The settlement includes a significant reduction in the rate increase to customers, while providing a fair return for the company's investors, according to Duke Energy.
Under the terms of the settlement, the increase to the company's revenue is reduced to about $205 million in the first two years, with customer rates increasing an additional $30 million (for a cumulative increase of about $235 million) beginning in year three.
Duke Energy originally requested an average increase in retail revenues of 9.7 percent or about $446 million. The company has agreed to implement the rate increase over time.
During the first two years, the average increase will be about 4.5 percent. After that, rates will increase by an additional 0.6 percent for a total average increase of about 5.1 percent.