...August 22, 2023 What's new: Duke Energy Progress LLC (DEP) received approval for its 2022 multiyear general electric rate-case settlement from the North Carolina Utilities Commission (NCUC), which we view as credit supportive. The multiyear rate plan authorizes a revised historical base revenue increase of $136 million, a $98 million increase in year one, an incremental increase of $126 million in year two, and a $135 million increase in year three for a total of $494 million over the duration of the plan. The company will implement the year-one rates on Oct. 1, 2023. Why it matters: We view DEP's multiyear rate case approval as supportive of its credit quality and expect that it will maintain its current financial measures despite robust capital spending. The multiyear rate increase will reduce the company's regulatory lag and we expect it will be able to generally earn close to its 9.80% return on equity (ROE) during the next three years. Additionally, the approval raised DEP's ROE by...
