8-KOther EventsExhibits & Filings

Duke Energy CORP 8-K Report, Corporate Update (Oct 6, 2022)

Filed October 6, 2022For Securities:DUKDUKBDUK-PA

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.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce that Duke Energy Progress, LLC (DEP), a subsidiary of Duke Energy Corp, has filed a rate case with the North Carolina Utilities Commission (NCUC) to request an increase in its base rate retail revenues.

If fully approved, the rate case could lead to a significant increase in DEP's retail revenues, totaling approximately 16% by late 2025. The first-year increase is estimated at $326 million (8.5%). This will directly affect DEP's profitability and, consequently, Duke Energy's consolidated financial results.

DEP intends to implement temporary rates, subject to refund, by June 1, 2023, for the initial historic base case increase. They are requesting that the NCUC approve the permanent total Year 1 rates to be effective no later than October 1, 2023.

The rate case filing requests an overall rate of return of 7.13%. This is based on the approval of a 10.2% return on equity and a proposed 53% equity component within the capital structure.