Earnings call transcript Q4 2022

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Operator

Good morning. Thank you for attending today's Duke Energy Fourth Quarter and Year-end 2022 Earnings Call. [Operator Instructions].

I would now like to pass the conference over to your host, Abby Motsinger, Vice President of Investor Relations. Thank you.

proceed. may You

Abby Motsinger

CEO, and Fourth Joel, Leading everyone. to President Welcome call Vice Savoy, Thank and President XXXX good Earnings Energy's CFO. and Chair, Good, Quarter is Update. with Review Duke Brian today Executive you, Lynn morning, along and our Business

disclosed and statements, outlined laws. will may Actual with include measures be of Duke financial and non-GAAP the are within in different non-GAAP use discussion measures. information filings. reconciliation and the supplemental meaning of forward-looking those SEC results herein factors presentation Today's today's of financial along information than The the forward-looking Energy's of securities disclosures, and appendix includes

So the over with Lynn. I'll to call turn that,

Lynn Good

per achieved external $X.XX, XXXX. delivering progress share a across successful you, making solidly range goals, results out responding of to pressures Today, Thank Abby. good earnings morning, closing We and our our strategic significant everyone. our while and updated within on jurisdictions. guidance outcomes adjusted we constructive announced

As thriving our we're jurisdictions. reaffirming our disciplined $X.XX. guidance of range. the with our to the XXXX a rate plan XXXX result, $X.XX to X% and of supports our off This that a of robust reaffirming also management $XX XXXX through We're strength a midpoint today, X% range regulated $X.XX growth midpoint businesses, our of to approach reflects our cost billion capital

on businesses the scale second the to with to our evolve. and on year. proceeds any turn I in continues of the utility regulated of the exit the timing and me the provide our to sale to of anticipate Before tends update track Renewables business, brief remain sale utilities, now large-scale as sales the business. distributed a energy Commercial half both But We progress. process The let

updated you keep to way. along the continue will We

energy manner constructive transition. an plan. Slide to adopting and that chart of On a work and a to policymakers culmination of of recognizes Commission initial with an carbon achieving order stakeholders order targets XX, years our approach X. transition. The path order issued customers. the We've carbon in significant an Carolina December reduction energy balances to North affordability the is for reached This the in for clean reliability milestone the value Utilities Turning a responsible all-of-the-above

maintaining planning maintain to commission of The coal and is that an limited diverse of upgrades while coal by megawatts lead a to orderly shared commission existing the reliability. is X,XXX new approval to action storage near-term conducting plan for of reinforced of time The part the transmission a of the of the XXXX, offshore related natural X,XXX ensuring importance Through megawatts of reactors, transition mix replacement priority. supported generation resources. development online to small And and provides nuclear with integration associated these out the as activities well transition hydro longer modular also wind. megawatts solar investments, pumped units prior clean retirement renewable approved orderly transmission gas of support clear commission energy order, was X,XXX as an of available including its as and approximately generation and generation

North later we communities carbon plan and on forward and investments. year. critical updated capital of the near-term our The need to into carbon delivers in We priorities supports a supports advance that progress today constructive our It Carolina filing the customers strategic map look to this future. provides plant our our our plant needs the continuing and provides through road clarity and

the The application our North Carolina, a for of billion first XX, as on to projects go projects we are request to customer Slide capital Carolinas each for January X-year last that similar plan multiyear which reliability Moving performance-based of making solar the Energy into jurisdictions. security We're expected needs to service storage as progress Duke in primarily a our improvements investments that followed and fall. on rate fund of support million to including growing period. rate filing meaningful our our consistent the well approximately $X.X of utility our with grid X. the system includes base, strategic investments T&D-related These initiatives $XXX filed plan DEP our order. are and meet over the In of utility carbon

rate the hearings with operating to subject effective to costs are we we Our implement costs evidence temporary be mitigated to revised a increases by continued expect down. to customer by rates to early begin request past is Evidentiary expected quarter rates last in our of case, since practice, and X in manage refund. reduction our If approved, keep ability September, to XXXX. intend third consistent in year rate

subject to accelerated In South certain parties coal settlement, all rate of coal to includes supports and review the very with Duke dates units. January in and Progress ROE, a Carolina, settlement we in grid for a is case. The were pleased spend reach retirement commission continuation deferrals X.X% and for comprehensive approval Energy ash which our

In for afternoon. fact, expected April. new the are in this to be settlement if is approved, rates on the And implemented commission's agenda

the which and carbon We updated Carolina file also Reduction will IRP to plan take plan in the later an into Inflation year, Act. South this account

rates prices the On we less Florida. costs, adjust to filed lower XXXX of XXXX. petition in customer impact deferred fuel forecasted XX, January for Turning a to fuel

to X. Florida as are also IRA our back of tax customers savings January We flowing

of we're regional updating results IRP the Reduction process, and reflect Indiana, operator XXXX In transmission RFP requirements to Inflation the our Act.

power second of We need the new expect in generation filing begin quarter. certificates to for for

In settlement recovery reliability electric for service grid investments the Ohio, and in rate of our our in to supports commission case customers. which improve full December, approved the

reflects $XXX an also and we delivery strengthen filed updated as Kentucky December, to In the we've dates rate well investments made retirement in case The systems for request Kentucky. our electric million in more than as fleet. generation

lower will customers. mind. go top into our taking more As on we of jurisdictions strategy, for Brian affordability our detail we're steps regulatory advance costs to remains across

highlight satisfaction service gas Piedmont to December, time recognition testament the in in Power for has This our the is team. In ranking Southeast. want J.D. first natural I residential customers. a our a ranked the to for Piedmont Gas well-deserved is received #X commitment #X the Piedmont Natural to Finally, and customer

extraordinary Duke XXXX transformation. was and pressures we difficult Energy energy strong an responding external summary, year made our as our for clean In executing progress to strategy, advancing

Our path forward remains clear.

our investors. communities transition, confident consistent students to benefits to As do and navigate communities. remaining we affordability that deliver energy responsibly, will so good will continue our for -- and continue reliability stewards and lasting I'm to of strategy preserving our customers and our customers, we

the Brian. to me let turn call that, over With

Brian Savoy

good and everyone. Lynn, Thanks, morning,

The XXXX range midpoint year Slide quarter. growth operations adjusted year of the adjusted planning to our these and results. sale X. GAAP utility in This discontinued held fourth which adjustment These to our was relates guidance triggered exclude processes. reported range. distributed of of of within combined the classification reflected the adjustment share for Commercial Turning in above operations the full to We moved for assets achieved and marked $X.XX, our Renewables a discontinued businesses which valuation updated for billion, of and sales was as is $X.X per generation a results scale solid our business, utilities. earnings

guidance. and XXXX, O&M for North Florida. Electric $X.XX volumes, costs. these year. adjusted primarily favorable was expense per to line with flat to in and our weather increases interest In or year, our Partially Carolina higher rate prior Absent increased the to results due earnings higher the and segment, Moving storms, in in storm offsetting share which by was

case segment, earnings Gas per Carolina rate In the $X.XX the share to was and primarily riders. and due Piedmont, North increased

In expense lower on segment, returns drove the investments and higher unfavorable Other by interest results $X.XX.

X. Slide to Turning

$X.XX. we of midpoint retail X.X%. growth expect We to with $X.XX Electric, in roughly our for are XXXX Within guidance reaffirming range XXXX $X.XX volume the of

from effect We for with see also move year cases X Florida we'll we year. in as already entered through updated Carolinas the and rate the and Ohio growth rates

will continue approved and Midwest Florida the plans see we from investment Florida, namely Indiana and in SPP XXXX. Additionally, growth in TDISC riders the the grid to

savings rationalizing estate We've support corporate primarily to identified IT over These Moving cost higher depreciation Partially support and our financing base. offsetting reductions approximately property are favorable the as well growing million XXXX, ratably on real footprint. taxes and into as streamlining realized drivers sustainable Examples cost business future is XXXX these with years. and be structures. which XX% asset our of cost in mitigation. will related include savings of being cost reducing to $XXX a

growth higher interest segment, drivers partially mitigation the Gas our underway, expense. Within efforts by currently rate customer case and cost offset include growth, Ohio

Other we interest segment be to expense. higher to the expect due unfavorable Finally,

continuation per of X. commercial driven customer and retail of and post-COVID by saw class. in results of Slide rebound X.X%, work a remote to XXXX, from These higher customer growth residential electric hybrid In on load usage were strong growth Turning X.X%. we the the volumes

X% growth rate load is is load levels. out higher annual about XXXX total than of X.X% projected XXXX, when In equivalent in Our X.X%. smoothing year-to-year total fluctuations. be around retail to retail XXXX pre-pandemic growth average roughly to the was an This

X for expect Based in population footprint were top our the which in experienced within to territories, Census data, our XXXX. net customer the continue Bureau illustrates states regulated U.S. on we This XXXX X in migration. robust growth

to term, expect for easing continued manufacturers. growth X.X% about be fuel But X annual growth. following through commercial supply year as upside load constraints load of moderate in expect chain rebound we this large We growth years the industrial in significant Longer to the XXXX. class a certain

XX. resulting the to increase to that Turning including $X as almost capital our transition. capital which X-year in billion, the energy net When provide an increased into regulated $X means of steadily periods, the we've has clean plan to This approximately of plan, to plan. through the has $XX a increased by XXXX. like move is renewables further previous X.X% commercial plan of increased removing billion. I'd capital, Slide CAGR billion we earnings-based This prior overview X-year compared

governs and our investment been affordability low assist customer the center. consistently struggling our remains continue several bill. tools keep Affordability While help a to who have are needs that has and and front customers to rates to accelerate, pillar we their of planning, pay utilities

efforts of customers as our to back bill recover we go First, the investments. over easing capital benefits impacts time, cost mitigation

As efforts XX% XXXX cost of to I mentioned, we mitigation sustainable. our expect be

targeting XXXX. XXXX are O&M we Additionally, flat from through

fuel by modernized investments including O&M within and trajectory that operating investments long-term our costs. capital plan, supported smart equipment reduce is Our will help and technology

benefits substantial nuclear provides Next, Act PTCs carbon-free the renewable solar for credits. Reduction tax resources, other and and Inflation including

and beginning and incorporate updated We are adjustments. these resources benefits to plans rate

jurisdictions decade, energy will our IRA low the fully as customers benefits clean we maintain we all across our transition. leverage next of in order execute to Over for cost

Finally, the need. even area of since with customers has vulnerable assisting closely pandemic, customers been But we more in and worked our focus. always an communities

in million partnered a our we assistance the XXXX, to $XXX created in across team funding territories customers over example, and specialized years. For connect service that energy X with help nearly agencies

to Slide XX. Moving

ability robust remain capital tranche execute Our by cash XXXX, healthy program our proceeds we is billion $X and ratings. committed to current the a we of In Indiana underpinned the closing sale. upon in to stake received sheet, December the minority second balance of credit our

the transactions expect year, for Renewables from later debt at be We the Commercial will holding used receive this avoidance to proceeds which company.

Turning to balances. We our to due ended fuel XX% below XXXX target, FFO debt. largely to deferred

these and established file recovering amounts mechanisms we'll remaining continue started using have We the for to in mechanisms recovery balances. place through

expect deferred improve recover commitment target, costs current XX% return to FFO and X our next credit we long-term to years, our we fuel steadily our to to over debt to demonstrating ratings. X As the

plan electric the critical are smoothing As regulatory which we of a look sheet, XX% investments eligible strong mitigating capital balance for maintaining mechanisms, in is rate modern and lag ahead, impacts. to our recovery about

we've issue the to not business to are taken flow reposition our profile cash we improve equity With the our in ahead, through XXXX. planning years and steps

Moving XX. to Slide

the growing need quarterly capital. of strong shareholders robust our compelling importance constructive paying dividend We year to targeted remains balancing commitment to and the our marks its jurisdictions XXth unchanged. our to to customer capital dividend. the payout consecutive our Our We ratio story. fund XX% plan, with XXXX keep growth a dividend provide and cash a intend understand And XX% the growth to

tackle XXXX, our throughout on begin updating and well to are we positioned the you forward look challenges year. we to As ahead the progress

line With that, we'll questions. for open your the

Operator

Instructions]. [Operator

Partners. The from with first question the of Guggenheim is line Shar Pourreza

Shahriar Pourreza

on the cash assumed starting Commercial it's see, to obviously, in range you good reiterated 'XX. just the Lynn, So Renewables, Obviously, door. midyear the guys

And on delay. us sensitivity does 'XX quarter I put the the remind Just where this within the guess, EPS you from per range?

Lynn Good

and feel $X.XX Sure, to we're target that. continuing confident with very

to of the we later an from expect, in of the you a now As a range timing had And don't delay midyear modest and around being what I can kind as expectations we year, as see proceeds both the I entered see sale. impact. from year,

the regulated we by shared is offsetting that's primarily it's and driven that of quarter. those our headwinds some are third cost I you external growth mitigation expected and outcomes the the on and as recognize think important track to with

confident So the $X.XX. in

Shahriar Pourreza

there then to sale commercial, price charge utility ultimate you're the know, that's Got follow-up for obviously, we robust took assets? " Is on mean, a $X.X obviously We for you anything price? -- the we take And the how I yesterday. read the slides. I took sale guess a the on billion word ultimate noticed the that it. just this. only done do "fell obviously, I charge charge had a relative not to off peer

Lynn Good

anything the about process. signal appreciate all in and forward. also Shar, weren't how I closely We question. the good feel the read the We portfolio slides. There's to robust. strong interest we're word the you intending appreciate with moving I

recognize the of profile by period the to renewables, in life, a an that's is longer where then over the really charge, part time. it of I earnings on lot an depreciate the accounting you of this a impairment think the adjustment profit early thing of driven that's

an exit make life, useful end for when the before of impairment. decision you've kind yourself set you a So of to the up

So it I that way. would look at

the unchanged, later for this track around remains asset and on The takeaway we're proceeds year. is strategic decision

Shahriar Pourreza

to the rating these one Got of guys future okay, mean, XX% XX% we're over 'XX is the to Brian, one it. just on trigger now over XX% event deferred are as capacity? to another you fuel plan how about stated obviously XX% is and Obviously, prior I credit years. balances? the thinking the agencies you're you the side. X Perfect. trying then guess just if balances? term." balances fuel I the And threshold. And sheet it's "long deferred from downgrade kind had a balance FFO -- downgrade thinking a about on quick target for a treating And can talk could how debt

Brian Savoy

the We'll looking the through definitely hit through And Shar, thanks deferred for that's and in agencies the fuel working what mechanisms are regulatory balances, for. that, We're place. question. the

you in Or in line Duke couple Florida recovery that we and We've South North the filings Carolina. Looking longer. have that Energy are is established. spreading regulatory good of us, Carolina, you so to see, North far recovery are a in had more with filing and and success exceptions Carolinas, in really making Carolina front both

liking credit But in timely in tools these the in working. accordance these are and place. understand regulators in the with our to executing need agencies how The recover this a they're seeing manner are position we're from rating what plans a

Lynn Good

look can fact it at And we decline into can look deferred us on 'XX, gives thing that this of we the going issue have Shar, metrics. 'XX this recovery constructively a is how that is as that balance with been to mechanisms, able and and at completely lot through add it only confidence would actually you over we to because work forecast a to the agencies associate I the And temporary the fuel. the

expect, And that of the company, way. with ratings underpins of course, nothing regulated we're around you as in cash risk step with has the rating that flows and jurisdictions portfolio the profile. This would the credit of changed agencies constructive have and is we really the what conversations every

Operator

of line the is next Julien Bank America. The from of question Dumoulin-Smith with

Julien Dumoulin-Smith

chat. Thank you for a time and pleasure the

in addressing the so items Again, curious, and in following but about What CapEx about year. flex I'm some developments course what come in you takes puts the think some exactly assuming year, 'XX in just today the multiyear just out this [indiscernible] follow-up of of of it could the And talked specifically, are before, had carbon as the is the What capital and in guys sort probably how -- here of plan you this updates the outlook? you Just of addressed the think you you here subsequent as about as through in here -- comments, the the impact to the the the next late obviously, could in plan? with respect of more outlook budget? updates part we've

Lynn Good

that. Sure. given carbon has order investments. Julien, one is thanks, the regard constructive for us near-term I the that plan real clarity And very on a

in megawatts and think well X,XXX capital marginal pretty We you the connection is think with really about plan I of as when megawatts locked battery in X,XXX So the period for solar, some that the those Carolinas. of see next storage, in but update. later changes, about may X-year would

So Carolinas. I good feel really about the

and the also is XX-year Florida grid modernization. and SPP track site plan with on

where even the through upside in we where moving process. Indiana, in transition, are and is that potential potential think I earlier energy we clean have

but We have this be capital have plan, estimates about advanced approach. year, CPCN later we'll the dialogue and and timing in filing more for

the comfortable with our capital see clean plan a very of Indiana anything, bit I'm and as So if continue in upside energy transition. we

Julien Dumoulin-Smith

mentioned just little Actually, it. Got a you to bit. since probe it,

You in But said latest than say there's moment second upside likely bias the plan. that heard as that, in you ago, saying Indiana a Indiana the have in already something assume I assumed certain not you're a within baseline a you you [indiscernible] more but ago,

Lynn Good

Yes.

there, later CPCNs. into We estimate. this exactly we're an March, filing filing estimate then put updated IRP we're month have We an in Julien, right. an but That's for

end that as the So of that the this filings. Carolinas will crystallize IRP in specifically go through more XXXX, matured year has much we the toward into way

carbon plant. Now we have the an order on

anything, would conservative the has would way our I say estimate characterize that's And the I it. side. if So on been

Julien Dumoulin-Smith

know, a at Carolina, I further all? Any obviously, or about right. thoughts I here. can crystallization Carolina any South you exist in here that North of South if it that here the think about call alignment as then developments principally carbon And Excellent. think it. around there? Got Carolina All may any opportunities plan

Lynn Good

a it's like just were to question, rate I Well, guess to able to reach constructive step comprehensive case. And that and settlement back a South for a and moment we good Julien. Carolina the point I'd very on

I stakeholders is been to to continue stake think work have that's an the trying constructive about just doing indication and with accomplish. where we're the we the that incredible going what -- with company dialogue of the

we're alignment on on or we in on forward. on on the depending is testimony are progress policy, this. both fingerprints discussion their we believe going states some that in resources over appreciate a but time. that with trying sensitivity we plan because that add word is to And states opt policy we'll allow out to I carbon laid opt out giving in the incredibly believe going to accomplish their valuable states structure to their customer progress plan and We needs, put flexibility beginning to energy energy that to in actually an We your operate will the an making had would what and work both forward. and system, meet South take Carolina, how needs And

Operator

Research. question of is The with from the Steve Wolfe next line Fleishman

Steven Fleishman

So announced question in sale impairment. the Renewables QX the -- was on it think Commercial for follow-up call. The I just a you

there a that impairment have the Is because reason more you is So that now? is then being something was Is else? not taken taken and information?

Lynn Good

November decision made the and decision Steve, quarter to we -- in So it actually announced the call. third on final early sale

goes went the a result, process, fourth quarter. that approval, as impairment So fourth the And a decision in cetera, Board through quarter. the in governance et

Steven Fleishman

Okay.

the that And on is that have value helpful. been sale consistent but That's the impairment expecting the you ranges the process. it does now with like Okay. -- you've -- for sound

Lynn Good

planning range, within exactly That's our absolutely.

Steven Fleishman

your really nothing's range. changed in So planning

Okay.

Lynn Good

right. exactly That's

Steven Fleishman

be are those that are to the new how go the under whether they on is first cases to of a able under settle the in law Carolina to most -- process need multiyear question or North they thinking rate cases need because the other kind My new likely? the likely about through and you litigated you'd plan, rate full law,

Lynn Good

there case on -- of parties into partial be are exactly. if of can that you history, are to entered you it's this I feel too you then and front commission. in think to we time, think elements Steve, others agreed like that be settlements our believe the back early tell have, time to may from where ought put And there the

And to parties, early through testimony get it's You begin we'll we'll should shape all been discussions process. closer ready take. testimonies -- this too is with we be heard explore those intervening all tell to that But gets parties to as and discussions. filed dates the the it when know will by

Steven Fleishman

know had guess last does million is you you've remind I a that [indiscernible] think, that's, said me, sustained. that the just Can same that Or thing. $XXX one number The of before? the I reductions, XX% O&M before, that you number get I

Lynn Good

we same. It the is, said same as Steve. It's what before. No, it's the

So thank you.

Operator

of next is the from line Stanley. with question The David Morgan Arcaro

David Arcaro

cost latest more easing Just of $XXX you terms those backdrop year, level you're so far? in million up on the inflationary this it seeing in what year hitting of challenging, that confidence your topic the in becoming management, of this could of pressures give any of

Brian Savoy

did all of about year question, across the spot, That's identified X,XXX looked When good align board David. good the XXXX and to really to in support support board, right? that Well, the not could we a have is a at business service really -- We as corporate systems. in levels level And the work be example areas are our felt IT, with last IT we others. prioritization. a good like don't costs This we same across need in Brian. is we this we position but have opportunities mission-critical

of that So why XX% across feel support we we the structural opportunities did remain the that areas finance, the the long And HR, that's And for $XXX we sustainable. million is really corporate IT, like a found will at and stratified of our legal, levels. we lot across term. looked really

well reducing In from and that Charlotte, new very the cost estate X That's important moving Uptown reductions into we're area footprint. assets lease buildings our real depreciation. as to as those also was tower. another And was costs service cost X on

XXXX $XXX million $X.XX in feel as target. inflation hit we our portfolio not look into pockets planning impacting in and are inflationary about in the spin So certain target good We've ability horizon that our in the we contemplated the to pressures have.

David Arcaro

if helpful. rate That's the for base was And to then outlook, then just looked versus like period. rate 'XX also up the confidence you decent forecast the in Understood. gave plan could had the Okay. -- ticked a you prior expectations. But 'XX amount to it talk the knocking XXXX the wondering CapEx base what on I up

any So I'm behind wondering there if drivers are other too. that,

Lynn Good

to we we as every into account where with take planning are year, are we David, we come integrated capital with et regulatory cetera. where approval, plans, resource

And increase we an seen investment. have in transmission so distribution and

the at subsequent transmission 'XX, look in into in in get you IRP updates renewables. also what for as more order up that's plant to there's If particular, subsequent numbers approvals. out expect we 'XX, And carbon mature we and been reflect approved to regulatory those potential open

how don't you that's answer. would add So Brian, I would know, I anything further?

Brian Savoy

year the well. think No, to plan year increase transition, we I expect into as clean energy we as move capital after the deeper

with line we expectations in as the is this through So 'XXs. our move

Lynn Good

point. that's think an And I important

we As back kind thinking those showing about XX years. -- of talking were day generation transition charts the to the

in plan, into deeper investment generation transmission get show distribution. to more we As more and plan, begins up the the earlier

it that So you're 'XX, in to you'll see and 'XX. more 'XX, beginning see of

Operator

Nick Suisse. The question from of with is Campanella line next the Credit

Nicholas Campanella

far. lot A so questions of good

cetera. now over And some plan the this at Does range put those to you given in the obviously Brian, that you've that? in a now, of seen here comment were X%. we've kind roll costs, through just when I that et X% could give the on better in inflation, of we I'm quarter, height plan term third the here? dynamic? updated guess thinking long given Any things since that you interest spot costs, the you conceptually, of gas So

Brian Savoy

it good is to I a that's and have rates good figure out. But And we degree, up, moving good XXXX. a Fuel up move question X% long-term downward have they're And have could The still to the we -- moderated as we feel growth. did moving been just for things some lot mean but growth trend, to really of rate. in Nick, Fed still interest around customers. costs they is our our about fast as on it. they X% right?

X% sticking we're inside anymore. to now, right the range not and So it X% to signaling growth

Lynn Good

commodity in that's the customers is but XXXX our is fuel for to coming is good still coming a for thing. deferred have a fuel positive cost think and Nick we down, you estimates real price because off think I about of collect,

pleased we're It's for also off in that. takes little good customers. So see financing. to of a It pressure interest

So of every to bit take we'll continue that. advantage of

Nicholas Campanella

to I about point just frame I time bps XX% of XX any hits back to at a that. storms? long And sufficient I for current this the FFO you see handle my the for the your here, events think question do you your appreciate here? on is, the metrics more term. kind how unforeseen plan in point and 'XX headroom of to to hit like transient acknowledge the the And just deferred and to should have fuel, credit path ability kind we get guess

Lynn Good

billion our cetera. in a to The strong think, comfortable. et fact hurricane are, of to billion we very $X.X feel alone, is where our ability resources, scale, fuel $X We of absorbed that and XXXX I we've testament manage deferred

the with size our than blip way this billion. $X itself scale we type. presents credit with a through right of it. degree that opportunity comfortable feel the our the we important maintaining More can actually, this We deeply care So for and but an business, in think ratings. about manage of where risk level is these and the blips of company We they're at

Operator

question JPMorgan. of next line with from Jeremy The is the Tonet

Jeremy Tonet

as there's tax stands I additional equity little debt. such position, I just could. asset the sale want Renewables If portfolio where to now, could a round any right color bit, out the on provide if Commercial you book value level conversation

our the trying I selling that fuse could share more particularly to side. it's sensitive details, assets, more together you you're Just any time to but it as given appreciate if that wondering value. on relates a book

Lynn Good

I Yes. any to comment you given hope Brian, portfolio. And anything around the want not process. interest process, in the -- let if that in me good don't valuation. about we the Jeremy, talk more We're feel we And I appreciate know, where going on add can you to... are strong specifically to

Brian Savoy

referenced then value at and tax excluding had for mid-year year $X the year. the we to of invest Jeremy, the Yes. balance million took end of the attributes $X.X some the write-down in billion a we we book continue the and projects

can you of down walk it think you if to book value. kind way So about that want

Jeremy Tonet

emerging and Got with involved little I of hydrogen you kind a then pilot. TerraPower it. a pivot wanted of helpful. technology And just to battery, number That's [indiscernible] Honeywell partnerships, bit, including

which technology you time? about? one do larger Duke And road, part were going the down here forward which a plays wondering you're move portfolio XX, Just think at you excited in XX years that the if to most

Lynn Good

it's It's a Jeremy, really it with do involved lot And one are of so in which is chain things really good adoption for of reasons to many supply will we a different technology we question. good the with a can obstacle commercial how reach has full-scale much need. the scale question. a that support

. need path following through us what resources X a between of of we call XX,XXX and has kind our XXXX in about that think XX,XXX somewhere climate late of I report megawatts load or emitting

could So small be storage. that hydrogen. longer could It it be could modular could duration be reactors. be It CCUS,

on, they're the scale invest something and not The can module to. So small invest necessary our time make would spending customers, we the a difference. though, is we're until again, you going us commercial to we're to being, reactor key expect for affordable and at

to as hub. of nuclear part the sitting U.S. with largest that world part solar we are as to in have and the maintaining a the Southeastern been natural also in of so of operator with really, the carbon-free we a something this utilities joined But the solution. all in generation that collection pursue regulated preserving to has hydrogen Because this a embraces nuclear think region. going that's worth part that infrastructure in, investing gas We of and we're the area, important all

them need for at roundabout our technology when ready advising, makes piloting, put to to will actively we we as a our but it's that finger are know technologies on sense these but answer pace so the invest, and I ready as developing are working we're work, to there can customers. that So our something specific sure do advancing be make the as to not any question, we solution, are

Operator

The question with ISI. the Durgesh line Chopra is of from Evercore next

Durgesh Chopra

leakage tax a is my so had I manageable given is all commercial tax does If saying other renewables may, sale, questions Or I'm clarification Just leakage QX answered. on write-down, the that message portion does are Brian, on that the other does -- tax the I sort dynamic? thinking leakage this that just have -- the does of change was And that quick about is your the you been impairment the charge losses. -- tax your call manageable? of that still message impact tax basis? the with still

Brian Savoy

this change to There's of Yes. it. We a impairment as so charge, manage can no result position no the change basis tax a message. tax or in

Operator

remarks. Thank you. Good I have turn today. to for That's all the concluding questions the like to for back would time call over Lynn we

Lynn Good

investment We as in available, Relations any And your we're feel for for and always, XXXX. Investor we've and the all questions. team strong and about joining excited the to like had you Duke thank that. We for finish senior appreciate year Energy. management a Well, further

So joining for today. thanks

Operator

enjoy participation. you That conference Please the Thank rest concludes your for your call. day. of today's

Duke Energy (DUK) 9 Feb 232022 Q4 Earnings call transcript