NC Supreme Court upholds Duke Energy rate increase from 2023, which charges eastern and western NC residents differently

RALEIGH, N.C. (WNCN) — In a ruling released Friday afternoon by the North Carolina Supreme Court, the North Carolina Utilities Commission’s 2023 decision to allow Duke Energy to raise rates over the course of three years was upheld.

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The 122-page decision both affirms and dissents from the decision to raise rates on North Carolinians. The majority of the court, according to the decision, upheld the rate increases for both Duke Energy Progress and Duke Energy Carolinas.

“The majority affirms the Utilities Commission’s decision to award a rate increase to Duke Energy Carolinas and Duke Energy Progress,” the decision reads. “Specifically, the Commission awarded Duke Energy Carolinas a higher rate of return on common equity than it had received in the past — higher even than the Commission awarded Duke Energy Progress only three and one-half months earlier.”

Justice Anita Earls, with Justice Allison Riggs joining her, dissented against the decision to charge Duke Energy Carolinas customers a higher rate.

“Because the majority affirms these decisions, Duke Energy will charge consumers in the western part of the state more than consumers in the eastern part of the state for identical electrical services,” Earls writes. “I dissent from the majority’s decision to approve this disparate treatment. In my view, the Commission’s decision in the Duke Energy Carolinas rate case is quite plainly unlawful and arbitrary.”

The utilities commission approved the rate increases back in 2023, but NC Attorney General Josh Stein challenged the commission’s decision.

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The decision comes as Duke Energy is seeking another rate increase, this time it would raise residential energy rates by 18% over the next two years as a way to “improve reliability, harden the grid against severe weather and support North Carolina’s continued growth.”

The proposal has been met with substantial pushback from both consumers and members of the NC General Assembly.

“North Carolinians cannot afford a 16% to 18% rate hike on their base rates right now,” said Sen. Jonah Garson (D-N.C. 23).

Duke Energy’s last hearing for witness testimony for the new rate increases is set to take place in early June.

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