8-KOther EventsExhibits & Filings

Duke Energy CORP 8-K Report, Corporate Update (Mar 18, 2013)

Filed March 18, 2013For Securities:DUKDUKBDUK-PA

Summary

Duke Energy Carolinas, LLC, a subsidiary of Duke Energy Corporation, has filed a significant rate case with the Public Service Commission of South Carolina (PSCSC) on March 18, 2013. The company is seeking an average retail revenue increase of 15.1%, which translates to approximately $220 million. This request is largely driven by substantial capital investments in modernization and environmental compliance initiatives, coupled with the impacts of declining sales volumes and other cost fluctuations. The proposed rate increase, if approved, is anticipated to take effect in September 2013. The filing specifies a desired rate of return of 8.45%, based on an 11.25% return on equity and a 53% equity component in the capital structure. The request is premised on a South Carolina retail rate base of $4.3 billion as of June 30, 2012, adjusted for subsequent known and measurable changes.

Key Highlights

  • 1Duke Energy Carolinas filed a rate case in South Carolina seeking an average 15.1% retail revenue increase ($220 million).
  • 2The requested rate increase is primarily driven by capital investments in modernization and environmental compliance.
  • 3The filing also cites lower sales volumes and other cost changes as factors for the requested increase.
  • 4Duke Energy Carolinas is requesting an overall rate of return of approximately 8.45%.
  • 5This includes a proposed return on equity of 11.25% and a 53% equity component in the capital structure.
  • 6The rate case is based on a South Carolina retail rate base of $4.3 billion as of June 30, 2012, adjusted for known changes.
  • 7If approved, new rates are expected to be effective in September 2013.

Frequently Asked Questions

The primary reasons cited for the rate increase are significant capital investments in the company's modernization program and environmental compliance projects. Additionally, lower sales volumes and other net changes in costs have contributed to the request.

Duke Energy Carolinas is seeking an average increase of 15.1% in retail revenues, which amounts to approximately $220 million.

If approved by the Public Service Commission of South Carolina, the new rates are expected to become effective in September 2013.

The company is requesting an overall rate of return of approximately 8.45%, which includes an 11.25% return on equity and a capital structure with a 53% equity component.