Critical
Port City Daily
Duke Energy has negotiated a settlement to reduce its proposed residential rate increase in North Carolina from 18% to 9.5% over two years. The phased increase includes 5.9% in 2027 and 3.6% in 2028, translating to an average monthly hike of $9.39 in 2027 and $5.52 in 2028 for 1,000 kWh users. The settlement also includes a merger of Duke Energy Carolinas and Duke Energy Progress by 2027, projected to save customers up to $3.2 billion through 2038.
Despite these concessions, North Carolina Attorney General Jeff Jackson opposes the deal, arguing the rate hike remains excessive. His office estimates that further reducing Duke's return on equity could save customers additional costs. This opposition signals potential legal challenges ahead.
Why it matters: The settlement reduces immediate customer cost pressures but highlights ongoing regulatory scrutiny in North Carolina, a key market for Duke Energy. The outcome will influence future rate negotiations and our ability to balance profitability with consumer affordability.