Duke Energy's Proposed Rate Hikes: What they mean for your bill, payments, and service

Duke Energy's 15% Hike: A Shock or Just Catching Up?

Duke Energy is proposing a 15% rate increase for North Carolina customers, phased in over 2027 and 2028. The headlines scream "rate hike," and nobody likes paying more for electricity (especially not me). But let’s dissect the numbers and see if this is a blatant cash grab or a necessary evil.

Deciphering the Rate Hike

The proposed increase breaks down to roughly 10-11% in 2027, followed by another 3-4% in 2028. For a household using 1,000 kilowatt-hours per month in the Charlotte or Triad area, that translates to about $17 more per month in 2027, jumping to around $168.50 total monthly bill in 2028. Duke Energy Progress customers in eastern NC are looking at a steeper initial jump of $23 per month. These are not insignificant sums, especially for lower-income households.

Duke justifies the increase by pointing to needed grid improvements: replacing aging power lines, hardening the grid against storms, adding battery storage, and accommodating population growth. They're also keen to emphasize that data centers aren't to blame, claiming these facilities pay their way and help spread system costs due to their consistent power consumption. Which is good PR, but I remain skeptical.

The elephant in the room is Duke's regulated profit margin. The North Carolina Utilities Commission caps their allowed rate of return, typically around 9-10%, on existing infrastructure. This rate request, Duke argues, is about recovering past investments and funding future upgrades. If approved, the rates would enable Duke to earn a return on equity of 10.95%, the company said. The average return on equity in 2024 for electricity and natural gas utilities was 9.7%, according to S&P Global Commodity Insights.

Now, here's where the narrative gets interesting. Duke's CEO, Harry Sideris, is aiming for annual earnings per share growth of 5-7% over the next few years. The question is, how much of this rate hike is genuinely needed for infrastructure, and how much is padding Duke's profit margins to meet those growth targets? I've looked at hundreds of these filings, and the line between "necessary investment" and "profit maximization" is always blurry.

Inflation, Infrastructure, and Scams

It's impossible to ignore the broader economic context. Nationally, residential electricity rates climbed 32% in the last decade, outstripping overall inflation. Duke points to its own rising costs for essential grid components: transformers, poles, power lines. According to Duke’s spokesman Bill Norton, prices for essential grid items such as transmission crossarms, distribution transformers and voltage regulators have more than doubled over the past five years. Duke's size gives them some negotiating leverage, but they're still vulnerable to inflationary pressures.

But here's a thought leap: how effective are Duke's procurement strategies? Have they truly exhausted all avenues for cost reduction before passing expenses onto consumers? The filing doesn't offer much detail on this, which is a red flag.

And while we're talking about consumer impact, let's address the darker side: scams. Duke Energy Ohio & Kentucky have received nearly 900 scam reports through the end of October 2025. Scammers impersonate utility reps, demand immediate payment via prepaid cards or cryptocurrency, and threaten service cut-offs. Duke emphasizes that they will never specify how you must pay or threaten instant shutoff. Duke Energy, BBB warn against scammers, offer advice on how to avoid being a victim. It’s a sad commentary that alongside a legitimate rate hike, customers also have to defend themselves against predatory scams exploiting the utility's name. Slow down, verify, and stop the scam. Duke Energy and the Better Business Bureau are on it.

Is This Just the New Normal?

Duke isn’t alone. Utilities across the country are planning record capital investments to boost generation capacity due to rising demand from manufacturers, electric vehicles, and AI-driven data centers. As Kevin Martin of the Carolinas Utility Customers Association notes, "The cost of electricity is skyrocketing."

Regulators will spend several months reviewing the filing before making a decision, including public hearings expected to begin in the spring of 2027. Given that regulators typically reduce Duke’s initial requests, the final approved rate increase will likely be lower than the proposed 15%. The N.C. Utilities Commission must strike the right balance of prioritizing investments that enhance the energy grid for current and future needs while also maximizing cost-saving measures for customers. It’s a tough job.

A Necessary Evil, Maybe

Duke's rate hike is a bitter pill, no doubt. But viewing it in isolation misses the bigger picture. Increased electricity demand, aging infrastructure, and inflationary pressures are creating a perfect storm. The question isn't whether rates will increase, but how much and how responsibly the utility manages its costs. The data suggests that some increase is unavoidable, but the final number will hinge on the Utilities Commission's scrutiny and Duke's willingness to demonstrate fiscal prudence.

Here Comes the Pain