Duke Energy Carolinas (DEC) and Duke Energy Progress (DEP) have filed rate cases with the North Carolina Utilities Commission seeking increases in retail revenues, including requests for performance-based regulation mechanisms. If approved, the overall net retail revenue increase is significant, with DEC seeking a 15.0% increase and DEP seeking a 15.1% increase in total retail revenues by year 2 of the multi-year rate plan.
DEC's historic base case for North Carolina retail rate base was $26.5 billion as of December 31, 2024, adjusted for changes projected through March 31, 2026. The multi-year rate plan includes approximately $4.4 billion of capital projects projected to go into service over the 2-year period. The rate increase is driven by various factors, including significant historical plant investments and changes, projected investments, return on equity (ROE), coal ash compliance costs, storm reserve, and production tax credit (PTC) rider.
DEP's historic base case for North Carolina retail rate base was approximately $17.9 billion as of December 31, 2024, adjusted for changes projected through March 31, 2026. The multi-year rate plan includes impacts of approximately $3.9 billion of capital projects over the 2-year period. The rate increase is driven by historical plant investments, projected investments, ROE, coal ash compliance costs, storm reserve, PTC rider, and other factors.
Both companies have requested the North Carolina Utilities Commission to approve the requested total year 1 rates to be effective no later than January 1, 2027. The hearings for the rate cases are expected to commence in the third quarter of 2026.
In terms of major capital investments, both companies have seen significant increases since the last rate case, with plant balances and transmission and distribution (T&D) investments being notable examples. They have also requested adjustments to the overall rate of return and sought recovery of deferred coal ash closure costs over a 5-year amortization period.
The rate increase filings also include details on storm reserves, production tax credit riders, and various performance-based regulation applications. Additionally, the filings outline the companies' requests for residential decoupling and proposed performance incentive mechanisms and tracking metrics.
The filings reflect the companies' projections for retail revenues and the significant investments and costs driving the requested rate increases. If approved, these rate increases could have a substantial impact on retail revenues and customer rates in North Carolina, as outlined in the filings. As a result of these announcements, the company's shares have moved 0.36% on the market, and are now trading at a price of $122.67. Check out the company's full 8-K submission here.
