Exhibit 99.1
Duke Energy Carolinas
Summary of Rate Case Filing in South Carolina
Docket 2011-271-E
Major Components of Filing
· On August 5, 2011, Duke Energy Carolinas filed a rate case with the Public Service Commission of South Carolina (PSCSC) to request an average 15 percent increase in retail revenues, or approximately $216 million:
· The rate case filing requests an overall rate of return of 8.63% 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 South Carolina rate base of $4.1 billion as of December 31, 2010 and adjusted for known and measurable changes through October 2011 (hearings are expected to commence in December 2011)
· This rate increase request is driven by:
Drivers | | Revenue
Requirement | | % of Total
Request | |
Capital investments of $6.5 billion(1) for plant modernization, environmental compliance and other capital additions (see additional information below) | | ~$191 million | | ~88% | |
Changes in financing and other general costs, including the request to increase the allowed return on equity to 11.5% (allowed ROE in last rate case was 11.0% with rates based upon 10.7%) | | ~$25 million | | ~12% | |
· Capital investments of $6.5 billion(1) since the 2009 rate case, including pro-forma adjustments to reflect known and measurable changes include:
· Cliffside Unit 5 Scrubber - $565 million
· Cliffside Unit 6 Construction Work in Progress (CWIP) - $676 million incremental investment compared to approximately $1 billion already included in base rates
· Buck Combined Cycle Project - $700 million
· Dan River Combined Cycle Project CWIP(2) - $415 million
· Bridgewater Powerhouse Replacement - $180 million
· Oconee Nuclear Upgrades - $135 million
· Transmission and Distribution - $1 billion
· Generation maintenance and other general projects - $1.6 billion
· Generation, transmission, distribution, and other general CWIP(2) – $1.2 billion
· If approved by the PSCSC, rates would likely go in effect in February 2012
(1) Represents DE Carolinas total, which is allocated ~70% to NC, ~25% to SC and ~5% to wholesale
(2) SC allows all CWIP in rate base (compared to NC, which allows CWIP on baseload generation only)
