Duke Energy has petitioned the North Carolina Utilities Commission for a 18% rate increase for residential customers across the state over the next 2 years. The proposed rates for Duke Energy Progress Customers would include a 14% increase in 2027, followed by a 4% increase in 2028. A decision is expected later this year in the fall.
In its filing to the commission, the utilities giant stated the rate adjustment was to recoup investments made since 2022. Duke Energy estimates that the average customer would see around a $30 monthly increase in their bills once both increases are implemented.
The utility company has been under increased scrutiny from North Carolina consumers after a number of events, including the recent climate change lawsuit filed by the Town of Carrboro.
Jeff Brooks, a spokesperson for Duke Energy, said the company had made significant investments to meet the state’s growth, having added 150,000 customers over the past two years.
“We’ve added 51,000 new electric distribution poles,” Brooks said. “We’ve added 4,000 miles of wire over that last couple year period [and] are in the process of building 10 substations to support growth across the state.”
Despite the investments in infrastructure, many customers continue to feel squeezed by their bills. Over 80,000 people have signed onto a petition asking for an independent audit of Duke Energy Progress and Carolinas amid rising utility bills and other costs.
Electric bills have already increased roughly 22% since 2020, adding to many customers’ frustration.
Maazin Malik, a second-year studying political science, said that a rate increase would put him and other students into a tough situation.
“That would suck because [I’m] somebody [that’s struggled] financially,” Malik said. “ … If they raise the cost for students to pay [for] this stuff, it just puts me in a harder place and that’s not really cool.”
Duke Energy has experienced widespread opposition to these rate increases as the company comes off the back of a ruling that found the company improperly collected fuel charges in 2024. Despite this, the company will not have to refund customers due to Senate Bill 266 which passed while the appeal was ongoing.
The bill, which required a veto override to become law, makes it legal for Duke Energy to charge customers for the financing of large power plants before they generate electricity and charge customers for previous under-recoveries. Additionally, the bill removes a mandate for the utility company to reduce carbon emissions by 70% by 2030.
Despite the elimination of the mandate, Brooks said that Duke Energy continues to add investment in renewable energy through increased battery storage. “We’re adding…1.7 billion [dollars] in battery storage projects across the state,” Brooks said. “So a lot is going into the system.”
This request comes as Duke Energy has reached a settlement to merge its two utilities that serve the Carolinas. The company claims it will lead to over $1 billion in customer savings over the next 12 years. With this rate increase, the companies would have the same rate structure, simplifying the merger process.
Any rate increase would likely take effect in 2027, Brooks added.
The North Carolina Utilities Commission will review all evidence submitted at a hearing in August and make a decision on the rate hike at some point this fall. During this time, the commission is conducting public hearings for members of the community to make statements.
