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 24, 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.

Duke Energy Carolinas, LLC (“Duke Energy Carolinas”) is involved in an ongoing rate proceeding before the Public Service Commission of South Carolina (the “Commission”).  On November 16, 2009, Duke Energy Carolinas announced that it had reached an agreement in principle with the South Carolina Office of Regulatory Staff (“ORS”) and filed a Notice of Settlement with the Commission.  The terms of the agreement were filed with the Commission on November 24, 2009 and include an annual base rate increase of $74 million beginning February 1, 2010.  The settlement agreement also includes the South Carolina Energy Users Committee.  The agreement also helps lower the total impact to customer bills as a result of riders principally relating to the return of demand-side management (DSM) over-collection to customers over three years as well as insurance distributions, which accelerate the return of regulatory liabilities to customers.  The proposed settlement includes an allowed Return on Equity of 11 percent with rates based upon a 10.7 percent Return on Equity and a capital structure of 53 percent equity and 47 percent long-term debt.  Additionally, Duke Energy Carolinas agrees not to file another rate case before 2011 with any changes to rates taking effect in 2012.  The settlement agreement is subject to the review and approval by the Commission.  Changes to rates are expected to be implemented on February 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 with the South Carolina Office of Regulatory Staff and South Carolina Energy Users Committee

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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: November 24, 2009	By:	/s/ Steven K. Young
	Name:		Steven K. Young
	Title:		Senior Vice President and Controller

	DUKE ENERGY CAROLINAS, LLC
Date: November 24, 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 with the South Carolina Office of Regulatory Staff and South Carolina Energy Users Committee

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EX-99.1

Exhibit 99.1

Duke Energy Carolinas

Summary of Proposed Settlement with Office of Regulatory Staff (ORS) and
South Carolina Energy Users Committee (SCEUC)

Major Components of Settlement

·$74 million increase in annual base rates (58% of requested $128 million total)

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

·Rider to return demand-side management (DSM) over-collection to customers over three years (no earnings impact)

·15 month rider starting 2/1/2010 and ending 4/30/2011 to recover carrying costs associated with coal inventory balance exceeding 40 day supply  (impacts earnings)

·Rider to recover actual pension costs in excess of or below the amount included in base rates (impacts earnings)

·Nuclear Insurance Reserve Rider starting 2/1/2010 and ending 1/31/2012 to return $13 million annually to SC retail customers ($26 million cumulative)  (no earnings impact)

·Other provisions

·Base rate increase includes recovery of $5 million per year for a storm reserve with a maximum reserve of $50 million (impacts earnings, since it offsets the base rates amount initially)

·Eliminate the negative return on the DSM over-collected balance (impacts earnings)

·The proposed settlement agreement also identifies the appropriate compensation to Duke Energy Carolinas for its energy efficiency efforts in South Carolina and proposes a new rider to be added to customer bills

·Allowed ROE of 11% with rates based upon 10.7% and common equity of 53%

·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

·Settlement subject to the approval of the Public Service Commission of South Carolina.  Hearings scheduled to begin on 11/30/2009

·If approved, changes to rates are expected to be implemented on 2/1/2010

Rate Increase Impacts on Customer Bills (reflects net impact of base rate and rider changes)

($ in Millions)	2010(3)			2011			2012
Base Rates	$	74		$	74		$	74
Return DSM Over-collection (no earnings impact)	(44		)	(44		)	(44		)
Estimated Carrying Charges on Coal Inventory (estimated amounts)	3			1
Pension Cost Rider (estimated amounts)(1)	4			4			4
Return of Insurance Distributions (no earnings impact)	(13		)	(13		)
Cumulative Net Increase ($)	24			22			34
Cumulative Net Increase (%)	1.7		%	1.5		%	2.4		%(2)

(1)    Pension costs will vary from year to year based on various factors including market performance, fund contributions and actuarial assumptions. The Pension Cost Rider amount in 2010 is estimated to be $4 million. Subsequent years could be different.

(2)    Does not include any potential rate increases from general rate case proceedings that may take place in 2012.

(3)    Annualized amounts.  If rates are effective 2/1/2010, 2010 impact will be approximately 11/12th of these amounts.

Note: Amounts above exclude any amounts recovered under Duke Energy Carolina’s energy efficiency plan (save-a-watt program)