North Carolina customers may see considerable increases in their monthly energy bills as a result of Duke Energy’s proposed rate hike. Duke Energy filed a revised rate with the North Carolina Utilities Commission in November that would equate to a 15% rate increase from current revenues over two years. Gov. Josh Stein and N.C. Attorney General Jeff Jackson both oppose the revision, and Jackson filed a motion to intervene, which was granted on Dec. 1.
A report from the Energy & Policy Institute explains that monthly expenses for the average household consumer could increase by around $20 in the first year and around $6 the second year. Commercial customers would also see their bills increase, but by a smaller percentage.
Duke Energy has enjoyed a legal monopoly in North Carolina since its 2012 merger with Progress Energy. The N.C. Supreme Court affirmed its monopoly power in 2018.
Gov. Stein said he is fundamentally opposed to the rate increase and linked the issue to larger questions of affordability in North Carolina.
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Duke Energy’s proposed rate hike is simply too high and comes as the company is also retreating on more affordable clean energy. At a time when families are struggling to make ends meet, we should be doing everything we can to make life more affordable, not less.
— Gov. Josh Stein
“I am pleased that the North Carolina Department of Justice is fighting for the people of North Carolina,” Gov. Stein said in a statement. “Duke Energy’s proposed rate hike is simply too high and comes as the company is also retreating on more affordable clean energy. At a time when families are struggling to make ends meet, we should be doing everything we can to make life more affordable, not less. I will continue to fight on behalf of every North Carolinian to lower costs and grow the economy.”
AG Jackson also released a statement expressing his opposition to the rate proposal.
“With costs rising everywhere, it’s important we take a close look at Duke Energy’s proposed rate increase to ensure it is necessary,” Jackson said. “My office is intervening to make sure we find the right balance between investing in our energy infrastructure and protecting North Carolinians’ wallets.”
According to government data analyzed by the National Energy Assistance Directors Association, residential electricity prices jumped 10.5% between January 2025 and August 2025, one of the largest increases in more than a decade.
Gov. Stein said in a press conference that some of this cost burden is due to the many data centers that have begun operations across North Carolina in recent years. There are currently 91 data centers in North Carolina, according to Data Center Map, a number that will likely increase as the AI boom continues. Generative AI applications like ChatGPT require vast amounts of electricity and are burdening grids across the country.
“Data centers suck up an incredible amount of energy, and energy costs are too high; as they are, they’re rising,” Stein said. “Duke Energy has just asked for a double-digit rate increase at the Utilities Commission, something that I hope is severely scrutinized and shrunk because electricity is too expensive as it is.”
Stein suggests that the state take a hard look at the effect of data centers on energy demand and whether they are the right use of a limited resource. “We do not have infinite energy, and so we will have more insight into that question going forward,” Stein said.
Jackson will argue the case in front of the North Carolina Utilities Commission in the coming months, with a decision expected by late 2026.