8-K

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): November 22, 2017

Commission file  number	Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, and Telephone Number	IRS Employer  Identification No.
1-32853	DUKE ENERGY CORPORATION (a Delaware corporation) 550 South Tryon Street Charlotte, North Carolina 28202-1803 704-382-3853	20-2777218
1-3382	DUKE ENERGY PROGRESS, LLC (a North Carolina limited liability company) 410 South Wilmington Street Raleigh, North Carolina 27601-1748 704-382-3853	56-0165465

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:

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240. 13e-4(c))

oIndicate 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 o

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. o

Item 8.01   Other Information.

On November 22, 2017, Duke Energy Progress, LLC (“DEP”) and the Public Staff - North Carolina Utilities Commission (the “Public Staff”) filed an Agreement and Stipulation of Partial Settlement (the “Stipulation”)  with the North Carolina Utilities Commission (the “NCUC”) resolving certain issues in the rate case which DEP filed on June 1, 2017, with the NCUC.  The items addressed in detail in the Stipulation are consistent with those included in the Preliminary Notice of Partial Settlement filed with the NCUC on November 20, 2017, and disclosed in the Form 8-K filed by DEP on the same date.

The Stipulation includes, among other things, a return on equity of 9.9% based upon a capital structure of 52% equity and 48% debt.  As a result of certain adjustments to be made to rate base for the Mayo Zero Liquid Discharge and Sutton combustion turbine projects, Duke Energy will take an estimated pre-tax impairment charge of approximately $25 million in the fourth quarter of 2017 which will be treated as a special item and excluded from adjusted diluted earnings per share.  An overview providing detail on the terms of the Stipulation is attached to this Form 8-K as Exhibit 99.1.

The parties have not reached a compromise on coal ash basin deferred costs to be recovered and amortization period, and ongoing coal ash costs to be included in rates, as well as deferred storm costs to be recovered and amortization period.

An evidentiary hearing on the Stipulation and other issues in the case will commence on November 27, 2017.  The Stipulation will be subject to the review and approval by the NCUC.  DEP has requested that rates go into effect on February 1, 2018.

Item 9.01.   Financial Statements and Exhibits.

(d)Exhibits.

99.1Duke Energy Progress Summary of 2017 Rate Case Filing in North Carolina

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EXHIBIT INDEX

Exhibit	Description
99.1	Duke Energy Progress Summary of 2017 Rate Case Filing in North Carolina

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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
Dated:	November 22, 2017	/s/ Julia S. Janson
		Julia S. Janson
		Executive Vice President, External Affairs, Chief Legal Officer and Corporate Secretary

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EX-99.1

Exhibit 99.1

Duke Energy Progress

Summary of 2017 Rate Case Filing in North Carolina

(Docket No. E-2, Sub 1142)

Background

·On June 1, 2017, Duke Energy Progress (DEP) filed a rate case with the North Carolina Utilities Commission (NCUC) to request an average 14.9 percent increase in retail revenues, or approximately $477 million:

·The rate case filing requested an overall rate of return of 7.66% based on approval of a 10.75% return on equity and a 53% equity component of the capital structure

·The filing was based on a North Carolina rate base of $8.1 billion as of Dec. 31, 2016 and adjusted for known and measurable changes through August 2017

·On Nov. 22, 2017, DEP and the Public Staff - North Carolina Utilities Commission (Public Staff), the State’s consumer representative, filed an Agreement and Stipulation of Partial Settlement (Stipulation) resolving certain issues in the base rate proceeding

·Items addressed in detail in the Stipulation are consistent with those included in the Preliminary Notice of Partial Settlement filed with the NCUC on Nov. 20, 2017

Major Components of the Stipulation

·$127 million annual customer rate increase prior to reductions from the return to customers of excess deferred income taxes (EDIT) over four years.  After applying the EDIT reductions, the average annual retail rate increase is $85 million.  This equates to a 4.0% average retail rate increase and 2.6% increase after the EDIT reduction.

·Return on equity of 9.9% based upon a capital structure of 52% equity and 48% debt

·Certain adjustments will be made to rate base for the Mayo Zero Liquid Discharge and Sutton combustion turbine projects

·The deferred tax liability resulting from the NC state income tax change will be returned to customers over four years (rather than five years as proposed by DEP)

·The company’s depreciation rates shall be based on DEP’s filed Depreciation Study, with exceptions as defined in the Stipulation

Additional Information

·Key issues on which the parties have not reached a compromise include:

·Coal ash basin deferred costs to be recovered and amortization period, and ongoing coal ash costs to be included in rates

·Deferred storm costs to be recovered and amortization period

·As a result of the Stipulation, Duke Energy will take an estimated pre-tax impairment charge of approximately $25 million in Q4 2017, primarily related to the Mayo and Sutton items described above, which will be treated as a “special item” (excluded from adjusted diluted earnings per share)

·The Stipulation is subject to the review and approval of the NCUC.  An evidentiary hearing to review the Stipulation and other issues in the case will start on Nov. 27, 2017

·DEP has requested new rates go into effect Feb. 1, 2018

Estimated Annual Rate Increase Impacts to Customer Bills

($ in millions)	Years 1-4			Thereafter
Annualized base rates	$	127		$	127
Return of Excess Deferred Income Taxes over 4-year period	(43		)	—
Cumulative Net Annualized Customer Increase ($)	$	85		$	127
Cumulative Net Annualized Customer Increase (%)	2.6		%	4.0		%

Reconciliation of Request to Reflect Stipulation

($ in millions)	Years 1-4			Thereafter
Original request	$	477		$	477
Post-filing, pre-Stipulation adjustments to filed request	$	(57	)	$	(57	)
Amounts included in Company request to be decided by the Commission (Storm deferral and coal ash cost recovery)	$	(221	)	$	(221	)
Company request for items addressed in the partial settlement	$	200		$	200
Agreed upon adjustments:
Move return of Excess Deferred Income Taxes from base rates to rider	$	38		$	38
Reduced ROE	$	(57	)	$	(57	)
Reduced equity component of capital structure	$	(10	)	$	(10	)
Reduction in depreciation expense	$	(15	)	$	(15	)
Reduction in Customer Connect costs (to be deferred with a return)	$	(8	)	$	(8	)
Other revenue reductions	$	(19	)	$	(19	)
Total agreed upon adjustments	$	(72	)	$	(72	)
Return of Excess Deferred Income Taxes over 4-year period through a rider	$	(43	)
Revenue increase related to agreed upon items	$	85		$	127

Totals may not add due to rounding.