach, and Brian Savoy, Executive Vice President and CFO, added that revenue acceleration from large load customers supports the stay-out option through 2029.

Q: Julien Dumoulin-Smith with Jefferies asked if confidence remains high for obtaining future plant approvals despite recent pushback on discrete investments.

A: Harry Sideris, President and CEO, affirmed that North Carolina remains a constructive environment where stakeholders are aligned on maintaining reliability, affordability, and serving tremendous load growth.

Q: Nicholas Campanella with Barclays asked what rate base increase or earnings-base impact the $5 billion to $10 billion of additional capital in Florida and Indiana represents, and what other incremental items like natural gas liquids facilities are worth thinking about.

A: Brian Savoy, Executive Vice President and CFO, explained that capital deployment is stepping up significantly from about $1.5 billion a month to about $2 billion a month entering 2027, driven by massive generation buildouts under construction and development.

Q: Nicholas Campanella with Barclays asked how recent election updates might impact the states served and if there could be upside to the late-stage pipeline from companies moving into the territory.

A: Harry Sideris, President and CEO, stated that management has a long track record of working successfully with both sides of the aisle to achieve reliable and affordable service, and expects continued strong alignment on economic development and job creation.

Q: Carly Davenport with Goldman Sachs asked about lessons learned from the denial of the Smith CT CPCN and plans for refiling the Dave Davidson combined cycle plants.

A: Harry Sideris, President and CEO, explained that the Smith CPCN denial focused on IRP load validation, but expressed confidence that future filings like Davidson will succeed given approval received for other projects such as Anderson County.

Q: Carly Davenport with Goldman Sachs asked if there are any federal level updates or shifts in appetite for new nuclear development.

A: Harry Sideris, President and CEO, replied that the strategy remains focused on upgrading current units and extending operating lives, while monitoring federal tax credits, international announcements, and risk-sharing discussions before committing to new nuclear builds.

Q: Anthony Crowdell with Mizuho asked for a quantification of weather benefits pulled forward into O&M and how much is derisked into 2027.

A: Brian Savoy, Executive Vice President and CFO, declined to disclose the specific dollar amount, noting that a modest portion of the $0.22 of year-to-date weather benefits is being reinvested to derisk future years while the rest helps reach the top end of the guidance range.

Q: Anthony Crowdell with Mizuho asked what gating items are needed to move the remaining 7.6 gigawatts of the late-stage pipeline into signed ESAs.

A: Harry Sideris, President and CEO, explained that these are complex, dynamic contracts involving letter agreements and negotiations that take time, but expressed full confidence in signing the rest by the first half of next year.

Q: Nicholas Amicucci with Evercore ISI asked about the rationale for accelerating the Florida minority sale proceeds and how to balance holding company interest savings with equity requirements.

A: Brian Savoy, Executive Vice President and CFO, explained that Brookfield had the contractual optionality to accelerate their investment tranches, and bringing in $8.5 billion to delever the holding company at a high PE valuation is net-net accretive and reduces equity market needs in 2027.