NC Attorney General Rejects Duke Energy Rate Settlement

North Carolina Attorney General Jeff Jackson rejected a proposed settlement that would increase electric bills for Duke Energy Progress customers. While the company and the North Carolina Public Staff reached an agreement for a 6.8% increase over two years—down from an initial request of 18.1%—Jackson argues the cost remains too high for families and exceeds the company's investment needs.

Jackson challenged the accuracy of testimony provided under oath by Kendal Bowman, president of Duke Energy Progress and Duke Energy Carolinas. He asserts that the 6.8% figure represents an average across all customer classes, whereas independent calculations from the North Carolina Department of Justice indicate the actual burden for residential ratepayers would be 9.3%. Jackson further advocated for a lower authorized return on equity of 7.4% instead of the settlement's 9.8%, estimating such a move would save customers $1.37 billion.

The disputed settlement includes a $10 million shareholder contribution for home weatherization and bill assistance, as well as new rules for data centers and large energy users. This rejection follows Jackson's opposition to a separate rate case for Duke Energy Carolinas involving a 9.5% residential increase. Duke Energy maintains the agreement balances affordability with grid investment, while the John Locke Foundation suggests state carbon-reduction policies are driving the costs.

The North Carolina Utilities Commission will now decide whether to approve the settlement. If passed, the new rates would take effect on January 1, 2027, coinciding with the planned merger of Duke Energy Progress and Duke Energy Carolinas.