State regulators are hosting the final public hearing on Duke Energy Carolinas’ proposed rate hikes Wednesday evening in Durham. The utility says it needs higher returns to attract future investment and reduce financial risk. Not everyone agrees.
North Carolina Attorney General Jeff Jackson’s office filed testimony with the Utility Commission on Friday, challenging Duke Energy Carolinas' proposed 15% rate increase. He said the plan would cost ratepayers nearly $1.4 billion in unnecessary charges over the next two years.
“Duke is allowed to earn a profit, but only as much as it needs to meet the growth and demand for energy,” Jackson said in a video statement. “And we think they overshot the mark.”
Jackson’s office argues Duke Energy is seeking too high a return on equity — nearly 11% — and that a lower rate of 7.4% would save residential customers about $435 each while still allowing the company to attract investment and maintain reliable service.
The current proposal would raise average monthly bills by more than $20 by 2028 while increasing Duke’s returns.
Testimony filed by the Southern Environmental Law Center echoed the attorney general, pushing for a return of 9.1%. Its witness said this rate strikes a balance between charging customers and paying shareholders while allowing the utility to attract future investment.
Jackson is also asking the North Carolina Utilities Commission to address data centers.
“We're asking the utilities commission to create a separate rate class for them and other very large energy users. Why? Because they're different,” Jackson said.
