What return on equity did DEC agree to, and how does it compare with prior requests?

The settlement sets an ROE of 9.8% on a 53% equity component. DEC originally requested 10.95%, later revised to 10.48% in its June 19, 2026 rebuttal, and the last approved ROE was 10.1%. The settlement is therefore below both the company's requests and the prior authorized level.

How much revenue increase is being sought after the settlement?

The revised revenue requirement increase is about $496 million over two years, an average annual increase of 3.7%. This compares with the original request of about $1,002 million and the June rebuttal request of about $622 million. The net annualized customer rate increase is about 4.3% in Year 1 and 3.1% in Year 2, or about 7.4% combined.

Will DEC's next rate case be delayed, and under what conditions?

DEC will evaluate delaying its next base rate case until no earlier than November 1, 2028. The company has indicated it can agree to this only if the NCUC permits deferral of costs for the Person County CC1 and Marshall CTs from in-service until they are reflected in new base rates with a full weighted average cost of capital.

What financial impact should investors expect from the settlement?

DEC expects one-time pre-tax accounting charges of about $40 million in 2026, which will be treated as special items and excluded from adjusted earnings. The company also agreed to a $10 million shareholder contribution to bill assistance and home repair programs.

What are the next steps and risks before the settlement takes effect?

The settlement requires NCUC approval, and an evidentiary hearing that began July 7, 2026 is ongoing. DEC has requested Year 1 rates effective by January 1, 2027. Testimony consistent with the settlement will be filed the following week, and parallel settlement discussions are being pursued in the Duke Energy Progress rate case (Docket E-2, Sub 1380).

Duke Energy CORP 8-K: Regulation FD

01—Abstract

Summary

Summary of the 8-K filed July 17, 2026. Cited figures are marked; the original filing is the authoritative source.

Duke Energy Carolinas (DEC) filed a Comprehensive Revenue Requirement Settlement on July 17, 2026, with the Public Staff of the North Carolina Utilities Commission (NCUC) and other intervenors, resolving all remaining revenue requirement issues in DEC's November 20, 2025 rate case.

The settlement sets a 9.8% return on equity on a 53% equity component, a North Carolina retail rate base of about $25.7 billion^a for the historic base case, and about $3.8 billion of capital in a two-year Multi-Year Rate Plan (MYRP) with an annual refund mechanism. The company requested a 10.48% ROE in its June 19, 2026 rebuttal and 10.95% in its original filing, so the settlement is a meaningful step down from the company's own requests, though it is only modestly below the 10.1% ROE approved in the last rate case. The revenue requirement increase falls from the original request of about $1,002 million to about $496 million over two years, an average annual increase of 3.7% (about 7.4% cumulative net annualized customer rate increase).

Management indicates it could agree to delay its next base rate case until no earlier than November 1, 2028, provided the NCUC allows deferral of costs for the Person County CC1 and Marshall combustion turbines from in-service until they are reflected in rates with a full weighted average cost of capital. The settlement also includes a $10 million^b shareholder contribution to customer assistance and home repair funds, and DEC expects roughly $40 million of one-time pre-tax charges in 2026, which it will exclude from adjusted earnings. The settlement remains subject to NCUC approval.

An evidentiary hearing began July 7, 2026, and DEC has requested Year 1 rates effective no later than January 1, 2027. Intervening parties have also agreed to pursue similar settlement discussions in the separate Duke Energy Progress rate case (Docket E-2, Sub 1380). Investors should weigh the lower authorized return and revenue ask against the greater certainty of a settlement with the Public Staff, and watch for the commission's ruling, the DEP outcome, and the treatment of the proposed deferrals.

02—Key points

Key Highlights

Settlement sets ROE at 9.8% on a 53% equity component, down from the 10.48% requested in the June 2026 rebuttal and 10.95% in the original filing, versus 10.1% in the last rate case.
Revenue requirement increase reduced to about $496 million over two years (average 3.7% annually), compared with an original request of about $1,002 million and a rebuttal request of about $622 million.
Historic base case rate base of approximately $25.7 billion (NC retail), down from about $26.5 billion in the original filing.
MYRP includes about $3.8 billion of capital (NC retail), with an annual refund mechanism tied to projects placed in service versus amounts approved.
Company may delay its next base rate case to no earlier than November 1, 2028, contingent on NCUC approval of deferrals for Person County CC1 and Marshall CTs at full WACC.
Expected one-time pre-tax charges of about $40 million in 2026, to be treated as special items and excluded from adjusted earnings; DEC also commits $10 million in shareholder contributions.
Settlement is subject to NCUC approval; hearing began July 7, 2026, and DEC requests Year 1 rates effective by January 1, 2027.

03—Questions

Frequently Asked Questions

What return on equity did DEC agree to, and how does it compare with prior requests?
The settlement sets an ROE of 9.8% on a 53% equity component. DEC originally requested 10.95%, later revised to 10.48% in its June 19, 2026 rebuttal, and the last approved ROE was 10.1%. The settlement is therefore below both the company's requests and the prior authorized level.
How much revenue increase is being sought after the settlement?
The revised revenue requirement increase is about $496 million over two years, an average annual increase of 3.7%. This compares with the original request of about $1,002 million and the June rebuttal request of about $622 million. The net annualized customer rate increase is about 4.3% in Year 1 and 3.1% in Year 2, or about 7.4% combined.
Will DEC's next rate case be delayed, and under what conditions?
DEC will evaluate delaying its next base rate case until no earlier than November 1, 2028. The company has indicated it can agree to this only if the NCUC permits deferral of costs for the Person County CC1 and Marshall CTs from in-service until they are reflected in new base rates with a full weighted average cost of capital.
What financial impact should investors expect from the settlement?
DEC expects one-time pre-tax accounting charges of about $40 million in 2026, which will be treated as special items and excluded from adjusted earnings. The company also agreed to a $10 million shareholder contribution to bill assistance and home repair programs.
What are the next steps and risks before the settlement takes effect?
The settlement requires NCUC approval, and an evidentiary hearing that began July 7, 2026 is ongoing. DEC has requested Year 1 rates effective by January 1, 2027. Testimony consistent with the settlement will be filed the following week, and parallel settlement discussions are being pursued in the Duke Energy Progress rate case (Docket E-2, Sub 1380).

04—Continue

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