Summary
Duke Energy Corporation, through its subsidiary Duke Energy Carolinas, LLC, has reached a settlement agreement in its ongoing rate proceeding before the Public Service Commission of South Carolina. The agreement, filed on November 24, 2009, with the Commission, the South Carolina Office of Regulatory Staff (ORS), and the South Carolina Energy Users Committee, proposes an annual base rate increase of $74 million, effective February 1, 2010. This settlement aims to moderate the overall impact on customer bills by accelerating the return of demand-side management (DSM) over-collections and insurance distributions to customers over three years. The settlement also includes a provision that Duke Energy Carolinas will not file for another rate case before 2011, with any rate changes taking effect in 2012. This provides a period of rate stability for customers. The proposed settlement specifies an allowed Return on Equity (ROE) of 11 percent, with rates based on a 10.7 percent ROE and a capital structure of 53% equity and 47% long-term debt. The agreement is pending final review and approval by the Commission.
Key Highlights
- 1Duke Energy Carolinas, LLC has reached a settlement agreement regarding its South Carolina rate proceeding.
- 2The settlement includes an annual base rate increase of $74 million, effective February 1, 2010.
- 3The agreement aims to mitigate customer bill impact by accelerating the return of DSM over-collections and insurance distributions.
- 4Duke Energy Carolinas agrees not to file another rate case before 2011, with rate changes effective in 2012, ensuring rate stability.
- 5The settlement proposes an allowed Return on Equity (ROE) of 11%, with rates based on a 10.7% ROE and a capital structure of 53% equity / 47% debt.
- 6The agreement is subject to approval by the Public Service Commission of South Carolina.