Duke Energy flags $75M-$100M charges on case settlements (NYSE:DUK) - Seeking Alpha

Duke Energy flags $75M-$100M charges on case settlements (NYSE:DUK) | Seeking Alpha

Duke Energy flags $75M-$100M charges on case settlements

Duke Energy Corporation (DUK) By:

Carl Surran, SA News Editor
2 Comments peterschreiber.media/iStock via Getty Images

Duke Energy (NYSE: DUK) -1.8% in Monday's trading after disclosing it will recognize a $75M-$100M accounting charge related to the order approving previous settlements reached by its Duke Energy Progress subsidiary with the North Carolina Utilities Commission and other parties.

Duke's ( DUK) rate case filing had requested an overall rate of return of 7.13% based on approval of a 10.2% return on equity and a 53% equity component of the capital structure; the order approved an ROE of 9.8% based upon a capital structure of 53% equity and 47% debt, for a weighted average rate of return of 7.09%.

The order also approved the recovery of certain deferred COVID-related costs over six years with no return on the unamortized balance during the deferral and amortization periods.

Duke Energy Progress ( DUK) will implement revised Year 1 rates and residential decoupling on October 1.

Last week, Duke Energy ( DUK) filed its Carbon Plan Integrated Resource Plan with North Carolina regulators, including a proposal to build a new nuclear reactor at its Belews Creek power plant, which would end the facility's decades-long use of coal.