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): April 26, 2023

Commission File Number	Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number and Zip Code	IRS Employer Identification No.
1-32853	DUKE ENERGY CORPORATION	20-2777218

(a Delaware corporation)

550 South Tryon Street

Charlotte, North Carolina 28202-1803

704-382-3853

1-3382 DUKE ENERGY PROGRESS, LLC 56-0165465

(a North Carolina limited liability company)

410 South Wilmington Street

Raleigh, North Carolina 27601-1748

704-382-3853

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:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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	Common Stock, $0.001 par value	DUK	New York Stock Exchange LLC
Duke Energy	5.625% Junior Subordinated Debentures due September 15, 2078	DUKB	New York Stock Exchange LLC
Duke Energy	Depositary Shares	DUK PR A	New York Stock Exchange LLC
	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	3.10% Senior Notes due 2028	DUK 28A	New York Stock Exchange LLC
Duke Energy	3.85% Senior Notes due 2034	DUK34	New York Stock Exchange LLC

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. o

Item 7.01. Regulation FD Disclosure.

On April 26, 2023, Duke Energy Progress, LLC (“DEP”) reached a partial settlement with the Public Staff – North Carolina Utilities Commission (the “Public Staff”) in connection with DEP’s Performance Based Regulation (“PBR”) application filed with the North Carolina Utilities Commission (the “NCUC”) on October 6, 2022. Additionally, on April 27, 2023, DEP and the Public Staff filed a Transmission Cost Allocation Agreement and Stipulation of Settlement (together with the partial settlement, the “Stipulations”). On April 28, 2023, DEP filed testimony consistent with the Stipulations. The Stipulations include, among other things, (i) agreement on prudence of plant-related investments as of March 31, 2023, subject to Public Staff audit of final supplemental updates , (ii) agreement on capital projects and related costs to be included in the 3-year multi-year rate plan, (iii) the acceptance of depreciation rates proposed by DEP, with certain adjustments, and (iv) support for full recovery of Grid Improvement Plan deferred costs over 18 years with a debt return during the deferral period and a full weighted-average cost of capital return during the amortization period.

The Stipulations do not include an agreement on return on equity, capitalization structure, or recovery of deferred costs resulting from the COVID-19 pandemic, among other items. The Stipulations are subject to the review and approval of the NCUC. An evidentiary hearing to review the Stipulations and remaining issues in the case has been rescheduled to commence on May 4, 2023. An overview providing additional detail on the Stipulations 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 Summary of Partial Settlement in North Carolina Rate Case.

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: April 28, 2023	By: /s/ David S. Maltz
	Name:  David S. Maltz
	Title: Vice President, Legal, Chief Governance Officer                 and Assistant Corporate Secretary
	DUKE ENERGY PROGRESS, LLC
Date: April 28, 2023	By: /s/ David S. Maltz
	Name:  David S. Maltz
	Title: Vice President, Legal, Chief Governance Officer                 and Assistant Secretary

EX-99.1

Exhibit 99.1

Duke Energy Progress, LLC

Updates Regarding the North Carolina Rate Case (Docket E-2 Sub 1300)

Background:

•On October 6, 2022, Duke Energy Progress (“DEP” or “the Company”) filed a rate case with the North Carolina Utilities Commission (“NCUC”) to request an increase in base rate retail revenues. DEP’s rate request before the NCUC includes a Performance Based Regulation (“PBR”) Application which includes a Multi-Year Rate Plan (“MYRP”) and proposes rates for 3 years within the MYRP period.

oThe initial rate case filing requested an approximate overall 16.0% increase in retail revenues over the three-year period, or approximately $615 million.

oThe rate case filing requested an overall rate of return of 7.13% based on approval of a 10.2% return on equity (“ROE”) and a 53% equity component of the capital structure.1 Note that the requested ROE was updated to 10.4% in subsequent updates.

oThe historic base case in the filing is based on a North Carolina retail rate base of $12.3 billion as of December 31, 2021, adjusted for known and measurable changes projected through April 30, 2023.

oThe MYRP in the initial filing included impacts of approximately $3.8 billion (NC retail allocation) of capital projects that are projected to go in service over the MYRP period.

•On April 26, 2023, DEP and the Public Staff - North Carolina Utilities Commission (“Public Staff”) filed an Agreement and Stipulation of Partial Settlement with the NCUC resolving certain issues in the base rate and MYRP proceeding. Additionally, on April 27, 2023, DEP and the Public Staff filed a Transmission Cost Allocation Agreement and Stipulation of Settlement (together with the Partial Settlement, the “Stipulations”).

Major components of the Stipulations:

•Rate base: Agreement on prudence of plant-related investments as of March 31, 2023, subject to Public Staff audit of final supplemental updates. Taking into consideration the Stipulations, agreed-upon NC retail rate base for the historic base case is approximately $12.2 billion.

•MYRP Capital: Agreement on capital projects and related costs to be included in the 3-year MYRP, including $3.5 billion (NC retail allocation) projected to go in service over the MYRP period. This reflects reduced contingency for MYRP project cost estimates and certain other adjustments.

•Depreciation rates: Acceptance of depreciation rates proposed by DEP, including coal plant retirement dates, with certain depreciable lives of transmission and general plant investments adjusted to conform to recommendations by Public Staff.

o75% of impact of updated subcritical coal plant retirement dates to be deferred to a regulatory asset (as compared to 50% originally proposed by DEP) and agreement on traditional recovery for any amounts not eligible for securitization.

•Grid Improvement Plan (“GIP”): Support for full recovery of GIP deferred costs over 18 years (rather than 3 years proposed by the Company) with a debt return during the deferral period and a full weighted-average cost of capital (“WACC”) return during the amortization period.

1 This 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.

1

•Transmission Cost Allocation: Agreement on re-allocation of certain transmission costs between DEP and Duke Energy Carolinas (“DEC”). This agreement was filed separately in both the DEP and DEC rate case dockets.

•Other Adjustments: Agreement on various other adjustments impacting the revenue requirement, including employee incentives, executive compensation, rent expense, and coal fleet O&M spend.

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

•Return on equity and capital structure.

•Recovery of deferred costs resulting from the COVID-19 pandemic, including the appropriate amortization period.

•Storm balancing account proposed by DEP to reduce volatility of future major storm costs.

•Appropriate treatment for DEP’s proposal to net over amortizations (regulatory liabilities) against similar regulatory assets.

Additional Information:

•The Stipulations are subject to the review and approval of the NCUC.

•An evidentiary hearing to review the Stipulations and remaining issues in the case has been rescheduled to commence May 4, 2023.

•DEP intends to implement temporary rates subject to refund for the historic base case in June 2023.

•Subject to NCUC approval, DEP has requested permanent total Year 1 rates to be in effect no later than October 1, 2023.

•The Stipulations do not result in any material immediate accounting impacts for DEP (impairments or write-offs).

2

Reconciliation of Company Request to Reflect Stipulations

($ in millions)	Historic Base Case	Year 1 -MYRP	Total Year 1
Original requested revenue requirement increase	$219	$107	$326
Post-filing, pre-Stipulation adjustments	87	(2)	85
Revised company requested revenue requirement increase	306	105	411
Agreed upon adjustments:
Reduction in depreciation expense	(26)	(2)	(28)
Reduction due to transmission cost allocation	(20)		(20)
Extended amortization period for GIP deferral	(11)		(11)
Reduced contingency in MYRP projects		(4)	(4)
Change to in-service dates	(10)	4	(6)
Other revenue reductions	(20)	(2)	(22)
Total agreed upon adjustments	(87)	(4)	(91)
Company requested revenue requirement increase considering agreed upon items	$219	$101	$320
Net annualized customer rate increase	5.5%	2.5%	8.0%

($ in millions)	Year 2 -MYRP	Year 3 -MYRP	Combined Total
Original requested revenue requirement increase	$151	$138	$615
Post-filing, pre-Stipulation adjustments	(18)	10	77
Revised company requested revenue requirement increase	133	148	692
Agreed upon adjustments:
Reduction in depreciation expense	(2)	(1)	(31)
Reduction due to transmission cost allocation			(20)
Extended amortization period for GIP deferral			(11)
Reduced contingency in MYRP projects	(7)	(8)	(19)
Change to in-service dates	4	3	1
Other revenue reductions	(1)	(2)	(25)
Total agreed upon adjustments	(6)	(8)	(105)
Company requested revenue requirement increase considering agreed upon items	$127	$140	$587
Net annualized customer rate increase	3.2%	3.5%	14.7%

Totals may not add due to rounding.

Historic Base Case includes Company requested change of $8M to EDIT decrement rider.

3

XML

Cover Page	Apr. 26, 2023
Document Information [Line Items]
Entity Central Index Key	0001326160
Document Type	8-K
Document Period End Date	Apr. 26, 2023
Entity File Number	1-32853
Entity Registrant Name	DUKE ENERGY CORPORATION
Entity Tax Identification Number	20-2777218
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	550 South Tryon Street
Entity Address, City or Town	Charlotte
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28202-1803
City Area Code	704-
Local Phone Number	382-3853
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Amendment Flag	false
Duke Energy Progress [Member]
Document Information [Line Items]
Entity Central Index Key	0000017797
Document Type	8-K
Document Period End Date	Apr. 26, 2023
Entity File Number	1-3382
Entity Registrant Name	DUKE ENERGY PROGRESS, LLC
Entity Tax Identification Number	56-0165465
Entity Incorporation, State or Country Code	NC
Entity Address, Address Line One	410 South Wilmington Street
Entity Address, City or Town	Raleigh
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	27601-1748
City Area Code	704-
Local Phone Number	382-3853
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Amendment Flag	false
Common Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	DUK
Security Exchange Name	NYSE
Junior Subordinated Debentures 5.625% Coupon Due September 2078 [Member]
Document Information [Line Items]
Title of 12(b) Security	5.625% Junior Subordinated Debentures due September 15, 2078
Trading Symbol	DUKB
Security Exchange Name	NYSE
Depositary Share [Member]
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares
Trading Symbol	DUK PR A
Security Exchange Name	NYSE
3.10 % Senior Notes due 2028
Document Information [Line Items]
Title of 12(b) Security	3.10% Senior Notes due 2028
Trading Symbol	DUK 28A
Security Exchange Name	NYSE
3.85% Senior Notes due 2034
Document Information [Line Items]
Title of 12(b) Security	3.85% Senior Notes due 2034
Trading Symbol	DUK34
Security Exchange Name	NYSE