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-15- <br />EXHIBIT NO. P -2 <br />PAGE 1 OF 11 <br />STATE OF NORTH CAROLINA <br />UTILITIES COMMISSION <br />RALEIGH <br />DOCKET NO. E -2, SUB 1023 <br />BEFORE THE NORTH CAROLINA UTILITIES COMMISSION <br />In the Matter of <br />Application of Carolina Power & Light <br />Company, d /b /a Progress Energy <br />Carolinas, Inc., for Adjustment of <br />Rates and Charges Applicable to <br />Electric Utility Service in North <br />Carolina <br />ORDER SCHEDULING INVESTIGATION <br />AND HEARING, SUSPENDING <br />PROPOSED RATES, ESTABLISHING <br />INTERVENTION AND TESTIMONY DUE <br />DATES AND DISCOVERY GUIDELINES, <br />AND REQUIRING PUBLIC NOTICE <br />BY THE COMMISSION: On October 12, 2012, Carolina Power & Light <br />Company, d /b /a Progress Energy Carolinas, Inc. (PEC or the Company), filed an <br />application with the Commission requesting authority to adjust and increase its rates. <br />and charges for retail electric service in North Carolina, <br />In its application, PEC requested authority to increase its rates and charges to <br />produce additional overall annual North Carolina retail revenues of approximately $387 <br />million, an increase of approximately 12% over current revenues. PEC is seeking <br />approval of a return on common equity of 11.25 %. The Company serves approximately <br />1.5 million retail customers in North and South Carolina. <br />PEC stated that approximately $257 million, or over 70 %, of its request for a rate <br />increase, is attributable to the approximately $2.3 billion of capital invested in the <br />Company's modernization program that consists of replacing, upgrading, and retiring <br />generation plants and transmission and distribution systems. PEC indicated that the <br />remainder of the request is generally the result of increased expenses relating to <br />nuclear operations, the Company's adoption of a cyclical -based vegetation <br />management program, lower usage per customer and slower growth, increased pension <br />costs, and other miscellaneous costs. The additional revenue requirement requested <br />has been offset with $9 million of net savings expected from the merger of Duke Energy <br />Corporation and Progress Energy, Inc. <br />V4J <br />Additionally, PEC proposed to transfer the costs of its Distribution System <br />Demand Response (DSDR) program from its Demand -Side Management and Energy <br />Efficiency (DSM /EE) rider into its base rates. The ' increase to the Company's base <br />