Why It Matters
North Carolina residential electricity customers could see significantly higher monthly bills if state regulators approve a rate increase request filed by Duke Energy. The proposal comes as the North Carolina Utilities Commission weighs the financial needs of the state’s dominant utility provider against the impact on households already contending with rising costs of living.
Duke Energy holds a near-monopoly over electricity service across much of North Carolina and the broader Carolinas region, meaning millions of customers have no alternative provider if the rate hike is approved.
What Happened
Duke Energy has formally requested that the North Carolina Utilities Commission approve an 18% increase in electricity rates for residential customers, to be phased in over a two-year period beginning in 2027. The utility filed the request with state regulators, who are now reviewing the proposal and collecting public input.
The North Carolina Utilities Commission is holding three public hearings this week to allow customers to address regulators directly. The first hearing took place Monday in Raleigh, a second is scheduled Tuesday in Lumberton, and a third virtual hearing is set for Wednesday.
Duke Energy spokesperson Jeff Brooks stated in an email to NC Newsline that the company operates under some of the highest accountability standards of any industry in the nation. “We are required to reliably serve customers and accurately measure and bill the customer for energy they use,” Brooks said.
Separately, more than 72,500 people had signed a petition as of Monday demanding an independent audit of Duke Energy’s billing system, along with refunds for customers who may have been overcharged due to billing discrepancies.
By the Numbers
- 18% — The proposed increase in residential electricity rates requested by Duke Energy
- $28 per month — The estimated increase in monthly bills for Duke Energy residential customers in 2027, according to the utility’s own filings
- $34 per month — The projected monthly increase for residential customers in 2028 under the proposal
- 72,500+ — Number of petition signatures collected as of Monday calling for an independent billing audit and customer refunds
- 3 — Number of public hearings scheduled by the Utilities Commission this week across North Carolina
Zoom Out
The rate increase request is unfolding against a broader legislative backdrop that has reshaped the regulatory environment for Duke Energy in North Carolina. The “Power Bill Reduction Act,” introduced by former Duke Energy state president and former state Senator Paul Newton, was vetoed by Governor Josh Stein last July. However, the Republican-led legislature overrode that veto, enacting the measure into law.
Among its provisions, the legislation allows Duke Energy to charge customers for power plants before they are completed or fully operational, sets lower rates for industrial customers compared to residential customers, and removes the state’s 2030 interim carbon emissions reduction target for the utility. Critics argue the law increases customer financial exposure while reducing clean energy accountability.
U.S. Representative Deborah Ross, a Democrat representing North Carolina’s 2nd Congressional District, has raised concerns about the cumulative financial pressure on North Carolina families — particularly those in western parts of the state still recovering from the destruction caused by Hurricane Helene.
Across the United States, regulated utilities have been filing rate increase requests at elevated rates as companies seek to recover capital investments in grid modernization, generation capacity, and storm resilience infrastructure. Commissions in multiple states have faced similar balancing acts between utility financial stability and residential affordability.
What’s Next
The North Carolina Utilities Commission will continue collecting public testimony through Wednesday’s virtual hearing. After the public comment period closes, commission staff and intervenors — which may include consumer advocates, environmental groups, and business associations — will review Duke Energy’s financial filings and submitted evidence.
A final decision by the commission is not expected immediately, as rate cases of this magnitude typically involve months of evidentiary proceedings before a ruling is issued. If approved in some form, new rates would begin taking effect in 2027.
Customers wishing to submit comments or participate in the virtual hearing Wednesday can do so through the North Carolina Utilities Commission’s public docket process.