Notice of Application for General Rate Increase and Public Hearings Docket No. E-7 Sub 1329 Application by Duke Energy Carolinas, 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 Carolinas, LLC (DEC), 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. DEC seeks a total revenue requirement increase of $1 billion (including base rates and the impact of certain riders, as described below), which would be an increase over a two-year period of approximately 15% over current base rates. DEC must prove to the Commission that the requested rates are reasonable and prudent. Rate Year 1 would be effective from January 1, 2027, through December 31, 2027. Rate Year 2 would be effective from January 1, 2028, through December 31, 2028. If approved, DEC’s requested increase would result in the following: Summary of Requested Electric Revenue Requirement Changes (in Thousands) Customer Class Present Base Rate Year 1 Revenue Rate Year 2 Revenue Revenues ($) Increase Over Current Increase Over Rate Year Rates* 1* $ % $ % Residential $3,145,791 $446,515 14.2% $148,936 4.1% General Service $1,139,581 $88,434 7.8% $47,899 3.9% Industrial $212,601 $21,049 9.9% $8,727 3.7% Lighting $204,838 $27,889 13.6% $8,265 3.6% OPT $1,633,406 $144,850 8.9% $61,071 3.4% Total Revenue / $6,336,218 $728,737 11.5% $274,898 3.9% Increase * Including revenues associated with the proposed base fuel rate and legacy demand-side management program cost recovery rider, as indicated below. Why is DEC seeking a rate increase? DEC states that its request is driven by investments made by DEC 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 DEC 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 DEC’s diversified resource portfolio; and 6. Investments in traditional and renewable generation fleets and new storage assets. DEC 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 amounts to customers in a Regulatory Asset and Liability rider; (6) moving charges associated with legacy demand- side management programs from a standalone rider to base rates; and (7) continuation and expansion of the Nuclear Production Tax Credit. Furthermore, DEC requests a rate of return on common equity of 10.95%. This number is the return customers pay investors on DEC’s capital investment, expressed as a percentage. Finally, DEC 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 DEC earns above a certain amount each year of the two-year PBR period; and 4. Performance Incentive Mechanisms (PIMs) that would penalize or reward DEC 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, the competitive procurement of renewable energy, legacy demand-side management programs, a customer assistance program, the RDM, and the PIMs. Where applicable, DEC will also refund customers for the RDM, ESM, PIMs, any earnings from the sale of excess power or transmission capacity, nuclear production tax credits, 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 DEC is required by law to incur; and · State sales tax, which applies 7% to the total of the other charges. DEC 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. DEC is not requesting to update the other charges in this proceeding to schedule RS. 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 DEC’s request is approved, how will it impact my bill? The proposed total monthly bill for a residential customer on Schedule RS 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 $144.98 $162.20 $17.22 11.9% Rate Year 2 $162.20 $168.54 $6.34 3.9% The proposed total monthly bill for a nonresidential general or industrial service customer served under one of the schedules listed below, including base rates and all such rate riders as currently approved would be as follows for the specific customers using the levels of demand and energy service under specific schedules: Schedule SGS using 50 kW Demand and 12,500 kWh Year Before Increase After Increase Change ($/Month) Change (%) Rate Year 1 $1,312.51 $1,431.10 $118.58 9.0% Rate Year 2 $1,431.10 $1,493.49 $62.39 4.4% Schedule LGS using 1,000 kW demand and 576,000 kWh Year Before Increase After Increase Change ($/Month) Change (%) Rate Year 1 $47,438.26 $50,785.80 $3,347.54 7.1% Rate Year 2 $50,785.80 $52,647.35 $1,861.55 3.7% Schedule I using 10,000 kW demand and 6,000,000 kWh Year Before Increase After Increase Change ($/Month) Change (%) Rate Year 1 $472,921.54 $514,414.31 $41,492.77 8.8% Rate Year 2 $514,414.31 $532,932.91 $18,518.60 3.6% When will my rates change? Your rates will not increase immediately. The Commission has scheduled DEC’s request for investigation and hearing. The Commission should make its final determination as to DEC’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 DEC’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 April 28, 2026, at 7:00 Burke County Courthouse 201 South Morganton, North Carolina 28655 p.m. Green Street April 29, 2026, at Mecklenburg County Courthouse 832 Charlotte, North Carolina 7:00 p.m. East 4th Street 28802 May 6, 2026, at 7:00 Forsyth County Courthouse 175 North Winston-Salem, North Carolina 27101 p.m. Chestnut Street May 12, 2026, at Durham County Courthouse 501 South Durham, North Carolina 27701 7:00 p.m. Dillard Street April 7, 2026, at 6:30 p.m. On-line* Please note that, at the public hearings, the Commissioners cannot answer questions. However, representatives from DEC 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 July 7, 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 DEC’s requested increase and is scheduled to file its testimony outlining its recommendations by May 29, 2026. You can contact the Public Staff by mail at 4325 Mail Service Center, Raleigh, NC 27699-4300. Where can I find more information? DEC’s application was filed pursuant to the following legal authorities: North Carolina General Statute ncleg.net/enactedlegislation/statutes/html/bychapter/chapter_62.html Chapter 62, Sections 133 and 133.16 Commission Rule R1-17 and ncuc.gov/ncrules/rulstoc.html R7-17B You can find the materials filed by DEC and other parties and orders issued by the Commission in this proceeding by typing “E-7 Sub 1329” 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 DEC at duke-energy.com.