Notice of Application for Rider Rate Adjustments and Public Hearing Docket No. E-2, Sub 1396 Duke Energy Progress, LLC’s Application for Annual Adjustment of Performance-Based Regulation Riders – Rate Year 2 ------------------------------------------------------------- Why am I receiving this notice? On December 1, 2025, Duke Energy Progress, LLC (DEP), filed an application with the North Carolina Commission (Commission) requesting approval of updates to the Performance-Based Regulation Utilities (PBR) rider rates charged to customers. PBR rider rates are reviewed and updated each year by the Commission to determine whether amounts should be collected from or refunded to customers. These costs or refunds include those related to the: 1. Residential Decoupling Mechanism (RDM), which determines whether DEP has over- or undercollected revenue compared to the annual revenue requirement per residential customer, and collects from or returns to customers the amount of any deviation from the annual revenue requirement; 2. Earnings Sharing Mechanism (ESM), which identifies whether DEP’s earnings exceed the level approved in the last general rate case, and if so, allocates a portion to customers; and 3. Performance Incentive Mechanisms (PIM), which provide DEP with financial incentives or penalties based on its performance on certain measurable consumer, utility system, or public policy outcomes. Below is a summary of DEP’s proposed PBR rider rates, that if approved, would be applicable for the billing period of April 1, 2026, through March 31, 2027. Rider Residential Small General Medium General Service Service Large General Service Lighting Requested % Requested % Requested % Requested % Requested % Rate Change Rate Change Rate Change Rate Change Rate Change RDM (cents 0.243 4.6% NA NA NA NA per kWh) ESM (cents -0.012 N/A -0.012 N/A -0.012 N/A -0.012 N/A -0.012 N/A per kWh) PIM (cents 0.005 150% 0.005 150% 0.005 150% 0.005 150% 0.005 150% per kWh) For residential customers, compared to the PBR rider rates currently in place for the billing period of April 1, 2025, through March 31, 2026, DEP’s request, if approved, would result in an increase or (decrease) per kilowatt-hour (kWh) of $0.00011 for RDM; $(0.00012) for ESM; and $0.00003 for PIMs. For a residential consumer using 1,000 kWh per month, this would equate to a monthly bill increase of $0.02, or 0.01% including all rider rates and base rates. What are PBR rider rates? A typical residential bill is comprised of several components, including the Summary of Rider Adjustments, which recovers the costs for fuel and fuel-related expenses, demand-side management and energy efficiency programs, operating costs from jointly owned generation assets, the competitive procurement of renewable energy, and the PBR riders. The PBR Rider charges within the Summary of Rider Adjustments are changing as a result of this proceeding. This charge is calculated based on how much electricity you use, measured in kilowatt-hours, or kWh (and, in some cases, the rate at which you use electricity, measured in kilowatts or kW). To learn more about each of these components, visit duke-energy.com/home/billing/ reading-your-bill. When will my rates change? Your rates will not change immediately. The Commission has scheduled the request for rider rate changes for investigation and hearing. The Commission should make its final determination as to DEP’s requested rider rates in March 2026, and the approved new rider rates should go into effect on or around April 1, 2026. You will receive another notice when the final rider rates are set indicating when the new rider rates will go into effect. How can I participate? Your input on DEP’s request can help the Commission make an informed decision. You may (but are not required to) participate in several ways, including: Option A: You can file a written consumer statement of position in the respective docket by visiting ncuc. gov/contactus.html. The docket number must be included and is listed at the top of this notice. Option B: You can testify at the public hearing. Your testimony will become part of the evidence the Commission considers in making its decision. For helpful tips on how to give public witness testimony, visit ncuc.gov/documents/ncucbrochure.pdf. A public hearing will take place at the following location: MONDAY, FEBRUARY 9, 2026 AT 1:30 PM 430 N. SALISBURY STREET ROOM 2115 RALEIGH, NC 27603 If there are no complaints or contested issues between the parties, the public witness hearing may be canceled. Please note that, at the public hearing, the Commissioners cannot answer questions. However, representatives from DEP and from the Public Staff (the consumer advocate) will be available to answer questions before and after the hearing, and the Public Staff can answer questions before the hearing about how to testify. Who can I talk to about these applications? The Public Staff represents customers in proceedings before the Commission. The Public Staff has a team of engineers, accountants, economists, and lawyers reviewing DEP’s request and is scheduled to file its analysis outlining its recommendations by January 30, 2026. You can contact the Public Staff by mail at 4325 Mail Service Center, Raleigh, NC 27699-4300. Where can I find more information? DEP’s application was filed pursuant to North Carolina General Statute Section 62-133.16 (ncleg.net/ enactedlegislation/statutes/html/bychapter/chapter_62.html) and Commission Rule R1-17B (https://www. ncuc.gov/ncrules/rulstoc.html). You can find the materials filed by DEP and other parties and orders issued by the Commission in this proceeding by typing the docket number (located at the top of this notice) into the Docket Number entry at the following website: starw1.ncuc.gov/NCUC/page/Dockets/portal.aspx. You can find out more about the Public Staff at publicstaff.nc.gov. You can find out more about DEP at duke-energy.com.