Duke reduces rate hike request, still faces regulator pushback

Duke Energy has lowered its proposed residential electricity rate increase in North Carolina to 11.6%, down from an original request of 18%, after pushback from customers and the state Attorney General. Even at the reduced level, the request faced tough questions from state regulators during a recent hearing, with commissioners and consumer advocates pressing Duke on whether homeowners are being asked to shoulder costs that mainly benefit large industrial customers.

A central issue is data centers. One commissioner noted that 70% of Duke's queue of large new electricity users is data centers, and questioned how residential customers are expected to help fund roughly $100 billion in planned utility investments through 2035 when those centers appear to be highly profitable for Duke. A lawyer representing consumer groups pointed to utility data showing that about 98% of the financial benefits from certain grid upgrade projects went to non-residential customers, raising questions about whether homeowners are paying for improvements that mostly serve big commercial users.

Duke has defended the rate request, saying a lower return on equity could hurt its credit rating, which the utility argues would eventually raise borrowing costs and rates for everyone, including after storm recovery efforts like those following Hurricane Helene. The state commission is expected to decide on the case by September 20. If you get power from Duke in North Carolina, this case will determine how much your monthly bill goes up.