Duke Energy proposed rate hikes could increase utility bills

Higher utility bills could be on the way for North Carolinians after Duke Energy Carolinas proposed a fuel rate hike for its customers.

Duke Energy Progress is also planning to file its own rate increase proposal in June.

“These reflect actual fuel costs – customers pay what we pay – leading to increases in some years and decreases in others, including residential rate reductions in 8 out of 10 years before last year’s increase,” a Duke Energy spokesperson told WRAL News.

The energy company emphasized that it will not profit from the increased fuel prices. It will be used to recover their fuel costs.

“I think all of your viewers are well aware of the increase in fuel costs last year. We know how much it cost to fill up our cars with gas. A lot of the fuel costs that are in this request from Duke are related to their burning of natural gas in their power plants last year,” NC Public Staff energy division president James McLawhorn explained. "The rate that was set to recover that was too simply low. The cost escalated after the rate was put in place. That is what is driving a lot of the increase.”

North Carolinians expressed frustration, citing inflation.

“With what’s going on now with inflation, and they have the nerve to raise electric bills. People are already struggling to get by,” one person said.

“You kind of expect it to happen, but on top of rent increasing so much, it’s just. At the end of the day, it’s like, how much money can we make?” Emilie Miller said.

Duke Energy already proposed a separate adjustment to its base rates in January, 75% of which consists of grid updates for Duke Energy Progress and Duke Energy Carolinas.

“Our previous proposal to change the base rate was in 2019, so it’s been a while. The North Carolina Utilities Commission will hold a public hearing for the proposed Duke Energy Progress base rate on the evening of March 14,” according to a Duke Energy statement.

North Carolina’s rates are 35% below the national average, according to Duke Energy.

“Even if the [North Carolina Utilities Commission] were to approve the full increase requested in both our current DEC rate case and this fuel filing, monthly residential rates would rise to $146.65 by Jan. 1, 2024 (an increase of $31.64 over today’s rates). That’s far below the national average of $161.81 as of summer 2022 – and that average is before other utilities’ rate increases.”

Duke Energy Carolinas customers will be impacted as early as Sept. 1; Duke Energy Progress customers will be impacted as early as Dec. 1.