Duke Energy Slashes Proposed Rate Hike, But NC Officials Say It’s Still Too High

North Carolina Utility Customers See Slight Relief Amid Rate Hike Concerns

North Carolina residents who have been worried about rising electricity bills are experiencing a small amount of relief, though it is not enough to ease the growing concerns among consumers. A recent development involving Duke Energy Carolinas has sparked discussions about the impact of utility rate increases on households and the broader implications for energy policy in the state.

Revised Rate Increase Proposal from Duke Energy

State regulators are currently reviewing an updated filing from Duke Energy Carolinas regarding the 2027 and 2028 rate increases. The utility company initially proposed a significant increase but has since reduced its request. Specifically, the overall requested increase was lowered from 14.3% to 9.3%, while the proposed rise for residential customers dropped from 18% to 11.6%.

Kendal Bowman, president of Duke Energy’s North Carolina operations, stated that the company revisited its proposal after public hearings where customers shared how higher bills could affect their household budgets. “After hearing those concerns directly, we took further action to evaluate whether a lower request was possible,” Bowman wrote to regulators.

The revised filing would reduce Duke Energy Carolinas’ base case revenue request from $564 million to $264 million. The company claims this change is possible by lowering its proposed return on equity, dropping a depreciation study related to coal-fired power plants, returning excess funds from Hurricane Helene recovery more quickly, and shifting certain winter storm costs out of this case.

Reactions from State Officials

Despite the reduction, North Carolina Attorney General Jeff Jackson expressed that the smaller request is still not sufficient. “It’s a step in the right direction, but it’s still too high,” Jackson said on X.

The issue of utility rate increases is particularly significant for many families, as even a smaller increase can be challenging given the current economic climate. Utility bills are often unavoidable expenses that can be especially burdensome during periods of high inflation and extreme weather conditions.

The debate also raises questions about fairness and whether consumers should bear the cost of expensive grid upgrades, storm recovery, aging fossil-fuel infrastructure, and the growing energy demands of major users, such as data centers. This issue has become a major political flashpoint, with Jackson advocating for a much lower 7.4% return on equity. Governor Josh Stein supported this movement, stating, “This development proves that when North Carolinians make their voices heard, it makes a difference.”

Ongoing Discussions and Future Steps

Duke Energy Carolinas is presenting the revised proposal as a compromise that aims to maintain reliable service while reducing the burden on customers. However, the North Carolina Utilities Commission is not obligated to accept the company’s request as filed.

WUNC reported that an expert witness hearing is scheduled for July 7 in Raleigh, and regulators may still decide that a different rate is more appropriate. Jackson emphasized that the fight is far from over, stating, “We’ll keep making our case for lower rates — and for making sure families don’t get stuck paying unfair costs for data centers and other large users.”

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