Duke Energy Carolinas Modifies Rate Hike Proposal Following Customer Feedback
In response to substantial customer pushback, Duke Energy Carolinas has adjusted its rate increase proposal, which was initially aimed at raising the rate of returns from 10.1% to 10.95%. The company has now settled on a revised figure of 9.8% as part of a broader agreement involving businesses, clean energy groups, and trade associations.
“It was a hard decision, but we made it because we listened to our customers,” stated Kendal Bowman, North Carolina president of Duke Energy, during the recent regulatory meetings.
The settlement has received mixed reactions. While it has not yet gained approval from the NC Utilities Commission or agreement from all involved parties, it marks a significant shift in the ongoing negotiations. Michelle Carter, clean energy campaigns director at the North Carolina League of Conservation Voters, remarked in a statement, “While this settlement has not been approved by the NC Utilities Commission or signed onto by all of the parties, it is a step towards addressing the hold Duke Energy has on North Carolina’s energy prices.”
Despite these discussions, some customer advocacy groups express concerns that the new settlement lacks provisions for a large load tariff or enhancements to the Customer Assistance Program, which provides a $42 monthly bill credit to low-income customers.
Included in the settlement is a $10 million contribution from Duke Energy shareholders to fund two initiatives: Share the Light and Helping Home Fund, both designed to alleviate financial burdens for low-income residents.
If the settlement secures approval from the North Carolina Utilities Commission, Duke Energy Carolinas residential customers should anticipate a rate increase of 5.9% in 2027, followed by an additional 3.6% hike in 2028. These changes would translate to an average monthly bill increase of roughly $6.53. Duke Energy’s service area covers significant portions of central and western North Carolina as well as parts of upstate South Carolina.
