Duke Energy (DUK) Unit Settles with NCPS; Base Rate to Increase by $310M
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Price: $99.03 +0.07%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 4.4%
EPS Growth %: +14.2%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 4.4%
EPS Growth %: +14.2%
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Duke Energy (NYSE: DUK) Carolinas has reached an agreement with the North Carolina Public Staff in the utility's request to raise base rates in North Carolina.
Detail:
"The settlement increases customer base rates by approximately $310 million. The rate increase is based upon a 10.5 percent return on equity (ROE) and a 53 percent equity component of the capital structure. In order to mitigate the customer rate impact due to the challenging economic environment, Duke Energy Carolinas is agreeing to defer approximately $51 million in 2012 related to construction work in progress (CWIP) cash recovery. Another adjustment will reduce the bottom line impact to customers by an additional $8 million.
The company also agrees to contribute $11 million of shareholder money to its Share the Warmth program to help low income residents in North Carolina with their energy-related costs.
The agreement must be reviewed and approved by the North Carolina Utilities Commission (NCUC). A hearing before the NCUC on the proposed rate increase is scheduled to commence on Nov. 28. If approved, beginning in February 2012, electric rates will increase by an average of 7.2 percent for each customer class."
Detail:
"The settlement increases customer base rates by approximately $310 million. The rate increase is based upon a 10.5 percent return on equity (ROE) and a 53 percent equity component of the capital structure. In order to mitigate the customer rate impact due to the challenging economic environment, Duke Energy Carolinas is agreeing to defer approximately $51 million in 2012 related to construction work in progress (CWIP) cash recovery. Another adjustment will reduce the bottom line impact to customers by an additional $8 million.
The company also agrees to contribute $11 million of shareholder money to its Share the Warmth program to help low income residents in North Carolina with their energy-related costs.
The agreement must be reviewed and approved by the North Carolina Utilities Commission (NCUC). A hearing before the NCUC on the proposed rate increase is scheduled to commence on Nov. 28. If approved, beginning in February 2012, electric rates will increase by an average of 7.2 percent for each customer class."
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