What is the financial impact of the Stipulation on Duke Energy?

The Stipulation results in a one-time pre-tax accounting charge of approximately $10 million, to be recognized in the second quarter of 2026. This is small relative to the company's overall earnings base. The larger financial effect will depend on the final NCUC order, which will set the ROE, capital structure, and approved capital program.

How much rate increase is DEC requesting now compared with the original filing?

The original November 2025 filing requested about $1,002 million (approx. 15.0%) over two years. After the June 19, 2026 rebuttal testimony, the request was reduced to about $622 million (approx. 9.3%). After adjustments agreed in the Stipulation, the company's requested increase is about $556 million, equal to a net annualized customer rate increase of 8.3% over two years.

What ROE is DEC asking for, and how does it compare to the prior case?

DEC revised its requested ROE to 10.48% with a 53% equity component, down from 10.95% in the original filing. The ROE approved in its last rate case was 10.1%, also with a 53% equity component. The ROE remains contested and will be decided through the NCUC hearing process. The Stipulation does not include agreement on ROE or capital structure.

When could new rates take effect, and what happens next?

An evidentiary hearing to review the Stipulation and the remaining contested issues is scheduled to begin July 7, 2026. DEC has requested Year 1 rates to be in effect no later than January 1, 2027, subject to NCUC approval. Testimony consistent with the Stipulation is expected to be filed the following week. Investors should watch for the NCUC's final order, as the outcome of contested issues could differ from the company's requests.

Which major issues remain unresolved in the rate case?

Key unresolved items include ROE and capital structure; the proposed two-year MYRP2 and PBR framework, including performance incentive mechanisms, residential decoupling, and earnings sharing; storm-related matters such as Hurricane Helene securitization reconciliation, Winter Storm Fern recovery, and the storm reserve; customer growth and large load issues; the large load tariff; the depreciation study; and incentive compensation, rate case expenses, and other contested O&M items. These are expected to be litigated at hearing.

Duke Energy CORP 8-K: Regulation FD

01—Abstract

Summary

Summary of the 8-K filed July 6, 2026. Cited figures are marked; the original filing is the authoritative source.

Duke Energy Carolinas, LLC (DEC), a regulated utility subsidiary of Duke Energy Corporation (DUK), reached a partial settlement on July 2, 2026 with the North Carolina Public Staff in its rate case before the North Carolina Utilities Commission (NCUC).

The case, filed November 20, 2025, seeks new rates and a two-year Performance Based Regulation (PBR) framework with a Multi-Year Rate Plan (MYRP). The Stipulation resolves a number of accounting items, operating and maintenance (O&M) costs, and discrete project-level capital adjustments, but leaves the most material issues for litigation. Those include return on equity (ROE), capital structure, the broader MYRP2 capital program, PBR mechanisms (performance incentives, decoupling, and earnings sharing), storm cost recovery, depreciation, and large load tariffs and interconnection matters.

The revenue ask has been reduced substantially. The original request of approximately $1,002 million^a (about 15.0%) was cut to roughly $622 million (about 9.3%) in rebuttal testimony filed June 19, 2026. The Stipulation trims this further to about $556 million, or an 8.3% net annualized customer rate increase over the two years.

The revised filing also lowered the requested ROE from 10.95%^b to 10.48%, still above the 10.1% approved in DEC's last rate case, and the company withdrew its proposed depreciation study and removed Winter Storm Fern from this case to pursue separate securitization. The Stipulation is subject to NCUC approval, and an evidentiary hearing is scheduled to begin July 7, 2026. DEC has requested Year 1 rates effective no later than January 1, 2027.

For investors, the near-term financial impact is modest. The Stipulation triggers a one-time pre-tax accounting charge of approximately $10 million^c in the second quarter of 2026.

The more significant drivers of earnings, namely the final ROE, capital structure, and the MYRP2 capital plan, remain unresolved and will be determined through litigation and the NCUC's final order. Because the 8-K furnishes this information under Item 7.01 rather than filing it, the exhibit is not subject to Section 18 liability.

02—Key points

Key Highlights

DEC reached a partial settlement (the Stipulation) with the NCUC Public Staff on July 2, 2026 in its rate case (Docket E-7 Sub 1329), covering certain O&M costs, accounting items, rider mechanisms, and discrete project-level capital adjustments.
The requested revenue increase fell from about $1,002 million (approx. 15.0%) at filing to about $622 million (approx. 9.3%) after June 19, 2026 rebuttal testimony, and to about $556 million (8.3% net annualized customer rate increase over two years) after Stipulation adjustments.
Requested ROE was revised down to 10.48% (53% equity) from 10.95% in the original filing, versus 10.1% approved in the prior rate case. ROE and capital structure remain contested and will be litigated.
The Stipulation results in a one-time pre-tax accounting charge of approximately $10 million, to be recognized in Q2 2026.
Major unresolved issues include the MYRP2 PBR proposal and broader capital program, performance incentive mechanisms, residential decoupling, earnings sharing, storm cost recovery (Hurricane Helene reconciliation, Winter Storm Fern, storm reserve), depreciation, and large load tariffs and interconnection.
An evidentiary hearing on the Stipulation and remaining issues is scheduled to begin July 7, 2026; DEC has requested Year 1 rates effective no later than January 1, 2027, subject to NCUC approval.
The Stipulation and the NCUC approval process are subject to regulatory review, so final rates, ROE, and PBR design could differ materially from the requested terms.

03—Questions

Frequently Asked Questions

What is the financial impact of the Stipulation on Duke Energy?
The Stipulation results in a one-time pre-tax accounting charge of approximately $10 million, to be recognized in the second quarter of 2026. This is small relative to the company's overall earnings base. The larger financial effect will depend on the final NCUC order, which will set the ROE, capital structure, and approved capital program.
How much rate increase is DEC requesting now compared with the original filing?
The original November 2025 filing requested about $1,002 million (approx. 15.0%) over two years. After the June 19, 2026 rebuttal testimony, the request was reduced to about $622 million (approx. 9.3%). After adjustments agreed in the Stipulation, the company's requested increase is about $556 million, equal to a net annualized customer rate increase of 8.3% over two years.
What ROE is DEC asking for, and how does it compare to the prior case?
DEC revised its requested ROE to 10.48% with a 53% equity component, down from 10.95% in the original filing. The ROE approved in its last rate case was 10.1%, also with a 53% equity component. The ROE remains contested and will be decided through the NCUC hearing process. The Stipulation does not include agreement on ROE or capital structure.
When could new rates take effect, and what happens next?
An evidentiary hearing to review the Stipulation and the remaining contested issues is scheduled to begin July 7, 2026. DEC has requested Year 1 rates to be in effect no later than January 1, 2027, subject to NCUC approval. Testimony consistent with the Stipulation is expected to be filed the following week. Investors should watch for the NCUC's final order, as the outcome of contested issues could differ from the company's requests.
Which major issues remain unresolved in the rate case?
Key unresolved items include ROE and capital structure; the proposed two-year MYRP2 and PBR framework, including performance incentive mechanisms, residential decoupling, and earnings sharing; storm-related matters such as Hurricane Helene securitization reconciliation, Winter Storm Fern recovery, and the storm reserve; customer growth and large load issues; the large load tariff; the depreciation study; and incentive compensation, rate case expenses, and other contested O&M items. These are expected to be litigated at hearing.

04—Continue

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