Unanticipated Comprehensive Settlement in DEC NC Case Helps De-Risk Story

研报英文原文证据摘录

Unanticipated Comprehensive Settlement in DEC NC Case Helps De-Risk Story

July 19, 2026 | 18:51 ET~

Duke Energy

DUK-NYSE Rating Price: Jul-17 Target ↓ Total Rtn Utilities, Power & Renewables

Outperform $125.01 $134.00 11%

James M. Thalacker Analyst

james.thalacker@bmo.com (347) 668-8970

Edward M DeArias, CFA VP Associate

Unanticipated Comprehensive Settlement in DEC NC edward.dearias@bmo.com (347) 274-1556

Holly Rohlfs Senior AssociateCase Helps De-Risk Story

holly.rohlfs@bmo.com (332) 274-9870

Bottom Line: Ethan Corcoran Senior Associate

Friday, a settlement resolving all remaining revenue requirement issues was filed in ethan.corcoran@bmo.com (347) 839-1752

DEC NC's rate case, with Staff and several intervenors among the stipulating parties. Legal Entity: BMO Capital Markets Corp.

The settlement reflects a revised revenue requirement of $496mm (50% of the

2YR Price Volume Chart

original $1,002mm request and 80% of the company's revised $622mm request). 150

We view this as a positive surprise as we believe most investors (and ourselves) were 140

likely not expecting a comprehensive settlement given that evidentiary hearings had 130

commenced on July 7. We remain Outperform. Our SOTP/MTM moves to $134. 120 10

Key Points 100 9876543210

Jan Jul Jan Jul

The settlement included a 9.8%/53% ROE/equity layer, which is modestly below DEC's LHS: Price ($) / RHS: Volume (mm) Source: FactSet

current 10.1%/53.0% and the revised request's 10.48%/53.00%. However, while the Company Data in $

stipulated ROE is below DEC's current authorized ROE, we note that it is now inline

Dividend $4.34 Shares O/S (mm) 779.6

with DEP's current 9.8% ROE.

Yield 3.5% Market Cap (mm) $97,458

Importantly, we believe this could provide a positive read-through for stakeholders