Exhibit 99.1
Duke Energy Carolinas
Summary of Rate Case Filing in North Carolina
Docket E-7, Sub 989
Major Components of Filing
· On July 1, 2011, Duke Energy Carolinas filed a rate case with the North Carolina Utilities Commission (NCUC) to request an average 15 percent increase in retail revenues, or approximately $646 million:
· The rate case filing requests an overall rate of return of 8.64% based on approval of an 11.5% return on equity and a 53% equity component of the capital structure
· The filing is based on a North Carolina retail rate base of $11.2 billion as of December 31, 2010 and adjusted for known and measurable changes (hearings are expected to commence in November 2011)
· This rate increase request is driven by:
Drivers |
| Revenue |
| % of Total |
Capital investments of $4.8 billion* for plant modernization, environmental compliance and other capital additions (see additional information below) |
| ~$480 million |
| ~74% |
Effects of the continued weak economy, which have resulted in lower weather-normalized sales volumes and lower Bulk Power Marketing (BPM) profits than the level currently included in base rates |
| ~$68 million |
| ~11% |
Changes in financing and other general costs, including the request to increase the allowed return on equity from 10.7% to 11.5% |
| ~$98 million |
| ~15% |
· Capital investments of $4.8 billion* since the 2009 rate case, including pro-forma adjustments to reflect known and measurable changes include:
· Cliffside 5 Scrubber - $565 million
· Cliffside Unit 6 Construction Work in Progress - $640 million incremental investment compared to approximately $1 billion already included in base rates
· Buck Combined Cycle Project - $700 million
· Bridgewater Powerhouse Replacement - $180 million
· Oconee Nuclear Upgrades - $135 million
· Transmission and Distribution - $1 billion
· Nuclear Fuel - $210 million
· Capital maintenance and other general projects - $1.4 billion
· If approved by the NCUC, rates would likely go in effect in February 2012
* Represents DE Carolinas in total; NC allocable portion is ~70% |
| 7/1/2011 |
