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): September 18, 2015
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Commission file |
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Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, and Telephone Number |
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IRS Employer |
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1-32853 |
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DUKE ENERGY CORPORATION (a Delaware corporation) 550 South Tryon Street Charlotte, North Carolina 28202-1803 704-382-3853
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20-2777218 |
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1-3543 |
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DUKE ENERGY INDIANA, INC. (an Indiana corporation) 1000 East Main Street Plainfield, Indiana 46168 |
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35-0594457 |
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:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240. 13e-4(c))
Item 7.01. Regulation FD Disclosure.
On September 17, 2015, Duke Energy Indiana, Inc. (the “Company”) reached a settlement with the Office of Utility Consumer Counselor, the Duke Energy Indiana Industrial Group and Nucor Steel — Indiana on operating costs at the Edwardsport clean coal gasification plant. Per the terms of the settlement, as proposed, the Company would incur an $85 million reduction in previously deferred operating and maintenance expenses and a $5 million shareholder funded commitment for attorney fees, trusts and programs. The remaining costs deferred by the Company and incurred prior to the 2016 cap will be recovered from customers over eight years. The parties also agreed that the commercial in-service date of the plant will remain June 7, 2013, for accounting and ratemaking purposes.
In addition, the settlement proposes a cap on ongoing capital expenditures as well as recoverable annual plant operating and maintenance costs billed to customers through 2017, and that future regulatory filings to update plant operating costs and customer rates will be made annually rather than twice a year. The operating and maintenance cap amounts to be included in annual filings in 2016 and 2017 are as follows:
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Period |
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Base Operating and |
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Cap Amount |
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Amount to be Recovered |
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12 Months Ended March 31, 2015 |
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$67.2 million |
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Calendar Year 2016 (beginning with the issuance of an IURC order approving the Settlement or July 1, 2016, whichever occurs earlier) |
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$73.3 million pro-rated based on the number of months remaining in 2016 after issuance of an IURC order approving the settlement |
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Lower of retail portion of 2016 actual or cap amount |
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Calendar Year 2017 |
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$76.8 million |
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Lower of retail portion of 2017 actual or cap amount |
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The cap amounts on ongoing capital expenditures to be included in subsequent annual filings in 2016 and 2017 are as follows:
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Period |
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Cap Amount of Ongoing Capital |
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Incremental Ongoing Capital |
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Balance at March 31, 2015 (to be implemented upon the issuance of an IURC order approving the Settlement) |
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$24.6 million |
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April 1, 2015 through Calendar Year 2016 |
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$36.1 million, including ongoing capital additions from April 1, 2015 through December 31, 2016 |
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Lower of retail portion of 2015/2016 actual expenditures or cap amount |
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Calendar Year 2017 |
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$16.9 million |
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Lower of retail portion of 2017 actual expenditures or cap amount |
As a result of the settlement, the Company expects to take a pre-tax charge of approximately $90 million in the third quarter of 2015 which will be reflected as a special item and excluded from the Company’s adjusted diluted earnings per share.
The settlement is subject to approval by the Indiana Utility Regulatory Commission (the “IURC”). If approved, the settlement would resolve all Edwardsport-related proceedings currently pending at the IURC. A decision on the settlement by the IURC is expected in the first half of 2016.
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.
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DUKE ENERGY CORPORATION | ||||||
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Date: September 18, 2015 |
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/s/ Julia S. Janson | |||||
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Name: |
Julia S. Janson | |||||
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Title: |
Executive Vice President, Chief Legal Officer and Corporate Secretary | |||||
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DUKE ENERGY INDIANA, INC. | ||||||
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Date: September 18, 2015 |
By: |
/s/ Julia S. Janson | |||||
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Name: |
Julia S. Janson | |||||
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Title: |
Executive Vice President and Chief Legal Officer | |||||