Last Friday, Duke Energy Carolinas reached a new settlement with businesses, clean energy groups and trade associations in its ongoing rate case. Duke had originally requested permission to raise its rate of returns from 10.1% to 10.95%.
However, it received so much pushback from customers that the company voluntarily lowered its request for a higher rate of return.
“It was a hard decision, but we made it because we listened to our customers,” said Kendal Bowman, Duke Energy’s North Carolina president, during this month’s regulatory proceedings.
In the settlement, Duke agreed to lower its rate of return from 10.1% to 9.8%. The move elicited some positive reactions from some customer advocacy groups, including the North Carolina League of Conservation Voters.
“While this settlement has not been approved by the NC Utilities Commission or signed onto by all of the parties, it is a step towards addressing the hold Duke Energy has on North Carolina’s energy prices,” Michelle Carter, the nonprofit’s clean energy campaigns director, said in a written statement.
She noted that the utility “requested twice as much as they ultimately agreed to,” and the settlement still lacked a large load tariff or support for its Customer Assistance Program, which offers a $42 monthly bill credit to low-income residents.
The settlement includes a $10 million contribution from shareholders for two programs aimed at lowering costs for low-income residents: Duke Energy’s Share the Light and Helping Home Fund.
If the settlement is approved by the North Carolina Utilities Commission, rates for Duke Energy Carolinas residential customers would increase 5.9% in 2027 and 3.6% in 2028. The utility's service area includes much of central North Carolina and parts of western North Carolina and upstate South Carolina.
This means that the average bill would increase approximately $6.53 per month.
