8-K

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): October 30, 2019

Commission file number	Registrant, State of Incorporation or Organization, Address of Principal Executive Offices and Telephone Number	IRS Employer Identification Number
1-32853	DUKE ENERGY CORPORATION	20-2777218

(a Delaware corporation)

550 South Tryon Street

Charlotte, North Carolina 28202-1803

704-382-3853

1-3382 DUKE ENERGY PROGRESS, LLC 56-0165465

(a North Carolina limited liability company)

410 South Wilmington Street

Raleigh, North Carolina 27601-1748

704-382-3853

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:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Registrant	Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Duke Energy	Common Stock, $0.001 par value	DUK	New York Stock Exchange LLC
Duke Energy	5.125% Junior Subordinated Debentures	DUKH	New York Stock Exchange LLC
	due January 15, 2073
Duke Energy	5.625% Junior Subordinated Debentures	DUKB	New York Stock Exchange LLC
	due September 15, 2078
Duke Energy	Depositary Shares	DUK PR A	New York Stock Exchange LLC
	each representing a 1/1,000th interest in a share of 5.75% Series A Cumulative Redeemable Perpetual Preferred Stock, par value $0.001 per share

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 8.01.   Other Events.

On October 30, 2019, Duke Energy Progress, LLC (“DEP”) filed a general rate case with the North Carolina Utilities Commission (the “NCUC”) to request an approximate overall 12.3% increase in annual retail revenues, or approximately $464 million, with an overall rate of return of approximately 7.41% based on approval of a 10.3% return on equity and a 53% equity component of the capital structure. The request is premised upon a DEP North Carolina retail rate base of $10.8 billion as of June 30, 2019, and adjusted for known and measurable changes through February 2020.

While a procedural schedule has not yet been established by the NCUC, hearings are expected to commence in early 2020. DEP requested that the NCUC approve the requested rates to be effective no later than September 1, 2020.

An overview providing additional detail on the filing is attached to this Form 8-K as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits.

(d)    Exhibits.

99.1 Duke Energy Progress Summary of 2019 Rate Case Filing in North Carolina

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	DUKE ENERGY CORPORATION
Date: October 30, 2019	By: /s/ David S. Maltz
	David S. Maltz
	Assistant Corporate Secretary

	DUKE ENERGY PROGRESS, LLC
Date: October 30, 2019	By: /s/ David S. Maltz
	David S. Maltz
	Assistant Secretary

EX-99.1

Exhibit 99.1

Duke Energy Progress

Summary of 2019 Rate Case Filing in North Carolina

(Docket E-2 Sub 1219)

• On October 30, 2019, Duke Energy Progress (DEP) filed a rate case with the North Carolina Utilities Commission (NCUC) to request an approximate overall 12.3 percent increase in annualized retail revenues, or approximately $464 million:

◦ The rate case filing requests an overall rate of return of 7.41% based on approval of a 10.3% return on equity and a 53% equity component of the capital structure

◦ The filing is based on a North Carolina retail rate base of $10.8 billion as of June 30, 2019, and adjusted for known and measurable changes through February 2020

◦ Hearings are expected to commence early next year

• This annualized rate increase request is driven by:

Drivers	Revenue Requirement	% of Total Request
Significant plant additions and changes	$423 million	91%
Coal ash pond closure costs	$124 million	27%
Depreciation, including accelerated coal plant depreciation	$82 million	18%
Deferred storm costs	$85 million	18%
All other changes	($130) million	(28%)
Proposed rider for return of federal and state EDIT	($120) million	(26%)

• Major capital investments¹including pro-forma adjustments to reflect known and measurable changes include:

◦ Asheville Combined Cycle ($770 million, a portion of the Western Carolina’s Modernization Project)

◦ Investment in steam plants to meet environmental obligations² ($402 million)

◦ Total grid investments ($2 billion), including Advanced Metering Infrastructure ($211 million)

◦ Nuclear plant investments³ - ($1.2 billion)

• Coal ash pond closure costs

◦ Requests recovery of $530 million of deferred coal ash costs (N.C. retail allocation) over 5 years. Includes amounts deferred from September 1, 2017 - February 29, 2020

◦ Requests continued deferral of ongoing coal ash closure costs

• Deferred storm costs

◦ Requests recovery of $656 million of deferred storm costs (N.C. retail allocation) over 15 years, including costs incurred to rebuild the electric system and restore power after major storms, including Hurricanes Florence and Michael and Winter Storm Diego in 2018 and Hurricane Dorian in 2019

◦ If Senate Bill 559 (currently under consideration by the N.C. General Assembly) becomes law, Duke Energy will seek to securitize these costs

¹ Represents Duke Energy Progress total investment, which is allocated ~62% to N.C. retail

²Investments largely driven by dry bottom ash conversions, wastewater treatment enhancements and lined retention basin projects

³Includes Nuclear Turbine Control Systems ($210 million), Harris Nuclear reactor vessel head and low-pressure turbine replacements ($202 million)

• Accelerated coal plant retirements

◦ DEP is proposing to shorten the remaining depreciable lives of several coal-fired power plants. The depreciation study filed in the rate case shows the following updated retirement dates:

▪ Mayo in 2029 (up from 2035)

▪ Roxboro Units 3 and 4 in 2029 (up from 2033)

• Grid Improvement Plan deferral request

◦ Requests deferral treatment for certain costs related to investments in the transmission and distribution grid under the company’s Grid Improvement Plan

• Request includes reductions of $120 million through riders as a result of federal and state tax reform. This includes:

◦ $67 million decrease to return federal excess deferred income taxes (EDIT) resulting from the Tax Cuts and Jobs Act of 2017. The proposed amortization periods for federal EDIT are as follows:

▪ Protected EDIT over ARAM (~27 years)

▪ Unprotected, PP&E related over 20 years

▪ Unprotected, non-PP&E related over 5 years

◦ $55 million decrease to return deferred revenues from January through November 2018 related to the change in the federal statutory tax rate from 35% to 21%, over 2 years. Customer rates were updated to reflect the lower tax rate as of December 1, 2018

◦ $5 million decrease to return N.C. state EDIT related to the reduction of the N.C. state income tax rate from 3% to 2.5%, over 5 years

◦ $7 million increase to revise the existing N.C. state EDIT rider (related to the reduction of the N.C. state income tax rate from 6.9% to 3%) to reflect the change in the gross-up on that decrement rider to the 21% federal tax rate from the 35% rate

• The Company has requested the NCUC approve the requested rates to be effective no later than September 1, 2020

XML

Cover Page	Oct. 30, 2019
Document Information [Line Items]
Entity Central Index Key	0001326160
Document Type	8-K
Document Period End Date	Oct. 30, 2019
Entity File Number	1-32853
Entity Registrant Name	DUKE ENERGY CORPORATION
Entity Tax Identification Number	20-2777218
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	550 South Tryon Street
Entity Address, City or Town	Charlotte
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28202-1803
City Area Code	704-
Local Phone Number	382-3853
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Amendment Flag	false
Duke Energy Progress [Member]
Document Information [Line Items]
Entity Central Index Key	0000017797
Entity File Number	1-3382
Entity Registrant Name	DUKE ENERGY PROGRESS, LLC
Entity Tax Identification Number	56-0165465
Entity Incorporation, State or Country Code	NC
Entity Address, Address Line One	410 South Wilmington Street
Entity Address, City or Town	Raleigh
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	27601-1748
City Area Code	704-
Local Phone Number	382-3853
Amendment Flag	false
Common Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	DUK
Security Exchange Name	NYSE
Junior Subordinated Debentures 5.125% Coupon Due January 2073 [Member]
Document Information [Line Items]
Title of 12(b) Security	5.125% Junior Subordinated Debentures
Trading Symbol	DUKH
Junior Subordinated Debentures 5.625% Coupon Due September 2078 [Member]
Document Information [Line Items]
Title of 12(b) Security	5.625% Junior Subordinated Debentures
Trading Symbol	DUKB
Depositary Share [Member]
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares
Trading Symbol	DUK PR A