Duke Energy Reaches Settlement Agreement with NCUC Staff and NC Public Staff
CHARLOTTE, N.C., Nov. 29, 2012
CHARLOTTE, N.C., Nov. 29, 2012 /PRNewswire/ -- Duke Energy (NYSE: DUK)today
announced that it has filed a settlement agreement with the North Carolina
Utilities Commission (NCUC).
(Logo: http://photos.prnewswire.com/prnh/20040414/DUKEENERGYLOGO )
This agreement was reached between Duke Energy, the staff of the NCUC and the
North Carolina Public Staff.
Following approval, the agreement would resolve all issues related to the
matters under review by the NCUC regarding Duke Energy's change in president
and chief executive officer following the close of the merger between Duke
Energy Corp. and Progress Energy Inc. on July 2, 2012.
"This settlement agreement is an important step forward for the company
because it resolves one of our key near-term priorities: bringing closure to
the NCUC merger review process," said Jim Rogers, chairman, president and CEO.
"We are already delivering significant benefits from the merger for our
customers and investors and are well-positioned for the future as a stronger,
more efficient organization."
Under the agreement, which is subject to approval by the NCUC, Duke Energy
agrees to the following key provisions:
oProviding additional merger commitments, including: maintaining at least
1,000 employees in Raleigh, N.C.; guaranteeing an additional $25 million
in fuel and fuel-related cost savings to North Carolina customers; and
making $5 million in additional contributions to support workforce
development and low-income assistance in North Carolina
oMaking certain personnel changes, including moving Lloyd Yates, currently
executive vice president, customer operations, into the position of
executive vice president, regulated utilities, and appointing a new
oCreating a special committee of the board to oversee the recommendation of
a successor to Rogers upon his retirement, and the search for two new
oAgreeing to defer filing a general rate case by Duke Energy Carolinas, LLC
in North Carolina until February 2013, with the understanding that it will
be allowed to defer the depreciation and operation costs of new generation
incurred from the commercial operation of such new generation until the
effective date of new base rates
oRetaining the former general counsel of Progress Energy Inc. to advise the
company for two years on regulatory and legislative matters in North
The parties agreed that the settlement agreement does not constitute and
should not be construed as an admission or acknowledgement of any illegal or
improper acts by Duke Energy.
The current general counsel as well as the company's executive vice president,
regulated utilities, will assume new leadership roles to be announced
following the NCUC's approval of the settlement agreement.
Duke Energy will provide proportional fuel, fuel-related, workforce and
low-income assistance financial benefits to its South Carolina customers.
These are in addition to and consistent with recent merger-related commitments
to customers in the state and are expected to total between $8 and $9 million.
A full copy of the settlement agreement is available on the NCUC website,
under docket E-7, Sub 1017, at the following address:
About Duke Energy
Duke Energy is the largest electric power holding company in the United States
with more than $100 billion in total assets. Its regulated utility operations
serve approximately 7.1 million electric customers located in six states in
the Southeast and Midwest. Its commercial power and international business
segments own and operate diverse power generation assets in North America and
Latin America, including a growing portfolio of renewable energy assets in the
Headquartered in Charlotte, N.C., Duke Energy is a Fortune 250 company traded
on the New York Stock Exchange under the symbol DUK. More information about
the company is available at: www.duke-energy.com.
This release includes forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Forward-looking statements are based on management's beliefs and
assumptions. These forward-looking statements are identified by terms and
phrases such as "anticipate," "believe," "intend," "estimate," "expect,"
"continue," "should," "could," "may," "plan," "project," "predict," "will,"
"potential," "forecast," "target," "guidance," "outlook" and similar
expressions. Forward-looking statements involve risks and uncertainties that
may cause actual results to be materially different from the results
predicted. Factors that could cause actual results to differ materially from
those indicated in any forward-looking statement include, but are not limited
to: state, federal and foreign legislative and regulatory initiatives; the
ability to maintain relationships with customers, employees or suppliers; the
impact of compliance with material restrictions or conditions imposed by
regulators; and costs and effects of legal and administrative proceedings,
settlements, investigations and claims.
Additional risks and uncertainties are identified and discussed in Progress
Energy's and Duke Energy's reports filed with the SEC and available at the
SEC's website at www.sec.gov. In light of these risks, uncertainties and
assumptions, the events described in the forward-looking statements might not
occur or might occur to a different extent or at a different time than Duke
Energy has described. Duke Energy undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
MEDIA CONTACT: Tom Williams
Bob Drennan 704-382-4070
Bill Currens 704-382-1603
SOURCE Duke Energy
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