In brief: Duke Energy rate hike

Duke Energy Carolinas has reduced its proposed energy rate hike for residential customers from 18% to 11.6%. The adjustment follows external pressure and feedback from organizations and community advocates. The previous rate hike was proposed despite Duke Energy Carolinas reporting a $5 billion profit the previous year. Duke Energy Carolinas has justified the previously proposed rate increase by citing projected infrastructure upgrades, the recovery of fuel and purchase power costs, and shareholder returns. Attorney General Jeff Jackson has stated that although the recent reduction is a step in the right direction, the revised proposed rate increase is still too high.

Before this proposed rate revision, there were two developments favorable to Duke Energy Carolinas that came without stipulations fully protecting residential customers from future electricity cost increases. First, as of May 2026, the North Carolina Supreme Court upheld the 2023 decision of the North Carolina Utilities Commission to allow Duke Energy Carolinas to raise rates on customers, even though the rates were higher than those implemented by Duke Energy Progress, which serves the eastern region of North Carolina.

Second, Senate Bill 730, the Ratepayer Protection Act — which aims to regulate hyperscale data centers and shield customers from the power and water demands they create — has passed the House. Although the legislation includes ratepayer protections and bans foreign ownership, it prevents the retirement of baseload power sources fueled by fossil fuels until the transition to nuclear power as the foundation for energy production is complete.

Since Duke Energy Carolinas’ proposed rate hike of 18%, there have been eleven hearings across North Carolina to solicit feedback from the community regarding this rate increase. The last public hearing prior to the revised rate increase was held in Durham on June 3, 2026, at which over 200 people appeared to provide testimony. However, expert testimony hearings are pending for July and August 2026.

Regardless of the revised proposal, the North Carolina Utilities Commission retains the option to approve, reduce, or reject the request. The final ruling is expected in the fall, with the new rates taking effect on January 1, 2027.