Duke Energy rate settlement would lower proposed increase but still raise bills
Duke Energy Carolinas and the N.C. Public Staff have reached a proposed settlement that would sharply reduce the utility’s requested residential rate increase but still raise electric bills for customers across much of central and western North Carolina and parts of the Triangle.
The agreement is not final. The North Carolina Utilities Commission must still approve, modify or reject it.
What customers could pay
If approved, residential rates would rise 5.9% beginning January 1, 2027, followed by another 3.6% increase in 2028. Together, those increases would amount to about 9.5% over two years.
Duke estimates that a representative residential customer using 1,000 kilowatt-hours per month and paying $157.15 would see a monthly increase of about $6.53 in the first year. The bill would rise by another estimated $4.66 in the second year, or about $11.19 more per month after both proposed increases.
Those examples are estimates for a representative customer, not a guarantee for every household. Actual bills would vary with electricity use, rate class and other charges.
The request was originally much larger
Duke Energy Carolinas originally sought roughly an 18% residential increase over two years. The proposed settlement would reduce that request after negotiations involving the utility, the Public Staff and other parties in the rate case.
The agreement also would lower Duke’s requested return on equity from 10.1% to 9.8%. Across all customer classes, Duke’s proposed increase would be 7.4% over two years, a separate figure from the 9.5% cumulative residential increase.
The N.C. Public Staff represents utility customers in proceedings before the Utilities Commission. Its role includes reviewing utility proposals and presenting the customer perspective in electric rate cases.
Which North Carolina customers are covered
The settlement applies to Duke Energy Carolinas customers. The company serves much of central and western North Carolina and portions of the Triangle, but the agreement does not automatically apply to every Duke customer in the state.
Duke Energy Carolinas and Duke Energy Progress operate in different service territories and have separate regulatory proceedings. Customers should check the utility named on their bill rather than assume that this settlement applies to them.
Proposed help for low-income customers
The agreement includes a proposed $10 million shareholder contribution for low-income bill assistance and weatherization programs through Share the Light and the Helping Home Fund.
The contribution is part of the proposed settlement and has not been distributed. Program implementation and eligibility details would depend on the Commission’s final decision and the subsequent administration of the funds.
The Utilities Commission still has the final say
The case is pending in Utilities Commission docket E-7 Sub 1329. The Commission held an expert-witness hearing on July 28, 2026, as part of its review of Duke Energy Carolinas’ application for new rates and performance-based regulation.
That hearing confirms that the case remains active; it does not mean the settlement has been approved. The Commission can accept the agreement, change its terms or reject it before issuing a final order.
What happens next
Customers should watch for a Commission order and any required customer notices. If regulators approve rates that take effect January 1, 2027, Duke Energy Carolinas customers in the affected territory could begin seeing the first proposed increase on bills issued after that date.
Sources
- N.C. Utilities Commission public hearings and docket schedule
- Axios Raleigh: Duke Energy and state reach agreement on lower rate increase request
- WUNC/WFAE: Duke Energy Carolinas halves its rate hike request in new settlement
- N.C. Public Staff Electric Section
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