The operator introduces the Duke Energy Second Quarter 2024 Earnings Call and hands it over to host Abby Motsinger, Vice President of Investor Relations. She introduces CEO Lynn Good, President Harry Sideris, and CFO Brian Savoy. The discussion will include the use of non-GAAP financial measures and forward-looking information. Good recognizes the team's efforts in responding to Hurricane Debby, which has caused outages for 330,000 customers. 90% of customers have been restored and the company is preparing for the storm's impact on the Carolinas. Good then discusses the company's second quarter results and the progress being made across the company.

The company's simplified and regulated portfolio of utilities in the Southeast and Midwest, along with their successful track record of constructive regulatory outcomes, positions them well for long-term value. They have a clear growth plan and have announced strong financial results for the quarter, reaffirming their guidance for the future. The company has a history of working with stakeholders to achieve positive regulatory outcomes and has recently had $75 billion of rate base investments approved or settled. These outcomes support critical infrastructure investments and allow the company to meet customer demands for affordable, reliable, and clean energy.

The company recently received a final order in their South Carolina rate case and rates were updated in August. They also filed a settlement in their Florida rate case, which focuses on grid modernization and investments in renewables. The company is committed to affordability and finding creative solutions to maintain low rates. They are also collaborating with stakeholders in both the Carolinas to advance their IRP process and have reached a constructive settlement in North Carolina. Hearings are ongoing and orders are expected by the end of the year. CPCN hearings will begin today in North Carolina for their request to construct natural gas generation.

The company plans to build advanced class units at existing coal plants to complement their investments in renewables and ensure reliability. They expect approval for construction to start in 2026 and all units to be operational by 2028. The company also plans to build 12 solar plants in Florida between 2025 and 2027. They have two rate case hearings coming up and commend their team for their focus on operational excellence and response to recent storms and extreme heat.

The second quarter was strong for the company, with reported and adjusted earnings per share increasing from the previous year. Electric Utilities & Infrastructure saw growth due to rate increases and warmer weather. Gas Utilities & Infrastructure was down slightly due to higher expenses, and the Other segment was also down due to higher interest expenses. The company is on track to achieve full year results within their guidance range. Weather-normal volumes and customer growth have increased, and commercial sales have exceeded projections.

The company expects C&I load growth to accelerate in the second half of the year due to economic development projects and customer migration. They have a risk-adjusted approach to evaluating these opportunities and have a robust pipeline for future growth. The company is committed to serving this new load while prioritizing reliability and affordability. They have also executed MoUs with major companies to explore tailored solutions for their energy needs and are focused on maintaining a strong balance sheet to fund investments for future growth.

The company is on track to achieve a 14% FFO to debt ratio by the end of the year, which provides a cushion to their Moody's downgrade threshold. They expect to issue $500 million of common equity annually over the next 5 years and have already completed over half of that target for this year. They remain confident in delivering their 2024 earnings guidance and are well positioned for growth in the future. They are open to reassessing their assumptions about load growth and making updates to their capital plan if necessary.

The speaker is discussing the growth of Duke Energy and how it has exceeded their initial projections. They have seen an increase in load growth due to economic development opportunities, and they expect this trend to continue. They plan to provide a comprehensive update on their load and capital growth in February, but will also continue to update on economic development progress throughout the year. Overall, they are pleased with their growth opportunities and feel well positioned to take advantage of them.

Brian Savoy and Harry Sideris of the company address a question about the timing and monetization of nuclear PTCs. They were hoping for guidance by midyear, but it has been delayed. They still expect formal guidance by the end of the year and plan to test the market for monetization in the third quarter. They do not believe this delay will impact their credit in 2024. In response to a question about the evidentiary hearing for DEI, Harry Sideris says they are open to settlement discussions but feel confident in their case and the benefits it will bring to customers and economic development in Indiana.

Lynn Good and Nick Campanella discuss the upcoming hearing in Indiana and the company's strong case. They also mention the 5% to 7% EPS growth guide and how they are tracking within it, with more tailwinds than headwinds. They are confident in meeting the minimum and potentially earning at the top end of the range. The only potential headwind is an economic downturn, which they are monitoring closely.

Lynn Good, CEO of Duke Energy, discusses the company's positioning within the 5-7% economic development range and their strong growth potential in the coming years. She mentions upcoming updates in February and the company's focus on industrial growth, including MoUs with potential partners. She also addresses the risk sharing and structure of these partnerships.

The economic development pipeline for data centers is expected to grow significantly by 2030 and beyond. The company has entered into a Memorandum of Understanding (MoU) with customers to meet their sustainability goals and discuss risk sharing. The discussions have been constructive and the MoU has increased excitement for the company's clean energy tariffs. Updates will be provided as agreements are finalized.

The company is exploring various structures for partnerships with tech companies and Nucor, including SMR offtake or clean energy offtake, to encourage the development of nuclear energy. These agreements would go through a commission process to ensure protection of retail customers. Load trends are currently tracking above expectations, with robust residential growth.

Duke Energy has added 80,000 retail customers in the first half of the year, putting residential growth in line with their expectations. Commercial growth has been higher than expected due to data center usage, healthcare, and universities, but industrial growth has not rebounded as quickly as anticipated. This is due to customers being cautious about a potential recession and tight labor markets. The industrial rebound has been pushed into later years due to interest rates, particularly in legacy industries like textile and paper. However, economic development projects are still on track for growth.

The company is optimistic about its economic development pipeline and believes that the upcoming elections will not have a significant impact on its operations. The company's objective remains the same regardless of the election outcome. The company recently reached a settlement in the Carolinas IRP and expects an order later this year. The company's regulatory execution has been impressive.

The speaker, Lynn Good, responds to a question about the company's regulatory strategy over the past 5 years and mentions the importance of operational excellence, energy policy, and stakeholder engagement. She also discusses a recent organizational change and the company's focus on serving customers well. Another speaker, Anthony Crowdell, asks about load growth and the company's goal to increase it by 1.5% to 2%.

The speaker discusses the company's frequent cadence of IRP filings and the possibility of more frequent updates in the future due to increasing load growth. They also mention their partnership with states on economic development and their intention to stay closely linked with them. A question is then asked about the Carolinas IRP, to which the speaker responds by providing more information and thanking the questioner for their interest.

Lynn Good, CEO of Duke Energy, discusses the potential for a settlement in the upcoming South Carolina hearing and the inclusion of small modular reactors in the company's near-term action plans. The company plans to have 600 megawatts of nuclear power from SMRs at the Belews Creek station by 2035, pending approval from the commission.

In the paragraph, Lynn Good, the CEO of Duke Energy, discusses the company's long history with nuclear energy in the Carolinas and the potential for continued expansion in the future. She also mentions interest in nuclear energy in Indiana, although the timing is uncertain. Good emphasizes the company's commitment to managing nuclear energy in a disciplined way and thanks investors for their support.

This summary was generated with AI and may contain some inaccuracies.