(RTTNews) - Tuesday, Duke Energy Corporation (DUK: News ) filed a proposed settlement with the Office of Regulatory Staff and the South Carolina Energy Users Committee to raise general rates in South Carolina.

Under the agreement, a general rate increase of $74.1 million or 5.2% is expected. However, additional steps outlined in the proposal reduce the near-term net increase to $24 million or 1.7%.

Duke Energy's proposal will be reviewed by the Public Service Commission of South Carolina in a hearing, beginning on November 30, 2009. If approved, rates are expected to change by Feberuary 1, 2010.

Other highlights of the agreement include, 11% Return on Equity or ROE with rates set at 10.7% and a capital structure of 53% equity and contributions into a storm reserve of $5 million per year up to $50 million. The company has also proposed riders to help reduce customer bills and recover costs associated with higher coal inventories and actual pension cost amounts.
Jim Turner, Duke Energy's group executive, president and chief operating officer of U.S. Franchised Electric and Gas, said, "Since our last general rate increase in 1991, the company has invested more than $12 billion in the energy infrastructure that serves our Carolinas customers. We recover that investment by adjusting the rates we charge. We believe this agreement represents a reasonable and constructive compromise that balances today's unique economic challenges with our obligation to ensure a reliable, affordable and clean energy supply for the future."

DUK is currently trading at $16.52, up $0.06 or 0.36% on the NYSE.

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by RTT Staff Writer

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