AG: Duke residential rate increase is 9.3%, not 6.8%

In an update to a story Carolina Journal published yesterday, North Carolina Attorney General Jeff Jackson now says a settlement in the Duke Energy Progress rate case would raise residential electric bills about 9.3%, not 6.8% over the next two years.

In a press release on Thursday, he states that Kendal Bowman, North Carolina president for Duke Energy Progress and Duke Energy Carolinas, testified in front of the North Carolina Utilities Commission on Tuesday, 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.

It turns out, that’s not the case, according to Jackson.

Jackson said that number is the average rate increase across all customer classes. 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.

“The details matter here, and Duke got it wrong under oath,” he said in the press release. “A 6.8% increase was already too high for families, and Duke can’t justify an even bigger increase. We’re not signing this deal.”

The attorney general was already opposed to signing the 6.8% deal that was reached over the energy company’s original request of 18.1%.

He said in a press release on Wednesday that he would not sign the proposed settlement reached last week with the North Carolina Public Staff and others.

Duke Energy Progress serves the eastern half of North Carolina and the Asheville area.

“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,” Jackson said. “We’re not signing it.”

The attorney general also said that Duke Energy Progress made concessions on other parts of its rate filing including joining Duke Energy Carolinas’ separate fast-track process to establish new rules for data centers and other large energy users. Given the strain he said that they put on the system, Jackson has argued for a new, separate rate class and will continue to advocate in this new process for rules focused on protecting ratepayers.

Additionally, 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.

Jackson also mentioned that he is still fighting Duke Energy Carolinas rate case that would see residential rate rise about 9.5%.

Duke Energy Carolinas primarily serves the western and central parts of North Carolina, including Charlotte and the Triad, plus parts of South Carolina.

He declined to join the settlement, arguing that the reduction from Duke’s original proposal did not go far enough.

“Duke started this case, asking families for an 18% increase. We pushed back, and now it’s own filing shows 9.5%,” Jackson said in a press release. “That is movement in the right direction, but it is still too high. We are not joining this deal, and we will keep pushing for lower rates.”

Jackson’s office also argued for a lower authorized return on equity, which represents the profit Duke is permitted to earn for shareholders. Duke originally requested a 10.95% return, while the settlement proposes a 9.8% return. Jackson recommended 7.4%, which the attorney general’s office estimated would save customers $1.37 billion over two years.

Duke said the agreement balances customer affordability with the need to invest in the electric grid and power-generation system.

While Democratic Gov. Josh Stein and Jackson focused on Duke’s rate request and the potential costs of data-center growth, John Locke Foundation CEO Donald Bryson argued that state energy policy is a primary driver of the proposed increases.

Bryson said during the July 24 episode of PBS North Carolina’s “State Lines” that the rate debate should account for the cost of replacing existing coal plants and complying with the state’s carbon-reduction policy.

“Why doesn’t Attorney General Jackson understand that we passed a carbon law back in 2021 that is making Duke Energy change its resource plan?” Bryson said. “They have all of these coal power plants all around the state that are financed. They are paid for. And we’re saying you have to shut those down. You have to build more stuff. And Duke’s saying, well, that costs money.”

Duke Energy has joined the Trump administration’s Ratepayer Protection Pledge, promising to support measures intended to prevent households and small businesses from paying for the power plants and grid infrastructure needed to serve rapidly expanding data centers.

Jackson is also asking Duke to formalize commitments as part of the pledge and make them legally binding in front of the Utilities Commission.

The Utilities Commission will decide whether to approve or reject the proposed Duke Energy Progress settlement. If approved as filed, new rates would begin taking effect on Jan. 1, 2027, the date Duke Energy Progress and Duke Energy Carolinas plan to merge.

“AG: Duke residential rate increase is 9.3%, not 6.8%” was originally published on www.carolinajournal.com.