Overview Key strengths Key risks Duke Energy Carolinas LLC (DEC) is a lower-risk, vertically integrated utility with regulatory diversity in North and South Carolina. DEC's service territory is exposed to hurricanes and severe storms, which is partially offset by storm securitization legislation that permits recovery for certain storm recovery costs. DEC provides electric service to a large customer base of about 2.9 million, which supports cash flow stability. The parent's clean energy transformation strategy could result in elevated capital spending for DEC for the next several years. As DEC?s parent Duke Energy executes a clean energy transformation strategy, we think such a move could reduce DEC?s environmental risk exposure over the long term. Negative discretionary cash flow over our forecast
