Duke Energy seeks 10.95% return and steep rate hikes as disconnections climb
duke energy is asking state regulators to approve steep rate increases beginning in 2027 and to raise its return on capital to 10. 95%, a request that comes as about one-fifth of Duke Energy Carolinas customers are behind on payments and disconnections rose 37% last year.
Duke Energy seeks a near 11% return
The utility asked regulators to set its return on capital investments at 10. 95%, nearly half a percentage point above the national average in a new filing. Will Scott, the North Carolina policy director with the Environmental Defense Fund, said, “Bills are projected to skyrocket and emissions at this point are projected to increase, ” urging regulators to press Duke to justify a return that is among the highest for a regulated utility.
Customers facing higher bills and rising disconnections
Company data show about one-fifth of customers are behind on payments, and utility disconnections climbed 37% last year as many ratepayers came off pandemic-era repayment plans. Carol Hardison, CEO of Crisis Assistance Ministry, warned of immediate harm for low-income households, saying, “A $50 addition over six months is real money. It's real money. ”
What Duke Energy says about collections and customer help
A Duke Energy spokesperson provided written comments that framed disconnections as a last step in the collections process. In a written response, “The changes were introduced over time to preserve flexibility for customers experiencing temporary hardship, while also addressing unpaid balances and helping manage costs for all customers. ”
The company also advised that customers who receive disconnection notices can contact the Customer Service Team to explore options to avoid service interruption and to review payment and agency assistance information available through Duke Energy’s customer resources.
Charlotte resident Julia Burgess described the immediate pressure on households who are behind on bills: “I'm scared. I'll be very honest … my pay tomorrow’s the 23rd. I have to call Duke Energy now and say, ‘Hey, if I don't have the money on the 23rd…’ I just got a text saying if the payment isn’t in on the 23rd, the installment plan is void. ”
If state regulators approve the request, the higher returns and associated rate increases would take effect beginning in 2027; Will Scott said regulators could ask Duke to provide more justification for a return set at 10. 95% before granting approval.
