Duke Energy Progress reaches partial agreement with the North Carolina Public Staff on rate request

Rhea-AI Summary

Duke Energy Progress has reached a partial settlement regarding customer rate increases with the North Carolina Public Staff, which aims to reduce overall requested revenue requirements and support grid improvement and clean energy initiatives. This settlement addresses several operational items, along with cost recovery of historical capital investments and depreciation for coal plant retirements. The settlement was filed with the North Carolina Utilities Commission (NCUC) before an upcoming hearing starting on May 1, where unresolved matters such as return on equity and capital structure will be discussed. Duke Energy Progress continues to actively engage with stakeholders to resolve outstanding issues in its rate request.

Positive

• Partial settlement reduces overall revenue requirements.
• Progresses grid improvement and clean energy transition efforts.
• Agreement on historical capital investments and coal plant depreciation supports financial health.

Negative

• Unresolved issues include return on equity and COVID cost recovery, which may impact future revenues.

• Partial settlement helps reduce overall requested revenue requirements and advances grid improvement and clean energy transition work
• Settlement and testimony will be reviewed by regulators in an upcoming hearing currently scheduled to begin May 1

RALEIGH, N.C., April 27, 2023 /PRNewswire/ -- Duke Energy Progress and the North Carolina Public Staff have reached a partial settlement on certain items associated with customer rate increases included in the utility's request.

The partial settlement includes agreement on many aspects of the company's proposed revenue requirement in the case, including cost recovery of historical capital investments, depreciation for coal plant retirements, and multiple operational items and accounting adjustments. The settlement also addresses capital projects and related costs to be included in the company's three-year rate plan proposal.

"We are pleased that we were able to find common ground with the Public Staff on several key issues and develop a settlement agreement that prioritizes the needs of our customers, advances grid reliability and resiliency across the state, and maintains the financial health of the company," said Duke Energy North Carolina President Kendal Bowman. "This is a significant and positive step in these proceedings."

The proposed partial settlement was filed late Wednesday with the North Carolina Utilities Commission (NCUC) and testimony related to the agreement is expected to be filed this week.

Matters not resolved by the partial settlement include return on equity, capital structure, and COVID cost recovery. These items will be considered along with all testimony submitted by the company, other participating parties and the public during a hearing before the NCUC currently scheduled to begin May 1.

Duke Energy Progress will continue to work with the Public Staff and other parties to seek resolution on outstanding matters in the case. The NCUC will ultimately make the final decision on the company's rate request and proposed partial settlement.

Duke Energy Progress

Duke Energy Progress, a subsidiary of Duke Energy, owns 12,500 megawatts of energy capacity, supplying electricity to 1.7 million residential, commercial and industrial customers across a 29,000-square-mile service area in North Carolina and South Carolina.

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. Its electric utilities serve 8.2 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 50,000 megawatts of energy capacity. Its natural gas unit serves 1.6 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The company employs 27,600 people.

Duke Energy is executing an aggressive clean energy transition to achieve its goals of net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050. The company has interim carbon emission targets of at least 50% reduction from electric generation by 2030, 50% for Scope 2 and certain Scope 3 upstream and downstream emissions by 2035, and 80% from electric generation by 2040. In addition, the company is investing in major electric grid enhancements and energy storage, and exploring zero-emission power generation technologies such as hydrogen and advanced nuclear. 

Duke Energy was named to Fortune's 2023 "World's Most Admired Companies" list and Forbes' "World's Best Employers" list. More information is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos and videos. Duke Energy's illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.

Media contact: Jeff Brooks
Media line: 800.559.3853
Twitter: @DE_JeffB

 

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SOURCE Duke Energy

FAQ

What was the outcome of Duke Energy's recent rate request settlement?

Duke Energy Progress reached a partial settlement with the North Carolina Public Staff regarding customer rate increases.

When is the next hearing for Duke Energy's rate settlement?

The hearing before the North Carolina Utilities Commission is scheduled to begin on May 1.

What are the unresolved matters in Duke Energy's rate request?

Unresolved matters include return on equity and COVID cost recovery.

How does the settlement affect Duke Energy's financial health?

The settlement supports financial health by agreeing on capital investments and coal plant depreciation.

Why is the partial settlement considered significant for Duke Energy?

It prioritizes customer needs and advances grid reliability and clean energy transition.