Hunton Andrews Kurth Advises Duke Energy Carolinas and Duke Energy Progress on Two Offerings of Senior Secured Storm Recovery Bonds Totaling $1 Billion

Hunton Andrews Kurth LLP acted as counsel to Duke Energy Carolinas, LLC ("DEC"), Duke Energy Progress, LLC ("DEP" and with DEC the "Utilities") and Duke Energy Carolinas NC Storm Funding LLC and Duke Energy Progress NC Storm Funding LLC (the "Issuers") on two SEC-registered offerings totaling $1 billion aggregate principal amount of Series A Senior Secured Storm Recovery Bonds (the "Bonds") by the Issuers, special purpose entities, wholly-owned by the respective Utility, as sponsor, depositor and servicer. The Bonds were sold in separate offerings pursuant to two financing orders issued by the North Carolina Utilities Commission. The respective Bond proceeds were used by each issuer to purchase storm recovery property from the respective Utility. In accordance with the financing orders, each Utility will use the proceeds from the sale of its storm recovery property to reimburse itself for previously-incurred storm recovery costs associated with Hurricanes Florence, Michael and Dorian and Winter Storm Diego, each of which affected North Carolina. These offerings, which are the first utility securitizations pursuant to newly adopted storm recovery legislation in North Carolina, closed on November 24, 2021.

The Issuers are organized as Delaware limited liability companies and the sole member of each Issuer is the respective Utility. The Issuers were formed for the purpose of purchasing, owning and administering storm recovery property, issuing the Bonds and performing activities incidental thereto.

The Hunton Andrews Kurth team included Michael F. Fitzpatrick, Adam O'Brian, Matthew A. Hayes, S. Ashley Jaber and Michelle G. Chan. Jason Harbour assisted with certain bankruptcy advice, Shawn Regan and Kate Perkins assisted with certain constitutional law matters, Bob Hahn and Hillary Peet Patterson assisted with certain UCC/security interest matters, Patrick Robson assisted with certain North Carolina matters, and Cary Tolley, Anna Page and Tim Strother provided tax advice, and Leslie Okinaka provided ERISA advice.