Duke Energy 8-K

Summary

Partial settlement in Duke Energy Carolinas’ North Carolina rate case. The agreement resolves selected operating-cost, accounting and project-level capital issues, but leaves major rate and regulatory issues for the North Carolina Utilities Commission (NCUC) to decide; the settlement is subject to approval.

Key Figures

• Rate request: the original two-year increase was approximately $1.00B, or 15.0% of retail revenue; the company later reduced it to $622M, or 9.3%. After $66M of adjustments agreed in the settlement, the company’s remaining requested increase is $556M, corresponding to an 8.3% annualized customer rate increase over two years (4.7% in Year 1 and 3.6% in Year 2). These are requested rates, not approved rates.
• Return request: the company’s revised request was a 10.48% return on equity with 53% equity in the capital structure, down from its original 10.95% return on equity request with the same equity component. Return on equity and capital structure remain unresolved.
• One-time pre-tax accounting charge: approximately $10M, expected in Q2 2026.

Investor Takeaways

• The evidentiary hearing on the settlement and remaining issues is scheduled to begin 07/07/2026; NCUC approval and its decisions on the unresolved issues will determine the final rate outcome.
• Subject to NCUC approval, the company has requested that Year 1 rates take effect no later than 01/01/2027.