Duke Energy's Innovative Clean Energy Partnerships

A Game-Changer for Investors

In a groundbreaking move, Duke Energy (NYSE: DUK) has announced partnerships with tech giants Amazon, Google, Microsoft, and steel producer Nucor to accelerate clean energy options. This development, revealed at the White House Summit on Domestic Nuclear Deployment, signals a significant shift in how utilities and large-scale energy consumers collaborate to meet growing demand for carbon-free energy.

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Key Points:

1. New Tariff Structures:

Duke Energy is proposing innovative rate structures called Accelerating Clean Energy (ACE) tariffs. These are designed to lower long-term costs of investing in clean energy technologies, particularly new nuclear and long-duration storage.

2. Risk-Sharing Model:

The ACE tariffs enable large customers to directly support carbon-free energy generation investments. This model involves innovative financing structures and risk-sharing contributions, potentially lowering costs for emerging technologies.

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3. Clean Transition Tariff (CTT):

A key feature of the ACE framework, the CTT allows Duke Energy to provide tailored portfolios of new carbon-free energy to commercial and industrial customers. This voluntary program aims to accelerate overall grid decarbonization.

4. Regulatory Approval Pending:

While these new tariffs represent voluntary pricing structures for Duke Energy's large commercial and industrial customers, they are subject to regulatory approvals in North Carolina and South Carolina.

5. Corporate Commitments:

- Amazon aims to be net-zero carbon by 2040 as part of its Climate Pledge.

- Google targets operating every campus on clean electricity every hour by 2030.

- Microsoft seeks 100% of its electricity consumption to be matched by zero-carbon energy purchases.

- Nucor, already one of the cleanest steel producers globally, supports its net-zero goal through this partnership.

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