Duke Energy Carolinas Rate Hike Settlement: Smaller Increase Expected for Upstate Customers

Why this matters: This settlement provides immediate relief to customers and ensures Duke Energy can continue to invest in infrastructure improvements. The collaborative approach also sets a precedent for future rate negotiations, ensuring community concerns are addressed.

Duke Energy Carolinas, a subsidiary of the Charlotte-based company, serves 680,000 customers across the Upstate. The proposed rate hike came after an August 2024 increase approved by the S.C. Public Service Commission (PSC), the company’s first in five years.

The settlement includes provisions requiring Duke to engage in future PSC proceedings to protect residents from potential future costs tied to growing power needs, largely driven by data centers and other “large load” users. It also focuses on improving energy efficiency through weatherization and solar plus battery programs.

Rising energy costs aren’t unique to the Upstate or South Carolina, but the Palmetto State is expected to see some of the highest electric bill increases over the next decade. This is partly due to changes in federal law that reduced clean energy incentives.

Institutional investors are also making moves with Duke Energy stock. The New York State Common Retirement Fund reduced its stake in Duke Energy by 1.0% in the second quarter, holding 801,576 shares valued at $94.59 million. However, Duke Energy beat Q results with $1.81 EPS (vs. $1.75 estimate) and 4.8% revenue growth year-over-year.

Residential customers using 1,000 kilowatt-hours per month could see an initial increase of 84 cents per month.

The initial increase is scheduled to start on March 1, 2026, pending approval by state regulators.

Duke Energy states that the increase is necessary to cover the costs of improvements in grid reliability and resilience, along with increased capital costs.

The settlement proposes a significantly smaller increase than the initial proposal, which would have amounted to a $10.38 hike on a 1,000 kWh monthly bill.

The credits include a two-year flowback of $100 million in federal tax credits and a $750,000, two-year annual shareholder-fund contribution.

What are your thoughts on the proposed Duke Energy rate hike settlement? Do you think it adequately balances the needs of the energy company and its customers? Share this article with others who need to stay ahead of this trend!