Duke Energy wants to raise energy rates in NC. Here’s what has to happen first
A new proposal from Duke Energy could hike utility bills, but a state regulatory agency will need to hear from consumers before deciding whether to approve the increase.
Duke Energy Carolinas, the second largest utility company in the U.S., proposed in March an approximately 18% increase on household utility bills over the next three years. “It would cover infrastructure upgrades that strengthen the electric grid to make it more resistant to severe weather, enhance grid security and allow power restoration faster when outages do occur, the Charlotte-based company said.
The North Carolina Utilities Commission oversees rates and services, and is reviewing Duke Energy’s plan. Duke Energy expects the commission to make a decision on the proposed increase for 2024 by December, company spokesman Bill Norton said.
If approved, that plan would start in January with a 10.5% increase in residential customers’ utility bills. Customers would then see a 3.8% increase in 2025 and a 3.6 increase in 2026.
A residential utility bill now sitting around $115 would be about $20 more each month by 2026 under the proposed rate increase, according to Duke Energy.
Norton said Duke Energy Carolinas’ rates are “far below” most of our Southeastern peers and 33% below the national average.
“Even if the Utilities Commission approved full our rate request, our rates in 2026 would still be well below the national average as of last winter,” he said.
Concerns over the rate hike
The commission held statewide public feedback hearings on the increase this month, including one last week in Charlotte. The next hearing is in Winston-Salem on July 24.
State officials, residents and some protesters were at the commission’s public hearing at the Mecklenburg County Courthouse last Thursday.
Advocates, healthcare professionals, educators and scientists with CleanAIRE NC say they oppose the company’s hike and the burden higher bills will put on low-income families already struggling to pay energy bills. “Rather than investing in renewables, Duke wants to shift this burden onto working families who cannot afford higher energy bills,” the group wrote on its website.
The group wants Duke Energy to invest in renewable energy to mitigate fossil fuels’ negative impact. Continuing to invest in fossil fuels is “environmentally irresponsible and unsustainable,” it said.
Norton, said the protesters’ claims were unfounded.
“More than half of our energy in the Carolinas is generated by carbon-free nuclear,” he said. “As we move forward, our plans call for adding more solar between now and 2028 than any other type of (energy) generation, and North Carolina is already No. 4 in the nation for solar.”
If the commission approves Duke Energy’s Customer Assistance Program, Norton said, rates for many low-income families would go down, not up. Duke Energy also teamed up with Charlotte to launch a pilot program that provides free home repairs and upgrades to customers whose outdated appliances may be hiking energy bills.
This month’s hearings were slated shortly after nearly 500,000 Duke Energy customers lost power statewide during blackouts on Christmas Eve 2022. The company rolled out power outages to mitigate overwhelming energy use during one of the coldest weekends in recent years, The Charlotte Observer previously reported.
