Item 8.01. Other Events.

On January 14, 2021, Duke Energy Florida, LLC ("DEF") filed a Settlement Agreement (the "Settlement") with the Florida Public Service Commission ("FPSC"). The parties to the Settlement include DEF, the Office of Public Counsel, the Florida Industrial Power Users Group, White Springs Agricultural Chemicals, Inc. d/b/a PCS Phosphate, and NUCOR Steel Florida, Inc. (collectively, the "Parties.")

Pursuant to the Settlement, the Parties agreed to a base rate stay-out provision that expires year-end 2024; however, DEF is allowed an increase to its base rates of an incremental $67 million in 2022, $49 million in 2023 and $79 million in 2024, subject to adjustment in the event of tax reform durings the years 2021, 2022 or 2023. The Parties also agreed to a return on equity ("ROE") band of 8.85% to 10.85% with a midpoint of 9.85% based on a capital structure of 53% equity and 47% debt. The ROE band can be increased by 25 basis points if the average 30-year US Treasury rate increases 50 basis points or more over a six-month period, in which case the midpoint ROE would rise from 9.85% to 10.10%. DEF will retain the Department of Energy award of $173 million for spent nuclear fuel, which is expected to be received in 2022, in order to mitigate customer rates over the term of the Settlement. In return, DEF will be able to recognize the $173 million into earnings from 2022 through 2024.

In addition to these terms, the Settlement contains provisions related to the accelerated depreciation of Crystal River North coal-fired power plants, the approval of approximately $1 billion future investments in new cost effective solar power, the implementation of a new Electric Vehicle Charging Station Program, and the deferral and recovery of costs in connection with the implementation of DEF's Vision Florida program, which explores various emerging non-carbon emitting generation technology, distributed technologies and resiliency projects, among other things. An overview providing additional detail on the terms of the Settlement is attached to this Form 8-K as Exhibit 99.1.

The Settlement is subject to the review and approval of the FPSC, which is expected in the second quarter of 2021. Upon approval by the FPSC, the new rates will be effective January 1, 2022, with subsequent base rate increases effective January 1, 2023, and January 1, 2024.

Item 9.01. Financial Statements and Exhibits.






  (d) Exhibits.




  99.1     Duke Energy Florida 2021 Settlement Agreement Summary

104 Cover Page Interactive Data File (the cover page XBRL tags are embedded in


    the Inline XBRL document).




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