Duke Energy 8-K

Summary

North Carolina rate-case settlement. Duke Energy Progress (DEP) and intervenors agreed on a revised revenue requirement increase of $338M over two years, down from DEP’s revised $610M request. The settlement is subject to North Carolina Utilities Commission approval.

Key Figures

• Settlement terms: 9.8% return on equity with a 53% equity component; historic base-case retail rate base of ≈$17.8B; and ≈$3.4B of capital in the two-year multi-year rate plan, with an annual customer refund mechanism.
• Customer impacts: a 3.4% average annual rate increase over two years; the settlement reconciliation lists a 6.8% combined net annualized increase, comprising 3.7% for Year 1 and 3.1% for Year 2. DEP also agreed to return $120M annually in production tax credits to customers in 2027 and 2028, up from its original $40M annual request.
• Other terms: DEP agreed to contribute $10M to customer assistance and home repair funds and extend deferred coal ash cost amortization from five to eight years. It will evaluate delaying its next base rate case until no earlier than 11/01/2028, conditional on permission to defer costs for specified generating assets.
• Expected one-time pre-tax accounting charges: ≈$30M in 2026, expected to be treated as special items and excluded from adjusted earnings.

Guidance

No guidance in this filing.

Investor Takeaways

• NCUC approval is the key next step; the evidentiary hearing is scheduled to begin 08/11/2026.
• Subject to approval, DEP requested that Year 1 rates take effect by 01/01/2027.