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

I’ve put together this guide to help you understand how Duke Energy Progress SC Storm Funding LLC (DEPSCSF) performed this year. Think of this as a "cheat sheet" to help you decide if this investment fits your goals.

1. What does this company do?

DEPSCSF is a "special purpose" entity created by Duke Energy Progress to handle costs from storm recovery. It doesn't run power plants or fix lines. Its only job is to manage the debt from $683 million in Storm Recovery Bonds. These bonds paid for repairs after major storms in South Carolina.

2. How did they perform this year?

This company doesn't try to grow sales or beat earnings targets. Its performance depends on collecting specific "storm recovery charges" from customers to pay off its bonds. It acts as a "pass-through" to keep these costs separate from the main utility business. The company followed all legal rules this year and successfully collected enough money to make all required bond payments on time.

3. Major wins and challenges

The biggest win is stability. The company is "bankruptcy remote," meaning it is legally protected from the financial ups and downs of its parent company. Independent auditors confirmed the company followed all required rules this year. There were no operational surprises, which is exactly what you want for a debt-focused entity. The company can adjust rates to ensure the bonds are paid off by December 1, 2041, even if electricity usage fluctuates.

4. Financial health

The company is stable and predictable. It has no employees or offices and is managed by a small team from the parent company, which keeps costs very low. The company maintains a cash reserve to protect bondholders if collections fall short. Its balance sheet consists almost entirely of the right to collect charges and the corresponding debt.

5. Key risks

The biggest risk is regulatory. If the South Carolina Public Service Commission changes the rules for collecting these charges, it could affect the company’s ability to pay its debt. Additionally, if electricity use drops significantly, the company may need to adjust rates to ensure bond obligations are met. Treat this as a bond-like investment rather than a growth stock, as your return is limited to the interest payments on the bonds.

6. Leadership and oversight

Abigail L. Motsinger became Controller and Manager in early 2026. The company operates under strict oversight, with U.S. Bank acting as the trustee to ensure that money collected by the utility is properly paid to bondholders.

7. Future outlook

Expect more of the same: steady, predictable, and boring. The company will continue paying off these bonds. As the debt balance drops each year, interest costs will fall, leading to lower charges for customers over the next 15 years.

Decision Helper: If you are looking for high-growth potential, this is likely not the right fit for your portfolio. However, if you are looking for a predictable, bond-like investment backed by regulated utility charges, this entity is designed specifically to provide that level of stability.