Duke Energy cuts North Carolina rate hike request from 18% to 11.6%, but AG says it's still too high

North Carolina energy customers worried about rising power bills just got a bit of relief, though not nearly enough to quiet the backlash.

After mounting affordability concerns, WUNC reported that Duke Energy Carolinas trimmed the two-year residential rate increase it is seeking, lowering that request from 18% to 11.6%.

What's happening?

State regulators are now weighing an unusual revised filing from Duke Energy Carolinas for 2027 and 2028. Under the update, the utility reduced its overall requested increase from 14.3% to 9.3%, while the proposed rise for residential customers dropped from 18% to 11.6%, as WUNC detailed.

Kendal Bowman, president of Duke Energy's North Carolina operations, said the company revisited its proposal after public hearings where customers described how higher bills could strain their household finances, the outlet noted.

"After hearing those concerns directly, we took further action to evaluate whether a lower request was possible," Bowman wrote to regulators.

The updated filing would reduce Duke Energy Carolinas' base case revenue request from $564 million to $264 million, WUNC reported. 

The company said it can make that change by lowering its proposed return on equity, dropping a depreciation study tied largely to coal-fired power plants, returning excess Hurricane Helene recovery funds more quickly, and moving certain winter storm costs out of this case.

North Carolina Attorney General Jeff Jackson, however, said the smaller request isn't sufficient, as WUNC noted.

"It's a step in the right direction, but it's still too high," Jackson wrote on X.

Why does it matter?

For many families, even a smaller rate increase is still an increase, and utility bills are among the unavoidable expenses that can hit especially hard during stretches of high inflation and extreme weather.

The case also raises questions about fairness and whether consumers should bear the cost of expensive grid upgrades, storm recovery, aging fossil-fuel infrastructure, and the growing energy demands of major users, such as data centers.

That issue has become a major political flashpoint. Jackson argued Duke should seek a much lower 7.4% return on equity, while Gov. Josh Stein took to X to support the movement.

"This development proves that when North Carolinians make their voices heard, it makes a difference," Stein said. "We need to lower costs for families — because every dollar counts."

The final decision could shape monthly utility bills for years and help determine whether ordinary households end up paying costs they believe should fall more heavily on large corporate power users.

What's being done?

Duke Energy Carolinas is presenting the revised case as a compromise that would still allow it to maintain reliable service while easing the burden on customers. The North Carolina Utilities Commission is not required to accept Duke's request as filed. 

WUNC reported an expert witness hearing is scheduled for July 7 in Raleigh, and regulators could still decide that a different rate is more appropriate.

Jackson indicated the fight is far from over.

"We'll keep making our case for lower rates — and for making sure families don't get stuck paying unfair costs for data centers and other large users," he wrote on X.

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