After Public Hearings, Regulators Limit Duke Energy Carolinas Rate Hike
After impressive customer turnout at public hearings across the Upstate, regulators at the Public Service Commission (PSC) approved a limited rate hike from Duke Energy Carolinas. Ratepayers showed up, and regulators listened!
Earlier this year, Duke requested a two-step increase in customer bills, which would have resulted in a 15.5% increase by 2026. It would also have increased Duke’s authorized return on equity (the amount of profits they’re allowed to earn) to 10.5%, raising the power company’s potential profits. However, as opposition at public hearings continued, Duke entered into a settlement agreement with several parties, including environmental and consumer protection organizations.
This settlement agreement reduces the amount of the rate hike by about one-third, and it reduces Duke’s allowed profits to 9.94%. Additionally, it commits $2 million of Duke shareholder funds to a low-income affordability study and energy efficiency initiatives. Regulators at the PSC approved this settlement agreement and even limited Duke’s earnings further by banning them from recovering certain coal ash cleanup costs incurred under North Carolina law.
South Carolinians still pay some of the highest energy bills in the nation, and much more work is necessary to bring down high energy bills, but this reduction is a step in the right direction and commitments to energy efficiency initiatives are sorely needed.
Thank you to everyone who showed up to public hearings on these rate hikes! You spoke strongly about power company profits, difficulty paying bills, and the need for better energy efficiency. Regulators heard your voice and made an effort to hold power companies accountable. Your advocacy made a difference.
If you have any questions or thoughts about this rate hike, please contact Jalen Brooks-Knepfle at [email protected].