N.C. attorney general will not sign new Duke Energy settlement

North Carolina Attorney General Jeff Jackson has announced he will not endorse a proposed settlement submitted by Duke Energy Carolinas, the largest electricity provider in Alamance County, citing dissatisfaction with the proposed rate increases. Duke Energy's settlement would lead to an average 7.4% increase over two years for all North Carolina customers, with residential rates climbing by 9.5% and industrial rates by 6.3%. Jackson has been pushing back against the utility's initial request for an 18% increase, stating that while the new proposal of 9.5% for residential customers is a step in the right direction, it remains too high.

Jackson's office also highlighted a similar dispute with Duke Energy Progress, where he advocated for lowering the proposed 10.95% return on equity to 7.4%, arguing it would save customers $960 million. In response to these objections, Duke Energy Progress has lowered its proposed return on equity to 9.8% and agreed to a fast-track regulatory process for developing new rates for large energy users, including data centers. Jackson's office will participate in these proceedings.

A key point of contention is Duke Energy's proposal for a "large-load tariff" targeting customers with high electricity demand, such as data centers. These centers are projected to account for 80% of an anticipated 16% to 60% increase in electricity demand over the next 15 years. Jackson's office advocates for a separate rate class for these large users to prevent residents and small businesses from bearing the brunt of rising energy costs associated with new infrastructure development. The North Carolina Utilities Commission is scheduled to begin hearings on Duke Energy's settlement on August 4, with rate increases potentially taking effect on January 1, 2027, if approved.