Summary
Duke Energy Carolinas, a subsidiary of Duke Energy Corporation (DUK), has filed a rate case with the North Carolina Utilities Commission (NCUC) seeking an average 13.6% increase in retail revenues, amounting to approximately $647 million. This request is based on a proposed rate of return of 7.93%, including a 10.75% return on equity. The filing is premised on a North Carolina rate base of $13.8 billion as of December 31, 2016, adjusted for anticipated changes through November 2017. Investors should note that while hearings are expected in early 2018, the NCUC has not yet established a procedural schedule. Duke Energy Carolinas aims for the approved rates to be effective by April 1, 2018, but no later than May 1, 2018. The outcome of this rate case will significantly impact the financial performance and revenue streams of Duke Energy Carolinas, and by extension, Duke Energy Corporation.
Key Highlights
- 1Duke Energy Carolinas filed a rate case with the NCUC on August 25, 2017.
- 2The company is requesting an average retail revenue increase of 13.6%, or approximately $647 million.
- 3The proposed rate of return is 7.93%, with a requested return on equity of 10.75%.
- 4The filing is based on a North Carolina rate base of $13.8 billion (as of Dec 31, 2016, adjusted through Nov 2017).
- 5Hearings are anticipated to begin in early 2018.
- 6The company seeks to have the new rates effective by April 1, 2018, or no later than May 1, 2018.
- 7Additional details are provided in Exhibit 99.1, a summary of the rate case filing.