Duke Energy Carolinas NC Storm Funding LLC Annual Report - How They Did This Year

I’ve put together a simple guide to help you understand how Duke Energy Carolinas NC Storm Funding LLC (DECNCSF) performed this year. Think of this as a cheat sheet to help you decide if this fits your investment goals, without the confusing Wall Street jargon.

1. What does this company do?

This isn't a typical business that sells products. DECNCSF is a special entity created by Duke Energy Carolinas. Its only job is to manage the costs of major storm recovery. Think of it as a dedicated piggy bank. It holds the rights to specific charges on customer bills. These funds pay back the investors who bought the $683 million in Storm Recovery Bonds issued in 2021. The entity collects these charges from customers to pay the interest and principal owed to bondholders.

2. Financial performance

Because this company exists only to manage storm-related debt, it doesn't have "sales" or "profits" like a retail store. Its performance depends entirely on collecting storm charges from customers to pay bondholders. For the year ending December 31, 2025, the entity collected enough money to meet its scheduled debt payments. It is also "bankruptcy remote," meaning it is legally separate from Duke Energy to protect your investment, no matter what happens to the parent company.

3. Major wins and stability

The biggest win for this entity is stability. It follows strict rules set by the North Carolina Utilities Commission. The company met all reporting requirements and successfully managed the bond repayment schedule. This kept the company’s "over-collateralization"—the extra cushion of funds—within the limits needed to maintain its AAA credit rating from Moody’s and S&P.

4. Financial health

The company is in good shape. It has no employees and very low costs, mostly for administrative and trustee fees. It does not take on new debt or try to grow; it simply manages existing obligations. As of the latest filing, the entity had about $340 million in outstanding bond debt. By filing all reports on time, the company proves its financial "plumbing" is working exactly as intended, with cash flows consistently covering all required payments.

5. Leadership

In early 2026, Nicholas J. Giaimo became President and CFO, and Abigail L. Motsinger became Controller. The company remains a focused entity with a clear, singular goal: to pay off the debt by the final maturity date on December 1, 2041.

6. Key risks

The main risk is regulatory, as the company relies on specific charges on customer bills. If state rules change or the ability to collect those charges drops, cash flow could be impacted. However, the structure is designed to be secure. Duke Energy is legally required to collect these payments, and these bonds are "non-recourse," meaning your investment is protected from the parent company's other business liabilities.

Note to Investors: This is a specialized investment. It is not a growth stock; it is essentially a bond. If you are looking for steady, predictable returns backed by utility-bill collections, this structure provides exactly that. Before moving forward, consider whether this long-term, fixed-income approach aligns with your personal portfolio goals.