US Utilities Seek $18 Billion in Record Rate Hikes

U.S. utilities proposed over $18 billion in gas and electric rate hikes during the first half of 2026, with $9.2 billion requested in the second quarter alone. According to the consumer advocacy group PowerLines, these increases disproportionately affect the South and Midwest, while one in six American households already struggle to pay utility bills.

In North Carolina, Duke Energy reached a partial settlement with state officials to reduce a proposed residential rate hike from 18% to 11.6%. If approved by the North Carolina Utilities Commission, monthly bills for typical users would rise by $9.39 in 2027 and another $5.52 in 2028. The utility maintains these funds are necessary to support a growing economy and add 10 new substations. However, Governor Josh Stein stated the request is "still too high" for struggling families.

Further conflict emerged as Attorney General Jeff Jackson filed a challenge to reject a separate 15% rate increase requested by Duke Energy Progress. Jackson argues that lowering the utility's return on equity from 10.95% to 7.4% would save customers nearly $960 million. He also advocated for a separate rate class for data centers to prevent residential users from bearing the cost of high-demand industrial energy use.

Simultaneously, regulators in Raleigh are questioning the expiration of the Duke Energy Customer Assistance Program in December 2026. The end of the $42 monthly credit, combined with proposed hikes, could increase bills by 7.5% for vulnerable households. Commissioner Floyd McKissick Jr. questioned whether the company had considered further aid for this population.