Duke Energy Progress LLC

Overview Key strengths Key risks Duke Energy Progress LLC (DEP) is a lower-risk, vertically integrated utility with regulatory diversity in North and South Carolina. DEP?s service territory is exposed to hurricanes and severe storms, which is partially offset by storm securitization legislation that permits recovery for certain storm recovery costs. DEP provides electric service to approximately 1.7 million customers, which supports cash flow stability. The parent?s clean energy transformation strategy could result in elevated capital spending for DEP for the next several years. As DEP?s parent Duke Energy Corp. executes on a clean energy transformation strategy, S&P Global Ratings thinks such move could reduce DEP?s environmental risk exposure over the long term. Negative discretionary cash flow throughout our forecast indicates

...We expect DEP to continue to effectively manage regulatory risk. In August 2023, DEP received approval for its 2022 multiyear general electric rate-case settlement from the North Carolina Utilities Commission (NCUC). We view the multiyear rate case plan in North Carolina as credit supportive and will help reduce regulatory lag. The rate plan authorizes a revised historical base revenue increase of $136 million, a $98 million increase in year one, an increase...

Full Report