North Carolina Attorney General Jeff Jackson will not sign the proposed settlement in the Duke Energy Progress rate case, which would raise residential electric bills about 6.8% over the next two years. The North Carolina Utilities Commission held hearings on the proposed settlement this week. Duke Energy Progress serves the eastern half of North Carolina and the Asheville area. The attorney general made clear he will not endorse the deal, even after the utility cut its original request by more than half.
A reduced ask that still draws opposition
Duke’s original filing asked for an 18.1% increase on residential rates over two years. Last week, Duke announced a settlement with the North Carolina Public Staff and others. The proposed settlement would reduce that original request by more than half.
In testimony before the North Carolina Utilities Commission on Tuesday, Kendal Bowman, North Carolina President for Duke Energy Progress and Duke Energy Carolinas, testified that the residential rate increase would be 3.7% in Rate Year 1 and 3.1% in Rate Year 2, or 6.8% in all.
But Attorney General Jeff Jackson declined to sign the settlement. “Duke brought down their rate increase to 6.8%, but that’s still too high for families and still more than the company needs to cover its investments,” said Attorney General Jeff Jackson.
What customers would pay
The North Carolina Utilities Commission will ultimately decide whether to approve the Duke Energy Progress settlement. If approved as proposed, the new rates would begin taking effect January 1, 2027. Duke also agreed to have its shareholders contribute $10 million in funds to help customers pay their bills and weatherize their homes to lower energy costs.
Several parties agreed to the settlement, including the North Carolina Public Staff and other stakeholders. The North Carolina Public Staff represents utility customers before the commission.
Earlier this year, New York State Electric & Gas sought a $464 million rate hike that state officials also challenged as excessive, while an Arizona utility’s $579 million rate case drew more than 30 intervenors in hearings that ran through late July.
Data center costs add a new dimension
Duke Energy Progress has agreed to join Duke Energy Carolinas’ separate fast-track process to establish new rules for data centers and other large energy users. Attorney General Jackson has argued for a new, separate rate class for these large energy users, given the strain they put on the system. Environmental advocates have argued that without a dedicated large-customer rate class, ordinary households absorb grid upgrade costs driven by industrial-scale power consumers.
Jackson declined to sign the proposed settlement in the Duke Energy Carolinas rate case in July because residential rates would still rise about 9.5%. Duke Energy Progress primarily serves eastern North Carolina and the Asheville area, while Duke Energy Carolinas serves much of central and western North Carolina.
Commission holds final authority
The settlement remains subject to approval by the North Carolina Utilities Commission, which has authority over regulated utility rates. If regulators approve the proposal as filed, the first new rates would take effect Jan. 1, 2027. The commission will hear testimony from Duke Energy, state consumer advocates, and other parties before deciding whether to approve, modify, or reject the proposed settlement.
In her testimony, Bowman stated that the residential rate increase would be 3.7% in Rate Year 1 and 3.1% in Rate Year 2, or 6.8% in all. However, that number is the average rate increase across all customer classes. The North Carolina Department of Justice’s independent calculations and Duke’s public statements indicate that the increase for residential ratepayers will actually be 9.3% over the next two years.
Separately, Attorney General Jackson is also seeking to have Duke formalize commitments involving large electricity users that were included in a ratepayer protection pledge and make them legally binding before the Utilities Commission.
