Hunton Andrews Kurth Advises Duke Energy Progress on $178 Million Senior Secured Storm Recovery Bonds Offering

Hunton Andrews Kurth LLP acted as counsel to Duke Energy Progress, LLC ("DEP") and Duke Energy Progress SC Storm Funding LLC (the "Issuer") on a SEC-registered offering of approximately $178 million aggregate principal amount of Series A Senior Secured Storm Recovery Bonds (the "Bonds") by the Issuer, special purpose entity, wholly-owned by DEP, as sponsor, depositor and servicer. The Bonds were sold in an offering pursuant to a financing order issued by the Public Service Commission of South Carolina. The Bond proceeds were used by the Issuer to purchase storm recovery property from DEP. In accordance with the financing order, DEP will use the proceeds from the sale of its storm recovery property to reimburse itself for previously-incurred storm recovery costs associated with Winter Storms Pax and Ulysses, Hurricanes Matthew, Florence, Michael, Dorian and Izzy and Tropical Storm Jasper, each of which affected South Carolina. This offering, which is the first utility securitization pursuant to newly adopted storm recovery legislation in South Carolina, closed on April 25, 2024.

The Issuer is organized as a Delaware limited liability company and the sole member of the Issuer is the DEP. The Issuer was 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, Alice Yao and Monika Dziewa. Jason W. Harbour assisted with certain bankruptcy advice, Shawn Regan and Kate Perkins assisted with certain constitutional law matters, Bob Hahn, Hillary Peet Patterson, Emily Sanford and Johanna Jenkins assisted with certain intercreditor matters, George Howell, Anna Page and Zachary Roop provided tax advice, and Leslie Okinaka provided ERISA advice.