# EDGAR Filing Document

**Accession Number:** 0000030371
**File Stem:** 0001104659-26-068382
**Filing Date:** 2026-5
**Character Count:** 53920
**Document Hash:** aae8d78ae8538be17470b764e59a2d2c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-068382.hdr.sgml**: 20260529

**ACCESSION NUMBER**: 0001104659-26-068382

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20260529

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260529

**DATE AS OF CHANGE**: 20260529

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Duke Energy Carolinas, LLC
- **CENTRAL INDEX KEY:** 0000030371
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC SERVICES [4911]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 560205520
- **STATE OF INCORPORATION:** NC
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-04928
- **FILM NUMBER:** 261046298

**BUSINESS ADDRESS:**
- **STREET 1:** 525 SOUTH TRYON STREET
- **CITY:** CHARLOTTE
- **STATE:** NC
- **ZIP:** 28202
- **BUSINESS PHONE:** 800-488-3853

**MAIL ADDRESS:**
- **STREET 1:** 525 SOUTH TRYON STREET
- **CITY:** CHARLOTTE
- **STATE:** NC
- **ZIP:** 28202

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Duke Power CO LLC
- **DATE OF NAME CHANGE:** 20060403

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** DUKE ENERGY CORP
- **DATE OF NAME CHANGE:** 19970618

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** DUKE POWER CO /NC/
- **DATE OF NAME CHANGE:** 19920703

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the**

**Securities Exchange Act of 1934**

Date of report (Date of earliest event reported): **May 29, 2026**

---

| | | |
|:---|:---|:---|
| **Commission file<br> number** | **Registrant, State of Incorporation or Organization,<br> Address of Principal Executive Offices and Telephone Number** | **IRS Employer <br> Identification No.** |
|  | ![](tm2615850d1_8kimg001.jpg) |  |
| &nbsp;&nbsp;**1-04928** | **DUKE ENERGY CAROLINAS, LLC**<br> (a North Carolina limited liability company)<br> 525 South Tryon Street<br> Charlotte, North Carolina 28202<br> 800-488-3853<br>| **56-0205520** |

---

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

◻&nbsp;&nbsp;&nbsp;&nbsp; Written communications pursuant to Rule 425 under the Securities Act.

◻&nbsp;&nbsp;&nbsp;&nbsp; Soliciting material pursuant to Rule 14a-12 under the Exchange Act.

◻&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 14d-2b under the Exchange Act.

◻&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.

Securities registered pursuant to Section 12(b) of the Act:&nbsp;&nbsp;&nbsp;&nbsp; None

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

---

| | |
|:---|:---|
| **Item 8.01.** | **Other Events.** |

---

As previously disclosed, on August 14, 2025, Duke Energy Carolinas, LLC ("**Duke Energy Carolinas**") and Duke Energy Progress, LLC ("**Duke Energy Progress**," and together with Duke Energy Carolinas, the "**Companies**") filed a joint application with the North Carolina Utilities Commission ("**NCUC**") and the Public Service Commission of South Carolina ("**PSCSC**") for approval to combine utilities, by which Duke Energy Progress will merge into Duke Energy Carolinas, resulting in a single electric utility serving the Companies' North Carolina and South Carolina service territories. Duke Energy Corporation, together with the Companies, also filed an application with the Federal Energy Regulatory Commission (the "**FERC**") on the same day. In connection with the utility combination (the "**Combination**"), and immediately prior thereto, Duke Energy Corporation expects to contribute its 100% equity interest in Duke Energy Carolinas to Progress Energy, Inc. ("**Progress Energy**").

The targeted effective date is January 1, 2027. On January 30, 2026, the FERC issued an order authorizing the Combination as consistent with the public interest. Additionally, on April 30, 2026, the PSCSC voted to approve the Combination, and on May 1, 2026, the NCUC issued an order approving the Combination. The effectuation of the Combination remains subject to approval by the boards of directors of both Companies and the board of directors of Progress Energy, to the entry by the Companies, Progress Energy and Duke Energy Corporation into a definitive agreement governing the Combination and to the satisfaction of other conditions.

Duke Energy Carolinas is filing this Current Report on Form 8-K solely to provide certain information relating to the proposed Combination. Additionally, Duke Energy Carolinas is providing certain supplemental risk factors related to the proposed Combination, which are filed as Exhibit 99.4 and incorporated herein by reference.

---

| | |
|:---|:---|
| **Item 9.01.** | **Financial Statements and Exhibits.** |

---

(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Financial Statements of Businesses or Funds Acquired*

Pursuant to Rule 3-05 of Regulation S-X, Duke Energy Carolinas is filing herewith (i) the audited consolidated financial statements of Duke Energy Progress as of December 31, 2025 and 2024 and for the years ended December 31, 2025, 2024 and 2023, which are filed as Exhibit 99.1 and incorporated by reference herein, and (ii) the unaudited condensed consolidated interim combined financial statements of Duke Energy Progress as of March 31, 2026 and December 31, 2025, and for the three months ended March 31, 2026 and 2025, which are filed as Exhibit 99.2 and incorporated by reference herein. These combined financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission and U.S. generally accepted accounting principles.

(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Pro Forma Financial Information*

Pursuant to Article 11 of Regulation S-X, Duke Energy Carolinas is filing herewith (i) the unaudited pro forma condensed combined balance sheet as of March 31, 2026, of Duke Energy Carolinas, giving effect to the Combination as if it had been completed on March 31, 2026; and (ii) the unaudited pro forma condensed combined statements of operations for the years ended December 31, 2025, 2024 and 2023, and for the three months ended March 31, 2026, giving effect to the Combination as if it had been completed on January 1, 2023.

The pro forma financial information included as Exhibit 99.3 to this Current Report on Form 8-K has been prepared for illustrative purposes only as required by Form 8-K, and is not intended to, and does not purport to, represent what Duke Energy Carolinas' actual results or financial condition would have been if the Combination had occurred on the relevant date and is not intended to project the future results or the financial condition that Duke Energy Carolinas may achieve following the Combination.

(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Exhibits*

[23.1](tm2615850d1_ex23-1.htm) [Consent of Independent Registered Public Accounting Firm](tm2615850d1_ex23-1.htm)

---

| | |
|:---|:---|
| [99.1](https://www.sec.gov/ix?doc=/Archives/edgar/data/17797/000132616026000014/duk-20251231.htm) | [Historical audited consolidated financial statements of Duke Energy Progress and accompanying notes as of December 31, 2025 and 2024 and for the years ended December 31, 2025, 2024 and 2023 (incorporated by reference to pages 91-96 and pages 121-233 of Duke Energy Progress' Annual Report on Form 10-K for the year ended December 31, 2025, File No. 1-32853).](https://www.sec.gov/ix?doc=/Archives/edgar/data/17797/000132616026000014/duk-20251231.htm) |

---

---

| | |
|:---|:---|
| [99.2](https://www.sec.gov/ix?doc=/Archives/edgar/data/17797/000132616026000026/duk-20260331.htm) | [Historical unaudited condensed consolidated interim financial statements of Duke Energy Progress and accompanying notes as of March 31, 2026 and December 31, 2025, and for the three months ended March 31, 2026 and 2025 (incorporated by reference to pages 22-25 and 42-89 of Duke Energy Progress' Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026, File No. 1-32853).](https://www.sec.gov/ix?doc=/Archives/edgar/data/17797/000132616026000026/duk-20260331.htm) |

---

---

| | |
|:---|:---|
| [99.3](tm2615850d1_ex99-3.htm) | [Unaudited pro forma condensed combined financial information of Duke Energy Carolinas and accompanying notes for the years ended December 31, 2025, 2024 and 2023 and as of and for the three months ended March 31, 2026.](tm2615850d1_ex99-3.htm) |

---

[99.4](tm2615850d1_ex99-4.htm) [Supplemental risk factors](tm2615850d1_ex99-4.htm)

104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

**CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION**

This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management's beliefs and assumptions and can often be identified by terms and phrases that include "anticipate," "believe," "intend," "estimate," "expect," "continue," "should," "could," "may," "plan," "project," "predict," "will," "potential," "forecast," "target," "guidance," "outlook" or other similar terminology. Various factors may cause actual results to be materially different than the suggested outcomes within forward-looking statements; accordingly, there is no assurance that such results will be realized. These factors include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 (i) failure to realize the anticipated benefits, synergies, and value creation expected
 from the Combination, including as a result of difficulties or delays in integrating the
 contributed assets and operations and/or the incurring of significant costs in connection
 with the Combination; and (ii) the risk that the combined entity may not perform as
 expected following the consummation of the Combination due to unforeseen liabilities, its
 level of indebtedness, integration challenges, market conditions, ratings downgrades, or
 other factors beyond the control of the parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 ability to implement our business strategy, including meeting forecasted load growth demand,
 grid and fleet modernization objectives, and reducing carbon emissions, while balancing customer
 reliability and keeping costs as low as possible for our customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· State,
 federal and foreign legislative and regulatory initiatives, including costs of compliance
 with existing and future environmental requirements and/or uncertainty of applicability or
 changes to such legislative and regulatory initiatives, including those related to climate
 change, as well as rulings that affect cost and investment recovery or have an impact on
 rate structures or market prices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 extent and timing of costs and liabilities to comply with federal and state laws, regulations
 and legal requirements related to coal ash remediation, including amounts for required closure
 of certain ash impoundments, are uncertain and difficult to estimate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 ability to timely recover eligible costs, including amounts associated with coal ash impoundment
 retirement obligations, asset retirement and construction costs related to carbon emissions
 reductions, and costs related to significant weather events, particularly in periods of heightened
 customer affordability concerns, bill volatility, or public and political scrutiny, and to
 earn an adequate return on investment through rate case proceedings and the regulatory process;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 costs of decommissioning nuclear facilities could prove to be more extensive than amounts
 estimated and all costs may not be fully recoverable through the regulatory process;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 impact of extraordinary external events, such as a global pandemic, trade wars or military
 conflict, and their collateral consequences, including the disruption of global supply chains
 or the economic activity in our service territories;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Costs
 and effects of legal and administrative proceedings, settlements, investigations and claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Industrial,
 commercial and residential decline in service territories or customer bases resulting from
 sustained downturns of the economy, storm damage, reduced customer usage due to cost pressures
 from inflation, tariffs, or fuel costs, worsening economic health of our service territories,
 reductions in customer usage patterns, or lower than anticipated load growth, particularly
 if usage of electricity by data centers is less than currently projected, energy efficiency
 efforts, natural gas building and appliance electrification, and use of alternative energy
 sources, such as self-generation and distributed generation technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Federal
 and state regulations, laws and other efforts designed to promote and expand the use of energy
 efficiency measures, natural gas electrification, and distributed generation technologies,
 such as private solar and battery storage, in Duke Energy Corporation (collectively with
 its subsidiaries) service territories could result in a reduced number of customers, excess
 generation resources as well as stranded costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Advancements
 in technology, including artificial intelligence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Additional
 competition in electric and natural gas markets, municipalization and continued industry
 consolidation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 influence of weather and other natural phenomena on operations, financial position, and cash
 flows, including the economic, operational and other effects of severe storms, hurricanes,
 droughts, earthquakes and tornadoes, including extreme weather associated with climate change;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Changing
 or conflicting investor, customer and other stakeholder expectations and demands, particularly
 regarding environmental, social and governance matters and costs related thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 ability to successfully operate electric generating facilities and deliver electricity to
 customers, including direct or indirect effects to the Company resulting from an incident
 that affects the United States electric grid or generating resources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Operational
 interruptions to our natural gas distribution and transmission activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 availability of adequate interstate pipeline transportation capacity and natural gas supply;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 impact on facilities and business from a terrorist or other attack, war, vandalism, cybersecurity
 threats, data security breaches, operational events, information technology failures or other
 catastrophic events, such as severe storms, fires, explosions, pandemic health events or
 other similar occurrences;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 inherent risks associated with the operation of nuclear facilities, including environmental,
 health, safety, regulatory and financial risks, including the financial stability of third-party
 service providers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 timing and extent of changes in commodity prices, including any impact from increased tariffs,
 export controls and interest rates, and the ability to timely recover such costs through
 the regulatory process, where appropriate, and their impact on liquidity positions and the
 value of underlying assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 results of financing efforts, including the ability to obtain financing on favorable terms,
 which can be affected by various factors, including credit ratings, interest rate fluctuations,
 compliance with debt covenants and conditions, an individual utility's generation portfolio,
 and general market and economic conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Credit
 ratings of Duke Energy Corporation, Duke Energy Carolinas, Progress Energy, Duke Energy Progress,
 Duke Energy Florida, LLC, Duke Energy Ohio, Inc., Duke Energy Indiana, LLC and Piedmont
 Natural Gas Company, Inc. (collectively, the "**Duke Energy Registrants** ")
 may be different from what is expected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Declines
 in the market prices of equity and fixed-income securities and resultant cash funding requirements
 for defined benefit pension plans, other post-retirement benefit plans and nuclear decommissioning
 trust funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Construction
 and development risks associated with the completion of the Duke Energy Registrants'
 capital investment projects, including risks related to financing, timing and receipt of
 necessary regulatory approvals, obtaining and complying with terms of permits, meeting construction
 budgets and schedules, obtaining sufficient skilled labor and satisfying operating and environmental
 performance standards, as well as the ability to recover costs from customers in a timely
 manner, or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Changes
 in rules for regional transmission organizations, including changes in rate designs

 of other participants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 ability to control operation and maintenance costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 level of creditworthiness of counterparties to transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 ability to obtain adequate insurance at acceptable costs and recover on claims made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Employee
 workforce factors, including the potential inability to attract and retain key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 ability of subsidiaries to pay dividends or distributions to Duke Energy Corporation holding
 company (the Parent);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 performance of projects undertaken by our businesses and the success of efforts to invest
 in and develop new opportunities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 effect of accounting and reporting pronouncements issued periodically by accounting standard-setting
 bodies and the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 impact of United States tax legislation to our financial condition, results of operations
 or cash flows and our credit ratings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 impacts from potential impairments of goodwill or investment carrying values;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Asset
 or business acquisitions and dispositions may not be consummated or yield the anticipated
 benefits, which could adversely affect our financial condition, credit metrics or ability
 to execute strategic and capital plans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 actions of activist shareholders could disrupt our operations, impact our ability to execute
 on our business strategy, or cause fluctuations in the trading price of our common stock.

Additional risks and uncertainties are identified and discussed in the Duke Energy Registrants' reports filed with the SEC and available at the SEC's website at sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than described. Forward-looking statements speak only as of the date they are made and the Duke Energy Registrants expressly disclaim an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | DUKE ENERGY CAROLINAS, LLC | DUKE ENERGY CAROLINAS, LLC |
| Date: May 29, 2026 |  |  |
|  | By: | /s/ David S. Maltz |
|  |  | David S. Maltz |
|  |  | Vice President, Legal, Chief Governance Officer, Corporate Secretary and Mergers and Acquisitions |

---

## Exhibit 23.1

**Exhibit 23.1**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM<br>** 

<br> We consent to the incorporation by reference in Registration Statement No. 333-290475-05 on Form S-3 of Duke Energy Carolinas, LLC of our report dated February 26, 2026, relating to the consolidated financial statements of Duke Energy Progress, LLC and subsidiaries ("Duke Energy Progress") incorporated by reference in this Current Report on Form 8-K dated May 29, 2026.

<u>/s/ Deloitte & Touche LLP</u>

Charlotte, North Carolina

May 29, 2026

## Exhibit 99.3

**Exhibit 99.3**

**UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION**

**Introduction**

Duke Energy Carolinas, LLC ("Duke Energy Carolinas") and Duke Energy Progress, LLC ("Duke Energy Progress") have operated as separate regulated utilities since the 2012 merger of Duke Energy Corporation ("Duke Energy") and Progress Energy, Inc. ("Progress Energy") (the "2012 Merger"). The proposed combination represents an internal reorganization of entities under common control (the "Combination") and is intended to combine the operations of these utilities into a single regulated utility legal entity. The Combination is expected to result in a single regulated utility operating in North Carolina and South Carolina, with a targeted effective date of January 1, 2027.

Duke Energy Carolinas and Duke Energy Progress are separate regulated utility subsidiaries of Duke Energy serving customers in North Carolina and South Carolina. Each utility serves distinct service territories within these states and is responsible for the generation, transmission, distribution, and sale of electricity to residential, commercial, industrial, and wholesale customers.

The Combination represents a transaction between entities under common control and is expected to be accounted for in accordance with Accounting Standards Codification ("ASC") 805-50, rather than as a business combination under ASC 805-10. Duke Energy has maintained continuous control over both utilities since 2012, and the transaction does not result in a change in ultimate ownership or control.

Pursuant the transaction structure, Duke Energy will contribute ownership of Duke Energy Carolinas to Progress Energy, a subsidiary of Duke Energy, after which Duke Energy Progress, a subsidiary of Progress Energy, will merge with and into Duke Energy Carolinas, with Duke Energy Carolinas surviving the Combination as a subsidiary of Progress Energy. Following the Combination, Duke Energy's regulated electric utility operations in North Carolina and South Carolina will be organized under Duke Energy Carolinas, including the generation, transmission, distribution, and sale of electricity to residential, commercial, industrial, and wholesale customers.

**Additional Information Related to the Unaudited Pro Forma Condensed Combined Financial Information**

The unaudited pro forma condensed combined financial information has been prepared based on the historical financial statements of Duke Energy Carolinas and Duke Energy Progress, as adjusted to give effect to the Combination. In accordance with ASC 805-50, *assets and liabilities transferred between entities under common control are accounted for at the historical cost basis of the common parent.*

The unaudited pro forma condensed combined balance sheet as of March 31, 2026 gives pro forma effect to the Combination as if it had occurred on March 31, 2026. The unaudited pro forma condensed combined statements of operations for the years ended December 31, 2025, 2024, and 2023, and for the three months ended March 31, 2026, give effect to the Combination as if it had occurred on January 1, 2023.

The unaudited pro forma condensed combined financial information has been derived from and should be read in conjunction with: (i) the accompanying notes to the unaudited pro forma condensed combined financial information; (ii) the historical audited consolidated financial statements of Duke Energy Carolinas and Duke Energy Progress as of December 31, 2025 and 2024, and for the years ended December 31, 2025, 2024, 2023, and the accompanying notes; and (iii) the historical unaudited condensed consolidated financial statements of Duke Energy Carolinas and Duke Energy Progress as of March 31, 2026 and December 31, 2025, and for the three months ended March 31, 2026 and 2025, and the accompanying notes.

The unaudited pro forma condensed combined financial information is provided for illustrative purposes only and is not necessarily indicative of the results of operations or financial position that would have been achieved had the Combination occurred on the dates indicated, nor is it indicative of the future results of operations or financial position of the combined company. The transaction accounting adjustments are based on information currently available and on assumptions described in the accompanying notes to the unaudited pro forma condensed combined financial information. The unaudited pro forma condensed combined financial information does not include the realization of any costs savings from operating efficiencies, synergies or other activities, or the recognition of any cost increases or dis-synergies that might result from the Combination. Actual results may differ materially from those reflected in the pro forma information.

**Duke Energy Carolinas, LLC**

**Unaudited Pro Forma Condensed Combined Balance Sheet**

**As of March 31, 2026**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | **Transaction Accounting Adjustments** | **Transaction Accounting Adjustments** | |
| <br>**(in millions)** |<br>**Duke Energy<br> Carolinas<br> Historical** |<br>**Duke Energy<br> Progress<br> Historical** |<br>**Combined** | **Eliminations of<br> Intercompany**<br> **Transactions** | **Effects of**<br> **Combination** |<br>**Pro Forma<br> Balance** |
| **ASSETS** |  |  |  |  |  |  |
| **Current Assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $44 | $63 | $107 | $- | $- | $107 |
| &nbsp;&nbsp;&nbsp;Receivables (net of allowance for doubtful accounts) | 1198 | 967 | 2165 |  |  | 2165 |
| &nbsp;&nbsp;&nbsp;Receivables from affiliated companies | 251 | 35 | 286 | (186) **(a)** |  | 100 |
| &nbsp;&nbsp;&nbsp;Inventory | 1544 | 1350 | 2894 |  |  | 2894 |
| &nbsp;&nbsp;&nbsp;Regulatory assets | 752 | 675 | 1427 |  |  | 1427 |
| &nbsp;&nbsp;&nbsp;Other | 259 | 190 | 449 | - | - | 449 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | **4048** | **3280** | **7328** | **(186)** | **-** | **7142** |
| &nbsp;&nbsp;&nbsp;<br>**Property, Plant and Equipment** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost | 63715 | 45974 | 109689 |  |  | 109689 |
| &nbsp;&nbsp;&nbsp;Accumulated depreciation and amortization | (20863) | (17179) | (38042) | - | - | (38042) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net property, plant and equipment | **42852** | **28795** | **71647** | **-** | **-** | **71647** |
| &nbsp;&nbsp;&nbsp;**Other Noncurrent Assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill |  |  |  |  | 8358 **(d)** | 8358 |
| &nbsp;&nbsp;&nbsp;Regulatory assets | 5177 | 4629 | 9806 |  | 163 **(b)(c)** | 9969 |
| &nbsp;&nbsp;&nbsp;Nuclear decommissioning trust funds | 7213 | 5156 | 12369 |  |  | 12369 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets, net | 92 | 368 | 460 |  |  | 460 |
| &nbsp;&nbsp;&nbsp;Other | 1336 | 788 | 2124 | - | - | 2124 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other noncurrent assets | **13818** | **10941** | **24759** | **-** | **8521** | **33280** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Assets** | $**60718** | $**43016** | $**103734** | $**(186)** | $**8521** | $**112069** |
| **LIABILITIES AND EQUITY** |  |  |  |  |  |  |
| **Current Liabilities** |  |  |  |  |  |  |
| Accounts payable | $1539 | $962 | $2501 | $- | $- | $2501 |
| Accounts payable to affiliated companies | 353 | 370 | 723 | (186) **(a)** |  | 537 |
| Notes payable to affiliated companies | 638 | 644 | 1282 |  |  | 1282 |
| Taxes accrued | 124 | 66 | 190 |  |  | 190 |
| Interest accrued | 163 | 91 | 254 |  |  | 254 |
| Current maturities of long-term debt | 1649 | 793 | 2442 |  |  | 2442 |
| Asset retirement obligations | 242 | 186 | 428 |  |  | 428 |
| Regulatory liabilities | 660 | 356 | 1016 |  |  | 1016 |
| Other | 634 | 342 | 976 | - | - | 976 |
| &nbsp;&nbsp;&nbsp;Total current liabilities | **6002** | **3810** | **9812** | **(186)** | **-** | **9626** |
| **Long-Term Debt** | **17839** | **12917** | **30756** | **-** | **151** **(b)** | **30907** |
| **Long-Term Debt Payable to Affiliated Companies** | **300** | **150** | **450** | **-** | **-** | **450** |
| **Other Noncurrent Liabilities** |  |  |  |  |  |  |
| Deferred income taxes | 4274 | 2778 | 7052 |  |  | 7052 |
| Asset retirement obligations | 3598 | 4113 | 7711 |  | 12 **(c)** | 7723 |
| Regulatory liabilities | 7333 | 4245 | 11578 |  |  | 11578 |
| Operating lease liabilities | 79 | 366 | 445 |  |  | 445 |
| Accrued pension and other post-retirement benefit costs | 23 | 138 | 161 |  |  | 161 |
| Investment tax credit | 353 | 197 | 550 |  |  | 550 |
| Other | 750 | 338 | 1088 | - | - | 1088 |
| **Total other noncurrent liabilities** | **16410** | **12175** | **28585** | **-** | **12** | **28597** |
| **Equity** |  |  |  |  |  |  |
| Member's equity | 20171 | 13964 | 34135 |  | 8358 **(d)** | 42493 |
| Accumulated other comprehensive income (loss) | (4) | - | (4) | - | - | (4) |
| **Total equity** | **20167** | **13964** | **34131** | **-** | **8358** | **42489** |
| **Total Liabilities and Equity** | $**60718** | $**43016** | $**103734** | $**(186)** | $**8521** | $**112069** |

---

**See accompanying Notes to the Unaudited Pro Forma Condensed Combined Financial information, which is an integral part of this information.**

**Duke Energy Carolinas, LLC**

**Unaudited Pro Forma Condensed Combined Statement of Operations**

**For the Three Months Ended March 31, 2026**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | | **Transaction Accounting Adjustments** | |
| <br>**(in millions)** |<br>**Duke Energy**<br> **Carolinas**<br> **Historical** |<br>**Duke Energy<br> Progress<br> Historical** |<br>**Combined** | **Eliminations of<br> Intercompany<br> Transactions** |<br>**Pro Forma<br> Balance** |
| **Operating Revenues** | $**2766** | $**2301** | $**5067** | $**(348)** **(a)** | $**4719** |
| **Operating Expenses** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fuel used in electric generation and purchased power | 931 | 863 | 1794 | (345) **(a)** | 1449 |
| &nbsp;&nbsp;&nbsp;Operation, maintenance and other | 613 | 508 | 1121 | (3) **(a)** | 1118 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 526 | 386 | 912 |  | 912 |
| &nbsp;&nbsp;&nbsp;Property and other taxes | 106 | 59 | 165 |  | 165 |
| &nbsp;&nbsp;&nbsp;Impairment of assets and other charges | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | **2176** | **1816** | **3992** | **(348)** | **3644** |
| &nbsp;&nbsp;&nbsp;Gains on sales of other assets and other, net | 2 | 1 | 3 | - | 3 |
| **Operating Income** | **592** | **486** | **1078** | **-** | **1078** |
| &nbsp;&nbsp;&nbsp;Other income and expenses, net | 63 | 43 | 106 |  | 106 |
| &nbsp;&nbsp;&nbsp;Interest Expense | 218 | 135 | 353 | - | 353 |
| **Income Before Income Taxes** | **437** | **394** | **831** | **-** | **831** |
| &nbsp;&nbsp;&nbsp;Income Tax Expense | 11 | 40 | 51 | - | 51 |
| **Net Income** | $**426** | $**354** | $**780** | $**-** | $**780** |
| **Other Comprehensive Income, net of tax** |  |  |  |  | - |
| &nbsp;&nbsp;&nbsp;Net gains on cashflow hedges | 1 |  | 1 |  | 1 |
| **Comprehensive Income** | $**427** | $**354** | $**781** | $**-** | $**781** |

---

**See accompanying Notes to the Unaudited Pro Forma Condensed Combined Financial information, which is an integral part of this information.**

**Duke Energy Carolinas, LLC**

**Unaudited Pro Forma Condensed Combined Statement of Operations**

**For the Year Ended December 31, 2025**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | | **Transaction Accounting Adjustments** | |
| <br>**(in millions)** |<br>**Duke Energy**<br> **Carolinas**<br> **Historical** |<br>**Duke Energy<br> Progress**<br> **Historical**  |<br>**Combined** | **Eliminations of**<br> **Intercompany**<br> **Transactions** |<br>**Pro Forma**<br> **Balance** |
| **Operating Revenues** | $**9713** | $**7386** | $**17099** | $**(478)** **(a)** | $**16621** |
| **Operating Expenses** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fuel used in electric generation and purchased power | 2649 | 2518 | 5167 | (469) **(a)** | 4698 |
| &nbsp;&nbsp;&nbsp;Operation, maintenance and other | 2002 | 1455 | 3457 | (9) **(a)** | 3448 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 1903 | 1406 | 3309 |  | 3309 |
| &nbsp;&nbsp;&nbsp;Property and other taxes | 349 | 172 | 521 |  | 521 |
| &nbsp;&nbsp;&nbsp;Impairment of assets and other charges | (11) | 2 | (9) | - | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | **6892** | **5553** | **12445** | **(478)** | **11967** |
| &nbsp;&nbsp;&nbsp;Gains on sales of other assets and other, net | 6 | 2 | 8 | - | 8 |
| **Operating Income** | **2827** | **1835** | **4662** | **-** | **4662** |
| &nbsp;&nbsp;&nbsp;Other income and expenses, net | 258 | 196 | 454 | (1) **(a)** | 453 |
| &nbsp;&nbsp;&nbsp;Interest Expense | 783 | 526 | 1309 | (1) **(a)** | 1308 |
| **Income Before Income Taxes** | **2302** | **1505** | **3807** | **-** | **3807** |
| &nbsp;&nbsp;&nbsp;Income Tax Expense | 194 | 223 | 417 | - | 417 |
| **Net Income** | $**2108** | $**1282** | $**3390** | $**-** | $**3390** |
| **Other Comprehensive Income, net of tax** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net gains on cashflow hedges | 1 |  | 1 | **-** | 1 |
| **Comprehensive Income** | $**2109** | $**1282** | $**3391** | $**-** | $**3391** |

---

**See accompanying Notes to the Unaudited Pro Forma Condensed Combined Financial information, which is an integral part of this information.**

**Duke Energy Carolinas, LLC**

**Unaudited Pro Forma Condensed Combined Statement of Operations**

**For the Year Ended December 31, 2024**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | | **Transaction Accounting Adjustments** | |
| <br>**(in millions)** |<br>**Duke Energy**<br> **Carolinas**<br> **Historical** |<br>**Duke Energy**<br> **Progress<br> Historical** |<br>**Combined** | **Eliminations of<br> Intercompany<br> Transactions** |<br>**Pro Forma**<br> **Balance** |
| **Operating Revenues** | $**9718** | $**7017** | $**16735** | $**(232)** **(a)** | $**16503** |
| **Operating Expenses** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fuel used in electric generation and purchased power | 3251 | 2409 | 5660 | (223) **(a)** | 5437 |
| &nbsp;&nbsp;&nbsp;Operation, maintenance and other | 1740 | 1388 | 3128 | (9) **(a)** | 3119 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 1768 | 1336 | 3104 |  | 3104 |
| &nbsp;&nbsp;&nbsp;Property and other taxes | 346 | 177 | 523 |  | 523 |
| &nbsp;&nbsp;&nbsp;Impairment of assets and other charges | 31 | 6 | 37 | - | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | **7136** | **5316** | **12452** | **(232)** | **12220** |
| &nbsp;&nbsp;&nbsp;Gains on sales of other assets and other, net | 2 | 2 | 4 | - | 4 |
| **Operating Income** | **2584** | **1703** | **4287** | **-** | **4287** |
| &nbsp;&nbsp;&nbsp;Other income and expenses, net | 247 | 143 | 390 | (2) **(a)** | 388 |
| &nbsp;&nbsp;&nbsp;Interest Expense | 722 | 493 | 1215 | (2) **(a)** | 1213 |
| **Income Before Income Taxes** | **2109** | **1353** | **3462** | **-** | **3462** |
| Income Tax Expense | 226 | 189 | 415 | - | 415 |
| **Net Income and Comprehensive Income** | $**1883** | $**1164** | $**3047** | $**-** | $**3047** |

---

**See accompanying Notes to the Unaudited Pro Forma Condensed Combined Financial information, which is an integral part of this information.**

**Duke Energy Carolinas, LLC**

**Unaudited Pro Forma Condensed Combined Statement of Operations**

**For the Year Ended December 31, 2023**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | **Transaction Accounting Adjustments** | **Transaction Accounting Adjustments** | |
| <br>**(in millions)** |<br>**Duke Energy<br> Carolinas<br> Historical** |<br>**Duke Energy<br> Progress<br> Historical** |<br>**Combined** | **Eliminations of<br> Intercompany<br> Transactions** | <br>**Notes** |<br>**Pro Forma<br> Balance** |
| **Operating Revenues** | $**8288** | $**6488** | $**14776** | $**(219)** | **(a)** | $**14557** |
| **Operating Expenses** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fuel used in electric generation and purchased power | 2524 | 2203 | 4727 | (211) | **(a)** | 4516 |
| &nbsp;&nbsp;&nbsp;Operation, maintenance and other | 1774 | 1379 | 3153 | (8) | **(a)** | 3145 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 1593 | 1266 | 2859 |  |  | 2859 |
| &nbsp;&nbsp;&nbsp;Property and other taxes | 320 | 164 | 484 |  |  | 484 |
| &nbsp;&nbsp;&nbsp;Impairment of assets and other charges | 44 | 29 | 73 | - |  | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | **6255** | **5041** | **11296** | **(219)** |  | **11077** |
| &nbsp;&nbsp;&nbsp;Gains on sales of other assets and other, net | 26 | 3 | 29 | - |  | 29 |
| **Operating Income** | **2059** | **1450** | **3509** | **-** |  | **3509** |
| &nbsp;&nbsp;&nbsp;Other income and expenses, net | 238 | 124 | 362 | (1) | **(a)** | 361 |
| &nbsp;&nbsp;&nbsp;Interest Expense | 686 | 427 | 1113 | (1) | **(a)** | 1112 |
| **Income Before Income Taxes** | **1611** | **1147** | **2758** | **-** |  | **2758** |
| &nbsp;&nbsp;&nbsp;Income Tax Expense | 141 | 149 | 290 | - |  | 290 |
| **Net Income and Comprehensive Income** | $**1470** | $**998** | $**2468** | $**-** |  | $**2468** |

---

**See accompanying Notes to the Unaudited Pro Forma Condensed Combined Financial information, which is an integral part of this information.**

**NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION**

**1.** **Basis of Pro Forma Presentation** 

The unaudited pro forma condensed combined financial information has been prepared in accordance with Article 11 of Regulation S-X, as amended by the final rule, Release No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses. Under these rules, pro forma information is required to present adjustments that reflect the accounting for the transaction ("Transaction Accounting Adjustments")

The pro forma adjustments reflected in the unaudited pro forma condensed combined financial information are based on currently available information and assumptions management considered reasonable under the circumstances. The adjustments are described in the accompanying notes and may be revised as additional information becomes available and is evaluated. Accordingly, the actual adjustments may differ from the pro forma adjustments, and such differences may be material.

The unaudited pro forma condensed combined financial information is intended to present the significant effects of the Combination and reflects adjustments that are appropriately applied in accordance with Article 11 of Regulation S-X.

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Accounting Treatment for the Merger** 

Although the Combination will be effected as a legal reorganization, it is expected to be accounted for as a transaction between entities under common control in accordance with U.S. generally accepted accounting principles and not as a business combination under ASC 805. Duke Energy is expected to contribute ownership of Duke Energy Carolinas to Progress Energy, a subsidiary of Duke Energy, after which Duke Energy Progress will merge with and into Duke Energy Carolinas.

Following the Combination, the regulated electric utility operations of Duke Energy in North Carolina and South Carolina will be organized under Progress Energy and Duke Energy Carolinas.

Under common control accounting, the assets and liabilities of Duke Energy Carolinas and Duke Energy Progress are expected to be recorded at their historical carrying amounts. Accordingly, no new goodwill or other intangible assets will be recognized as a result of the Combination, and no gain or loss will be recorded. Existing goodwill attributable to Duke Energy Progress from prior purchase accounting is reflected and carried forward.

In connection with the Combination, Duke Energy Carolinas is expected to reflect the effects of pushdown accounting related to the 2012 Merger, which were previously only recognized in Duke Energy's consolidated financial statements. As a result, the assets and liabilities of the combined company reflect the historical purchase accounting adjustments recorded by Duke Energy, including goodwill attributable to Duke Energy Progress that is carried forward (i.e., not newly recognized) as part of the Combination. There are no material impacts to the pro forma condensed combined statements of operations resulting from the historical purchase accounting adjustments; accordingly, no pro forma adjustments have been recorded to reflect such impacts.

The pro forma adjustments are based on currently available information and assumptions that are factually supportable and directly attributable to the Combination and do not reflect the costs of any integration activities or the benefits of potential future revenue growth or operational synergies.

**3.** **Transaction Accounting Adjustments** 

The following adjustments in the unaudited pro forma condensed combined balance sheet and statements of operations reflect the impact of adjustments that are directly attributable to the Combination. The unaudited pro forma condensed combined balance sheet as of March 31, 2026, gives pro forma effect to the Combination as if it had occurred on March 31, 2026. The unaudited pro forma condensed combined statements of operations for the years ended December 31, 2025, 2024, and 2023, and for the three months ended March 31, 2026, give effect to the Combination as if it had occurred on January 1, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Represents the elimination of intercompany balances and transactions between Duke Energy Carolinas and Duke Energy Progress, primarily
intercompany receivables and payables, electricity sales, purchased power and intercompany interest.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Represents prior purchase accounting adjustments related to debt with respect to the Duke Energy Progress business
 originating from the 2012 Merger. These adjustments affect noncurrent regulatory assets and long-term debt.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** Represents prior purchase accounting adjustments related to asset retirement obligations with respect to the Duke Energy Progress
business originating from the 2012 Merger. These adjustments affect noncurrent regulatory assets and long-term asset retirement obligations.

&nbsp;&nbsp;&nbsp;&nbsp;**(d)** The 2012 Merger created goodwill of $12,469 million at Duke Energy, of which $8,358 million was attributable to Duke Energy
 Progress. The goodwill represents a basis difference between the net assets of Duke Energy Progress and Duke Energy's basis in Duke
 Energy Progress and accordingly, the goodwill balance of $8,358 million is transferred as part of the Combination. As a result, the
 combined entity reflects the historical goodwill attributed to Duke Energy Progress, and no new goodwill will be recognized as part
 of the Combination.

## Exhibit 99.4

**Exhibit 99.4**

**Supplemental Risk Factors**

Unless these supplemental risk factors indicate otherwise, or the context otherwise requires, references to the term "Duke Energy Carolinas" means Duke Energy Carolinas, LLC and "Duke Energy Progress" means Duke Energy Progress, LLC. Capitalized terms used but not defined herein have the meanings ascribed to them in the Current Report on Form 8-K to which these supplemental risk factors are attached as Exhibit 99.4 (the "Financial Statement Form 8-K").

**Risks Related to the Combination**

**Duke Energy Carolinas is subject to risk of the Combination having an adverse impact on its credit rating, both while the Combination is pending and following completion of the Combination.**

Duke Energy Carolinas cannot be assured that its credit ratings will not be lowered as a result of the Combination or for any other reason. Any reduction in Duke Energy Carolinas's credit ratings, or the criteria used by rating agencies to determine such ratings, could adversely affect its access to capital, its cost of capital and its other operating costs, and its ability to refinance or repay Duke Energy Carolinas's existing debt and complete new financings, which could have a material adverse effect on Duke Energy Carolinas's business, financial condition, results of operations or the trading price of its securities.

**Duke Energy Carolinas will incur significant costs in connection with the Combination.**

Duke Energy Carolinas expects to incur significant costs associated with the Combination, including costs of combining the operations of the two companies. Additional unanticipated costs also may be incurred in the integration of the businesses of Duke Energy Carolinas and Duke Energy Progress. Any net benefit from any anticipated elimination of duplicative costs, as well as the realization of other efficiencies related to the integration of the businesses, may not be achieved in the near term or at all. The failure to achieve the anticipated benefits and efficiencies from the Combination, or the incurrence of additional expenses, could have a material adverse impact on the results of operations of the combined company.

**The unaudited pro forma condensed combined financial information included in the Financial Statement Form 8-K does not purport to be, and likely is not, representative of the combined results of Duke Energy Carolinas and Duke Energy Progress after the Combination*.***

The unaudited pro forma condensed combined financial information in the Financial Statement Form 8-K is presented for informational purposes only. It does not purport to be indicative of the financial position or results of operations that would have actually occurred had the Combination been completed at or as of the dates indicated, nor is it indicative of the combined company's future operating results or financial position. The unaudited pro forma condensed combined financial information in the Financial Statement Form 8-K does not reflect future events that may occur after the closing of the Combination, including the potential realization of operating efficiencies or costs related to the Combination, and does not consider potential market conditions on revenues or expenses. The unaudited pro forma condensed combined financial information in the Financial Statement Form 8-K is based in part on certain assumptions regarding the Combination that Duke Energy Carolinas believes are reasonable under the circumstances. Duke Energy Carolinas cannot assure you that its assumptions will prove to be accurate over time.

**The failure to integrate the businesses and operations of Duke Energy Carolinas and Duke Energy Progress successfully in the expected time frame may adversely affect the combined company's future results.**

Duke Energy Carolinas and Duke Energy Progress have operated and, until the completion of the Combination, will continue to operate as separate utilities. Following the completion of the Combination, their respective businesses will need to be integrated successfully. The process of integration may reveal that benefits and efficiencies are less than anticipated and may result in additional expenses, all of which could reduce the anticipated benefits of the Combination. Furthermore, it is possible that the integration process could result in inconsistencies in standards, controls, procedures and policies, potential unknown liabilities and unforeseen expenses, delays, or regulatory conditions associated with and following completion of the Combination; or higher-than-expected integration costs and an overall post-completion integration process that takes longer than originally anticipated.

**Each of Duke Energy Carolinas and Duke Energy Progress has substantial amounts of indebtedness. Consequently, the combined company will have substantial indebtedness following the Combination.**

The combined company's debt service obligations could have an adverse impact on its earnings and cash flows for as long as the indebtedness is outstanding. For example, it could:

• make it more difficult for the combined company to pay or refinance its debts as they become due during adverse economic and industry conditions because any decrease in revenues could cause the combined company to not have sufficient cash flows from operations to make its scheduled debt payments;

• require a substantial portion of the combined company's cash flows from operations to be used for debt service payments, thereby reducing the availability of its cash flow to fund working capital, capital expenditures, strategic transactions and other general corporate purposes;

• result in a downgrade in the rating of the combined company's indebtedness, which could limit its ability to borrow additional funds or increase the interest rates applicable to its indebtedness;

• limit the flexibility of the combined company in planning for or reacting to changes in its business and the industry in which it operates; or

• increase the exposure of the combined company to a rise in interest rates, which would generate greater interest expense, or increase the costs of obtaining applicable interest rate fluctuation hedges.

There can be no assurance that the combined company will be able to repay or refinance such borrowings and obligations.

**The combined company may fail to realize all of the anticipated benefits of the Combination.**

The success of the Combination will depend, in part, on Duke Energy Carolinas's ability to realize the anticipated benefits and cost savings from combining Duke Energy Carolinas's and Duke Energy Progress's businesses and operational synergies. The anticipated benefits and cost savings of the Combination may not be realized fully or at all, may take longer to realize than expected, may not be realized or could have other adverse effects that Duke Energy Carolinas does not currently foresee. Some of the assumptions that Duke Energy Carolinas and Duke Energy Progress have made, such as the achievement of the anticipated benefits related to the expected size, scale and financial strength of the combined company, may not be realized. In addition, there could be potential unknown liabilities and unforeseen expenses associated with the Combination that could adversely impact the combined company.

The combined company's ability to realize anticipated benefits is also subject to regulatory frameworks requiring the development and application of methodologies to measure and track such benefits over time. These methodologies and outcomes may be subject to ongoing regulatory review and oversight, and failure to achieve specified benefit levels could require additional actions, including potential financial contributions, as determined by applicable regulatory authorities.

**The future results of the combined company following the Combination will suffer if the combined company does not effectively manage its expanded operations.**

Following the Combination, the size, geographic footprint and complexity of the combined company will increase significantly compared to the business of each of Duke Energy Carolinas and Duke Energy Progress. The combined company's future success will depend, in part, upon its ability to manage this expanded business. The combined company may also face increased scrutiny from regulators and governmental authorities as a result of the significant increase in the size, geographic footprint and complexity of its business. There can be no assurances that the combined company will be successful or that it will realize the expected operating efficiencies, cost savings or other benefits currently anticipated from the Combination.