Attorney general declines to join Duke Energy rate-case settlement

The Attorney General’s Office says the proposed settlement lowers Duke Energy’s original request but would still raise residential rates by about 9.5%.

RALEIGH — North Carolina Attorney General Jeff Jackson will not join a proposed settlement in the Duke Energy Carolinas rate case, saying the agreement would still raise residential customers’ bills too much.

The North Carolina Department of Justice announced July 21 that Jackson declined to sign onto the settlement even though Duke Energy moved toward positions advanced by the Attorney General’s Office and other parties. According to the department, residential rates would still rise by an average of about 9.5%.

“Duke started this case asking families for an 18% increase. We pushed back, and now its own filing shows 9.5%,” Jackson said in the release. “That is movement in the right direction, but it is still too high. We are not joining this deal, and we will keep pushing for lower rates.”

The department said Duke has claimed the settlement would produce an average annual increase of 3.7% over two years, or about 7.4% overall, but said that figure appears to average all rate classes, including industrial customers. The department said Duke’s settlement filings appear to show residential ratepayers would pay closer to 9.5%.

The proposed settlement includes several concessions. According to the Attorney General’s Office, Duke agreed to lower its requested return on equity from 10.95% to 9.8%. The release said that remains above the 7.4% supported by the Attorney General’s expert testimony, which the department said would have saved customers $1.37 billion over two years.

Duke also agreed to participate in a fast-track proceeding to establish new rules for data centers and other large energy users. Jackson said protections are needed to keep households from paying costs created by data centers and other large users.

The release also said Duke shareholders would pay $10 million into two programs that help North Carolinians pay bills and weatherize homes.

The North Carolina Utilities Commission will decide whether to approve or reject the proposed settlement. If approved as filed, new rates would begin Jan. 1, 2027.

Editor’s note: This article was drafted with the assistance of artificial intelligence and was reviewed and fact-checked by a member of the NC Political News editorial team before publication.