Exhibit 99.1
Duke Energy Carolinas
Summary of Rate Case Filing in North Carolina
Docket E-7, Sub 1026
Major Components of Filing
· On February 4, 2013, Duke Energy Carolinas filed a rate case with the North Carolina Utilities Commission (NCUC) to request an average 9.7 percent increase in retail revenues, or approximately $446 million:
· The rate case filing requests an overall rate of return of ~8.45% based on approval of an 11.25% return on equity and a 53% equity component of the capital structure
· The filing is based on a North Carolina retail rate base of ~$12.0 billion as of June 30, 2012 and adjusted for known and measurable changes (hearings are expected to commence in July 2013)
· This rate increase request is driven by:
Drivers |
| Revenue |
| % of Total |
|
Incremental cost associated with the Company’s rate base, including capital investments of $3.8 billion* for plant modernization, environmental compliance and other capital additions (see additional information below) |
| ~$413 million |
| ~93% |
|
Net effect of various changes to costs including increases for a storm reserve, end of life nuclear reserves not covered by the decommissioning reserve, Fukushima and cyber security costs, and vegetation management costs offset by merger related savings |
| ~$33 million |
| ~7% |
|
· Capital investments of ~$3.8 billion* since the 2011 rate case, including pro-forma adjustments to reflect known and measurable changes include:
· Cliffside Unit 6 - $863 million incremental investment compared to approximately $1 billion already included in base rates
· Dan River Combined Cycle Project - $673 million
· McGuire Capacity Uprates - $203 million
· Oconee Nuclear Upgrades - $448 million
· Transmission and Distribution - $722 million
· Other Generating Plant Investments - $590 million
· Other projects - $292 million
· If approved by the NCUC, rates would likely go in effect in September 2013
* Represents DE Carolinas in total, which is allocated ~70% NC, ~25% SC and ~5% wholesale
