Raleigh -- July 18, 2026: North Carolina Attorney General Jeff Jackson is challenging Duke Energy Progress' proposed electricity rate increase, arguing that the utility's request would place an unnecessary financial burden on customers while generating excessive profits for shareholders.
Expert testimony filed by the North Carolina Department of Justice with the North Carolina Utilities Commission contends that Duke Energy Progress can continue investing in its electric system without imposing the full 15% rate increase it has requested.
The filing follows a similar challenge in a separate Duke Energy Carolinas rate case, where the utility later reduced its proposed residential rate increase after objections from the Attorney General's Office and other parties.
According to the testimony, Duke Energy Progress customers should not be required to fund the utility's proposed 10.95% return on equity. Instead, the Attorney General's experts recommend a 7.4% return, arguing that it would provide the company with an appropriate return while reducing costs for customers.
State experts estimate that adopting the lower return on equity would save Duke Energy Progress customers nearly $960 million over the next two years, or approximately $420 for the average residential customer.
Current residential customers of Duke Energy Progress pay an average monthly electric bill of about $165, according to the filing. Under the company's proposal, that average bill would increase to approximately $195 per month by 2028, representing an 18% increase over two years. The testimony also argues that the portion of customer bills going toward shareholder profits would increase significantly under the proposal.
In addition to challenging the requested profit margin, the Attorney General is urging regulators to establish a separate rate class for large energy users, including data centers. The filing argues that these customers place greater demands on the electric grid and require additional generating capacity, and therefore should bear a larger share of the costs associated with serving their growing energy needs.
The testimony also recommends creating a pathway for major industrial customers and data centers to generate more of their own electricity. Supporters of the proposal argue that doing so could reduce infrastructure costs and help limit future rate increases for residential and small business customers.
The North Carolina Utilities Commission will review the evidence submitted by all parties before determining whether to approve, modify, or reject Duke Energy Progress' proposed rate increase. A decision is expected this fall. If the proposal is approved, new electric rates would begin taking effect on January 1, 2027.
The Attorney General's Office says it will continue participating in the proceedings on behalf of North Carolina electricity customers as the case moves forward.