UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): March 6, 2007

DUKE ENERGY CAROLINAS, LLC

(Exact Name of Registrant as Specified in its Charter)

North Carolina

 

001-04928

 

56-0205520

(State or Other Jurisdiction
of Incorporation)

 

(Commission
File Number)

 

(IRS Employer
Identification No.)

 

526 South Church Street, Charlotte, North Carolina 28202-1904

(Address of Principal Executive Offices, including Zip code)

(704) 594-6200

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240. 13e-4(c))

 



Item 8.01. Other Events.

On March 6, 2007, Duke Energy Corporation (“Duke Energy”) announced that Duke Energy, Duke Energy Carolinas, LLC and the U.S. Department of Justice have reached a settlement resolving Duke Energy’s used nuclear fuel litigation against the U.S. Department of Energy (DOE). The agreement provides for an initial payment to Duke Energy of approximately $56 million for certain storage costs incurred through July 31, 2005, with additional amounts reimbursed annually for future storage costs.  Duke Energy is still evaluating the financial statement impact of the initial payment, but anticipates a favorable pre-tax earnings impact in 2007 of less than the $56 million settlement.  A copy of the press release is attached as exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

 

 

 

(d)

 

 

Exhibits.

 

 

 

 

 

99.1         Press Release issued by Duke Energy Corporation on March 6, 2007

 

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SIGNATURE

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

DUKE ENERGY CAROLINAS, LLC

 

 

 

 

 

 

Date: March 12, 2007

 

By:

/s/David S. Maltz

 

 

 

Name:

 

David S. Maltz

 

 

Title:

 

Assistant Secretary

 

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EXHIBIT INDEX

Exhibit

 

Description

 

 

 

99.1

 

Press Release issued by Duke Energy Corporation on March 6, 2007

 

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Exhibit 99.1

 

 

 

 

NEWS RELEASE

 

 

 

Duke Energy Corporation
P.O. Box 1009
Charlotte, NC 28201-1009

 

 

 

 

March 6, 2007

 

CONTACT:

 

Rita Sipe

 

 

Phone:

 

704/382-8609

 

 

24-Hour:

 

704/382-8333

 

Duke Energy and Federal Government Reach Agreement

on Used Nuclear Fuel Storage Costs

CHARLOTTE, N.C. – Duke Energy Carolinas and the U.S. Department of Justice have reached a settlement resolving Duke Energy’s used nuclear fuel litigation against the U.S. Department of Energy (DOE). The agreement provides for an initial payment to Duke Energy of approximately $56 million for certain storage costs incurred through July 31, 2005, with additional amounts reimbursed annually for future storage costs.

In 1983, Duke Energy entered into a contract with the DOE which provided for the removal of used fuel from nuclear power reactor sites beginning in 1998. Because the federal government did not begin used fuel removal in 1998, Duke Energy has incurred higher used fuel storage costs at the Duke Energy-operated Oconee, McGuire and Catawba nuclear stations. Under this settlement, the government will reimburse Duke Energy for qualifying storage costs from the U.S. Treasury’s Judgment Fund.

“This agreement is an important positive step for our company and the federal government,” said Brew Barron, Duke Energy chief nuclear officer. “It clarifies specific costs the DOE will pay associated with the delay in meeting its obligation for used fuel disposal. This ensures our ratepayers and shareholders do not bear the full financial burden of these delays.”

- more -



In the near-term, Duke Energy will continue the safe and secure storage of used fuel at these nuclear plant sites. As a longer-term solution, Duke Energy continues to support the government’s efforts to fulfill its obligation to accept used nuclear fuel.

Duke Energy Corp., one of the largest electric power companies in the United States, supplies and delivers energy to approximately 3.9 million U.S. customers. The company has nearly 37,000 megawatts of electric generating capacity in the Midwest and the Carolinas, and natural gas distribution services in Ohio and Kentucky. In addition, Duke Energy has more than 4,000 megawatts of electric generation in Latin America, and is a joint-venture partner in a U.S. real estate company.

Duke Energy’s Carolinas operations include nuclear, coal-fired, natural gas and hydroelectric generation. That diverse fuel mix provides nearly 21,000 megawatts of safe, reliable and competitively priced electricity to more than 2.2 million electric customers in a 22,000-square-mile service area of North Carolina and South Carolina.

Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com.

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