8-KRegulation FDExhibits & Filings

Duke Energy CORP 8-K Report, Regulation FD Disclosure (Jul 8, 2024)

Filed July 8, 2024For Securities:DUKDUKBDUK-PA

Summary

Duke Energy Corporation (DUK) has filed an 8-K report detailing a significant development in its South Carolina rate case. The Public Service Commission of South Carolina (PSCSC) has approved an increase in base rates for Duke Energy Carolinas, LLC (DEC), reflecting a settlement agreement with various parties. This approval, effective August 1, 2024, is based on a substantial South Carolina retail rate base of $7.4 billion and allows for a return on equity of 9.94% with a capital structure of 51.21% equity and 48.79% debt. While the PSCSC approved nearly all aspects of the settlement, it revised the recovery of certain environmental compliance costs. This adjustment will lead Duke Energy Corporation to recognize a one-time, pre-tax accounting charge estimated between $30 million and $40 million in the second quarter of 2024. Investors should note that this charge is an accounting matter and does not represent a change in operational cash flows. The full details of the PSCSC's order and the approved rate structure are available in an attached exhibit.

Key Highlights

  • 1Public Service Commission of South Carolina (PSCSC) approved an increase in base rates for Duke Energy Carolinas, LLC (DEC).
  • 2New customer rates will be effective starting August 1, 2024.
  • 3The rate case settlement includes a South Carolina retail rate base of $7.4 billion.
  • 4Approved return on equity is set at 9.94% with a capital structure of 51.21% equity and 48.79% debt.
  • 5PSCSC did not fully approve the settlement regarding recovery of certain environmental compliance costs.
  • 6Duke Energy Corporation will record a one-time pre-tax accounting charge of approximately $30-$40 million in Q2 2024 due to the order.
  • 7The charge is an accounting adjustment and is not expected to impact operational cash flows.

Frequently Asked Questions

The Public Service Commission of South Carolina (PSCSC) has approved an increase in base rates for Duke Energy Carolinas, LLC (DEC), effective August 1, 2024. This approval stems from a settlement agreement reached with various parties and is based on a $7.4 billion retail rate base, a 9.94% return on equity, and a specific capital structure.

Duke Energy Corporation will recognize a one-time, pre-tax accounting charge of approximately $30 million to $40 million in the second quarter of 2024. This charge is a result of the PSCSC's revision to the recovery of certain environmental compliance costs, which was the only component of the settlement not fully approved. This is an accounting adjustment and does not represent an operational cash flow impact.

The order establishes a South Carolina retail rate base of $7.4 billion, an approved return on equity of 9.94%, and a capital structure comprising 51.21% equity and 48.79% debt.

Yes, the PSCSC did not fully approve the provision within the settlement agreement that pertained to the recovery of certain environmental compliance costs. This specific point led to the accounting charge for Duke Energy.