Duke Energy Storm Funding Details Leadership, U.S. Bank Legal Woes

TL;DR

**Duke Energy's storm funding arm is a low-risk, administrative entity, but keep an eye on the U.S. Bank lawsuit, as it's the only real external threat mentioned.**

AI Summary

Duke Energy Progress SC Storm Funding LLC (DEPSCSF) filed its 10-K for the fiscal year ended December 31, 2025, primarily as a bankruptcy-remote subsidiary of Duke Energy Progress, LLC, which is an indirect wholly-owned subsidiary of Duke Energy Corporation. The filing indicates no revenue or net income figures as it omits financial statements and related discussions pursuant to General Instruction J of Form 10-K, typical for securitization entities. Key business changes include the appointment of Nicholas J. Giaimo as President, CFO, and Treasurer of DEPSCSF in January 2026, and Abigail L. Motsinger as Manager and Controller in March 2026. The primary risk highlighted is the ongoing legal proceeding involving U.S. Bank National Association, an indenture trustee for DEPSCSF, in the NCMSLT Action concerning student loan-backed securities, though U.S. Bank denies liability. The strategic outlook for DEPSCSF remains focused on its role in storm recovery property securitization, as evidenced by the Storm Recovery Property Servicing Agreement and Purchase and Sale Agreement dated April 25, 2024.

Why It Matters

This filing provides crucial insight into the operational structure and governance of Duke Energy Progress SC Storm Funding LLC, a specialized entity designed to securitize storm recovery costs for Duke Energy Progress, LLC. For investors in Duke Energy Corporation, understanding this subsidiary's function and any associated legal risks, like the U.S. Bank National Association lawsuit, is vital for assessing the broader financial health and risk profile of the parent company. Employees and customers of Duke Energy Progress, LLC are indirectly impacted as the securitization mechanism helps manage the financial burden of storm recovery, potentially influencing future rates and service stability. The competitive context shows how utilities are using financial instruments to manage significant, unpredictable costs, a trend that could be adopted by other energy providers facing similar climate-related challenges.

Risk Assessment

Risk Level: low — The risk level is low because Duke Energy Progress SC Storm Funding LLC is a bankruptcy-remote subsidiary with a specific, limited purpose of securitizing storm recovery property. The filing explicitly states the omission of financial statements and risk factors, indicating its administrative nature. The only external risk mentioned is a legal proceeding involving U.S. Bank National Association, an indenture trustee, in the NCMSLT Action, which U.S. Bank denies liability for and is actively contesting.

Analyst Insight

Investors should view Duke Energy Progress SC Storm Funding LLC as a stable, administrative component of Duke Energy's financial strategy for managing storm costs. No immediate action is required, but monitoring the outcome of the U.S. Bank National Association legal proceedings, though seemingly unrelated to DEPSCSF's core operations, could offer insights into broader counterparty risks within the securitization market.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$0

total Debt

$0

net Income

$0

eps

$0

gross Margin

N/A

cash Position

$0

revenue Growth

N/A

Executive Compensation

Key Numbers

• $2,500 — Annual independent manager fee (paid to Global Securitization Services, LLC by DEPSCSF)
• 2025-12-31 — Fiscal year end date (for which the 10-K report was filed)
• 2026-03-26 — Filing date of 10-K (date the report was submitted to the SEC)
• 2018-03-09 — Date of NCMSLT Action filing (when the lawsuit against U.S. Bank National Association was initiated)
• 2026-01 — Nicholas J. Giaimo's start date (as President, CFO, and Treasurer of DEPSCSF)
• 2026-03 — Abigail L. Motsinger's start date (as Manager and Controller of DEPSCSF)

Key Players & Entities

• Duke Energy Progress SC Storm Funding LLC (company) — registrant and bankruptcy-remote subsidiary
• Duke Energy Progress, LLC (company) — depositor, sponsor, servicer, and parent company
• Duke Energy Corporation (company) — ultimate parent company
• Nicholas J. Giaimo (person) — President, CFO, and Treasurer of DEPSCSF since January 2026
• Abigail L. Motsinger (person) — Manager and Controller of DEPSCSF since March 2026
• U.S. Bank National Association (company) — Indenture Trustee and defendant in NCMSLT Action
• Global Securitization Services, LLC (company) — receives annual independent manager fee of $2,500
• Deloitte & Touche LLP (company) — auditor for Duke Energy Progress, LLC
• Ernst and Young LLP (company) — auditor for U.S. Bank Trust Company, National Association
• Delaware Court of Chancery (regulator) — court handling the NCMSLT Action

FAQ

Risk Factors

• Ongoing Litigation Involving Indenture Trustee [medium — legal]: DEPSCSF is indirectly involved in a legal proceeding (NCMSLT Action) concerning student loan-backed securities, where U.S. Bank National Association, the indenture trustee for DEPSCSF, is a defendant. U.S. Bank denies liability in this action filed on March 9, 2018.

Industry Context

DEPSCSF operates within the specialized financial services sector focused on securitization, particularly for storm recovery property. This niche involves structuring financial instruments backed by specific assets to manage risk and fund recovery efforts. The industry is characterized by regulatory oversight and the need for robust legal frameworks to ensure the bankruptcy-remote nature of these entities.

Regulatory Implications

As a bankruptcy-remote subsidiary, DEPSCSF is subject to specific SEC reporting requirements under Form 10-K. The omission of financial statements under General Instruction J is a common practice for such entities, but it necessitates careful review of other disclosures, particularly legal proceedings, for investor protection.

What Investors Should Do

1. Monitor the outcome of the NCMSLT Action, as it directly involves the indenture trustee and could have implications for DEPSCSF's operational stability.
2. Review Duke Energy Corporation's consolidated financial statements for a broader understanding of the parent company's financial health, given DEPSCSF's limited standalone disclosures.
3. Note the recent changes in executive leadership (Giaimo and Motsinger) and assess their impact on DEPSCSF's governance and operational execution.

Key Dates

• 2025-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2026-01-01: Nicholas J. Giaimo appointed President, CFO, and Treasurer — Indicates a change in key executive leadership for DEPSCSF.
• 2026-03-01: Abigail L. Motsinger appointed Manager and Controller — Indicates a change in key operational and financial leadership for DEPSCSF.
• 2026-03-26: 10-K Filing Date — The date the annual report was submitted to the SEC, providing updated information on the company's status.
• 2018-03-09: NCMSLT Action Filing Date — The initiation date of the lawsuit involving the indenture trustee, highlighting a significant ongoing legal risk.
• 2024-04-25: Storm Recovery Property Servicing and Purchase Agreements Executed — Demonstrates the ongoing operational focus of DEPSCSF on storm recovery property securitization.

Glossary

Bankruptcy-remote subsidiary

A legal structure designed to isolate assets and liabilities from the bankruptcy of a parent company, protecting investors. (This is the primary structure of DEPSCSF, indicating its role in ring-fencing storm recovery property assets.)

Indenture trustee

A financial institution appointed to represent the interests of bondholders in a debt issuance, ensuring compliance with the indenture agreement. (U.S. Bank National Association's role as indenture trustee is central to the ongoing legal proceeding.)

Securitization

The process of pooling various types of contractual debt (like mortgages, auto loans, or credit card debt) and selling their related cash flows to third-party investors as securities. (DEPSCSF is a securitization entity, focused on storm recovery property securitization.)

Form 10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC) that gives a comprehensive summary of a company's financial performance. (This document is the primary source of information for DEPSCSF's operations and legal status.)

General Instruction J

A specific instruction within Form 10-K that allows certain entities, like securitization special purpose entities, to omit financial statements and related disclosures. (Explains why DEPSCSF's 10-K omits standard financial statements and MD&A.)

Year-Over-Year Comparison

As DEPSCSF is a securitization entity that omits financial statements pursuant to General Instruction J, a direct year-over-year comparison of key financial metrics like revenue, net income, and margins is not possible from this filing. The primary changes noted are in executive appointments in early 2026, indicating shifts in management personnel rather than financial performance.

Key Financial Figures

• $2,500 — n the annual independent manager fee of $2,500 paid to Global Securitization Services,

Filing Documents

• duk-20251231.htm (10-K) — 78KB
• depscsf-20251231xexhibit311.htm (EX-31.1) — 7KB
• depscsf-20251231xexhibit331.htm (EX-33.1) — 50KB
• depscsf-20251231xexhibit332.htm (EX-33.2) — 79KB
• depscsf-20251231xexhibit341.htm (EX-34.1) — 8KB
• depscsf-20251231xexhibit342.htm (EX-34.2) — 7KB
• depscsf-20251231xexhibit351.htm (EX-35.1) — 6KB
• eylogo.jpg (GRAPHIC) — 5KB
• image_0a.jpg (GRAPHIC) — 74KB
• image_0b.jpg (GRAPHIC) — 6KB
• image_1a.jpg (GRAPHIC) — 23KB
• 0002008486-26-000010.txt ( ) — 617KB
• duk-20251231.xsd (EX-101.SCH) — 2KB
• duk-20251231_def.xml (EX-101.DEF) — 20KB
• duk-20251231_lab.xml (EX-101.LAB) — 36KB
• duk-20251231_pre.xml (EX-101.PRE) — 21KB
• duk-20251231_htm.xml (XML) — 6KB

Risk Factors

Item 1A. Risk Factors.

Cybersecurity

Item 1C. Cybersecurity.

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments. None.

Legal Proceedings

Item 3. Legal Proceedings. None.

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. None. PART II The following Items have been omitted pursuant to General Instruction J of Form 10-K:

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Selected Financial Data

Item 6. Selected Financial Data.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

Controls and Procedures

Item 9A. Controls and Procedures.

Other Information

Item 9B. Other Information. None.

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. None. PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance. Following are the managers and executive officers of Duke Energy Progress SC Storm Funding LLC ("DEPSCSF") as of the date of the report: Name Age Current and Recent Positions Held Nicholas J. Giaimo 44 Senior Vice President, Treasurer and Chief Risk Officer , Duke Energy Progress and Duke Energy Corporation. Mr. Giaimo has served in this role since January 2026, when he also assumed his role as President, Chief Financial Officer and Treasurer of DEPSCSF. Prior to this, he served as Senior Vice President of Financial Planning & Analysis, from November 2024 to January 2026; Vice President Financial Planning & Analysis from May 2021 to November 2024; Director Financial Planning & Analysis Carolinas Electric Utilities, from August 2019 to May 2021; Director Financial Planning & Analysis and CFO of Natural Gas Segment, from October 2016 to August 2019. During his tenure at Piedmont Natural Gas, Mr. Giaimo served as Assistant Treasurer and Director Investor Relations from November 2014 to October 2016 and Manager Capital Markets and Investor Relations, August 2007 to November 2014. Abigail L. Motsinger 42 Senior Vice President, Chief Accounting Officer and Controller. Ms. Motsinger has been appointed to serve as Senior Vice President, Chief Accounting Officer and Controller, effective March 2026. Prior to that she was Vice President, Investor Relations from November 2022 until March 2026; Director, Jurisdictional Forecasting from May 2021 until November 2022; Investor Relations Manager from November 2017 until May 2021; and, prior to that, in various roles of increasing responsibility since joining Duke Energy in 2010. Her role as Manager and Controller of DEPSCSF began in March 2026. Bernard J. Angelo 56 Senior Vice President of Global Securitization Services, LLC. Mr. Angelo assumed his role as Senior Vice President of Global Securitization Services in 1997. In addition, he assumed his role as Inde

Executive Compensation

Item 11. Executive Compensation. Other than the annual independent manager fee of $2,500 paid to Global Securitization Services, LLC, DEPSCSF does not pay any compensation to its managers or executive officers.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. None.

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence. None.

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services. Omitted pursuant to General Instruction J of Form 10-K. PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules. (a)(1) and (a)(2) Financial Statements and Financial Statement Schedules are omitted pursuant to General Instruction J of Form 10-K as listed under Item 8 of this report. (a)(3) and (b) See Exhibit Index included as the last part of this report, which is incorporated herein by reference. (c) Not applicable.

Form 10-K Summary

Item 16. Form 10-K Summary. None.

(b). Significant Obligors of Pool Assets

Item 1112(b). Significant Obligors of Pool Assets. None.

(b)(2). Credit Enhancement and Other Support, Except For Certain Derivative Instruments

Item 1114(b)(2). Credit Enhancement and Other Support, Except For Certain Derivative Instruments. None.

(b). Certain Derivative Instruments

Item 1115(b). Certain Derivative Instruments. None.

Legal Proceedings

Item 1117. Legal Proceedings. U.S. Bank National Association has provided the following information to the depositor: On March 9, 2018, a law firm purporting to represent fifteen Delaware statutory trusts (the "DSTs") that issued securities backed by student loans (the "Student Loans") filed a lawsuit in the Delaware Court of Chancery against U.S. Bank National Association ("U.S. Bank") in its capacities as indenture trustee and successor special servicer, and three other institutions in their respective transaction capacities, with respect to the DSTs and the Student Loans. This lawsuit is captioned The National Collegiate Student Loan Master Trust I, et al. v. U.S. Bank National Association, et al. , C.A. No. 2018-0167-JRS (Del. Ch.) (the "NCMSLT Action"). The complaint, as amended on June 15, 2018, alleged that the DSTs have been harmed as a result of purported misconduct or omissions by the defendants concerning administration of the trusts and special servicing of the Student Loans. Since the filing of the NCMSLT Action, certain Student Loan borrowers have made assertions against U.S. Bank concerning special servicing that appear to be based on certain allegations made on behalf of the DSTs in the NCMSLT Action. U.S. Bank has filed a motion seeking dismissal of the operative complaint in its entirety with prejudice pursuant to Chancery Court Rules 12(b)(1) and 12(b)(6) or, in the alternative, a stay of the case while other prior filed disputes involving the DSTs and the Student Loans are litigated. On November 7, 2018, the Court ruled that the case should be stayed in its entirety pending resolution of the first-filed cases. On January 21, 2020, the Court entered an order consolidating for pretrial purposes the NCMSLT Action and three other lawsuits pending in the Delaware Court of Chancery concerning the DSTs and the Student Loans, which remains pending. U.S. Bank denies liability in the NCMSLT Action and believes it has performed its obligations as inden

Affiliations and Certain Relationships and Related Transactions

Item 1119. Affiliations and Certain Relationships and Related Transactions. DEPSCSF is a wholly owned subsidiary of Duke Energy Progress, LLC, which is the depositor, sponsor and servicer.

Compliance With Applicable Servicing Criteria

Item 1122. Compliance With Applicable Servicing Criteria. See Exhibits 33.1, 33.2, 34.1, and 34.2 of this Form 10-K.

Servicer Compliance Statement

Item 1123. Servicer Compliance Statement. See Exhibit 35.1 of this Form 10-K. SUPPLEMENTAL INFORMATION TO BE FURNISHED WITH REPORTS FILED PURSUANT TO SECTION 15(d) OF THE ACT BY REGISTRANTS WHICH HAVE NOT REGISTERED SECURITIES PURSUANT TO SECTION 12 OF THE ACT No such annual report, proxy statement, form of proxy or other proxy soliciting material has been sent to the registrant's security holders. The registrant will not be sending an annual report or proxy material to its security holders subsequent to the filing of this form. EXHIBIT INDEX Exhibits filed herewith are designated by an asterisk (*). All exhibits not so designated are incorporated by reference to a prior filing, as indicated. Exhibit No. Description of Exhibit 3.1 Certificate of Formation of Duke Energy Progress SC Storm Funding LLC (incorporated by reference to Exhibit 3.1 to Registration Statement on Form SF-1 of Duke Energy Prog ress, LLC and Duke Energy Progress SC Storm Fu nding LLC filed on January 17, 202 4 (File No. 333-276553-01 ) 3.2 Amended and Restated Limited Liability Company Agreement of Duke Energy Progress SC Storm Funding LLC dated and effective as of April 16, 2024 (incorporated by reference to Exhibit 3.2 to Form 8-K filed April 18, 2024) 4.1 Indenture, dated as of April 25, 2024, by and between Duke Energy Progress SC Storm Funding LLC and U.S. Bank Trust Company, National Association as Indenture Trustee and U.S. Bank National Association, as Securities Intermediary (incorporated by reference to Exhibit 4.1 to Form 8-K filed April 25, 2024) 4.2 Series Supplement, dated as of April 25, 2024, by and between Duke Energy Progress SC Storm Funding LLC and U.S. Bank Trust Company, National Association, as Indenture Trustee (incorporated by reference to Exhibit 4.2 to Form 8-K filed April 25, 2024) 10.1 Storm Recovery Property Servicing Agreement, dated as of April 25, 2024, by and between Duke Energy Progress SC Storm Funding LLC and Duke Energy Progress, LLC (incorp

SIGNATURES

SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: March 26, 2026 DUKE ENERGY PROGRESS SC STORM FUNDING LLC By: /s/ Abigail L. Motsinger Abigail L. Motsinger Controller and Manager DUKE ENERGY PROGRESS, LLC By: /s/ Abigail L. Motsinger Abigail L. Motsinger Senior Vice President, Chief Accounting Officer and Controller Duke Energy Progress, LLC

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