Political Expenditures

 

Statement of Purpose and Philosophy 

Duke Energy Corporation ("Duke Energy" or the "Corporation") strongly believes in and supports the democratic political process and encourages its directors, employees, and agents to take an active interest in fostering principles of good government in the countries, states, and communities in which they live.

Duke Energy principles governing corporate political expenditures and Political Action Committee contributions, and engagement of corporate political consultants and external lobbyists: 

1. Political expenditures shall reflect the company's interests and not those of its individual officers or directors. 

2. No political expenditure shall be made in anticipation of, in recognition of, or in return for any official act.

3. Political expenditure decisions will be made based upon the following principles: 

• promotion of sound and sustainable energy and environmental policies;
• efficient and effective regulatory systems; and;
• commitment to our company values of Safety, Integrity and Service. 

4. On a semi-annual basis, the corporation shall post a report of the following political expenditures directly on this website:    

• corporate contributions to political candidates, parties, committees and 527 organizations, including recipient names and amounts of contributions; 
• For the following expenses beginning January 1, 2022:
  • The federal lobbying portion¹ of trade association dues for dues of recipient 501(c)(6) organizations, such as trade associations and chambers of commerce, and will include those associations with dues in excess of $50,000 for the calendar year.
  • Non-dues contributions to 501(c)(6) organizations, such as trade associations and chambers of commerce, and contributions to 501(c)(4) organizations, designated by the corporation to be used for political purposes, or reported by the 501(c)(6) or 501(c)(4) organization as used for political purposes.  “Political purposes” means non-deductible business expenses under IRC 162(e)(1)(B).  This disclosure will include the 501(c)(6) and 501(c)(4) organization names and contribution amounts.
• links to Federal Election Commission and Florida Department of State, Division of Elections, websites with navigation instructions to easily obtain DukePAC contribution information. 
  
  View the Current Report.

5. On an annual basis, the Corporation will post an update to its Trade Association Climate Review, which discusses the climate positions of the trade associations included in our Corporate Political Expenditures Reports for the prior year, whether those positions are aligned with our climate position, and what we have done to help align their positions with our own. 

6. On a semi-annual basis, the Vice President, Legislative Affairs, shall report to the Corporate Governance Committee of the Duke Energy Corporation Board of Directors on the Political Expenditure Committee's annual strategy, the company's political expenditures, and the company’s engagement of corporate political consultants and external lobbyists. This includes the company's payments to trade associations and other tax-exempt organizations that may be using the funds for lobbying and political activities.

7. Duke Energy encourages participation in DukePAC, but it will not pressure or coerce employees to make personal political contributions or contribute to DukePAC.

8. Directors, employees and agents will not be reimbursed either directly or indirectly for personal political contributions or expenses.

Guidelines and approval process for political expenditure requests and engagement of corporate political consultants and external lobbyists:

 

1. Current federal law bars corporate contributions to candidates in federal elections, and the laws of North Carolina, Ohio, and Kentucky prohibit corporate contributions to candidates in those states. Duke Energy administers our political contributions consistent with federal and state laws.

2. The Corporation shall establish and maintain a Political Expenditures Committee (PEC), whose purpose shall be to annually develop a company political expenditure strategy and recommend DukePAC allocations among federal and state jurisdictions. This committee will approve, monitor and track corporate political expenditures, including but not limited to, expenditures for, or contributions to:  

• 527 organizations; 
• 501(c)(3) and 501(c)(4) organizations;  
• candidates and campaign committees; 
• independent political expenditures and independent political expenditure committees, and; 
• political parties and political committees. 

3. The PEC will provide recommendations and updates to company senior management. The PEC shall include: 

• the Vice President, Legislative Affairs (Chair)  
• the Chief Communications Officer  
• the Chief Governance Officer 
• the Chief Ethics and Compliance Officer  
• the State President of each jurisdiction  
• the Vice President, State and Federal Regulatory Legal Support  
• any other individual as appointed by the Chief Executive Officer 

4. An internal, independent subcommittee of the PEC will approve, monitor and track the engagement of corporate political consultants and external lobbyists. The subcommittee shall include: 

• the Chief Ethics and Compliance Officer (Chair)
• the Chief Communications Officer 
• the Chief Governance Officer 
• the Senior Vice President, State and Federal Regulatory Legal Support 

5. The company maintains a tiered approval process that will govern all political expenditures to ensure such expenditures have the appropriate level of management, including the Corporate Governance Committee of the Board, review and approval. 

6. The PEC shall ensure that due diligence is conducted prior to the Corporation making any political expenditure or engaging a corporate political consultant or external lobbyist, and periodically thereafter. 

Trade associations and chambers of commerce

1. Duke Energy belongs to a number of trade associations that participate in the political process. These associations represent a broad array of professional and industry interests.

2. Duke Energy is active in various chambers of commerce as a means to promote economic development and vitality in the jurisdictions in which we do business.

3. Duke Energy may not always agree with political positions taken by trade associations and chambers of commerce of which it is a member. However, we believe our participation in these organizations provides an overall benefit to the company. 

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¹Federal "lobbying portion" means non-deductible business expenses under the Internal Revenue Code section (IRC) 162(e).