Duke Energy Progress has reduced its proposed rate increase by more than half, but residential customers could still see their monthly electric bills climb beginning in 2027.
The proposed settlement is being considered by the North Carolina Utilities Commission. The commission may approve the agreement as presented or make additional changes before new rates take effect.
How Much Could Residential Bills Increase?
Under the proposed Duke Energy Progress rate increase, a typical residential customer using 1,000 kilowatt-hours of electricity per month would pay approximately $9.62 more each month beginning Jan. 1, 2027.
An additional monthly increase of approximately $5.89 would follow in 2028. Combined, the two adjustments would add about $15.51 per month to the bill of a customer using 1,000 kilowatt-hours when compared with current rates.
Actual changes would vary depending on each customer’s electricity usage and the final rate structure approved by state regulators.
Original Request Was Significantly Higher
Duke Energy Progress originally proposed a two-year plan representing a cumulative 15.1% increase in annual retail revenue, including changes to riders.
The company says the revised agreement responds to concerns about affordability while still providing money needed to maintain the electric system and meet growing demand.
The proposed settlement includes the accelerated return of approximately $120 million in annual federal tax credits connected to nuclear, solar and hydroelectric generation.
It would also create a refund mechanism requiring money to be returned to customers with interest if certain planned infrastructure projects are not completed on schedule.
Additional Assistance for Lower-Income Customers
As part of the proposed Duke Energy Progress rate increase settlement, Duke shareholders would contribute another $10 million toward bill-assistance and weatherization programs for lower-income households.
Several organizations have agreed to the settlement, including the North Carolina Public Staff, which represents utility customers before the commission. Business, industrial and clean-energy groups have also signed the agreement.
Consumer advocates and elected officials have acknowledged that the revised request is lower but argue that families are already struggling with electricity costs and other household expenses.
What Happens Next?
The North Carolina Utilities Commission is continuing its review of the rate case. Commissioners must determine whether the proposed rates are fair and reasonable and how the approved increase should be distributed among residential, commercial and industrial customers.
The settlement is not final. The commission can approve it, reject it or modify its terms.
If the Duke Energy Progress rate increase is approved as proposed, the first change will appear on customer bills beginning in January 2027. The second increase would take effect in 2028.
Until the commission issues its final decision, the amount customers will ultimately pay remains subject to change. For now, the proposed Duke Energy Progress rate increase is lower than the company’s original request, but it would still mean higher monthly bills for customers across much of eastern North Carolina.
Source: Information for this report was provided by WRAL and records from the North Carolina Utilities Commission rate proceeding.
