Duke Energy has submitted a proposal to the North Carolina Utilities Commission (NCUC) seeking approval for revised rates at its two state utilities, Duke Energy Carolinas and Duke Energy Progress. The request includes an annual revenue increase of $1 billion for Duke Energy Carolinas and $729 million for Duke Energy Progress, representing increases of 15% and 15.1% over current revenues, respectively. These adjustments are based on a proposed return on equity of 10.95% and a 53% equity capital structure.
If approved, residential customers using 1,000 kilowatt-hours per month would see their monthly bills rise by $17.22 for Duke Energy Carolinas customers in January 2027, with an additional $6.34 increase in January 2028. For Duke Energy Progress customers, the increase would be $23.11 in January 2027 and another $6.59 in January 2028. Commercial and industrial customers would also experience rate increases over this period.
“Our goal is to deliver reliable power at the lowest possible cost for customers,” said Kendal Bowman, Duke Energy’s North Carolina president. “It’s important to strike the right balance of prioritizing investments that enhance the energy grid for current and future needs while also maximizing cost-saving measures for our customers.”
Duke Energy highlighted several efforts to reduce costs since its last base rate case, including savings from storm bonds issued after Hurricane Helene, which have saved North Carolina customers $422 million. The company’s nuclear units are expected to generate significant tax credits through 2032; current rates will return $150 million in nuclear production tax credits to Duke Energy Carolinas customers during 2025-2026, with plans to extend these benefits further under the new proposal.
The company has also passed along savings from lower fuel prices to customers last winter and estimates that combining Duke Energy Carolinas and Duke Energy Progress could save more than $1 billion in future costs.
As part of ongoing grid upgrades, self-healing technology now serves about three-quarters of North Carolina customers—helping avoid more than one million outages so far in 2025—and traditional infrastructure improvements continue across the state.
Population growth is driving electricity demand higher as companies invest billions into new manufacturing facilities in North Carolina. To meet this demand reliably and efficiently, Duke Energy is investing in projects such as adding nearly 300 megawatts of clean capacity through nuclear uprates by 2031 and expanding battery storage alongside solar installations.
Bowman added: “Customers count on us to manage our costs on their behalf, but they also want options to manage their own bills now… That’s why we’re helping customers lower their energy use – and lower their bills – through programs that make a measurable difference.”
Programs offered include weatherization services for income-qualified households, free home energy assessments through Neighborhood Energy Saver and Home Energy House Call initiatives, rebates via Smart $aver upgrades, bill credits with Power Manager participation during peak periods, and incentives under PowerPair for installing solar or battery systems.
Last year alone, these programs resulted in average annual bill savings ranging from about $47 to over $150 per home depending on the program used. Across both states served by the company’s utilities, annual energy efficiency savings exceed national averages by roughly half again as much.
Duke Energy Carolinas provides electricity to about two million households and businesses primarily in Central and Western North Carolina; Duke Energy Progress serves approximately 1.6 million customers across Central/Eastern regions including Asheville.
This filing may be the final separate base rate review if regulators approve merging the two utilities next year—a process last initiated by each utility in early 2023 or late 2022.
The NCUC is expected to schedule public hearings statewide next spring before making a decision on new rates later in 2026. Further details can be found at duke-energy.com/NorthCarolinaRates.
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