Duke Energy Seeks Steep Rate Increases in North Carolina
Duke Energy is requesting approval from state regulators for substantial rate increases slated to begin in 2027. The utility is also seeking authorization for one of the highest returns on investment among regulated utilities operating in the Carolinas. This proposal has sparked concern among consumer advocates and raised questions about affordability for North Carolina residents.
Higher Returns, Higher Bills?
According to a recent report, Duke Energy is requesting a return on capital investments of 10.95%, nearly 0.5% above the national average. This request is under scrutiny, with some questioning the justification for such a high return, especially considering its potential impact on customer bills. Will Scott, North Carolina Policy Director for the Environmental Defense Fund, emphasized the need for greater transparency. “Regulators could ask Duke to provide more justification for such a high return,” Scott stated. “Bills are projected to skyrocket and emissions at this point are projected to increase. I don’t think we’re hitting either of the metrics that we would consider measures of success for a utility when it comes to modernizing our electric system.”
Impact on Low-Income Households
While the increase in returns may seem small on a percentage basis, the cumulative effect on household bills could be significant, particularly for low-income families. Carol Hardison, CEO of Crisis Assistance Ministry, highlighted the financial strain this could create. “A $50 addition over six months is real money. It’s real money,” she explained. Approximately 20% of Duke Energy Carolinas customers are currently behind on their payments, and disconnection rates are rising as pandemic-era repayment plans expire. Last year alone, disconnections increased by 37%.
Rising Disconnections and Customer Hardship
Duke Energy maintains that the changes are designed to balance flexibility for customers facing temporary hardship with the need to address unpaid balances and manage costs for all ratepayers. However, the reality for many customers is a growing fear of disconnection. Julia Burgess, a Charlotte resident, shared her anxieties: “I’m scared. I’ll be very honest… my pay tomorrow’s the 23rd. I have to call Duke Energy now and say, ‘Hey, if I don’t have the money on the 23rd…’ I just got a text saying if the payment isn’t in on the 23rd, the installment plan is void.”
Duke Energy’s Response and Assistance Programs
Duke Energy asserts that disconnections are a last resort in their collection process. The company states it keeps customers informed of past-due balances and potential disconnections, adhering to the rules set by the North Carolina Utilities Commission. Customers facing disconnection are encouraged to contact Duke Energy’s Customer Service Team to explore available options and learn about payment assistance programs. You can find more information on the Duke Energy website.
Resources for Customers Facing Disconnection
- Duke Energy Assistance Programs: Explore options for payment arrangements and financial assistance on the Duke Energy website.
- Crisis Assistance Ministry: Provides emergency financial assistance to individuals and families in need. https://crisisassistance.org/
- North Carolina Department of Health and Human Services: Offers a variety of assistance programs for low-income households. https://www.ncdhhs.gov/
This situation underscores the importance of staying informed about rate changes and understanding available resources to avoid service interruption. The North Carolina Utilities Commission will be reviewing Duke Energy’s proposal, and public input will be crucial in determining the final outcome.
