Notice of Application for General Rate Increase and Public Hearings Docket No. E-2 Sub 1380 Application by Duke Energy Progress, LLC, for Adjustment of Rates and Charges Applicable to Electric Utility Service in North Carolina and Performance-Based Regulation Why am I receiving this notice? On November 20, 2025, Duke Energy Progress, LLC (DEP), filed an application with the North Carolina Utilities Commission (Commission) requesting authority to increase the base rates it charges to its customers for retail electric service in North Carolina. DEP seeks a total revenue requirement increase of $742 million (including base rates and the impact of certain riders, as described below), which would be an increase over a two-year period of approximately 15% over current base rates. DEP must prove to the Commission that the requested rates are reasonable and prudent. Rate Year 1 would be effective from January 1, 2027, through December 31, 2027. Rate Year 2 would be effective from January 1, 2028, through December 31, 2028. If approved, DEP’s requested increase would result in the following: Summary of Requested Electric Revenue Requirement Changes (in Thousands) Customer Class Present Base Revenues ($) Rate Year 1 Revenue Increase Over Current Rates* Rate Year 2 Revenue Increase Over Rate Year 1* $ % $ % Residential $2,470,322 $382,062 15.5% $111,854 3.9% Small General Service $299,752 $32,436 10.8% $15,213 4.6% Medium General Service $1,001,881 $71,574 7.1% $44,210 4.1% Large General Service $595,296 $36,889 6.2% $23,382 3.7% Lighting $134,478 $19,053 14.2% $5,630 3.7% Total Revenue / Increase $4,501,729 $542,013 12.0% $200,289 4.0% * Including revenues associated with the proposed base fuel rate, adjustment to the Joint Asset Agency Rider, and creation of Production Tax Credit and Bulk Power Marketing riders, as indicated below. Why is DEP seeking a rate increase? DEP states that its request is driven by investments made by DEP since its 2022 rate case, including: 1. Investments in its generation fleet to support long-term reliability and resource adequacy; 2. Investments in distribution and transmission projects aimed at modernizing and improving the reliability and resiliency of the grid; 3. Investments in generation projects that maximize the value of existing assets and provide DEP flexibility to operate the system reliably; 4. Costs associated with coal ash basin closure to adhere to environmental laws, rules, and regulations; 5. Supply-side investments that will contribute toward maintaining, improving, and adding to DEP’s diversified resource portfolio; and 6. Investments in traditional and renewable generation fleets and new storage assets. DEP is also requesting (1) certain accounting treatments for its coal ash closure costs; (2) certain accounting treatments for its coal plants; (3) the establishment of a storm reserve fund; (4) the establishment of a pension rider; (5) certain accounting treatments intended to return overrecovered and collect underrecovered amounts to customers in a Regulatory Asset and Liability rider; (6) moving certain charges associated with DEP’s Joint Agency Asset Rider from a standalone rider to base rates; (7) the establishment of a Production Tax Credit rider; and (8) the establishment of a Bulk Power Marketing rider to return to customers any earnings from the sale of excess power or transmission capacity. Furthermore, DEP requests a rate of return on common equity of 10.95%. This number is the return customers pay investors on DEP’s capital investment, expressed as a percentage. Finally, DEP requests approval of Performance Based Regulation (PBR), which includes, in part: 1. A Residential Decoupling Mechanism (RDM) that would distribute to or collect from residential customers amounts based on any difference between actual and target revenues per residential customer established in this case; 2. A Multiyear Rate Plan, which increases base rates each year to reflect net costs associated with certain capital investments projected to go into service during the two-year PBR period; 3. An Earnings Sharing Mechanism (ESM) that would require sharing of earnings if DEP earns above a certain amount each year of the two-year PBR period; and 4 Performance Incentive Mechanisms (PIMs) that would penalize or reward DEP based on its achievement of, or failure to achieve, Commission-approved policy goals. What are base rates? A typical residential bill has several components, including: · Base Rates, which include: o The Basic Customer Charge, which recovers the costs of providing service to a customer, regardless of how much electricity the customer used; and o The Energy Charge, which is the cost of the electricity a customer used during the billing period; · The Storm Recovery Charge, which recovers the costs to restore power after damage to the system following major storms; · The Summary of Rider Adjustments, which recovers the costs for fuel and fuel-related costs, demand-side management and energy efficiency program costs, generation assets, the competitive procurement of renewable energy, a customer assistance program, the RDM, and the PIMs. Where applicable, DEP will also refund customers for the RDM, ESM, PIMs, excess deferred income tax, and any overcollection of riders. · The Clean Energy Rider, which recovers the costs of clean energy that are above the cost of non-renewable energy that DEP is required by law to incur; and · State sales tax, which applies 7% to the total of the other charges. DEP is requesting to update base rates (the Basic Customer and Energy Charges) and make changes to the Summary of Rider Adjustments charge as part of this proceeding. DEP is not requesting to update the other charges in this proceeding for Schedule RES. The Energy, Storm Recovery, and Summary of Rider Adjustments charges are 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), while the Basic Customer and Clean Energy Rider charges are the same amount for every customer depending on the customer’s class (residential, commercial, or industrial). To learn more about each of these components, visit duke-energy.com/home/billing/reading-your-bill. If DEP’s request is approved, how will it impact my bill? The proposed total monthly bill for a residential customer on Schedule RES using 1,000 kWh per month, including base rates and all such rate riders as currently approved would be as follows: Year Before Increase After Increase Change ($/Month) Change (%) Rate Year 1 $163.84 $185.94 $22.07 13.5% Rate Year 2 $185.94 $192.50 $6.59 5% The proposed total monthly bill for a nonresidential general or industrial service customer served under one of the schedules listed below, including base rates and all such rate riders as currently approved would be as follows for the specific customers using the levels of demand and energy service under specific schedules: Schedule SGS using 25 kW Demand and 2,000 kWh Year Before Increase After Increase Change ($/Month) Change (%) Rate Year 1 $290.83 $322.83 $32.00 11.0% Rate Year 2 $322.83 $338.18 $15.36 5.3% Schedule MGS using 500 kW demand and 200,000 kWh Year Before Increase After Increase Change ($/Month) Change (%) Rate Year 1 $20,412.32 $22,402.32 $1,900 9.7% Rate Year 2 $22,402.32 $23,305.32 $993 4.4% Schedule LGS using 10,000 kW demand and 5,800,000 kWh Year Before Increase After Increase Change ($/Month) Change (%) Rate Year 1 $518,572.25 $586,252.25 $67,680 13.1% Rate Year 2 $586,252.25 $606,428.25 $20,176 3.8% When will my rates change? Your rates will not increase immediately. The Commission has scheduled DEP’s request for investigation and hearing. The Commission should make its final determination as to DEP’s requested increase in November 2026, and the approved new rates should go into effect on or around January 1, 2027. You will receive another notice when the new rates are determined indicating when they will go into effect. How can I participate? Your input on DEP’s requested increase 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 docket by visiting ncuc.gov/contactus.html. Please include the docket number that is listed at the top of this notice. Option B: You can testify at a 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. Public hearings will take place as follows: Date & Time Location Town/City March 30, 2026, at North Carolina Utilities Commission, Room 2115 430 North Salisbury Street Raleigh, North Carolina 27603 7:00 p.m. March 31, 2026, at Robeson County Courthouse 500 North Elm Street Lumberton, North Carolina 28359 7:00 p.m. April 6, 2026, at Greene County Courthouse 301 North Greene Street Snow Hill, North Carolina 28580 7:00 p.m. April 13, 2026, at Person County Courthouse 105 South Main Street Roxboro, North Carolina 27573 7:00 p.m. April 14, 2026, at Haywood County Courthouse 285 North Main Street Waynesville, North Carolina 28786 7:00 p.m. April 1, 2026, at On-line* 6:30 p.m. Please note that, at the public hearings, 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. In addition, the Commission will hold a hearing solely for the purpose of receiving expert witness testimony from the parties’ witnesses in this proceeding on August 11, 2026, at 10:00 a.m. If you’re interested in watching the expert witness hearing, you can observe in person or you can watch it on the Commission’s YouTube channel, which can be located at youtube.com/@NCUtilitiesCommission. Who can I talk to about this petition? 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 requested increase and is scheduled to file its testimony outlining its recommendations by July 9, 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 the following legal authorities: North Carolina General Statute Chapter 62, Sections 133 and ncleg.net/enactedlegislation/statutes/html/bychapter/chapter_62.html 133.16 Commission Rule R1-17 and R7-17B 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 “E-2 Sub 1380” into the Docket Number entry at the following website: starw1.ncuc.gov/NCUC/ page/Dockets/portal.aspx. You can learn more about the Public Staff at publicstaff.nc.gov. You can learn more about DEP at duke-energy.com.