01—Abstract
Summary
Summary of the 8-K filed October 30, 2025. Cited figures are marked; the original filing is the authoritative source.
On October 27, 2025, Duke Energy Progress (DEP), its South Carolina regulatory staff (the Office of Regulatory Staff, ORS), and other intervening parties reached a partial settlement in DEP's base rate case before the Public Service Commission of South Carolina (PSCSC), filed June 12, 2025.
The Stipulation resolves all revenue requirement issues. It sets a return on equity of 9.99% on a 53% equity / 47% debt capital structure, for an overall rate of return of 7.2%, and a South Carolina retail rate base of $2.2 billiona. Against DEP's original request of a $75 million increase (10.85% ROE, 7.65% overall return), the settlement implies a net annual retail revenue increase of about $40 million, or roughly 6.5% on average, after a $10 million annual flow-back of nuclear and other production tax credits.
The settlement also supports DEP's proposed increase in annual storm reserve funding from $3 million to $6 millionb and its proposed pension cost rider, which is intended to reduce future earnings volatility from pension cost changes. DEP states the Stipulation has no material immediate accounting impact. The settlement remains subject to PSCSC approval.
An evidentiary hearing began October 29, 2025, and DEP has asked that new rates take effect no later than February 1, 2026. For investors, the filing shows the regulator and major parties largely aligned on DEP's revenue requirement, with the authorized ROE trimmed about 86 basis points from the requested level. The main remaining uncertainty is the commission's final order.
02—Key points
Key Highlights
- Partial settlement reached October 27, 2025 with ORS and other intervenors in DEP's South Carolina base rate case (filed June 12, 2025), subject to PSCSC approval.
- Proposed ROE of 9.99% (down from 10.85% requested) on a 53% equity capital structure, for an overall rate of return of 7.2% (vs. 7.65% requested).
- Net annual retail revenue increase of about $40 million (≈6.5% average), versus the $75 million (12.1%) originally requested; the reduction includes a $14 million ROE effect and $10 million in other revenue reductions, partly offset by a $10 million PTC flow-back.
- South Carolina retail rate base of $2.2 billion, compared with $2.3 billion in the original filing.
- Storm reserve annual funding increase from $3 million to $6 million, and support for a new pension cost rider to reduce future pension-driven earnings volatility.
- Nuclear and other production tax credits to be flowed back at $10 million annually over 24 months, shifting in 2028 to four-year amortization of PTCs actually earned and monetized.
- No material immediate accounting impact; DEP has requested new rates effective no later than February 1, 2026, and an evidentiary hearing began October 29, 2025.
03—Questions
Frequently Asked Questions
How much of a rate increase is Duke Energy Progress seeking in South Carolina under the settlement?
The settlement provides for an approximate $40 million net annual increase in retail revenues, or about 6.5% on average across retail customers. This is lower than the $75 million (12.1%) originally requested in the June 12, 2025 filing, after a $10 million annual PTC flow-back is netted against the base increase of $51 million.
What return on equity was agreed to in the settlement?
The Stipulation sets a 9.99% return on equity, based on a 53% equity and 47% debt capital structure, producing an overall rate of return of 7.2%. DEP's original request was a 10.85% ROE and a 7.65% overall return.
Is the settlement final, and when could new rates take effect?
No. The Stipulation is subject to review and approval by the PSCSC, and an evidentiary hearing on it and remaining issues began October 29, 2025. DEP has asked that new rates take effect no later than February 1, 2026.
Does the settlement have an immediate accounting or earnings impact?
According to DEP, the Stipulation does not result in any material immediate accounting impacts. The settlement does include a higher storm reserve funding level ($6 million annually, up from $3 million) and a pension cost rider intended to reduce future volatility from pension cost changes.
How are nuclear and other production tax credits treated under the settlement?
The settlement agrees to flow back $10 million annually to South Carolina retail customers over a 24-month period. Beginning in 2028, the rider shifts to a four-year amortization of PTCs actually earned and monetized, less costs to achieve and amounts already included in the rider.
04—Continue