Duke Energy (DUK) sets 9.8% ROE and $338M revenue boost in NC settlement
Rhea-AI Filing Summary
Duke Energy Progress, LLC reached a Comprehensive Revenue Requirement Settlement with the Public Staff – North Carolina Utilities Commission and other intervenors in its 2025 North Carolina rate case. The settlement is based on a 9.8% return on equity and a capital structure with a 53% equity component.
The historic North Carolina retail rate base is approximately $17.8 billion, and the multi-year rate plan will include about $3.4 billion of capital over a two-year period, with an annual refund mechanism tied to approved versus actual projects and capital placed in service. The settlement extends amortization of deferred coal ash costs from five to eight years and increases the flow-back of production tax credits to customers from $40 million annually in the original request to $120 million annually for 2027 and 2028.
The agreement includes a revised combined revenue requirement increase of $338 million over two years, equating to an average annual rate increase of 3.4%. One-time pre-tax accounting charges of about $30 million are expected in 2026 and are anticipated to be treated as special items excluded from adjusted earnings. The settlement remains subject to review and approval by the North Carolina Utilities Commission.
Positive
- $338 million combined revenue requirement increase over two years provides defined additional regulated revenue under the Comprehensive Settlement.
- Allowed 9.8% ROE on a $17.8 billion North Carolina retail rate base establishes a clear earnings framework for Duke Energy Progress.
- Increased production tax credit flow-back from $40 million to $120 million annually in 2027–2028 supports customer affordability while preserving regulatory clarity.
Negative
- Settlement is expected to trigger one-time pre-tax accounting charges of approximately $30 million in 2026, treated as special items.
- Higher customer rates, with a revised revenue requirement increase of $338 million and an average annual rate increase of 3.4% over two years, could face regulatory or public scrutiny.
Filing Explained
The proposed settlement includes a $10 million shareholder contribution, with NCUC review beginning August 11 and approval still required.
Duke Energy Progress, LLC has agreed with intervenors on a comprehensive North Carolina rate-case settlement, but it remains subject to North Carolina Utilities Commission approval; the agreement includes a
The NCUC evidentiary hearing is scheduled to begin on
8-K Event Classification
Key Figures
Key Terms
multi-year rate plan regulatory
decoupling mechanism regulatory
ESM financial
production tax credits financial
Weighted Average Cost of Capital financial
revenue requirement financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What is the key outcome of Duke Energy (DUK) 2026 Comprehensive Settlement in North Carolina?
How much additional capital is included in Duke Energy Progress (DUK) multi-year rate plan?
How will the Comprehensive Settlement affect customer rates for Duke Energy (DUK)?
What customer benefits are included in Duke Energy Progress (DUK) settlement regarding tax credits?
What one-time charges does Duke Energy Progress (DUK) expect from the Comprehensive Settlement?
Is the Duke Energy (DUK) Comprehensive Settlement in North Carolina final?
When does Duke Energy Progress (DUK) plan for new rates under the settlement to start?
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
| Commission file number | Registrant, State of
Incorporation or Organization, Address of Principal Executive Offices and Telephone Number |
IRS
Employer Identification No. |
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(a |
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
| Registrant | Title of each class | Trading Symbol(s) | Name
of each exchange on which registered |
| Duke Energy | |||
| Duke Energy | |||
| Duke Energy | each representing a 1/1,000th interest in a share of 5.75% Series A Cumulative Redeemable Perpetual Preferred Stock, par value $0.001 per share | ||
| Duke Energy | |||
| Duke Energy | |||
| Duke Energy |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 7.01. Regulation FD Disclosure.
On August 5, 2026, Duke Energy Progress, LLC (“DEP”) filed a Comprehensive Revenue Requirement Settlement (the “Comprehensive Settlement”) with the Public Staff – North Carolina Utilities Commission (the “Public Staff”) and other intervenors (together, “Intervening Parties”) in connection with DEP's application for adjustment of rates and charges and for Performance Based Regulation (“PBR”) filed with the North Carolina Utilities Commission (“NCUC”) on November 20, 2025. Testimony consistent with the Comprehensive Settlement will be filed by the end of the week. The Comprehensive Settlement resolves all revenue requirement items in the case including, among other things, (i) a return on equity of 9.8% based on a capital structure of 53% equity component in the capital structure, (ii) a retail rate base of approximately $17.8 billion for the historic base case, (iii) approximately $3.4 billion of capital in the multi-year rate plan (“MYRP”) along with an annual MYRP refund mechanism, and (iv) agreement to evaluate a one-year rate case stay out under which DEP would not file a base rate case earlier than November 1, 2028, so long as the NCUC grants deferral of cost of certain new generating assets.
The Comprehensive Settlement is expected to result in one-time pre-tax accounting charges of approximately $30 million, to be recognized in 2026. These charges are expected to be treated as special items and excluded from adjusted earnings.
An overview providing additional detail on the Comprehensive Settlement is attached to this Form 8-K as Exhibit 99.1. The information in Exhibit 99.1 is being furnished pursuant to this Item 7.01 and shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| 99.1 | Duke Energy Progress, LLC Fact Sheet Regarding 2026 Comprehensive Settlement. |
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document). |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| DUKE ENERGY CORPORATION | ||
| Date: August 5, 2026 | By: | /s/ David S. Maltz |
| Name: David S. Maltz | ||
| Title: Vice President, Chief Governance Officer, Corporate Secretary and Mergers and Acquisitions | ||
| DUKE ENERGY PROGRESS, LLC | ||
| Date: August 5, 2026 | By: | /s/ David S. Maltz |
| Name: David S. Maltz | ||
| Title: Vice President, Chief Governance Officer, Corporate Secretary and Mergers and Acquisitions | ||
Exhibit 99.1
Duke Energy Progress, LLC
Updates Regarding the 2025 Rate Case Filings in North Carolina
(Docket E-2 Sub 1380)
Background:
| · | On November 20, 2025, Duke Energy Progress (“DEP” or the “Company”) filed a rate case with the North Carolina Utilities Commission (“NCUC”) seeking approval for increases in retail revenues. The filing included requests for Performance Based Regulation (“PBR”) mechanisms, featuring a 2-year Multi-Year Rate Plan (“MYRP”) as well as residential decoupling, performance incentive mechanisms (“PIMs”), and an earnings sharing mechanism (“ESM”). |
| ◦ | The initial filing requested an approximately 15.1% overall increase in retail revenues over the two-year period, or approximately $729 million. |
| ◦ | The rate case filing requested an overall rate of return of 7.92% based upon an ROE of 10.95% with a 53% equity component in the capital structure1 as compared to the ROE approved in the last rate case of 9.8% with a 53% equity component in the capital structure. |
| ◦ | The historic base case in the initial filing is based on North Carolina retail rate base of approximately $17.9 billion as of December 31, 2024, adjusted for known and measurable changes projected through March 31, 2026. |
| ◦ | The MYRP includes impacts of approximately $3.9 billion (NC retail allocation) of capital projects that are projected to go in service over the 2-year MYRP period. |
| · | On July 24, 2026, the Company filed an updated revenue requirement request as part of the Company’s rebuttal testimony, which reduced the requested increase to approximately $610 million over the two-year period, which is an approximate 12.3% overall increase in retail revenues. |
| o | As part of the revised revenue requirement request, the Company has requested a 10.48% ROE with a 53% equity component in the capital structure and made certain other adjustments to reduce the requested increase. |
| · | On August 5, 2026, DEP and the Public Staff, as well as other intervening parties (together, the “Intervening Parties”), filed a Comprehensive Revenue Requirement Settlement (“Comprehensive Settlement”) with the NCUC resolving all remaining revenue requirement issues in the case. |
Major Components of the Comprehensive Settlement
| · | The Comprehensive Settlement resolves all revenue requirement issues between the Company and the Intervening Parties in the case, including agreement on 9.8% ROE and 53% equity component in the capital structure and various accounting and plant items. |
| · | The historic base case is based on North Carolina retail rate base of approximately $17.8 billion |
| · | The MYRP will include approximately $3.4 billion of capital (NC retail allocation) projected to go in service over the 2-year MYRP period, along with an annual MYRP refund mechanism (based upon both the number of projects and amount of capital placed in service in a rate year compared to what was approved for that rate year). |
| · | The Comprehensive Settlement resolves issues related to the mechanics of the decoupling mechanism and ESM. |
| · | DEP will extend the amortization of deferred coal ash costs from five years to eight years. |
1 Overall rate of return includes the provisions of the CCR settlement which includes a 150 basis point reduction in the ROE with a 52% equity component for the capital structure allowed for coal ash deferrals during the amortization period.
| · | DEP will increase the flow back of production tax credits (PTC) to customers from $40 million annually in the Company’s original request to $120 million annually for 2027 and 2028. |
| · | DEP agrees to a $10 million shareholder contribution to support bill assistance through the Share the Light Fund and health and safety repairs through the Helping Home Fund. |
| · | The Company will evaluate the potential to delay its next base rate case filing until no earlier than November 1, 2028. The Company has indicated that it can agree to this delay if permitted to defer costs directly associated with the Commission-approved Person County CC1 and Marshall CTs, from the time each plant is placed in service until such costs can be reflected in new base rates with a full Weighted Average Cost of Capital (“WACC”) during the deferral period. |
| · | The parties agree to support a separate proceeding to evaluate a large load tariff, with the intention to complete that proceeding prior to new rates going into effect. |
| · | The Comprehensive Settlement results in a revised revenue requirement increase of $338 million over the two-year period, an average annual rate increase of 3.4% over two years. |
Additional Information:
| · | The Comprehensive Settlement is subject to the review and approval of the NCUC. |
| · | An evidentiary hearing to review the Comprehensive Settlement and other issues in the case is scheduled to begin on August 11, 2026. |
| · | Subject to NCUC approval, DEP has requested total Year 1 rates to be in effect no later than January 1, 2027. |
| · | The Comprehensive Settlement is expected to result in one-time pre-tax accounting charges of approximately $30 million, to be recognized by DEP in 2026. These charges are expected to be treated as special items and excluded from adjusted earnings. |
Reconciliation of Company Request to Reflect the Comprehensive Settlement
| ($ in millions) | Historic Base Case | Year 1 - MYRP | Year 1 Total | Year 2 – MYRP | Combined Total | |||||||||||||||
| Original requested revenue requirement increase | $ | 401 | $ | 127 | $ | 528 | $ | 200 | $ | 729 | ||||||||||
| Post-filing adjustments by Company | (82 | ) | (17 | ) | (99 | ) | (19 | ) | (119 | ) | ||||||||||
| Revised Company requested revenue requirement increase | $ | 319 | $ | 110 | $ | 429 | $ | 181 | $ | 610 | ||||||||||
| Reduced ROE (10.48% to 9.8%) | (84 | ) | (4 | ) | (87 | ) | (6 | ) | (93 | ) | ||||||||||
| MYRP adjustments | -- | (12 | ) | (12 | ) | (22 | ) | (34 | ) | |||||||||||
| Extended amortization of deferred coal ash costs | (28 | ) | -- | (28 | ) | -- | (28 | ) | ||||||||||||
| Increased PTC giveback | (80 | ) | -- | (80 | ) | -- | (80 | ) | ||||||||||||
| Other stipulated adjustments | (37 | ) | -- | (37 | ) | -- | (37 | ) | ||||||||||||
| Revised revenue requirement increase after Comprehensive Settlement | $ | 90 | $ | 94 | $ | 185 | $ | 153 | $ | 338 | ||||||||||
| Net annualized customer rate increase | 1.8 | % | 1.9 | % | 3.7 | % | 3.1 | % | 6.8 | % | ||||||||||
Note: Totals may not add due to rounding
Cautionary Statement Regarding Forward-Looking Statements
This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management’s beliefs and assumptions. These forward-looking statements are identified by terms and phrases such as "anticipate," "believe," "intend," "estimate," "expect," "continue," "should," "could," "may," "plan," "project," "predict," "will," "potential," "forecast," "target," "outlook," "guidance," and similar expressions. Various factors may cause actual results to be materially different than the suggested outcomes within forward-looking statements; accordingly, there is no assurance that such results will be realized. These risks and uncertainties are identified and discussed in Duke Energy’s Form 10-K for the year ended December 31, 2025, and subsequent quarterly reports filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s website at www.sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than Duke Energy has described. Duke Energy expressly disclaims an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.