How much revenue increase is DEP seeking after the settlement, and how does it compare to the original request?

The settlement results in a revised two-year revenue requirement increase of approximately $338 million, or an average annual increase of about 3.4%. This compares to the original request of approximately $729 million (about 15.1%) filed November 20, 2025, and the revised request of approximately $610 million (about 12.3%) submitted July 24, 2026 with rebuttal testimony.

Does the settlement change the allowed return on equity?

The settlement sets the ROE at 9.8% on a 53% equity capital structure. This is below the 10.48% ROE in the revised request and the 10.95% in the original filing, but matches the ROE approved in DEP's last rate case. The overall rate of return also reflects a 150 basis point ROE reduction (with 52% equity) for coal ash deferrals during the amortization period.

Will the settlement affect earnings, and are there any one-time charges?

DEP expects one-time pre-tax accounting charges of approximately $30 million to be recognized in 2026. The company indicated these will be treated as special items and excluded from adjusted earnings. The settlement is subject to NCUC approval, so timing and final terms could still change.

What does the potential rate case stay-out mean for investors?

DEP agreed to evaluate delaying its next base rate case until no earlier than November 1, 2028. The company conditioned this on NCUC approval to defer costs directly tied to the Person County CC1 and Marshall CTs from in-service until they can be reflected in base rates with a full WACC. This could provide regulatory stability and earnings visibility, but it depends on the commission granting the deferral treatment.

What is the status and timeline of the settlement?

The Comprehensive Settlement was filed August 5, 2026, with testimony consistent with it to be filed later that week. An NCUC evidentiary hearing is scheduled to begin August 11, 2026. DEP has requested that Year 1 rates take effect no later than January 1, 2027, subject to NCUC approval.

Duke Energy CORP 8-K: Regulation FD

01—Abstract

Summary

Summary of the 8-K filed August 5, 2026. Cited figures are marked; the original filing is the authoritative source.

Duke Energy Progress, LLC (DEP), a Duke Energy (DUK) subsidiary, filed a Comprehensive Revenue Requirement Settlement with the North Carolina Utilities Commission (NCUC) on August 5, 2026, resolving all revenue requirement issues in its 2025 rate case (Docket E-2 Sub 1380).

The settlement, reached with the Public Staff and other intervenors, sets a 9.8% return on equity on a 53% equity capital structure, a North Carolina retail rate base of approximately $17.8 billion^a for the historic base case, and approximately $3.4 billion of capital in a two-year Multi-Year Rate Plan (MYRP). The settlement is subject to NCUC approval, with an evidentiary hearing scheduled to begin August 11, 2026. For investors, the key outcome is the reduction from the company's original request.

The original filing sought a 10.95% ROE and roughly $729 million^b in revenue increases; after rebuttal testimony cut the request to about $610 million (10.48% ROE), the settlement lowers the two-year revenue requirement increase to approximately $338 million, an average annual increase of about 3.4%. The ROE is flat with the prior rate case, and the settlement includes a 150 basis point ROE reduction tied to coal ash deferral amortization, which is a meaningful concession relative to the company's ask. The settlement also contains several structural items: extension of coal ash cost amortization from five to eight years, increased production tax credit flow-back to customers ($120 million annually in 2027 and 2028, up from $40 million), a $10 million shareholder contribution to customer assistance programs, and an agreement to evaluate a rate case stay-out until no earlier than November 1, 2028, conditioned on NCUC approval of deferral treatment for the Person County CC1 and Marshall CT plants.

The company expects one-time pre-tax charges of approximately $30 million^c in 2026, to be excluded from adjusted earnings. Total Year 1 rates are requested to take effect by January 1, 2027.

02—Key points

Key Highlights

Settlement sets ROE at 9.8% on a 53% equity capital structure, down from the 10.48% revised request and 10.95% original request, and flat with the last rate case.
Two-year revenue requirement increase reduced to approximately $338 million (about 3.4% average annual increase), versus $729 million originally requested and $610 million after rebuttal.
Historic base case retail rate base of approximately $17.8 billion; MYRP includes approximately $3.4 billion of capital with an annual refund mechanism tied to projects and capital placed in service.
Potential rate case stay-out until no earlier than November 1, 2028, contingent on NCUC approval of deferral of Person County CC1 and Marshall CT costs at full WACC.
Coal ash cost amortization extended from five to eight years, and production tax credit flow-back increased to $120 million annually for 2027 and 2028 (from $40 million).
Expected one-time pre-tax charges of approximately $30 million in 2026, to be treated as special items and excluded from adjusted earnings.
Settlement remains subject to NCUC approval; evidentiary hearing begins August 11, 2026, and Year 1 rates are requested effective no later than January 1, 2027.

03—Questions

Frequently Asked Questions

How much revenue increase is DEP seeking after the settlement, and how does it compare to the original request?
The settlement results in a revised two-year revenue requirement increase of approximately $338 million, or an average annual increase of about 3.4%. This compares to the original request of approximately $729 million (about 15.1%) filed November 20, 2025, and the revised request of approximately $610 million (about 12.3%) submitted July 24, 2026 with rebuttal testimony.
Does the settlement change the allowed return on equity?
The settlement sets the ROE at 9.8% on a 53% equity capital structure. This is below the 10.48% ROE in the revised request and the 10.95% in the original filing, but matches the ROE approved in DEP's last rate case. The overall rate of return also reflects a 150 basis point ROE reduction (with 52% equity) for coal ash deferrals during the amortization period.
Will the settlement affect earnings, and are there any one-time charges?
DEP expects one-time pre-tax accounting charges of approximately $30 million to be recognized in 2026. The company indicated these will be treated as special items and excluded from adjusted earnings. The settlement is subject to NCUC approval, so timing and final terms could still change.
What does the potential rate case stay-out mean for investors?
DEP agreed to evaluate delaying its next base rate case until no earlier than November 1, 2028. The company conditioned this on NCUC approval to defer costs directly tied to the Person County CC1 and Marshall CTs from in-service until they can be reflected in base rates with a full WACC. This could provide regulatory stability and earnings visibility, but it depends on the commission granting the deferral treatment.
What is the status and timeline of the settlement?
The Comprehensive Settlement was filed August 5, 2026, with testimony consistent with it to be filed later that week. An NCUC evidentiary hearing is scheduled to begin August 11, 2026. DEP has requested that Year 1 rates take effect no later than January 1, 2027, subject to NCUC approval.

04—Continue

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