Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - DUKE ENERGY PROGRESS, LLC. | d349605d8k.htm |
 EXHIBIT 99.1
SETTLEMENT AGREEMENT WITH
N.C. UTILITIES COMMISSION PUBLIC STAFF
On
May
8,
2012,
Progress
Energy
Carolinas
and
Duke
Energy
Carolinas
(the
“Companies”)
entered
into a
supplemental settlement agreement with the N.C. Utilities Commission Public Staff
(revising the original agreement dated Sept. 2, 2011).
The agreement, which is subject to N.C. Utilities Commission approval, addresses
certain state regulatory issues
related
to
the
revised
FERC
mitigation
plan
and
clarifies
provisions
of
the
original
settlement
agreement.
Key Settlement Terms
Estimated Cost
Permanent
Mitigation
For five years following merger close, the Companies will not seek recovery of
costs for the
transmission
projects;
such
recovery
may
be
requested
after
five
years
~$110 MM
Interim
Mitigation
The Companies will not seek recovery of losses and costs associated with interim
mitigation power sales agreements
~$40 -
$50 MM
During interim mitigation period, the Companies will reduce rates to reflect the
plant capacity no longer available to retail customers
~$70 MM
Joint
Dispatch and
Fuel
The
Companies
will
continue
to
guarantee
$650 million
in
fuel
and
joint
dispatch
savings
for
Carolinas
retail
customers,
but
have
up
to
18
additional
months
beyond
the original
five-
year
timeframe
to
achieve
these
savings
if
decreases
in
natural
gas prices significantly
reduce coal burn at certain plants
--
Other
The Companies will not seek recovery of N.C. allocable portion of
merger-related employee severance costs (total combined company costs
estimated at $220-230 million) N.C. allocable
portion TBD
•The Companies may request recovery of capital investments associated with
achieving fuel blending savings
•
The Companies may request recovery of reagent costs associated with
achieving fuel blending savings |