Duke Energy Carolinas files N.C. rate increase request

            Duke Energy Carolinas files N.C. rate increase request

PR Newswire

CHARLOTTE, N.C., Feb. 4, 2013

CHARLOTTE, N.C., Feb. 4, 2013 /PRNewswire/ -- Duke Energy Carolinas today
filed a request with the North Carolina Utilities Commission (NCUC) to
increase electric rates by approximately $446 million, for an overall increase
of 9.7 percent.

(Logo: http://photos.prnewswire.com/prnh/20040414/DUKEENERGYLOGO )

More than 90 percent of the request is driven by capital investments that Duke
Energy Carolinas has made in the electric system that serves 1.9 million
households and businesses in North Carolina.

"As part of our ongoing fleet-modernization plan, we have recently built and
put into service two new state-of-the art power plants that will provide
cleaner air and serve our customers reliably for decades to come," said Paul
Newton, Duke Energy state president – North Carolina.

"The new natural gas plant at Dan River does the job of three older, less
efficient coal plants that we will now retire," Newton said. "And it does so
with significantlylower emissions. Advanced technology at the Cliffside Steam
Station in Mooresboro, completed at the end of 2012, removes more than 99
percent of sulfur dioxide emissions and 90 percent of nitrogen and mercury
emissions."

The following chart illustrates the proposed rate increase by customer class:

Customer Class                Average Rate Increase Percentage
Residential                   11.8%
Commercial                    9.6%
Industrial                    5.3%
Lighting                      5.4%
This table shows the average impact of the proposed changes for each customer
class. The specific increase or decrease to individual customers will vary
depending upon the rates they pay and other factors.

Today, a residential customer who uses 1,000 kilowatt-hours (kWh) of
electricity per month pays $102.72. If the company's rate increase is approved
as filed, that bill will increase by $14.27.

"Electric service for our customers is an excellent value. For our typical
customers, the daily cost of powering their homes is somewhere between the
price of a gallon of gas and a latte from a coffee shop," Newton said. "Even
with the proposed increase, Duke Energy Carolinas' rates would remain well
below the national average. When adjusted for inflation, our customers are
still paying less for electricity than they did in 1991."

Why Raise Rates?

The proposed rate increase is needed to begin paying the company back for
money it has already invested in new cleaner, more efficient power plants and
equipment and to comply with increasing state and federal regulations.

Examples of Duke Energy's electric system investments include:

  oDan River Combined Cycle Station in Eden, N.C. — This 620-megawatt unit
    uses cleaner, lower-cost natural gas to replace a similar amount of older,
    less efficient coal-fired generation. The capital cost included in this
    rate case is $673 million.
  oCliffside Steam Station Unit 6 in Mooresboro, N.C. — This 825-megawatt
    coal plant employs state-of-the-art emission controls to remove 99 percent
    of sulfur dioxide, 90 percent of nitrogen oxides and 90 percent of
    mercury. The high-efficiency technology burns less coal per megawatt-hour
    of electricity generated than most other coal units in the nation. The
    capital cost included in this rate case is $863 million.
  oOconee Nuclear Station, Oconee County, S.C. — New safety and security
    measures have been installed to continue to protect the plant from extreme
    conditions or a natural disaster. The Oconee plant is a safe and efficient
    source of carbon-free electricity generation. The capital cost included in
    this rate case is $448 million.
  oMcGuire Nuclear Station, Mecklenburg County, N.C. — Upgrades have been
    made to the facility to make it more efficient and increase the amount of
    carbon-free electricity it produces. The capital cost included in this
    rate case is $203 million.

In addition to the investments in new generation, the rate request also seeks
to pay items such as a new storm reserve fund and industrywide security
upgrades.

"We are committed to minimizing the impact of increased costs on our
customers," Newton said. "We offer a number of energy-efficiency programs and
assistance for low-income customers. Since 1985, our Share the Warmth Program
has given more than $33 million to low-income customers for heating bills
during the winter season."

Since the company's 2011 rate case, Duke Energy Carolinas and its customers,
employees and shareholders have provided total funding of approximately $1.5
million to these programs through the Duke Energy Foundation, in addition to
an $11 million donation stemming from the company's last rate case.

Customers can help control their energy costs with efficiency programs. Learn
more at http://www.duke-energy.com/youtility/

The company's request proposes an allowed return on common equity (ROE) of
11.25 percent (the current allowed ROE in North Carolina is 10.5 percent) with
a 53 percent common equity component. The allocation of North Carolina retail
rate base is expected to be approximately $12 billion through the date of the
hearings.

For more details on the company's request to increase rates, visit
duke-energy.com.

Additional Information
The testimony filed in support of the company's request can be viewed at the
NCUC website (search using Docket No. E-7, Sub 1026).

Photos of some of the capital investments made in the Carolinas electric
system can be downloaded from Flickr.

Duke Energy Carolinas
Duke Energy Carolinas owns nuclear, coal-fired, natural gas and hydroelectric
generation. That diverse fuel mix provides 20,292 megawatts of electricity
capacity to approximately 2.4 million customers in a 22,000-square-mile
service area of North Carolina and South Carolina. 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 on the Internet at duke-energy.com.

MEDIA CONTACTS:
Lisa Parrish

Sharon Hall
24-Hour:        800-559-3853
ANALYSTS:
Bob Drennan     704-382-4070

Bill Currens    704-382-1603



SOURCE Duke Energy

Website: http://www.duke-energy.com