RALEIGH — Duke Energy’s proposed 15% rate increase over the next two years has drawn criticism from Gov. Josh Stein and Attorney General Jeff Jackson.
“With costs rising everywhere, it’s important we take a close look at Duke Energy’s proposed rate increase to ensure it is necessary,” said Jackson in a Dec. 2 press release. “My office is intervening to make sure we find the right balance between investing in our energy infrastructure and protecting North Carolinians’ wallets.”
The proposal is currently under consideration by the North Carolina Utilities Commission (NCUC). If approved, the increase could mean customers paying an additional $20 to $30 per month by 2028.
Stein also opposes the increase and issued a statement applauding Jackson’s intervention.
“I am pleased that the North Carolina Department of Justice is fighting for the people of North Carolina,” Stein said in a statement. “Duke Energy’s proposed rate hike is simply too high and comes as the company is also retreating on more affordable clean energy. At a time when families are struggling to make ends meet, we should be doing everything we can to make life more affordable, not less. I will continue to fight on behalf of every North Carolinian to lower costs and grow the economy.”
North State Journal reached out to Duke Energy for comment.
“We do not take any request to increase rates lightly, knowing that our investments to meet North Carolina’s growing energy needs will be carefully evaluated by the North Carolina Utilities Commission, the Public Staff, and intervenors such as customer advocates and the Attorney General,” Duke Energy Spokesperson Bill Norton said. “We look forward to continuing a constructive dialogue with all parties as the review moves forward next year.”
Stein’s statement in part blamed The Power Bill Reduction Act (Senate Bill 266), a bill enacted after lawmakers overrode his veto in July. The bill removed the 70% emissions reduction by 2030 and replaced it with a goal of 2050 that was part of a 2021 law. The bill also aimed at cutting costs of new power generation by 2035 in half.
Stein’s press release cites a Duke University study and claims the bill would “increase costs to North Carolina ratepayers by $23 billion in the coming years.” Senate Leader Phil Berger (R-Eden) claimed the measure would save taxpayers an estimated $15 billion. The same study was cited by Stein in his veto.
The Duke University study of the bill addresses the theoretical costs of carbon emission reduction schedule removals and not the proposed rate increases. Also, The Power Bill Reduction Act does not include language giving utilities new powers to make rate increases but does expand existing regulatory mechanisms for rate adjustments. The law, however, does point out that any rate changes must be approved by the NCUC.
North State Journal requested a comment about Stein’s press release from General Assembly leaders but did not receive a response by publication time.
Duke Energy’s proposed increase was announced in a Nov. 20 press release.
The press release says the proposed 15% rate increase for Duke Energy Carolinas and Duke Energy Progress translates to annual revenue increases of $1 billion and $729 million, respectively. The release says Duke’s request is “based on a 10.95% return on equity and 53% equity capital structure.”
If approved, a typical Duke Energy Carolinas customer bill would go up about $17 in January 2027, then another $6 in January 2028. A typical household bill would go from $145 to $162 in 2027, then rise again to $168 in 2028. Rising inflation and increased energy demands were also cited by Duke.
Duke Energy Progress customer bills would increase by around $23 in January 2027, then another $7 in January 2028. A typical customer household bill would go from $164 to $187 in 2027 and increase to $193 in 2028.
Business customers are not immune from the request and would also see rate increases ranging from 4% to 9%. Those increases would be dependent on business size and usage amounts.
Duke Energy did not respond to an inquiry before publication.
