Duke Energy reaches North Carolina rate deal that would cut proposed increase by more than half

Duke Energy (DUK) up 0.6% in Monday's trading after saying it reached a settlement with North Carolina Public Staff, the agency representing utility customers, that would lower the proposed rate increase by more than half, subject to approval by the North Carolina Utilities Commission.

The original proposal would have raised costs by 18% for residential customers, but the company lowered the figure to 11.6% after objections from the public as well as the North Carolina Attorney General.

If approved, the plan would produce an average annual rate increase of 3.7% over two years, a 9.8% return on equity, and a 53% equity component of the capital structure.

The agreement would add a new Multiyear Rate plan refund rider that would return money with interest if planned infrastructure upgrades are not completed on time.

Duke (DUK) said shareholders would contribute $10M to low-income bill assistance and weatherization programs.

The NCUC will consider the agreements and make the final decision; if approved, new rates will take effect January 1, 2027.

"In light of the cost pressures our customers are facing, along with continued conversation with other stakeholders, we felt we had to do more," Duke Energy's (DUK) North Carolina president Kendal Bowman said.