Item 8.01. Other Events.
On October 13, 2021, North Carolina Governor Roy Cooper signed into law
legislation ("HB 951") that established a framework overseen by the North
Carolina Utilities Commission (the "NCUC") to advance North Carolina CO2
emission reductions from electric generating facilities in the state through the
use of least cost planning while providing for continued reliability and
affordable rates for customers. Among other things, HB 951 directed that the
NCUC approve an initial carbon plan by December 31, 2022, taking all reasonable
steps to achieve a 70% reduction in CO2 emissions from public utilities'
electric generating facilities in the state by 2030 (from 2005 levels) and
achieve carbon neutrality from electric generating facilities by 2050.
On May 16, 2022, Duke Energy Carolinas, LLC ("DEC") and Duke Energy Progress,
LLC ("DEP" and, together with DEC, the "Companies") filed a proposed Carolinas
carbon plan (the "Proposed Plan") with the NCUC. The Proposed Plan was based
upon an "all-of-the-above" approach to the energy transition and included a
defined set of near-term procurement and development activities.
On December 30, 2022, the NCUC issued an order adopting an initial carbon plan
(the "Carbon Plan"). Consistent with the Companies' proposal, the order
recognizes the value of an "all-of-the-above" approach to achieving CO2 emission
reductions. The order approves a number of near-term activities requested by the
Companies that are needed to continue progress toward achieving the CO2
emissions reduction targets.
The order requires the Companies to refresh the Carbon Plan modeling - including
impacts of the Inflation Reduction Act of 2022, Infrastructure Investment Jobs
Act, and other future legislative changes and changing conditions - and file an
updated Carbon Plan with the NCUC by September 1, 2023. The Carbon Plan will be
reviewed and adjusted every two years thereafter.
In August 2023, the Companies will file an Integrated Resource Plan with the
Public Service Commission of South Carolina, which will take into account the
Carbon Plan, the Inflation Reduction Act of 2022 and other factors relevant to
resource planning.
An overview providing additional details on the order is attached to this Form
8-K as exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1 Summary of the Carbon Plan
104 Cover Page Interactive Data File (the cover page XBRL tags are embedded in
the Inline XBRL document).
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