Duke Energy Carolinas has reduced its proposed residential rate increase from about 18% to 11.6% after months of criticism from customers, consumer advocates and state officials.
Read more NC GOP bans sex offenders from holding party office in new committee report
The reduction, filed with the North Carolina Utilities Commission ahead of a July hearing, is the first time the company has voluntarily cut a rate request by this much during the rebuttal phase of a rate case, Duke Energy said. The move comes just before a July 7 evidentiary hearing and follows months of customers telling regulators higher electric bills would force difficult choices involving groceries, housing, transportation and medical care.
Attorney General Jeff Jackson, Gov. Josh Stein and the state Public Staff also argued Duke’s original request was too high.
“Over the last few months, we have listened carefully to feedback from customers and stakeholders,” Duke Energy spokesperson Bill Norton said. “In response, we have proposed an alternative path that lessens the projected cost impact on customers while continuing to make the investments necessary to serve North Carolina’s growing energy needs.”
In testimony filed to the utilities commission, Duke Energy North Carolina President Kendal Bowman said the company reduced its request after hearing affordability concerns. Bowman called the move a “significant and unprecedented voluntary reduction.”
Under the revised proposal, Duke is seeking a cumulative rate increase of 9.3% over two years, down from its previous request of 14.3%. The residential increase would drop from about 18% to 11.6%. The new request shows a proposed 7.5% increase in 2027 followed by a 4.2% increase in 2028, according to Norton.
Duke also reduced its requested return on equity, a key measure of utility profit, from 10.95% to 10.48%. Duke said the changes lowered its requested revenue increase from roughly $578 million to $264 million.
Duke said it reduced the request by lowering its proposed profit rate, taking some large-customer infrastructure costs out and passing along additional storm-related savings to customers.
Bowman said Duke attended public witness hearings around the state and heard customers’ concerns directly.
Read more Is the Former Kardashian Nanny Still in Contact With the Dad She Slept With?
“We know and understand that the costs to maintain reliable service are borne by our customers through the rates they pay,” Bowman wrote. “After hearing those concerns directly, we took further action to evaluate whether a lower request was possible.”
The attorney general has been one of the most vocal opponents of Duke’s proposal. Earlier this month, Jackson urged regulators to significantly reduce the utility’s requested increase and lower its profit rate, arguing customers could save more than $1 billion while Duke continued providing reliable service.
Jackson highlighted the reduction Monday in a social media post, calling it a “step in the right direction” but arguing the revised request remains too high.
“That happened after our office objected, along with Public Staff, other intervenors, and many North Carolinians,” Jackson wrote. “We’ll keep making our case for lower rates — and for making sure families don’t get stuck paying unfair costs for data centers and other large users.”
A major point of dispute in the case has been who should pay for infrastructure needed to serve rapidly growing electricity demand from data centers and other large industrial customers. Jackson and other consumer advocates have argued residential customers should not shoulder those costs, while Duke maintains large users ultimately benefit other ratepayers.
The Utilities Commission is scheduled to begin hearing evidence in the case July 7. Regulators could approve, modify or reject Duke’s request before new rates take effect next year.
This story was originally published June 23, 2026 at 11:15 AM with the headline “Duke Energy makes rare cut to NC rate hike request after customer complaints.”
Read more Longtime leader of Raleigh’s oldest restaurant dies at age 68