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

I’ve put together this guide to help you understand how Duke Energy Progress NC Storm Funding LLC (DEPNCSF) performed this year. Instead of digging through dense legal filings, I’ve broken down the key points so you can see what is happening with your investment.

1. What does this company do?

Think of DEPNCSF as a specialized entity created by Duke Energy Progress, not a typical business selling products. Its only job is to manage financing for storm recovery costs approved by the North Carolina Utilities Commission. When storms damage the power grid, repairs are expensive. Instead of charging customers all at once, this entity issued $683.5 million in bonds in 2021. Customers pay these back through a mandatory "Storm Recovery Charge" on their utility bills. It is a stable, predictable business—which is usually a good thing for investors.

2. Financial performance

Because this is a funding entity, it doesn't "grow" like a tech company. Its performance depends entirely on collecting storm recovery charges. The company is meeting all its obligations, and the 2025 collection cycle successfully covered the debt payments for the 2021 bonds. Cash flow is sufficient to cover interest and principal payments, keeping the bonds on track to be paid off by December 1, 2036.

3. Major wins and stability

The biggest win is stability. The company filed all required reports and maintained its status as a "bankruptcy-remote" entity. This means that if the parent company, Duke Energy Progress, ran into trouble, this money is legally protected for bondholders. The state-approved "true-up" mechanism—which allows the company to adjust charges annually to ensure bonds are paid on time—remains fully operational.

4. Financial health

The company is in good health. It exists only to pay off debt and maintains a cash reserve, providing a safety net to ensure bondholders are paid even if customer collections fluctuate. Independent auditors have verified that the company is following the rules for handling its assets.

5. Key risks

The main risk is regulatory. Since this company relies on state-approved charges, any major change in North Carolina law could affect cash flow. However, the structure is designed to be resilient, and the state has pledged not to take action that would impair the value of these bonds. Other risks include economic downturns that might lead to late customer payments, though the "true-up" mechanism is specifically designed to mitigate this by adjusting future rates.

6. Leadership

In early 2026, Nicholas J. Giaimo became President and CFO, and Abigail L. Motsinger became Controller. Both are experienced executives from within Duke Energy, ensuring a steady hand in managing the company’s operations and collections.

7. Future outlook

The plan remains the same: collect charges and pay down debt on schedule. Investors should expect continued semi-annual payments until the bonds mature in 2036.

Bottom Line for Investors: This is a "set it and forget it" type of investment. Because it is backed by state-regulated utility charges rather than market-driven sales, it offers a high level of predictability. If you are looking for steady, reliable income rather than rapid growth, this structure is designed to keep your investment on track through 2036.