Duke Energy Corp
NYSE:DUK
Duke Energy Corp
Duke Energy Corp., a stalwart of the American utility sector, seems almost an unwavering force continually adapting to the evolving landscape of energy generation and distribution. With roots tracing back to the early 20th century, the company has grown into one of the largest electric power holding enterprises in the United States, serving over 7 million customers across the Southeast and Midwest. This vast network of customers is supported by a diverse energy portfolio that ranges from traditional coal-fired plants to burgeoning investments in renewable sources like wind and solar power. Duke Energy meticulously manages this blend of generation methods to ensure a reliable energy supply while navigating the challenges of regulatory compliance and environmental stewardship.
Revenue for Duke Energy primarily flows from the regulated electric and gas utility operations that provide a predictable cash flow due to the ability to set rates with state utility commissions. Additionally, the company's commercial renewables segment continues to grow, providing energy solutions through wind and solar farms spread across the country. Duke Energy also capitalizes on its scale by continuously optimizing operations, implementing advanced technology for grid improvement, and enhancing customer engagement through digital solutions. Through strategic initiatives and investments, Duke Energy aims not only to deliver power to its customers but also to transition toward cleaner energy sources, aligning its financial interests with environmental goals in a sustainable manner.
Earnings Calls
Duke Energy's first-quarter adjusted EPS rose 22% year-over-year to $1.76, showcasing robust growth supported by higher sales and efficient regulatory outcomes. The company reaffirms its 2025 EPS guidance between $6.17 and $6.42, with a long-term growth rate of 5-7% through 2029. Significant advancements include the licensing extension for its Oconee nuclear station, ensuring power supply into the 2050s. Additionally, plans for continued investment in capacity and infrastructure projects aim to meet growing energy demands, fueled by a burgeoning pipeline of economic development projects, particularly in data centers.
Management
Lynn J. Good is a prominent American business executive known for her leadership role as the Chairman, President, and Chief Executive Officer of Duke Energy Corporation, one of the largest electric power holding companies in the United States. Born in Ohio, Good's educational background includes a Bachelor of Science degree in Systems Analysis and Accounting from Miami University in Oxford, Ohio. Good began her career in the accounting profession, working at Arthur Andersen and later joining Deloitte & Touche, where she honed her financial expertise. She transitioned into the energy sector by joining Cinergy Corp. in 2003. After Cinergy's merger with Duke Energy in 2006, she held various leadership positions within the company. In 2013, Good was named CEO of Duke Energy, during which she focused on modernizing the company's energy infrastructure, advancing clean energy initiatives, and enhancing customer service. Under her leadership, Duke Energy has emphasized environmental sustainability, investing in renewable energy sources and reducing carbon emissions. Good is also known for her active role in various industry and community organizations. She has served on the boards of notable institutions, including the Edison Electric Institute, and has been a vocal advocate for the transition to cleaner energy systems. Throughout her career, Lynn J. Good has been recognized for her strategic acumen and commitment to driving innovation in the energy sector, contributing to Duke Energy's reputation as a leader in the utility industry.
Brian D. Savoy is a prominent executive at Duke Energy Corp, a leading electric power holding company in the United States. He serves as the Executive Vice President and Chief Financial Officer (CFO), overseeing the company's financial operations, including strategic financial planning, corporate development, investor relations, and the financial performance of the enterprise. Savoy joined Duke Energy in 2001 and has held several key leadership positions throughout his career with the company. Before becoming CFO, he was the Senior Vice President and Chief Transformation and Administrative Officer. In this role, he was responsible for driving transformation and digital innovation, enhancing customer experiences, and leveraging technology to improve operations across the organization. His career has been characterized by a commitment to fostering a financially sound and operationally efficient company while adapting to the evolving energy landscape. Savoy holds a Bachelor’s degree in Accounting from Lamar University and is also a certified public accountant (CPA). Under his leadership, Duke Energy has continued to focus on sustainable growth, enhancing shareholder value, and investing in clean energy initiatives to transition towards a lower-carbon future.
Kodwo Ghartey-Tagoe is an experienced executive known for his significant contributions to Duke Energy Corporation. He has held various leadership roles within the company, demonstrating expertise in legal, regulatory, and business functions. Ghartey-Tagoe served as the Chief Legal Officer and an Executive Vice President at Duke Energy, where he managed legal affairs, ensuring that the company's operations were aligned with applicable laws and regulations. Before his tenure as Chief Legal Officer, Ghartey-Tagoe held the position of State President for Duke Energy in South Carolina. In this role, he was responsible for managing the company’s regulatory and governmental relations in the state, enhancing customer service, and overseeing community relations. His leadership was instrumental in strengthening the company’s relationship with state stakeholders and advancing Duke Energy’s business objectives in the region. Ghartey-Tagoe joined Duke Energy in 2002 and brought with him a wealth of legal experience, having previously worked in private law practice. He earned his Juris Doctor degree from Duke University School of Law and his background has equipped him with a strong legal foundation, allowing him to effectively navigate complex regulatory environments. His career at Duke Energy is marked by his dedication to ethical governance and his ability to lead through periods of change and growth. His contributions have been valuable in steering Duke Energy’s legal strategy and maintaining its reputation in the energy industry.
Julia Smoot Janson J.D. is a distinguished executive in the energy industry, serving as a key leader at Duke Energy Corporation. With a strong background in law and extensive experience in the energy sector, she has played a critical role in shaping the company's strategic direction. Janson holds a Juris Doctor degree, which has been instrumental in her navigation of complex regulatory environments and legal challenges within the energy industry. At Duke Energy, she has held several important positions, contributing her expertise in legal affairs, regulatory strategy, and corporate governance. Her leadership is marked by a commitment to promoting sustainable energy solutions and ensuring regulatory compliance across the company's operations. Throughout her career, Janson has been recognized for her ability to lead large-scale projects and drive operational efficiency, making her an invaluable asset to Duke Energy. Her contributions continue to impact the company's growth and its efforts toward clean energy transition.
Harry K. Sideris is a prominent executive within Duke Energy Corporation, a leading electric power holding company in the United States. Sideris has built a distinguished career at Duke Energy, marked by his extensive experience and dedication to the energy sector. He serves as the Executive Vice President of Customer Experience, Solutions and Services. In this role, Sideris is responsible for managing and enhancing the customer experience for Duke Energy's millions of customers. He oversees the development of new products and services aimed at meeting the evolving needs of customers and advancing the company’s clean energy initiatives. Before his current role, Sideris held several key leadership positions within the company, including President of Duke Energy’s Florida operations, where he was instrumental in leading the company’s efforts in delivering reliable and cost-effective energy to its customers in Florida. Sideris has a strong background in engineering, operations, and customer service, which has contributed to his effective leadership in driving customer-focused strategies and solutions. Under his leadership, Duke Energy has expanded its renewable energy portfolio and made strides in modernizing the electric grid to better serve customers. He is known for his commitment to sustainability, innovation, and community engagement, actively participating in initiatives that support environmental stewardship and economic development in the regions served by Duke Energy. Sideris holds a Bachelor of Science degree in Chemical Engineering from North Carolina State University and a Master of Business Administration from Campbell University. His leadership and vision continue to play a crucial role in Duke Energy’s mission to provide cleaner, smarter energy solutions to its customers.
Cynthia S. Lee is not a known executive or notable figure publicly associated with Duke Energy Corp. It's possible that she is not a senior executive or public-facing figure within the company. For current and accurate information about executives at Duke Energy, it is recommended to consult the company's official website or recent press releases. If you have any additional details or context, feel free to share, and I can assist further.
Bonnie T. Titone serves as the Senior Vice President and Chief Information Officer (CIO) of Duke Energy Corp. She joined the company in 2019 and plays a critical role in leading the information technology strategy, operations, and digital transformation initiatives at Duke Energy. With a focus on innovation and improving customer and employee experiences through technology, Titone oversees areas such as cybersecurity, data analytics, and digital innovation. Her leadership helps propel Duke Energy's commitment to cleaner energy solutions and efficiency improvements. Prior to joining Duke Energy, she held various leadership roles in IT across different sectors, significantly contributing to the advancement of technology and operational effectiveness.
Abby Motsinger is the executive vice president and chief customer officer at Duke Energy Corporation. In this role, she oversees several critical aspects of the company, including the development of innovative customer products, the advancement of digital engagement channels, and the cultivation of community relationships. She is responsible for ensuring Duke Energy's customer service and strategic business aims meet the evolving needs of the communities and individuals the company serves. Motsinger has been with Duke Energy since 2002 and has held various significant roles, demonstrating a strong track record in leadership and strategic planning. Her experience spans operations, business transformation initiatives, and customer service, showcasing her ability to drive growth and efficiency across the company’s operations. Her educational background includes a degree from North Carolina State University, and she is known for her commitment to sustainable energy solutions and community engagement. Under her leadership, Duke Energy aims to enhance its customer-centric approach and strengthen its position in the energy sector.
As of the latest information, there doesn't appear to be a Ms. Amy Hunter associated as an executive or in a prominent position at Duke Energy Corp. If there have been recent changes or new appointments, they might not be widely documented yet. Therefore, currently, information about Ms. Amy Hunter in relation to Duke Energy Corp. is not available.
Oscar Suris is a respected professional within the corporate communications landscape, known for his effective strategic communication skills and extensive experience in managing corporate reputation. Before his association with Duke Energy Corp, Suris held significant roles at major corporations. He previously served as the Executive Vice President of Corporate Communications at Wells Fargo & Company, where he played a key role in overseeing all aspects of the company's communications strategies. His career also includes leadership positions at leading firms such as Ford Motor Company and AutoNation, where he was responsible for handling media relations, crisis communications, and internal communications. Suris is known for his ability to guide corporations through complex communications challenges, leveraging both his skills and vast experience to maintain and enhance corporate reputation and relationships.
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Hello, everyone, and thank you for joining the Duke Energy First Quarter 2025 Earnings Call. My name is Sammy, and I'll be coordinating your call today. [Operator Instructions]. I'd now like to hand over to your host, Abby Motsinger, VP, Investor Relations, to begin. Please go ahead, Abby.
Thank you, Sammy, and good morning, everyone. Welcome to Duke Energy's First Quarter 2025 Earnings Review and Business Update. Leading our call today is Harry Sideris, President and CEO; along with Brian Savoy, Executive Vice President and CFO.
Today's discussion will include the use of non-GAAP financial measures and forward-looking information. Actual results may differ from forward-looking statements due to factors disclosed in today's materials and in Duke Energy's SEC filings. The appendix of today's presentation includes supplemental information along with a reconciliation of non-GAAP financial measures. With that, let me turn the call over to Harry.
Thank you, Abby, and good morning, everyone. Before I discuss the quarter, let me start by saying how excited I am to be with you today on my first call as CEO. Since we announced our leadership succession in January, I've had the opportunity to spend time with many stakeholders, including our customers, investors, regulators and Duke Energy teammates. These conversations centered around the same theme, the critical role Duke Energy plays in powering the lives of our communities and serving the incredible power demand facing the nation.
We are projecting low growth at levels I've never seen in my 30-year career, which will drive more than a decade of record infrastructure build. We are ready to meet the moment with a renewed focus on speed and agility and supported by the same spirit of innovation that has been at the heart of this company for over a century.
As I assumed the CEO role during this pivotal point for our company and industry, Duke Energy's mission remains unchanged. Delivering long-term value for shareholders and superior service to our customers and communities by building a smarter energy future.
Moving to the quarterly results. Today, we announced first quarter adjusted earnings per share of $1.76, which marks a strong start to the year. These results were $0.32 above last year. driven top line growth across our electric and gas utilities. The constructive regulatory outcomes we've delivered over the last several years provide line of sight to earnings growth with minimized rate case exposure in 2025 and 2026. We remain confident in our outlook and are reaffirming our 2025 guidance range of $6.17 to $6.42 and our long-term EPS growth rate of 5% to 7% through 2029.
Moving to Slide 5. Meeting our customers' growing and evolving energy demands requires not only new generation but where possible, maintaining and enhancing our existing generation. In March, we received approval from the Nuclear Regulatory Commission to extend the operating license for our Oconee nuclear station for an additional 20 years. With three generating units that produce more than 2,600 megawatts, Oconee is our first nuclear station to reach this milestone and will now power the Carolinas into the 2050s. As the operator of the largest regulated fleet in the nation, nuclear is foundational to our strategy, and we intend to seek similar extensions for each of our remaining reactors to extend their respective licensing periods.
In addition to extending the life of our nuclear fleet, we continue to pursue upgrade projects to efficiently increase the capacity of existing natural gas, nuclear and hydro units. Individually, these are small, ranging less than 10 megawatts up to 75 megawatts per unit. But in aggregate, they represent over 1 gigawatt of cost-effective incremental capacity to support our growing regions.
Turning to new generation. We've taken several important steps this year to advance our all-of-the-above strategy to meet growing demand and replace aging infrastructure. In the Carolinas, we commenced early site activities for our first combined cycle unit in Person County, and we filed a CPCN for a second combined cycle at the site. In Indiana, we filed CPCNs for two combined cycles in February. In Florida, we're making investments in solar and battery storage projects approved in our multiyear rate plan. In January, we joined a public private DOE grant application led by TVA to explore new nuclear technologies. The coalition has the potential to accelerate SMR technology development and increase our access to industry learnings and best practices. And finally, we recently announced a strategic partnership with GE Venova to secure up to 19 natural gas turbines. This agreement provides for timely delivery of critical infrastructure to meet our enterprise-wide resource plans and serve the growing needs of our customers into the 2030s.
Moving to Slide 6. We continue to work closely with regulators, policymakers and other stakeholders to advance regulatory and legislative priorities across our jurisdictions. In the Carolinas, we've had ongoing discussions with stakeholders in both states around merging our DC and DEP utilities. We are on track to file a merger application later this year with North Carolina and South Carolina commissions as well as the Federal Energy Regulatory Commission. The proposed merger would create significant customer savings, simplify operations and regulatory processes and add operational flexibility to our system. We expect the application process to take about a year and are targeting January 2027 for the effective date of the merger. We also continue to advance storm securitization in North and South Carolina, and we're on track to issue securitization bonds in both states by the end of this year.
Turning to Florida. In March, we began recovering 2024 hurricane costs over 12 months. The timely recovery of storm costs was a key objective into the year. And this constructive outcome supports our commitment to a strong balance sheet.
Finally, our Kentucky Electric rate case is progressing with hearings scheduled for later this month, and we expect to implement new rates later this year. I am incredibly proud of our strong performance in the first quarter. which is a result of continued operational excellence and the constructive outcomes the team has delivered. The fundamentals of the company are stronger than ever and provide visibility growth for years to come. With that, let me turn the call over to Brian.
Thanks, Harry, and good morning, everyone. Moving to Slide 7. We delivered a strong first quarter with reported and adjusted earnings per share of $1.76, a 22% increase over the first quarter of 2024. Within the segments, Electric Utilities & Infrastructure was up $0.33 compared to last year. Growth was driven by higher sales volumes, improved weather and the implementation of new rates. Partially offsetting these items were higher interest expense and depreciation.
Moving to gas utilities and infrastructure. results were up $0.08 compared to last year, driven by new rates at Piedmont, North Carolina. And finally, the other segment was down $0.08, primarily due to higher interest expense. Overall, we are very pleased with the first quarter results, which were in line with our expectations and reflect the strength of the regulatory outcomes and operational performance we have consistently delivered.
Turning to Slide 8. Weather-normal volumes increased 1.8% versus last year, in line with our full year projection of 1.5% to 2%. Residential volumes were up over 3% in the quarter. reflecting both customer growth and higher usage. We continue to see robust customer growth through the first quarter, concentrated in the Southeast and Indian. As we look ahead, we continue to expect load growth to accelerate beginning in 2027 as economic development projects come online. Our economic development pipeline continues to grow. And includes advanced manufacturing projects across multiple sectors as well as data centers. We're streamlining processes across the organization to accelerate projects through the pipeline, which is yielding results. In April, we signed new letter agreements for nearly 1 gigawatt of data center projects and advanced manufacturing projects continue to ramp. The pipeline remains robust. And we continue to take a risk-adjusted approach as we evaluate which projects to include in our forecast.
Turning to Slide 9. As we've demonstrated over many years, our commitment to our current credit ratings and a strong balance sheet will remain a top priority as we execute our growth objectives. We are delivering on all credit supportive initiatives and are firmly on track to achieve 14% FFO to debt this year, and we expect to improve above 14% over the 5-year plan. This provides over 100 basis points of cushion above our Moody's downgrade threshold and over 200 basis points above our S&P downgrade threshold.
As we disclosed in February, we expect to issue $1 billion of common equity this year via our DRIP and ATM programs. In the first quarter, we took advantage of a strong market pricing just over $530 million, more than half of our annual target. We've also completed close to 40% of our planned long-term debt issuances for 2025, and and are on track to receive storm securitization proceeds by the end of the year in the Carolinas.
Before I close, let me take a moment to talk about progress on our capital plan. We're continuing to advance our grid improvement plans. And as Harry highlighted, we're investing in our existing fleet and hitting a new gear in building generation. we invested more than $3 billion of capital in the quarter, and we're on track for $15 billion for the full year. As we think about our capital plan going forward, we're evaluating the impact of tariffs. It's important to remember that tariffs primarily affect capital, and the majority of our capital spend is American labor, which is not subject to tariffs. We currently estimate the impact of tariffs to be about 1% to 3% of our 5-year capital plan. And we are confident in our ability to further minimize the impact leveraging our size and scale to work with suppliers across our diverse supply chain.
Moving to Slide 10. We remain confident in delivering our 2025 earnings guidance range of $6.17 to $6.42 and 5% to 7% earnings growth through 2029. We with the potential to earn the top half of the range as load growth accelerates in the back end of the plan. Our track record of constructive regulatory outcomes provides a solid foundation and minimizes near-term regulatory exposure in our financial plan. We are well positioned to achieve our growth targets, which combined with our attractive dividend yield, provide a compelling risk-adjusted return for shareholders. With that, we'll open the line for your questions.
[Operator Instructions]. Our first question comes from Shahriar Pourreza, Guggenheim Partners.
Just I guess, first, it's -- obviously, it's been reaffirmed, but you're seeing, obviously, a fairly strong step-up in '27. You're signing more letters of agreements, '27 isn't that far off. I guess at what point could we start seeing some guideposts around incremental CapEx opportunities above your base plan like some of your peers have been doing. So range of maybe possible upside CapEx opportunities that can go into plan as more deals are signed. I guess, are you considering this type of placeholder disclosure and could EEI be the podium for that?
Yes. Thanks for that, Shar. I'll start off and turn it over to Brian for any feedback he has on it as well. So we just updated our plan in February, as you know, $83 billion for the next 5 years. half of that going into the grid, half of it for a generation build. We got several updates coming up with our IRP in the Carolinas being updated. We continue to work our pipeline. It's stable and growing. And as that continues and our updates to our IR never say that order. We will continue to look at our plans, but we do have a wealth of investment opportunities and growth opportunities, and we'll continue to look at that and update you as that comes along. And Brian, do you have anything to add?
Yes, I would add, we're updating our resource plans, and we just actually filed our 10-year site plan in Florida, which calls for more resources than our previous plan. And Shar, we've kind of gotten on this annual cycle of updating capital in February. If there is a catalyst, we will definitely update the investment community. But Until then, I would kind of look to February as our major capital update cycle, but we take all these things into consideration when we update.
Okay. Got it. And then just maybe a question for Brian. Just on credit metrics, I mean, obviously, the key thing is the visibility is improving. You guys are monetizing the tax credit you're getting storm cost recoveries. I guess when can we start seeing some more specificity around actual target ranges within the plan versus the 100 basis points, 200 basis guidance you guys have been out there for some time. Is there a point when you can start to disclose around actual ranges you guys decide to -- you can land that during the trajectory?
I appreciate the question, Shar. And it's something that we've been discussing a lot internally as we've continued to improve the credit profile of Duke and growing the operating cash flow and clearing some of these items that are in front of us like storm recovery and storm securitization. So I think we're going to continue to evaluate it, but we'll see this within maybe our next cycle in February, we'll give a more defined targeted range on where we would be on the credit.
Our next question comes from Julian Dumoulin-Smith from Jefferies. Please go ahead.
Just to follow up a little bit on what Shar have said. Picking at here. I mean 1 gigawatt of signed deals in April alone, quite a statement there. Just how are you thinking about the statement with respect to the cadence that you had contemplated? I mean, obviously, as you say, you've seen this accelerated load growth, but is it actually accelerating actively versus what you guys did contemplated initially. Maybe I'm not asking specifically about the CapEx, but just in terms of the cadence of adding a single gigawatt in a single month of data center deals specifically, I mean, are you seeing more than what you even talked about back in February? Or maybe another way to ask that is, where are you within that range of the 3% to 4% that you laid out just a handful of months ago as you see these data points coming in?
Yes, Julien. Our pipeline continues to be robust and continues to grow. And we've really focused on accelerating getting projects through what we call our funnel to get them from the pipeline through these letter agreement stages to shore them up. So this 1 gigawatt that we just signed is working through our process. It's been contemplated in our plans. And we'll continue to work that large pipeline that we have to move more of these through our funnel to look at how we go to in the future. So we feel very comfortable and confident that we have a great pipeline, and we continue to find ways to work through that faster for our customers.
Got it. Understood. And then if I can pivot slight differently. I mean big announcement the other day with your friends at JV here, how do you think about the '19 turbine commitments, I mean, just against what you guys have in the plan. How do you think about that juxtaposing versus what's formal in the plan versus what's possible here again, I know that it's not a formal commitment on your side per se, but just curious how that fits and what that might suggest about future activities and future generation needs.
We were very pleased with the partnership with GE. We talked about meeting the moment at Duke and serving the tremendous load growth that we have ahead of us. and innovative agreements and framework agreements like this gives us the flexibility as we're moving projects through that funnel, that we're able to have the supply chain shored up in terms of turbines and other agreements that we have so that we could quickly serve these customers as they want to come on. So this is important to shore up and give us the flexibility as we move these projects into fruition that we're able to deliver them to the customer quickly because that's what they want. So these agreements are great.
Got it. In '25 seems like you're trending well already. I mean, too early to talk about, shall we say, moving within the range, but how do you think about putting more latitude against shoring up where you are against the longer-term outlook, just even '26 here in derisking some of the future years?
Yes. Julien, I think we look at our 5-year plan and our 5% to 7% growth and feel very good about that growth outlook. And good start to '25 obviously helps every year in front of it. So we think that 2026 planning has been underway for many months now as we think about the years ahead, and we're well positioned to deliver on that growth range as we look at the plan.
Our next question comes from Durgesh Chopra from Evercore ISI Group. Please go ahead.
Congrats Harry, once again. Just you guys have discussed the [ DEP and DEC ] merger in the past. Maybe just a little bit more color, what are the financial implications of that merger, when approved cost savings? I know there's going to be some operations streamlining. But just any color you can share there would be appreciated.
Yes, sir, yes. We're excited about the opportunity to merge our DEC and DEP utilities, something we've contemplated since the merger back in 2012. Stakeholders are very supportive of this. It does generate a lot of savings over time for our customers over $1 billion. So that will help with the affordability to our rates for our customers going forward. It really focuses on operational savings, fuel savings from running a combined system, managing our reserve margins as a whole instead of separately allowing us to put plants in the best location and optimize that. It's less regulatory proceedings, which are regulators like as well as us. So it continues to provide a lot of benefits for our customers. So we continue to work with our stakeholders on finalizing the details. Like I mentioned earlier, we plan to file later this summer with the North Carolina and South Carolina commissions as well as FERC and look to be running as one utility in January of 2027.
Got it. Okay. Sounds like a ton of room for making improvements on the customer front. Great. Just one quick follow-up on the data center, 1 gigawatt signing. Can you just size how many customers is that? Just trying to get a flavor for, are these one or two large customers or just the megawatts per customer, if you will?
Yes. The 1 gigawatt we talk about is actually two customers.
Our next question comes from Carly Davenport from Goldman Sachs.
Maybe just to start, IRI has been pretty topical throughout earnings season here as we look at some of the potential legislation coming through reconciliations. Can you just provide your latest views on the outlook both for transferability and the future of the tax credits that support a lot of these renewables projects? And can you just remind us in terms of what is actually baked into the financial plan from a transferability perspective.
We appreciate the -- what Congress has ahead of them and how many priorities they'll be weighing as they work through the budget reconciliation process. We tend to look at this from the customers' perspective, and really our overarching objective is to maintain affordability for our customers, and that's what we've framed our advocacy around. The savings our customers receive from these energy credits fall right in line to what the President wants to do, which is delivering on this promise to reduce power bills across the country. As you know, each one of these dollars that we earn in energy tax credits goes back to our customers.
The nuclear tax credits are most important to us. Our well-run, low-cost nuclear plants earn over $500 billion of tax credits that go directly to reducing our customers' bills. Nuclear has broad support in Washington. And we were pleased to see last week 26 representative sign a letter, stressing the importance of the nuclear tax credit and transferability to the President's objective of affordable and reliable energy. So we continue to work with folks in Washington to advocate to help our customers lower their bills, reduce credits, and we will continue to do that as they work through the process.
Great. I appreciate that. And then maybe just as we think about the macro, is there anything that you're seeing or hearing from, in particular, your industrial customer base in terms of activity levels potentially being impacted by a higher degree of economic and policy uncertainty at this point.
It's obviously the topic everyone is talking about, Carly, and we're in close communication with our large customers as we always are. And we've not seen any changes to their production schedules or expectations for '25. But I would say, there's somewhat of a cautionary stance, right? Because everybody is waiting for the finalization of where the tariff policies might land and their inputs reliance on the global supply chain, all factor into that equation. So I would say that today, it's no change, no need jerk reactions from our customers but kind of a cautionary stance. And that's that makes sense given where we are. So we think our 1.5% to 2% load growth for 2025 is intact fully in the first quarter was evidence that we're right in line with that.
We also see the potential, Carley, for some of our customers to increase production because the tariffs actually help their business, think about steel producers and those type of folks. So we're in contact with some of those customers as well. .
We currently have no further questions. So I'd like to hand back to Harry Sideris for some closing remarks.
All right. Thank you, everyone. And thank you for your investment in Duke Energy. Our IR team is standing by if you have any further questions during the day. And I hope everybody has a great day.
This concludes today's call. Thank you very much for joining. You may now disconnect your lines.