As another week of heat settles in, Duke Energy rate hike heads back before regulators

Another week of temperatures in the 90s is expected to keep air conditioners running across North Carolina, driving up electric bills as Duke Energy returns before state regulators to defend its proposed rate hike.

2026-08-10

For Raleigh resident Brandi McNeill, the timing couldn't be worse.

"My energy bill last month was $400-plus for one month," McNeill said. "That's groceries for the week. That's gas for the week. I have kids in college and one going back to high school. It's impacted a lot."

The North Carolina Utilities Commission begins evidentiary hearings Tuesday in Duke Energy Progress' rate case, which will determine whether to approve a settlement that would raise residential electric rates beginning next year.

The hearings come less than a week after Duke Energy announced a proposed settlement with the North Carolina Public Staff and several other parties that would reduce the company's original rate increase request by more than half.

If approved, the agreement would increase rates an average of 3.4% annually over two years. A typical residential customer using 1,000 kilowatt-hours per month would see bills increase about $9.62 per month beginning Jan. 1, 2027, followed by another $5.89 monthly increase in 2028. Duke also agreed to contribute an additional $10 million to low-income bill assistance and weatherization programs. The Utilities Commission must still approve the settlement.

"We listened to stakeholders and responded to the everyday cost pressures facing our customers," Duke Energy North Carolina President Kendal Bowman said in a statement announcing the agreement. The company said the settlement allows it to continue investing in electric infrastructure while reducing the proposed increase.

McNeill said the revised proposal still would strain family budgets.

"While it's a relief, it does not fix the issue," she said. "This still will affect groceries. This still will affect gas. This still will affect day-to-day life."

The case comes as North Carolinians continue relying heavily on air conditioning during one of the hottest parts of the year. Duke said customers seeing higher electric bills this summer are primarily paying for increased electricity use during prolonged heat, not the proposed rate increase, which has not yet taken effect.

The hearings also follow Duke Energy's recent earnings report. The company reported $1.077 billion in second-quarter net income — its strongest second quarter on record — and $2.6 billion in profits during the first half of the year.

Jeremy Ratcliff, regional field organizer for PowerUp NC, said many families are already struggling to keep up with higher cooling costs during increasingly hot summers.

"People should not have to choose between cutting on their air conditioner in extreme heat ... and affording their energy bill," Ratcliff said.

Another key issue before regulators is who should pay for the electric grid upgrades needed to serve large new customers, including data centers.

Environmental groups and consumer advocates have argued those large customers should bear more of those costs instead of shifting expenses to residential ratepayers.

"We see states across the country letting data centers bring their own clean energy and pay for it themselves," said Will Scott, North Carolina policy director for the Environmental Defense Fund. "We aren't doing that here, and it's going on your bill instead. We've got to do better."

Duke Energy maintains the new demand will ultimately benefit other customers.

"Our analysis shows that large load customers like data centers will not only pay for the costs required to serve them but also contribute additional revenue to lower costs for all other customers," company spokesperson Bill Norton said in a statement. Duke estimates those customers will generate $3.6 billion in benefits for North Carolina customers over 15 years and reduce residential bills by $4 to $6 per month through 2040.

The company also defended its profits, saying investor returns are necessary to finance power plants, transmission lines and other infrastructure needed to serve the state's rapid growth.

"Everything we do for our customers ... depends on being able to borrow money at fair rates," Norton said. "That financial stability helps lower long-term costs for our customers and ensures we're always ready to meet the needs of this growing state."

Not every customer believes higher rates have come without benefits. Adam Helsel said he's seen service reliability improve over the past several years.

"My power rarely goes out for more than 15 minutes to an hour now," Helsel said. "We used to lose power for hours and days. I know the bill is higher, but I'm getting a lot better power out of it because I'm actually getting power most of the time."

Environmental groups and consumer advocates have said those large customers should bear more of those costs instead of shifting expenses to residential ratepayers.

The Environmental Defense Fund joined the settlements reached in both Duke Energy Progress and Duke Energy Carolinas' rate cases. The group has called the agreements a step in the right direction while continuing to push for stronger protections against costs associated with serving large energy users.

"We see states across the country letting data centers bring their own clean energy and pay for it themselves," said Will Scott, North Carolina policy director for the Environmental Defense Fund. "We aren't doing that here, and it's going on your bill instead. We've got to do better."

The Utilities Commission will hear testimony from Duke Energy, state consumer advocates and other parties before deciding whether to approve, modify or reject the proposed settlement. If approved, the new rates would take effect Jan. 1, 2027.