Lynn J. Good
Chair, President and Chief Executive Officer at Duke Energy
Abby, thank you, and good morning, everyone. Today we announced adjusted earnings per share of $0.91 for the quarter. For the second-quarter in a row, mild weather impacted results. For perspective, in the Carolinas, January and February were the mildest in the last 30 years, and May and June were in the top five. Through June, we're facing a weather headwind of nearly $0.30. Agility measures have been put in place which add to the $300 million O&M reduction that was targeted and in place coming into 2023. Our cost initiatives are grounded in our culture of safety and serving our customers with excellence while maintaining our assets for the future. Brian will provide more on cost management in a moment.
We've had an early look at July, and as you would expect July weather is positive consistent with the trend across the US, and August and September are in front of us. With our largest quarter ahead, we are reaffirming our guidance range for 2023 and we'll have more to say on projected results for the year in the third quarter call. As we look ahead, the fundamentals of our business are strong and we are reaffirming our 5% to 7% growth rate.
Turning to slide five, you'll see highlights of the strategic portfolio repositioning we've executed over the last decade. With the announcement of the Commercial Renewables sale, which we expect to close by the end-of-the year, we're a fully regulated company operating in constructive and growing jurisdictions with a wealth of clean energy investments driving growth for years to come. The regulatory constructs in our states have also meaningfully improved over this time including landmark bipartisan energy legislation passed in North Carolina in 2021. Modern constructs, like those in HB951 allow us to invest for the benefit of our customers, while preserving returns for our investors. We are pleased that today the 90% of our electric utility investments are eligible for modern recovery mechanisms that mitigate regulatory lag. Our growth story is an organic one with over $145 billion of clean-energy grid and LDC investments over the next decade. With the portfolio repositioning, complete, our sole focus is on our regulated businesses and the work we have underway to pursue the largest energy transition in our industry.
Let me now turn to slide six to provide an update on our progress in each jurisdiction. In North Carolina we continue to work toward resolution of the Duke Energy Progress rate case. We implemented interim rates June 1st, subject to refund, with rates for typical residential customers increasing about 5%. We expect the Commission to issue an order later this month for the final DEP rates going into effect October 1st. We're also preparing for the Duke Energy Carolinas hearing which is scheduled to begin August 28th. Our energy transition in the Carolinas remains a top strategic priority and we're working diligently on updated resource plans to be filed with the Public Service Commission of South Carolina and the North Carolina Utilities Commission respectively in mid August. Similar to previous filings, the plans are based on significant stakeholder engagement and we'll outline multiple portfolios, each of which preserve affordability and reliability, while transitioning to cleaner energy resources. IRA benefits will be incorporated into the analysis for the first time as well as increasing load from numerous economic development announcements and continued strong population migration into the Carolinas. Our modeling will also reflect higher reserve margins as a result of our continuous evaluation of resource adequacy.
Later this year we will begin the CPCN process in North Carolina for replacement gas generation. At the same time, solar procurement will continue on an annual basis. In fact our 2022 solar procurement was recently finalized with nearly 1,000 MW to be placed in service by 2027. And our 2023 solar RFP targeting 1,400 MW was recently approved by the NCUC with bids to be received later this year. Following the resource plan filings, each Commission will hear from interested parties through a transparent regulatory process as they consider our proposals. We expect an order from the South Carolina Commission in mid-'24 and an order from the North Carolina Commission by the end of '24.
Turning to Florida, we're executing on our investment plan to benefit customers. We've added 300 MW of new solar this year and now operate 1200 MW in the state with plans to continue adding about 300 MW per year over the next decade. We're hardening the grid through our storm protection plan and already seeing benefits from improved reliability. With robust customer growth and timely recovery of investments our Florida utility continues to deliver strong returns. In Kentucky, we partnered with Amazon to install a 2-MW solar plant on top of their fulfillment center in Northern Kentucky, the largest rooftop solar site in the state. This partnership supports the carbon reduction goals of both Duke Energy and Amazon. And that's just one example of how we're working with our customers to meet their energy needs.
Turning to Indiana, I'd like to take a moment to thank the nearly 2000 crew members that worked tirelessly over the July 4th Holiday following multiple storms. The widespread storm systems extended across our entire service territory and led to a multi day effort to restore over 370,000 outages. And in fact today in the Carolinas, our crews are also working to restore outages that resulted from the strong storms in the eastern seaboard and are doing so safely, timely and in close communication with our customers and stakeholders. As with all operations, the safety of our employees, environment and communities remain front and center, and I'm proud to say that for the eighth consecutive year we've led the industry in safety, as measured by Total Incident Case Rate.
On the federal side, we're taking advantage of multiple incentives and other opportunities to benefit our customers. We're incorporating IRA tax benefits into resource plans and rate adjustments across our jurisdictions to lower costs for customers and federal funding from the infrastructure investment and jobs that creates opportunity to advance new resources and spur economic development. We have put forward multiple proposals through the IIJA, including for methane reduction, carbon capture, long-duration storage, hydrogen and grid modernization, and we'll continue to evaluate opportunities as funding is announced. We continue to advocate for federal and state support that recognizes the importance of our responsible energy transition. And in fact later today, we will file comments on EPA's proposed 111 rule. While we support EPA's commitment to a cleaner energy future, we believe an orderly transition requires a diverse mix of energy resources and must align with the pace of technology development. We will continue to actively work with policymakers, industry peers, state partners and others in support of a reliable, affordable energy transition.
In closing, we've navigated the first half of the year with agility taking swift action in the face of record mild weather while maintaining our focus on our strategic priorities. With our portfolio repositioning complete, we offer an attractive, fully regulated organic growth proposition. We have a clear strategy ahead of us as we invest to satisfy increasing demand for clean, affordable and reliable energy across our growing regions. Our long term fundamentals remain as strong as ever and we're well-positioned to deliver sustainable value and 5% to 7% earnings growth over the next five years. And with that, let me turn the call over to Brian.
