CHARLOTTE, N.C. – Duke Energy Carolinas customers in North Carolina will see their electric rates fall starting January 1 as part of an annual adjustment for the cost of fuel used to generate electricity at its power plants.
A typical residential customer in North Carolina using 1,000 kilowatt-hours (kWh) per month will see an overall decrease of $5.17, or about 3.6%, from current rates, falling from $142.17 to $137. That is 23% below the national average of $177.09 – a difference of approximately $480 per year.
Commercial customers will see an average decrease in their bills of about 7.4%, and industrial customers will receive an average decrease of less than 1%. Duke Energy Carolinas serves about 2.2 million households and businesses in central and western North Carolina, including Charlotte, Durham and the Triad.
A proposed decrease for Duke Energy Progress customers is currently being evaluated by regulators; if approved, those customers would also see rates decline starting December 1.
Large Drop Follows Temporary Increase
To ensure accurate rates, the North Carolina Utilities Commission (NCUC) annually reviews the fuel costs required to generate electricity for customers, along with rider updates for state programs to encourage clean energy adoption and reduce energy use. The NCUC issued its order approving the annual adjustment on August 20.
On September 1, residential rates will briefly rise about 1.5% – $2.14 a month for a 1,000-kWh customer – primarily due to a settlement agreement with the NCUC Public Staff at last year’s annual adjustment, which spread a prior increase over 16 months instead of 12.
Then on January 1, rates will significantly decline when additional adjustments are made:
- A decrease of 8.8% to adjust for falling fuel prices
- An increase of 0.8% for energy efficiency and demand-side management programs to lower energy use
- An increase of 2.9% to base rates, as previously approved by the NCUC in its 2023 multiyear rate case order.
The collective result is a 3.6% rate reduction for typical residential customers, with the potential for an additional decrease as a result of nuclear federal tax credits, pending a forthcoming NCUC filing.
