Duke Energy Storm Funding Details Governance, Key Executive Shifts

TL;DR

**Duke Energy's storm funding arm is a compliance-focused entity, and its stable governance structure signals low operational risk for investors in the parent company.**

AI Summary

Duke Energy Carolinas NC Storm Funding LLC (DECNCSF), a bankruptcy-remote subsidiary of Duke Energy Carolinas, LLC, filed its 10-K for the fiscal year ended December 31, 2025. This filing primarily details corporate governance and compliance, with financial statements and related disclosures omitted per General Instruction J of Form 10-K, indicating its specialized securitization vehicle nature. Key executive changes include Nicholas J. Giaimo becoming President, CFO, and Treasurer of DECNCSF in January 2026, alongside his role as Senior Vice President, Treasurer, and Chief Risk Officer for Duke Energy Carolinas and Duke Energy Corporation. Abigail L. Motsinger was appointed Senior Vice President, Chief Accounting Officer, and Controller for Duke Energy Carolinas, LLC, and Manager and Controller of DECNCSF, effective March 2026. The company reported no compensation paid to its managers or executive officers, except for an annual independent manager fee of $3,500 to Global Securitization Services, LLC. The filing confirms compliance with all SEC reporting requirements, including electronic submission of Interactive Data Files, and includes reports on assessment of compliance with servicing criteria for asset-backed issuers.

Why It Matters

This filing provides crucial transparency into the operational and governance structure of Duke Energy Carolinas NC Storm Funding LLC, a special purpose vehicle designed to securitize storm recovery costs. For investors in Duke Energy Corporation, understanding the structure and management of these subsidiaries is vital for assessing overall financial health and risk exposure, especially given the utility sector's susceptibility to natural disasters. The executive appointments of Nicholas J. Giaimo and Abigail L. Motsinger signal continuity and expertise in financial management and compliance, which is important for maintaining investor confidence in Duke Energy's broader financial stability and its ability to manage storm-related liabilities. This specialized entity helps Duke Energy Carolinas manage its balance sheet and rate base, indirectly impacting customers through storm recovery charges and the broader market by demonstrating a model for utility resilience financing.

Risk Assessment

Risk Level: low — The risk level is low because Duke Energy Carolinas NC Storm Funding LLC is a bankruptcy-remote subsidiary, specifically designed to isolate storm recovery assets and liabilities, as stated in Item 10. The omission of financial statements per General Instruction J of Form 10-K indicates its specialized, pass-through nature, and the explicit statement of 'None' for legal proceedings (Item 3) and unresolved staff comments (Item 1B) further reduces immediate operational and regulatory risks.

Analyst Insight

Investors should view this filing as a confirmation of Duke Energy's robust financial engineering for managing storm costs, reinforcing the stability of the parent company. No immediate action is required, but it serves as a reminder to monitor Duke Energy Corporation's overall financial health and regulatory environment, particularly concerning storm recovery mechanisms.

Executive Compensation

Key Numbers

• $3,500 — Annual independent manager fee (Paid to Global Securitization Services, LLC by DECNCSF)
• 2025-12-31 — Fiscal year end date (The period covered by this 10-K filing)
• 2026-03-26 — Filing date (Date the 10-K was filed with the SEC)
• 44 — Age of Nicholas J. Giaimo (Current age of DECNCSF's President, CFO, and Treasurer)
• 42 — Age of Abigail L. Motsinger (Current age of DECNCSF's Manager and Controller)
• 56 — Age of Bernard J. Angelo (Current age of DECNCSF's Independent Manager)
• 2026-01 — Effective date for Nicholas J. Giaimo's DECNCSF role (When he assumed his role as President, CFO, and Treasurer)
• 2026-03 — Effective date for Abigail L. Motsinger's DECNCSF role (When she assumed her role as Manager and Controller)
• 2021-08 — Effective date for Bernard J. Angelo's DECNCSF role (When he assumed his role as Independent Manager)
• 333-259314-01 — Commission File Number (SEC file number for Duke Energy Carolinas NC Storm Funding LLC)

Key Players & Entities

• Duke Energy Carolinas NC Storm Funding LLC (company) — Registrant and wholly owned, bankruptcy remote subsidiary
• Duke Energy Carolinas, LLC (company) — Depositor, Sponsor, Servicer, and indirect wholly owned subsidiary of Duke Energy Corporation
• Duke Energy Corporation (company) — Parent company of Duke Energy Carolinas, LLC
• Nicholas J. Giaimo (person) — President, Chief Financial Officer and Treasurer of DECNCSF since January 2026
• Abigail L. Motsinger (person) — Manager and Controller of DECNCSF since March 2026
• Bernard J. Angelo (person) — Independent Manager of DECNCSF since August 2021
• Global Securitization Services, LLC (company) — Receives annual independent manager fee of $3,500
• Deloitte & Touche LLP (company) — Auditor for Duke Energy Carolinas, LLC, Servicer
• KPMG LLP (company) — Auditor for The Bank of New York Mellon, Indenture Trustee
• The Bank of New York Mellon Trust Company, N.A. (company) — Indenture Trustee and Securities Intermediary

FAQ

Industry Context

Duke Energy Carolinas NC Storm Funding LLC operates within the regulated utility sector, specifically as a financing mechanism for storm recovery costs. This niche involves managing financial risks associated with extreme weather events, which are becoming more frequent and severe due to climate change. The company's structure as a bankruptcy-remote subsidiary is designed to isolate these storm-related liabilities and ensure the availability of funds for recovery efforts.

Regulatory Implications

DECNCSF's primary regulatory focus is on compliance with SEC reporting requirements for securitization vehicles, including the assessment of servicing criteria. As a subsidiary of a regulated utility, its operations are indirectly influenced by state public utility commissions that oversee rate recovery mechanisms for storm costs.

What Investors Should Do

1. Monitor executive appointments and their alignment with parent company roles.
2. Review the independent manager fee structure.
3. Confirm ongoing compliance with SEC reporting and servicing criteria.

Key Dates

• 2025-12-31: Fiscal year end — Marks the end of the reporting period for the 10-K.
• 2026-01: Nicholas J. Giaimo assumed roles — New President, CFO, and Treasurer appointed for DECNCSF, aligning with his Duke Energy Carolinas and Duke Energy Corporation roles.
• 2026-03: Abigail L. Motsinger assumed roles — New Manager and Controller appointed for DECNCSF, aligning with her Duke Energy Carolinas, LLC roles.
• 2021-08: Bernard J. Angelo assumed role — Independent Manager for DECNCSF appointed.
• 2026-03-26: 10-K Filing Date — The date the annual report was submitted to the SEC.

Glossary

Bankruptcy-remote subsidiary

A legal entity structured to isolate its assets and liabilities from its parent company, typically to protect those assets in the event of the parent's bankruptcy. (This structure is crucial for securitization vehicles like DECNCSF, ensuring the assets (storm funding) are protected for bondholders.)

Securitization vehicle

An entity created to pool assets and issue securities backed by the cash flows from those assets. (DECNCSF is a specialized securitization vehicle designed to fund storm-related costs for Duke Energy Carolinas, LLC.)

General Instruction J of Form 10-K

SEC instruction that allows certain entities, like securitization vehicles, to omit financial statements and related disclosures from their 10-K filings under specific conditions. (Explains why DECNCSF's 10-K omits financial statements, focusing instead on corporate governance and compliance.)

Interactive Data Files

Financial information formatted in XBRL (eXtensible Business Reporting Language) to enable automated processing and analysis by computers. (Confirms DECNCSF's compliance with modern SEC digital reporting standards.)

Servicing Criteria for Asset-Backed Issuers

A set of criteria established by the SEC to assess the adequacy of the servicing of assets in securitization transactions. (DECNCSF's report on this criteria demonstrates adherence to regulatory oversight for its specific function.)

Year-Over-Year Comparison

This 10-K filing for Duke Energy Carolinas NC Storm Funding LLC omits financial statements, making a direct comparison of financial metrics like revenue, net income, or debt impossible. The focus is on corporate governance and executive appointments. Key changes from previous periods would likely involve the effective dates of new executive roles, such as Nicholas J. Giaimo and Abigail L. Motsinger assuming their positions in early 2026, and the continued engagement of Bernard J. Angelo as an independent manager since August 2021.

Key Financial Figures

• $3,500 — n the annual independent manager fee of $3,500 paid to Global Securitization Services,

Filing Documents

• duk-20251231.htm (10-K) — 72KB
• decncsf-20251231xexhibit311.htm (EX-31.1) — 7KB
• decncsf-20251231xexhibit331.htm (EX-33.1) — 50KB
• decncsf-20251231xexhibit332.htm (EX-33.2) — 76KB
• decncsf-20251231xexhibit341.htm (EX-34.1) — 8KB
• decncsf-20251231xexhibit342.htm (EX-34.2) — 11KB
• decncsf-20251231xexhibit351.htm (EX-35.1) — 6KB
• image_0.jpg (GRAPHIC) — 6KB
• image_0a.jpg (GRAPHIC) — 11KB
• image_1.jpg (GRAPHIC) — 15KB
• imageb.jpg (GRAPHIC) — 17KB
• 0001881226-26-000008.txt ( ) — 532KB
• 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 Carolinas NC Storm Funding LLC ("DECNCSF") 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 Carolinas 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 DECNCSF. 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 DECNCSF 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 In

Executive Compensation

Item 11. Executive Compensation. Other than the annual independent manager fee of $3,500 paid to Global Securitization Services, LLC, DECNCSF 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. None.

Affiliations and Certain Relationships and Related Transactions

Item 1119. Affiliations and Certain Relationships and Related Transactions. DECNCSF is a wholly owned subsidiary of Duke Energy Carolinas, 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 Carolinas NC Storm Funding LLC (incorporated by reference to Exhibit 3.1 to Registration Statement on Form SF-1 of Duke Energy Carolinas, LLC and Duke Energ y Carolinas NC Storm Funding LLC filed on September 3, 2021, File No. 333-259314-01) 3.2 Amended and Restated Limited Liability Company Agreement of Duke Energy Carolinas NC Storm Funding LLC, dated and effective as of November 15, 2021 (incorporated by reference to Exhibit 3.2 to Form 8-K filed November 19, 2021, File No. 333-259314-01 ) 4.1 Indenture, dated as of November 24, 2021, by and between Duke Energy Carolinas NC Storm Funding LLC, and The Bank of New York Mellon Trust Company, N.A., as Indenture Trustee and Securities Intermediary (incorporated by reference to Exhibit 4.1 to Form 8-K filed November 24, 2021, File No. 333-259314-01 ) 4.2 Series Supplement, dated as of November 24, 2021, by and between Duke Energy Carolinas NC Storm Funding LLC, and The Bank of New York Mellon Trust Company, N.A., as Indenture Trustee (incorporated by reference to Exhibit 4.2 to Form 8-K filed November 24, 2021, File No. 333-259314-01) 10.1 Storm Recovery Property Servicing Agreement, dated as of November 24, 2021, by and between Duke En

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 CAROLINAS NC STORM FUNDING LLC By: /s/ Abigail L. Motsinger Abigail L. Motsinger Controller and Manager DUKE ENERGY CAROLINAS, LLC By: /s/ Abigail L. Motsinger Abigail L. Motsinger Senior Vice President, Chief Accounting Officer and Controller Duke Energy Carolinas, LLC

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