UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 28, 2013
DUKE ENERGY CORPORATION
(Exact Name of Registrant as Specified in its Charter)
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Delaware |
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001-32853 |
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20-2777218 |
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(State or Other Jurisdiction of Incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
550 South Tryon Street, Charlotte, North Carolina 28202
(Address of Principal Executive Offices, including Zip code)
(704) 382-3853
(Registrant’s telephone number, including area code)
CAROLINA POWER & LIGHT COMPANY
d/b/a Progress Energy Carolinas, Inc.
(Exact Name of Registrant as Specified in its Charter)
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North Carolina |
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001-3382 |
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56-0165465 |
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(State or Other Jurisdiction of Incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
410 S. Wilmington Street
Raleigh, North Carolina 27601-1748
(Address of Principal Executive Offices, including Zip code)
(704) 382-3853
(Registrant’s telephone number, including area code)
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:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240. 13e-4(c))
Item 8.01. Other Events.
On February 28, 2013, the North Carolina Public Staff filed a Settlement Agreement with the North Carolina Utilities Commission (the “NCUC”) detailing additional terms of its settlement with Carolina Power & Light Company d/b/a Progress Energy Carolinas, Inc. (“Progress Energy Carolinas”) in connection with the rate case filed on October 12, 2012 by Progress Energy Carolinas. A Notice of Settlement disclosing certain terms of the settlement was previously filed with the NCUC on February 25, 2013 and described in the Form 8-K filed by Duke Energy Corporation and Progress Energy Carolinas with the Securities and Exchange Commission on February 26, 2013. The settlement is subject to the review and approval of the NCUC.
An overview providing detail on the Settlement Agreement is attached to this Form 8-K as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1 Progress Energy Carolinas Summary of Settlement Agreement with North Carolina Public Staff
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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DUKE ENERGY CORPORATION | ||
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Date: February 28, 2013 |
By: |
/s/ Julia S. Janson | |
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Name: |
Julia S. Janson | |
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Title: |
Executive Vice President and Chief Legal Officer and Corporate Secretary | |
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CAROLINA POWER & LIGHT COMPANY d/b/a Progress Energy Carolinas, Inc. | ||
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Date: February 28, 2013 |
By: |
/s/ Julia S. Janson | |
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Name: |
Julia S. Janson | |
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Title: |
Executive Vice President and Chief Legal Officer | |
Exhibit 99.1
Progress Energy Carolinas
Summary of Settlement Agreement with North Carolina Public Staff
Docket E-2, Sub 1023
Background
· On October 12, 2012, Progress Energy Carolinas (PEC) filed a rate case with the North Carolina Utilities Commission (NCUC) to request an average 11% increase in retail revenues, or approximately $359 million
· The filing requested a net $359 million increase in rates, which is net of a $28 million reduction in the Demand-Side Management/Energy Efficiency clause
· The filing was based upon 11.25% return on equity (ROE) and a 55.4% equity component of the capital structure
· On February 25, 2013, PEC reached agreement with the North Carolina Public Staff, who represents consumers (see details below)
Major Components of Settlement
· Based upon ROE of 10.2% and a 53% equity component of the capital structure
· Average rate increase of 5.7% for all customer classes by year two
· PEC will make a one-time $20 million contribution to help low-income customers in North Carolina pay their energy bills
· The Company will be allowed to reduce its cost of removal liability by $20 million
· Settlement includes support for the Company’s proposed nuclear levelization accounting and for a new coal inventory rider allowing the company to recover a return on coal inventory levels above those included in base rates
· All issues were not settled with the Public Staff. Key matters left open for NCUC decision are:
· PEC’s change to a single coincident peak cost allocation factor
· The industrial economic recovery rider proposed by PEC
· Resolution of the Richmond CC deferral request (currently pending in another docket)
· Settlement subject to the review and approval by the NCUC
· Hearing is scheduled to commence March 18, 2013
Estimated Rate Increase Impacts to Customer Bills
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($ in millions) |
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Year One |
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Year Two |
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Base rates |
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$ |
211 |
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$ |
211 |
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Decrease in DSM/EE Rider |
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(28 |
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(28 |
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Deferral of Sutton CWIP Cash recovery (no earnings impact through in service date) |
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(31 |
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— |
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Cumulative Net Increase to customers ($) |
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$ |
151 |
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$ |
183 |
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Cumulative Net Increase to customers (%) |
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4.7 |
% |
5.7 |
% | ||
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One time donation expense |
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$ |
20 |
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— |
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One time reduction of regulatory liability |
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$ |
(20 |
) |
— |
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Reconciliation of Request
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($ in millions) |
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Year One |
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Year Two |
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Original request |
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$ |
359 |
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$ |
359 |
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Supplemental filing update |
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5 |
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5 |
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Reduced ROE and capital structure |
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(91 |
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(91 |
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Lower decommissioning expense, depreciation and amortizations (no earnings impact) |
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(62 |
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(62 |
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Deferral of Sutton CWIP Cash recovery (no earnings impact through in service date) |
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(31 |
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— |
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Other |
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(29 |
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(29 |
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Per Settlement Agreement |
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$ |
151 |
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$ |
183 |
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