Summary
Duke Energy Progress, LLC, a subsidiary of Duke Energy Corporation (DUK), has filed a rate case with the North Carolina Utilities Commission (NCUC) seeking an average retail revenue increase of 14.9%, which translates to approximately $477 million. This request is based on a proposed rate of return of 7.66%, including a 10.75% return on equity. The filing is supported by a North Carolina rate base of $8.1 billion as of December 31, 2016, adjusted for subsequent known and measurable changes.
Key Highlights
- 1Duke Energy Progress filed a rate case with the NCUC on May 31, 2017.
- 2The company is requesting an average retail revenue increase of 14.9% in North Carolina.
- 3The proposed revenue increase amounts to approximately $477 million.
- 4The requested rate of return is 7.66%, with a proposed return on equity of 10.75%.
- 5The rate base considered for the filing is $8.1 billion as of December 31, 2016, with adjustments for 2017.
- 6Hearings are anticipated to begin in late 2017.
- 7If approved, new rates would likely become effective on January 1, 2018.
Frequently Asked Questions
The primary purpose of this 8-K filing is to announce that Duke Energy Progress, LLC, a subsidiary of Duke Energy (DUK), has filed a rate case with the North Carolina Utilities Commission (NCUC) to request an increase in retail electricity rates.
Duke Energy Progress is requesting an average retail revenue increase of 14.9%, which is approximately $477 million.
The filing indicates that hearings are expected to commence late in 2017, and if approved, the new rates would likely go into effect on January 1, 2018. Therefore, the financial impact would primarily be reflected in results from 2018 onwards.
The request is based on a North Carolina rate base of $8.1 billion as of December 31, 2016, adjusted for known and measurable changes through August 2017. The company is seeking an overall rate of return of 7.66%, including a 10.75% return on equity.