Notice of Applications for Rider Rate Adjustments and Public Hearing Docket No. E-2 Sub 1397 Application of Duke Energy Progress, LLC, for Approval of Joint Agency Asset Rider Docket No. Application of Duke Energy Progress, LLC, for Approval to Fuel and Fuel-Related Charge E-2 Sub 1398 Adjustments for Electric Utilities Docket No. E-2 Sub 1399 Application of Duke Energy Progress, LLC, for Approval of CPRE Cost Recovery Rider Docket No. E-2 Application of Duke Energy Progress, LLC, for Approval of Clean Energy and Energy Efficiency Portfolio Sub 1400 Standard (CEPS) Compliance Report and Cost Recovery Rider Docket No. E-2 Application of Duke Energy Progress, LLC, for Approval of Demand Side Management/ Sub 1401 Energy Efficiency (DSM/EE) Rider ------------------------------------------------------------- Why am I receiving this notice? On June 9, 2026, Duke Energy Progress, LLC (DEP), filed applications with the North Carolina Utilities Commission (Commission) to approve updates to the rider rates charged to customers. Rider rates are reviewed and updated each year by the Commission to ensure only reasonable and necessary costs are recovered. These costs include: 1) Fuel and fuel-related costs (including the cost of fuel used to generate electricity, transporting that fuel, and chemicals used to reduce or treat emissions) and the cost of purchased power. 2) Expenses for new demand-side management and energy efficiency (DSM/EE) measures and programs, including capital costs, administrative costs, implementation costs, incentive payments to program participants, operating costs, and incentives for utilities to adopt and implement new DSM/EE programs; 3) Compliance with North Carolina’s Clean Energy and Energy Efficiency Portfolio Standard (CEPS), which requires electric public utilities to meet a portion of their North Carolina retail sales through the generation or purchase of clean energy or energy efficiency measures; 4) Compliance with the requirement for DEP to implement a Competitive Procurement of Renewable Energy (CPRE) program to add renewable energy to the State’s generation portfolio in a manner that allows electric public utilities to reliably and cost effectively serve customers’ future energy needs; and 5) The purchase of ownership interests in and operation of power plants through a joint agency asset rider (JAAR). Below is a summary of the proposed rider rates (inclusive of a regulatory fee) that would result from these applications (note that numbers contained in parentheses represent a decrease). These rider rates, if approved, will be applicable for the billing period of December 1, 2026, through November 30, 2027, except that the DSM/EE rates will be applicable for the billing period of January 1, 2027, through December 31, 2027. DEP must prove to the Commission that the requested rider rates are reasonable and prudent. RESIDENTIAL SMALL GENERAL MEDIUM GENERAL LARGE GENERAL SERVICE SERVICE SERVICE LIGHTING Rider Requested % Requested % Requested % Requested % Requested % Rate Change Rate Change Rate Change Rate Change Rate Change Fuel (¢/kWh) 3.5107 (2.3%) 2.9851 (3.5%) 2.9887 (1.5%) 2.5404 (11.0%) 3.2359 (9.7%) DSM/EE (¢/kWh) 1.1371 47.9% 0.7154 198.1% 0.7154 198.1% 0.7154 198.1% 0.0095 (13.6)% CPRE (¢/kWh) 0.0145 1,350.0 % (0.0013) (113.0)% 0.0144 820.0% 0.0113 465.0% 0.0142 184.0% JAAR (¢/kWh) 0.5292 14.1% 0.2242 0.5% 0.5716 39.1% 0.9358 (32.6%) JAAR ($/kW) $1.01 9.8% 3.36 10.9% RESIDENTIAL COMMERCIAL INDUSTRIAL Rider Requested % Requested % Requested % Rate Change Rate Change Rate Change CEPS ($ per customer per month) $1.76 (2.8%) $9.84 (2.4%) $61.13 (10.4%) For residential customers, compared to the rider rates currently in place for the billing period of December 1, 2026, through November 30, 2027, DEP’s request, if approved, would result in a decrease of 0.0821 for fuel (¢/kWh); a decrease of $0.05 for CEPS ($/customer/ month); an increase of 0.0135 for CPRE (¢/kWh); and an increase to 0.0652 for JAAR (¢/kWh). Also, for residential customers, compared to the DSM/EE rider rates currently in effect for the billing period of January 1, 2027, through December 31, 2027, DEP’s request, if approved, would result in an increase of 0.3681 (¢/kWh). For a residential consumer using 1,000 kWh per month, all together (and exclusive of any other rate changes approved outside of these proceedings), these changes, if approved, would equate to a monthly bill increase of $3.61, or 2.1%, which is based on all rider rates and base rates currently in effect. What are electric rider rates? A typical residential bill has several components, including: · The Basic Customer Charge, which recovers the costs of providing service to a customer, regardless of how much electricity the customer used; · 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 its 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, and the competitive procurement of renewable energy. It is this charge that is changing as a result of these proceedings; · The Clean Energy and Energy Efficiency Portfolio Standard (CEPS) Rider, which recovers the costs of clean energy that are above the cost of non-renewable energy that DEP is required by law to make; and · State sales tax, which applies 7% to the total of the other charges. The Energy, Storm Recovery, and Summary of Rider Adjustments charges are calculated based on how much electricity you use, measured in kilowatt-hours (kWh) (and, in some cases, the rate at which you use electricity, measured in kilowatts (kW)), while the Basic Customer and CEPS 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. When will my rates change? Your rates will not change immediately. The Commission has scheduled the requests for rider rate changes for investigation and hearing The Commission will hold a hearing to receive expert witness testimony on September 15, 2026, with a decision to follow. The approved new rider rates will go into effect on or around December 1, 2026. DEP’s DSM/EE rates should go into effect on or around January 1, 2027. 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 requests 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 dockets by visiting ncuc.gov/contactus.html. The docket number(s) must be included and are 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. A public hearing will take place at the following location: September 15, 2026, at 10:00 a.m. Commission Hearing Room 2115 430 North Salisbury Street Raleigh, North Carolina 27603 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. In addition, the Commission will hold hearings solely for the purpose of receiving expert witness testimony from the parties’ witnesses in these proceedings in the same room immediately after the Public Hearing has ended. If you’re interested in watching the expert witness hearings, you can observe in person or you can watch it on the Commission’s YouTube channel, which can be located at youtube.com/@NCUtilitiesCommission. If there are no complaints or contested issues between the parties, the public and expert witness hearings may be canceled. 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 requests and is scheduled to file its testimony or affidavits outlining its recommendations by August 25, 2026. You can contact the Public Staff by mail at 4325 Mail Service Center, Raleigh, North Carolina 27699-4300. . Where can I find more information? DEP’s applications were filed pursuant to the following legal authorities: Proceeding North Carolina General Statute Commission Rule or Order Fuel Chapter 62, Section 133.2 R8-55 DSM/EE Chapter 62, Section 133.9 R8-69 CEPS Chapter 62, Section 133.8 R8-67 CPRE Chapter 62, Section 110.8 R8-71 JAAR Chapter 62, Section 133.14 R8-70 You can find the materials filed by DEP and other parties and orders issued by the Commission in this proceeding by typing the respective docket numbers (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.