Summary
Duke Energy Progress, LLC (DEP), a subsidiary of Duke Energy Corp (DUK), has filed a rate case with the North Carolina Utilities Commission (NCUC) on October 6, 2022, seeking an increase in base rate retail revenues. The filing proposes a Multi-Year Rate Plan (MYRP) for three years, which could result in a total revenue increase of approximately 16% by late 2025 if fully approved. This includes a projected 8.5% increase in the first year, followed by smaller increases in the subsequent two years. The rate request is based on an expected overall rate of return of 7.13%, with a proposed return on equity of 10.2%. DEP aims to implement temporary rates by June 1, 2023, and permanent rates by October 1, 2023. Investors should monitor the NCUC proceedings, which are expected to include hearings starting in May 2023, as the outcome will directly impact DEP's financial performance and Duke Energy's consolidated results.
Key Highlights
- 1Duke Energy Progress (DEP) filed a rate case with the North Carolina Utilities Commission (NCUC).
- 2The filing requests a base rate retail revenue increase of approximately $326 million (8.5%) in year one, $151 million (3.9%) in year two, and $138 million (3.6%) in year three.
- 3This represents a potential total increase of 16% in retail revenues by late 2025.
- 4DEP is proposing a Multi-Year Rate Plan (MYRP) for three years.
- 5The request includes an overall rate of return of 7.13% and a 10.2% return on equity.
- 6Temporary rates are expected to be implemented by June 1, 2023, with permanent rates sought by October 1, 2023.
- 7Hearings related to the rate case are anticipated to begin in May 2023.