BUSINESS UPDATE Nov. 3, 2017 PRESENTED BY: LYN YNN GOOD D | - PowerPoint PPT Presentation

THIRD QUARTER EARNINGS REVIEW AND BUSINESS UPDATE Nov. 3, 2017 PRESENTED BY: LYN YNN GOOD D | CHAIRMAN, PRESIDENT AND CEO STEVE VE YOUNG | EXECUTIVE VP AND CFO

Safe Harbor statement This presentation includes forward-looking statements within the meaning of the federal securities laws. Actual results could differ materially from such forward-looking statements. The factors that could cause actual results to differ are discussed in the Appendix herein and in Duke Energy’s SEC filings, available at www.sec.gov. Regulation G disclosure In addition, today's discussion includes certain non-GAAP financial measures as defined under SEC Regulation G. A reconciliation of those measures to the most directly comparable GAAP measures is available in the Appendix herein and on our Investor Relations website at www.duke-energy.com/investors/ . THIRD QUARTER 2017 EARNINGS REVIEW AND BUSINESS UPDATE 2

Topics for today’s call BUSI USINES NESS S UPD UPDATE TE Lynn Good, Chairman, President & CEO  Third quarter 2017 update  Update on key regulatory activity Markland hydro station, Indiana  Making progress on strategic investments FIN FINANC ANCIAL IAL UPD UPDATE TE Steve Young, Executive VP & CFO INVESTING IN INFRASTRUCTURE Dogwood solar facility, North Carolina  Third quarter 2017 earnings drivers OUR CUSTOMERS VALUE.  Economic conditions and load growth trends DE DELI LIVE VERI RING SUSTAINABLE  Key investor considerations GROWT WTH. THIRD QUARTER 2017 EARNINGS REVIEW AND BUSINESS UPDATE 3

Third quarter 2017 update THI THIRD QU QUARTER TER FI FINANCIA NCIAL L HI HIGH GHLI LIGH GHTS TS $1.36 REPORTED DILUTED EPS Earnings guidance narrowed to lower half of original  FOR 3Q 2017 2017 EPS guidance range (1) due to weather, including Hurricane Irma COMPARED TO $1.70 IN 3Q 2016  Flexible cost management efforts expected to enable company to achieve 2017 financial commitments Continue to expect 4-6% growth through 2021 off of  $1.59 midpoint of original 2017 EPS guidance range (1) of $4.50 to $4.70 ADJUSTED DILUTED EPS FOR 3Q 2017 THI THIRD QU QUARTER TER OPERA OPERATIO TIONAL L HI HIGH GHLI LIGH GHTS TS COMPARED TO $1.68 IN 3Q 2016 Restored power in just over a week to 1.5 million  customers impacted by Hurricane Irma Duke Energy named to the Dow Jones Sustainability  $4.50 - $4.60 Index (DJSI) for 12 th consecutive year  Duke Energy recognized in Site Selection magazine’s NARROWING 2017 EPS (1 (1) GUIDANCE RANGE list of “Top Utilities in Economic Development” for 13 th consecutive year DRIVEN BY WEATHER, INCLUDING HURRICANE IRMA (1) Based on adjusted diluted EPS THIRD QUARTER 2017 EARNINGS REVIEW AND BUSINESS UPDATE 4

Constructive settlement approved in Duke Energy Florida MA MAJOR JOR PROVISI PROVISIONS ONS OF THE OF THE SE SETT TTLEMENT LEMENT Base Rate Adjustments Base rate increases of $67 million per year 2019-2021, primarily to recover $1 billion  investments in grid modernization ENGAGE  Solar Generation Base Rate Adjustment: DEF has opportunity to recover 700 MW of STAK AKEHOLD LDERS RS solar 2019-2021, with base rate adjustment at in-service at 10.5% ROE Earned ROE band of 9.5% to 11.5%  DUKE ENERGY Levy Nuclear Project FLORIDA DEF to cancel Levy Nuclear Project and not seek recovery of remaining costs  SETTLEMENT APPROVED $135 million impairment recorded in 3Q 2017 (1)  OCT . 25, 2017 COM COMMISS MISSION APP ION APPROV ROVAL AL Signatories to the agreement include all RATE CLARITY  key intervenors THROUGH 2021 WITH AGREED UPON Florida Public Service Commission  RATE INCREASES AND unanimously approved the agreement on SOLAR GENERATION BASE Oct. 25, 2017 RATE ADJUSTMENT (1) Treated as a “special item” and excluded from adjusted diluted earnings per share THIRD QUARTER 2017 EARNINGS REVIEW AND BUSINESS UPDATE 5

Proceeding with key rate activity in North Carolina Duke Energy Duke Energy Progress Carolinas Retail revenue increase requested $477 M (+14.9%) $647 M (+13.6%) Return on equity requested 10.75% Equity component of capital structure 53% ENGAGE STAK AKEHOLDE LDERS RS Proposed rate base (1) ~$8.1 B ~$13.8 B Rates requested to be in effect, if approved Feb. 1, 2018 May 1, 2018 DUKE ENERGY PROGRESS 6% REBUTTAL TESTIMONY Significant plant additions and changes DUE NOV. 6, 2017 52% HEARINGS BEGIN 52% 6% NOV. 20, 2017 Coal ash basin closure costs (2) 41% All other changes to rate base, operating costs, and operating revenues (3) DUKE ENERGY 59% 59% CAROLINAS Grid reliability and resiliency rider 53% INTERVENOR TESTIMONY DUE JAN. 19, 2018 (17%) (17%) HEARINGS BEGIN FEB. 19, 2018 (1) As of Dec. 31, 2016 and adjusted for known and measurable changes through Aug. 2017 (DEP) and Nov. 2017 (DEC) (2) Coal ash basin closure costs include recovery of previously incurred expenses over a five year period and request for ongoing expenses (based on actual 2016 expenses) 6 (3) Driven largely by a return of deferred tax liability due to NC state tax rate change. DEP offset by 2016 Hurricane Matthew storm cost recovery THIRD QUARTER 2017 EARNINGS REVIEW AND BUSINESS UPDATE 6

Making progress on our strategic investments ST STATUS TUS UPD UPDATE TE  Announced $3 billion, 10-year Power/Forward Carolinas initiative in South Carolina  New battery storage projects announced in North Carolina and Indiana MODERNIZE THE EN ENERG ERGY Y GRID RID  W.S. Lee CCGT, Citrus County CCGT and Western Carolinas Modernization Project on track  Dual-fuel project at Belews Creek coal-fired facility TRANSFORM THE ENGAGE STAK AKEHOLDE LDERS RS CUSTOMER will introduce natural gas firing; Piedmont to build EXPERIENCE necessary infrastructure GENERATE CL CLEAN EANER E ER ENERG ERGY  ACP received FERC certificate – expect to begin construction by end of year (late 2019 in-service)  Closed construction financing facility in October  Sabal Trail construction complete – Supplemental EIS issued by FERC, rehearing request filed, pipeline remains in-service EXPAND NATU ATURA RAL G GAS AS INFR INFRASTRU ASTRUCTU CTURE RE  Constitution – Petition for Declaratory Order filed at FERC THIRD QUARTER 2017 EARNINGS REVIEW AND BUSINESS UPDATE 7

3Q 2017 Adjusted diluted EPS summary and primary drivers ADJUSTED DILUTED SEGMENT RESUL SEGMENT RE SULTS TS VS. S. PR PRIOR IOR YEA EAR QU QUARTER TER (1)(2) EARNINGS PER SHARE Electric Elec ic Ut Util ilities ities & I & Infrastructure, , -$85 $85 M M (-$0.12 .12 per sh share) ▼ Less favorable weather (-$0.14), including lost revenue impacts from Hurricane Irma $1.68 $1.59 ▼ Higher depreciation ▲ Higher retail revenues from increased pricing and riders Gas Util Ga Utilities ities & & Infrastructure, , +$4 M M (+$0.01 .01 pe per sh share) ▲ Increased investments in Atlantic Coast pipeline 3Q 201 3Q 2016 3Q 201 3Q 2017 Comme Co mmercial ial Ren Renewa wables les, , -$14 M M ( (-$0.02 .02 pe per share) ADJUSTED DILUTED ▼ Lower solar investment tax credits and higher interest expense EARNINGS PER SHARE Other, Ot , +$9 +$97 M M (+ (+$0.14 .14 pe per sh share) $3.88 ▲ Lower income tax expense primarily due to unfavorable tax adjustments in the prior $3.63 year and current period tax planning ▲ Favorable results from captive insurer and litigation settlement ▼ Higher interest expense related to Piedmont financing Share Dil Sh Dilution ion ( (-$0.02 .02 per sh share) PREV PR EVIO IOUSL USLY DISPO ISPOSED SED BUSI USINESS NESS YT YTD 20 D 2016 16 (3) YT YTD 20 D 2017 17 (4) International E nternational Energy nergy, , -$55 M $55 M ( (-$0.08 $0.08 per s per share) hare) $4.50 - $4.60 (1) Detailed drivers of adjusted segment income (expense) are available in the 3Q 2017 earnings release located on our Investor Relations website at NARROWING 2017 EPS www.duke-energy.com/investors/ (5 (5) GUIDANCE RANGE (2) Prior year segment income recast to conform to the new segment structure (3) Includes $0.20 favorable weather to normal in Electric Utilities and Infrastructure and $0.29 contribution from International Energy, sold in 2016 DRIVEN BY WEATHER, (4) Includes $0.14 unfavorable weather to normal in Electric Utilities and Infrastructure, $0.01 unfavorable weather to normal in Gas Utilities and Infrastructure related to Midwest LDCs and contribution of $0.02 from Piedmont Natural Gas net of acquisition financing costs INCLUDING HURRICANE IRMA (5) Based on adjusted diluted EPS THIRD QUARTER 2017 EARNINGS REVIEW AND BUSINESS UPDATE 8