What the changes say
- Strategy execution now explicitly depends on fuel policy, generation technology, regulatory constructs, and IRA and OBBBA nuclear tax incentives.
- Hyperscale data centers and industrial facilities could strain generation capacity, grid stability, and demand forecasts.
- Simultaneous facility construction, strategic transaction failures, and associated financing and credit effects receive greater emphasis.
What changed since the prior 10-K
New
- NewBUSINESS STRATEGY RISKS
Duke Energy’s future results could be adversely affected if it is unable to implement its business strategy to provide reliable energy while maintaining low costs and balancing energy modernization objectives and carbon emissions reductions
Meeting reliability, cost, modernization, and emissions goals could be hindered by policy, regulatory, technology, economic, or competitive uncertainties affecting fuels and generation technologies.
- NewOPERATIONAL RISKS
The Duke Energy Registrants are exposed to financial and operational risks associated with growth including volatility in sales, supply and demand forecasts, and customer usage changes which could negatively impact the Duke Energy Registrants' results of operations
Extreme weather, alternative energy, customer-owned generation, fuel procurement, transmission limits, and volatile hyperscale data-center or industrial loads could disrupt sales and grid reliability.
- NewRisks Related to Supply Chain Disruptions, Inflation, Tariffs and Foreign Export Restrictions
The Duke Energy Registrants have incurred, and may incur additional costs or delays in the construction of new plants or facilities and may not be able to recover their investments in whole or in part
Multiple generation and transmission projects could face permitting delays, supplier failures, cost increases, uncertain load growth, and compounded construction risks.
- NewRisks Related to Supply Chain Disruptions, Inflation, Tariffs and Foreign Export Restrictions
Failure to complete strategic transactions could adversely affect the Duke Energy Registrants’ financial condition, credit profile and ability to execute their business strategy
Uncompleted mergers, acquisitions, or asset dispositions could reduce funding, weaken credit metrics, trigger market or reputational harm, and waste transaction costs.
Dropped
- DroppedBUSINESS STRATEGY RISKS
Duke Energy’s future results could be adversely affected if it is unable to implement its business strategy to reliably and affordably serve its customers while also balancing its grid and fleet modernization objectives and carbon emissions reduction goals
Balancing reliable, affordable customer service with grid and fleet modernization and emissions reductions.
- DroppedREGULATORY, LEGISLATIVE AND LEGAL RISKS
carbon capture technologies that are not yet adequately demonstrated at utility scale. These and other environmental laws and regulations can result in increased capital, operating and other costs
- DroppedOPERATIONAL RISKS
The Duke Energy Registrants may not recover costs incurred to begin construction on projects that are canceled
- DroppedOPERATIONAL RISKS
Each of the Duke Energy Registrants’ senior long-term debt issuances is currently rated investment grade by various rating agencies. The Duke Energy Registrants cannot ensure their senior long-term debt will be rated investment grade in the future
Reworded
- 76% rewrittenREGULATORY, LEGISLATIVE AND LEGAL RISKS
The Duke Energy Registrants are subject to numerous environmental laws and regulations requiring significant capital expenditures that can increase the cost of operations, and which may impact or limit business plans, or cause exposure to environmental liabilities
The heading now emphasizes capital expenditures, operating-cost increases, business-plan limitations, and environmental liabilities; the listed CCR, emissions, water, and waste rules remain.
- 38% rewrittenOPERATIONAL RISKS
The Duke Energy Registrants’ results of operations may be negatively affected by overall market, economic and other conditions that are beyond their control
- 34% rewrittenOPERATIONAL RISKS
Natural disasters or operational accidents may adversely affect the Duke Energy Registrants’ operating results, financial position or cash flows
The reference to the material 2024 impacts of Hurricanes Helene and Milton was removed, making storm restoration and financial effects more general.
- 32% rewrittenRisks Related to Supply Chain Disruptions, Inflation, Tariffs and Foreign Export Restrictions
The Duke Energy Registrants rely on access to short-term borrowings and longer-term debt and equity markets to finance their capital requirements and support their liquidity needs. Access to those markets can be adversely affected by a number of conditions, many of which are beyond the Duke Energy Registrants’ control
- 29% rewrittenREGULATORY, LEGISLATIVE AND LEGAL RISKS
The Duke Energy Registrants' operations, capital expenditures and financial results may be affected by regulatory changes related to the impacts of global climate change
- 28% rewrittenOPERATIONAL RISKS
The Duke Energy Registrants’ results of operations, financial position and cash flows may be negatively affected by a lack of growth or slower growth in the number of customers, or decline in customer demand or number of customers
Customer-account retention was added alongside customer growth as a demand driver.
- 27% rewrittenREGULATORY, LEGISLATIVE AND LEGAL RISKS
Increased competition and unrecovered costs could adversely affect the Duke Energy Registrants’ results of operations, financial position or cash flows and their utility businesses
Was: Deregulation or restructuring in the electric industry may result in increased competition and unrecovered costs that could adversely affect the Duke Energy Registrants’ results of operations, financial position or cash flows and their utility businesses
- 25% rewrittenGENERAL RISKS
Failure to attract and retain an appropriately qualified workforce could unfavorably impact the Duke Energy Registrants’ results of operations
Employee strikes or work stoppages were added as potential causes of operating challenges and increased costs.
- 25% rewrittenRisks Related to Supply Chain Disruptions, Inflation, Tariffs and Foreign Export Restrictions
Cyberattacks and data security breaches could adversely affect the Duke Energy Registrants' businesses
- 22% rewrittenOPERATIONAL RISKS
The Duke Energy Registrants' future results of operations may be impacted by changing or conflicting expectations and demands, particularly regarding environmental, social and governance concerns
All 31 risk factors
Headings as the filing states them, in filing order.
BUSINESS STRATEGY RISKS
- 01Duke Energy’s future results could be adversely affected if it is unable to implement its business strategy to provide reliable energy while maintaining low costs and balancing energy modernization objectives and carbon emissions reductionsnew
REGULATORY, LEGISLATIVE AND LEGAL RISKS
- 02The Duke Energy Registrants’ regulated utility revenues, earnings and results of operations are dependent on state legislation and regulation that affect electric generation, electric and natural gas transmission, distribution and related activities, which may limit their ability to recover costs
- 03The rates that the Duke Energy Registrants’ regulated utility businesses are allowed to charge are established by state utility commissions in rate case proceedings, which may limit their ability to recover costs and earn an appropriate return on investment
- 04Increased competition and unrecovered costs could adversely affect the Duke Energy Registrants’ results of operations, financial position or cash flows and their utility businesses27% rewritten
- 05The Duke Energy Registrants’ businesses are subject to extensive federal regulation and a wide variety of laws and governmental policies, including taxes and environmental regulations, that may change over time in ways that affect operations and costs
- 06The Duke Energy Registrants are subject to numerous environmental laws and regulations requiring significant capital expenditures that can increase the cost of operations, and which may impact or limit business plans, or cause exposure to environmental liabilities76% rewritten
- 07The Duke Energy Registrants' operations, capital expenditures and financial results may be affected by regulatory changes related to the impacts of global climate change29% rewritten
OPERATIONAL RISKS
- 08The Duke Energy Registrants’ results of operations may be negatively affected by overall market, economic and other conditions that are beyond their control38% rewritten
- 09The Duke Energy Registrants are exposed to financial and operational risks associated with growth including volatility in sales, supply and demand forecasts, and customer usage changes which could negatively impact the Duke Energy Registrants' results of operationsnew
- 10Natural disasters or operational accidents may adversely affect the Duke Energy Registrants’ operating results, financial position or cash flows34% rewritten
- 11The Duke Energy Registrants’ results of operations, financial position and cash flows may be negatively affected by a lack of growth or slower growth in the number of customers, or decline in customer demand or number of customers28% rewritten
- 12The Duke Energy Registrants' future results of operations may be impacted by changing or conflicting expectations and demands, particularly regarding environmental, social and governance concerns22% rewritten
- 13The Duke Energy Registrants’ operating results may fluctuate on a seasonal and quarterly basis and can be negatively affected by changes in weather conditions and severe weather, including extreme weather conditions and changes in weather patterns from climate change
- 14The Duke Energy Registrants’ sales may decrease if they are unable to gain adequate, reliable and affordable access to transmission assets
- 15The availability of adequate interstate pipeline transportation capacity and natural gas supply may decrease
Risks Related to Supply Chain Disruptions, Inflation, Tariffs and Foreign Export Restrictions
- 16Fluctuations in commodity prices or availability may adversely affect various aspects of the Duke Energy Registrants’ operations as well as their results of operations, financial position and cash flows
- 17Cyberattacks and data security breaches could adversely affect the Duke Energy Registrants' businesses25% rewritten
- 18The Duke Energy Registrants’ operations have been and may be affected by pandemic health events in ways listed below and in ways the Duke Energy Registrants cannot predict at this time
- 19Duke Energy Ohio’s and Duke Energy Indiana’s membership in an RTO presents risks that could have a material adverse effect on their results of operations, financial position and cash flows
- 20The Duke Energy Registrants have incurred, and may incur additional costs or delays in the construction of new plants or facilities and may not be able to recover their investments in whole or in partnew
- 21The Duke Energy Registrants are subject to risks associated with their ability to obtain adequate insurance at acceptable costs
- 22Our business could be negatively affected as a result of actions of activist shareholders
- 23Failure to complete strategic transactions could adversely affect the Duke Energy Registrants’ financial condition, credit profile and ability to execute their business strategynew
- 24Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida may incur substantial costs and liabilities due to their ownership and operation of nuclear generating facilities
- 25The Duke Energy Registrants rely on access to short-term borrowings and longer-term debt and equity markets to finance their capital requirements and support their liquidity needs. Access to those markets can be adversely affected by a number of conditions, many of which are beyond the Duke Energy Registrants’ control32% rewritten
- 26Market performance and other changes may decrease the value of the NDTF investments of Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, which then could require significant additional funding
- 27Poor investment performance of the Duke Energy pension plan holdings and other factors impacting pension plan costs could unfavorably impact the Duke Energy Registrants’ liquidity and results of operations
- 28Duke Energy is a holding company and depends on the cash flows from its subsidiaries to meet its financial obligations
GENERAL RISKS
- 29The failure of Duke Energy information technology systems, or the failure to enhance existing information technology systems and implement new technology, could adversely affect the Duke Energy Registrants’ businesses
- 30Potential terrorist activities, or military or other actions, could adversely affect the Duke Energy Registrants’ businesses
- 31Failure to attract and retain an appropriately qualified workforce could unfavorably impact the Duke Energy Registrants’ results of operations25% rewritten
Other Duke Energy 10-Ks
- 2025 10-K risk factors
31 risks. State regulation and rate cases determine whether Duke can recover utility costs and earn returns.
Filed Feb 27, 2025
About this page
Item 1A of the 10-K on EDGAR was split into its risk factors and, where the company's previous 10-K is on file, each heading was matched to last year's and the text compared word for word. The headings are the filing's own. The one-line readings and the overview were written by a language model from the text of the new, dropped, and rewritten risks; they refer to risks by position and cannot misquote a heading.