Amid rising concerns over energy costs, Duke Energy is seeking approval from state regulators for significant rate hikes starting in 2027 and is aiming for one of the highest returns in the sector for its Carolina operations.
Targeting Higher Returns
The utility company proposes to increase its return on capital investments to 10.95%, which is notably higher than the national average by nearly half a percentage point, as detailed in a new report.
Will Scott, who serves as the North Carolina policy director for the Environmental Defense Fund, indicated that the high return rate might prompt regulators to demand further explanation from Duke.
“Bills are projected to skyrocket and emissions at this point are projected to increase. I don’t think we’re hitting either of the metrics that we would consider measures of success for a utility when it comes to modernizing our electric system,” Scott remarked.
Impact on Low-Income Households
While the increase in Duke’s returns might seem minimal on individual bills, the cumulative effect could be substantial for low-income families in North Carolina.
“A $50 addition over six months is real money. It’s real money,” stated Carol Hardison, CEO of Crisis Assistance Ministry.
Currently, about 20% of Duke Energy Carolinas customers are delinquent on payments, with disconnections rising by 37% last year as customers transition from pandemic-era repayment plans.
“The changes were introduced over time to preserve flexibility for customers experiencing temporary hardship, while also addressing unpaid balances and helping manage costs for all customers,” a Duke Energy spokesperson commented in a statement.
Charlotte resident Julia Burgess expressed her concern about possible disconnection.
“I’m scared. I’ll be very honest … my pay tomorrow’s the 23rd. I have to call Duke Energy now and say, ‘Hey, if I don’t have the money on the 23rd…’ I just got a text saying if the payment isn’t in on the 23rd, the installment plan is void,” Burgess shared.
In a written statement, Duke Energy emphasized that disconnections are a last-resort measure.
“We keep customers informed of past due balances and potential disconnections, adhering to North Carolina Utilities Commission rules. Customers who receive disconnection notices can contact our Customer Service Team to explore what options they have to avoid an interruption in service and/or by exploring payment and agency assistance information on the Duke Energy website.”
Resources for those facing disconnections:
- Crisis Assistance Ministry offers financial counseling and bill relief for individuals struggling with utility bills.
- Explore Duke Energy’s Flex Savings Option for potential savings based on usage. Check your account dashboard under “Rate Comparison” to see if this option might reduce costs.
- Energy Saver NC provides rebates up to $16,000 for North Carolina residents making home energy improvements. Renters and multifamily building owners can apply, though renters need landlord approval.
- Energy Funds for All offers a list of resources designed to help reduce power bills.
- Mecklenburg County has assistance programs for low-income residents facing high energy costs.
- Duke Energy provides “Tips for Tenants” to help renters save on energy bills. The “Multifamily Energy Efficiency Program” offers landlords free energy-saving products.
