EX-99.1 2 a09-31823_1ex99d1.htm 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.