Duke Energy Pursues DOE Loans to Cut Customer Costs and Strengthen Grid Infrastructure
Duke Energy has announced that it has submitted an application for loans through the U.S. Department of Energy (DOE), a move the company says could generate potentially billions of dollars in savings for customers while supporting major investments in grid modernization, power generation capacity, and long-term energy reliability. The application marks an important step in Duke Energy’s broader strategy to meet rapidly increasing electricity demand across several of the fastest-growing states in the United States while minimizing the financial burden on households and businesses.
The company explained that the DOE application is an initial step in what will likely become a longer negotiation process involving final loan amounts, financing terms, and project stipulations. If approved, the financing would support planned infrastructure investments designed to improve reliability, expand electric system capacity, and modernize the grid to handle future growth and evolving energy demands.
Duke Energy emphasized that access to federal financing through the DOE would significantly reduce borrowing costs associated with these large-scale capital projects. Because the company operates under a state-regulated integrated utility model, the financial benefits from lower-cost financing would flow directly to customers in the form of reduced overall costs and more affordable electricity rates over time.
According to the company, one of the primary advantages of DOE-backed financing is the potential to lower interest expenses tied to long-term infrastructure investments. Utility-scale projects such as transmission upgrades, grid resiliency improvements, new generation facilities, renewable energy integration, and system modernization require billions of dollars in capital expenditures. Financing these projects at lower interest rates could substantially reduce overall project costs, helping keep customer bills lower while still enabling the utility to maintain reliable service.
Duke Energy stated that its vertically integrated business structure plays a major role in translating financing efficiencies into direct customer benefits. Under this model, the utility manages generation, transmission, and distribution operations in a coordinated manner under regulatory oversight. The company noted that this structure helps ensure investment decisions remain prudent, strategically planned, and aligned with customer needs.
The utility also highlighted that centralized planning and operation of the electric system enable it to optimize investments across the network, reduce duplication, and maintain cost discipline. Strong state regulatory oversight further ensures that infrastructure spending is carefully reviewed and evaluated before costs are passed on to consumers.
As a result of this operational model, Duke Energy said electric rates in all of its vertically integrated service territories currently remain below the national average. Company leaders believe the DOE financing initiative could help preserve that cost advantage even as demand for electricity continues rising due to population growth, economic expansion, industrial development, and increased electrification.
The company’s latest announcement comes amid broader efforts by utilities across the country to secure federal support for critical energy infrastructure projects. Rising electricity demand, aging infrastructure, renewable energy integration, extreme weather events, and growing energy-intensive industries such as data centers and advanced manufacturing are placing increasing pressure on utility systems nationwide.
Duke Energy serves several states experiencing particularly strong economic and population growth, including North Carolina, South Carolina, and Florida. These regions continue to attract manufacturing facilities, technology investments, commercial development, and residential expansion, all of which contribute to increased electricity consumption and the need for enhanced grid reliability and capacity.
The company said the DOE financing application aligns closely with its long-term energy modernization strategy. Duke Energy has been investing heavily in electric grid upgrades, cleaner generation technologies, renewable energy projects, and system resiliency improvements designed to support future energy needs while maintaining affordability.
This latest financing effort also builds upon other recent initiatives aimed at delivering cost savings to customers. Earlier this month, Duke Energy announced that it expects to provide more than $5 billion in customer benefits through a combination of utility integration efforts and federal tax credit savings.
Those projected savings include benefits associated with the combination of the company’s Carolinas utilities as well as tax incentives tied to renewable and nuclear energy investments. Duke Energy expects to generate significant value from production tax credits and investment tax credits associated with nuclear and solar energy projects between 2025 and 2028 across Florida and the Carolinas.
Federal clean energy incentives have become increasingly important for utilities as they work to balance affordability, reliability, and sustainability goals. By leveraging available tax credits and federal financing programs, companies like Duke Energy can reduce the overall cost of infrastructure investments while continuing to transition toward cleaner and more resilient energy systems.
Harry Sideris, president and chief executive officer of Duke Energy, said the company remains focused on finding every possible opportunity to reduce costs for customers while maintaining dependable electric service.
“Delivering reliable power at the lowest possible cost is central to every decision we make,” Sideris said. “That means pursuing every opportunity like federal loans when they can help reduce costs for customers. As energy demand continues to grow, our focus is on strengthening the system, investing responsibly and ensuring customers see the benefit of those investments now and into the future.”
Sideris added that balancing infrastructure investment with customer affordability remains one of the company’s top priorities as the energy industry undergoes rapid transformation. Duke Energy believes that federal financing support could help accelerate critical infrastructure improvements without placing unnecessary financial strain on customers.
Headquartered in Charlotte, North Carolina, Duke Energy is one of the largest energy holding companies in the United States and is included among the Fortune 150 companies. The company’s electric utilities collectively serve approximately 8.7 million customers across North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky.
Duke Energy’s electric operations own approximately 55,700 megawatts of energy capacity, providing electricity to residential, commercial, and industrial customers across its multi-state service territory. In addition to its electric business, the company’s natural gas utilities serve around 1.6 million customers in North Carolina, South Carolina, Ohio, and Kentucky.
The company continues to execute a broad energy modernization strategy centered on reliability, affordability, sustainability, and customer value. Key elements of this strategy include strengthening transmission and distribution infrastructure, expanding cleaner energy resources, improving grid resiliency against severe weather events, integrating advanced technologies, and supporting growing electricity demand across its service regions.
As utilities nationwide face mounting infrastructure challenges and rapidly evolving energy needs, Duke Energy’s pursuit of DOE financing reflects a growing trend of leveraging federal programs to support long-term grid investment strategies. If approved, the loans could provide substantial financial flexibility for the company while helping deliver measurable savings and reliability improvements for millions of customers across the Southeast and Midwest.
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