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): October 20, 2009

DUKE ENERGY CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Delaware	001-32853	20-2777218
(State or Other Jurisdiction  of Incorporation)	(Commission  File Number)	(IRS Employer  Identification No.)

526 South Church Street, Charlotte, North Carolina  28202-1904

(Address of Principal Executive Offices, including Zip code)

(704) 594-6200

(Registrant’s telephone number, including area code)

DUKE ENERGY CAROLINAS, LLC

(Exact Name of Registrant as Specified in its Charter)

North Carolina	001-04928	56-0205520
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

526 South Church Street, Charlotte, North Carolina  28202-1904

(Address of Principal Executive Offices, including Zip code)

(704) 594-6200

(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:

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))

Item 8.01.   Other Events.

On October 20, 2009, Duke Energy Carolinas, LLC (the “Company”) announced that it has entered into a settlement agreement with the North Carolina Public Staff, which represents consumers, on the Company’s request to raise base rates in North Carolina for the first time since 1991. The terms of the agreement include a base rate increase of $315 million (or approximately 8 percent) beginning January 1, 2010.  The agreement also helps lower the total impact to customer bills as a result of riders relating to the deferral of collection of financing costs related to the Cliffside modernization project until January 1, 2011, as well as fuel costs and nuclear insurance distributions which accelerate the return of regulatory liabilities to customers.  The proposed settlement includes a 10.7 percent Return on Equity and a capital structure of 52.5 percent equity and 47.5 percent long-term debt.  Additionally, Duke Energy Carolinas, LLC agrees not to file another rate case before 2011 with any changes to rates taking effect no sooner than 2012.  The settlement agreement is subject to the review and approval by the North Carolina Utilities Commission.  Changes to rates are expected to be implemented on January 1, 2010.

An overview providing additional detail on the settlement is attached to this Form 8-K as Exhibit 99.1

Item 9.01.   Financial Statements and Exhibits.

(d)          Exhibits.

99.1         Duke Energy Carolinas Summary of Proposed Settlement Agreement with North Carolina Public Staff

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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.

	DUKE ENERGY CORPORATION
Date: October 20, 2009	By:	/s/Steven K. Young
	Name:		Steven K. Young
	Title:		Senior Vice President and Controller

	DUKE ENERGY CAROLINAS, LLC
Date: October 20, 2009	By:	/s/Steven K. Young
	Name:		Steven K. Young
	Title:		Chief Financial Officer, Senior Vice President and Controller

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EXHIBIT INDEX

Exhibit	Description
99.1	Duke Energy Carolinas Summary of Proposed Settlement Agreement with North Carolina Public Staff

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EX-99.1

Exhibit 99.1

Duke Energy Carolinas

Summary of Proposed Settlement Agreement with North Carolina Public Staff

Major Components

·$315 million increase in base rates (65% of requested $482 million total):

·$315 million increase in base rates implemented at 1/1/2010

·In addition to the base rate increase, there are 4 temporary riders:

·One year rider starting 1/1/2010 to defer Cliffside CWIP cash recovery in the amount of $89 million (deferred until 1/1/2011)

·There is no earnings impact due to this rider as Duke Energy Carolinas will accrue a similar amount as AFUDC in 2010

·16 month rider starting 1/1/2010 and ending 4/30/2011 to recover carrying costs associated with coal inventory balance exceeding 40 day supply (current estimate of $12 million in 2010)

·One year rider starting 1/1/2010 to accelerate return of $50 million in fuel over-collections (no earnings impact)

·Rider to return distributions related to nuclear insurance starting 1/1/2010 and ending 12/31/2011 to return $40 million annually to NC retail customers ($80 million cumulative effect and no earnings impact)

·Duke Energy Carolinas agrees to forgo a general rate case filing in 2010.  Earliest general rate case filing will be in 2011, using a 2010 test year with rates effective no sooner than 1/1/2012

·Allowed ROE of 10.7%, common equity of 52.5%

·Proposed settlement subject to the review and approval by the North Carolina Utilities Commission

Rate Increase Impacts (reflects net impact of base rate and rider changes):

($ in Millions)	2010			2011			2012
Base Rates	$	315		$	315		$	315
Deferral of Cliffside CWIP Cash Recovery (no earnings impact)	(89		)
Estimated Carrying Charges on Coal Inventory	12			2
Return of Fuel Over-Collection (no earnings impact)	(50		)
Return of Nuclear Insurance Distributions (no earnings impact)	(40		)	(40		)
Cumulative Net Increase to Customers ($)	$	148		$	277		$	315
Cumulative Net Increase to Customers (%)	3.8		%	7.0		%	8.0		%*

*Does not include any potential rate increases from general rate case proceedings that may take effect in 2012.