Duke Energy Carolinas has asked North Carolina regulators to review its rates as the company continues to strengthen the electricity grid to improve reliability for customers and facilitate a cleaner, more secure energy future in a manner that supports economic development across the state.
The rate case includes a three-year plan to fund system improvements, including nearly US$4.2 billion in future grid infrastructure upgrades to increase reliability and enhance grid security while enabling renewables, EVs, and supporting economic development and new jobs. Duke Energy is evaluating ways to leverage the Inflation Reduction Act and Infrastructure Investment and Jobs Act to help offset these investments and save money for customers.
“Our customers expect us to deliver reliable, affordable and increasingly clean energy every day,” said Duke Energy’s North Carolina president, Kendal Bowman. “We’re very mindful of the financial pressures our customers face. Our rates are well below the national average, and we remain committed to keeping rates as low as possible.”
Duke Energy Carolinas serves about 2 million households and businesses in central and western North Carolina, including Charlotte, Durham and the Triad. This is the first rate case the utility has initiated since 2019.
Since its previous rate case, Duke Energy Carolinas has driven out more than US$140 million in annual operating costs (2018 to 2021) to relieve pressure on customer rates. Those savings will be passed on to customers in this case.
The company has proposed a gradual rate increase over three years. If approved by the NCUC, the net increase in retail revenues in year one is about $501 million or 9.5 per cent, followed by US$172 million (3.3%) in year two and US$150 million (2.9%) in year three – a total 15.7 per cent increase by 2026.
Beginning Jan. 1, 2024, the monthly impact for a typical residential customer using 1,000 kilowatt-hours (kWh) per month would be an increase of US$12.54, from US$115.01 to US$127.55 per month, followed by a US$3.90 increase in January 2025 and a US$3.18 increase in January 2026. If approved, the US$134.63 total would remain far below the current national average of US$161.81 (Edison Electric Institute Summer 2022 Rates Report).
Customers struggling to pay their electric bills might qualify for a new Customer Assistance Programme proposed as part of the rate case. If approved, it would reduce monthly bills for the company’s most vulnerable customers by US$42 per month.
Duke Energy Carolinas has also proposed new energy efficiency programmes available to all residential customers, with potential savings that could significantly offset the proposed rate increase, and new time-of-use rates to help customers take more control over their energy bill.
