FOR IMMEDIATE RELEASE
Monday, June 1, 2026
Contact: comms@ncdoj.gov
919-538-2809
Download the full video here.
RALEIGH – Attorney General Jeff Jackson is fighting Duke Energy Carolinas’ (Duke or DEC) proposed rate increase. If approved, the increase would cost ratepayers nearly $1.4 billion in unnecessary rate hikes over the next two years.
In expert testimony filed Friday with the North Carolina Utilities Commission, Attorney General Jackson argues that customers should not have to pay for a return on equity as high as the 10.95 percent Duke is asking for, and that setting it at an acceptable level would save North Carolina families nearly $1.4 billion over the next two years. He also argues that Duke should be required to create a separate rate class for data centers and other customers that reflect the strain they put on North Carolina’s power grid.
“This proposed increase is too high for families, and it’s more than Duke needs to meet our growing demand for energy,” said Attorney General Jeff Jackson. “We can bring that number way down, save families money, and still build everything we need to keep up with growth. That’s what I’m fighting for.”
“The pricing proposed by DEC in this case significantly exceeds general inflation levels and is likely to exacerbate affordability issues at a time when customers are already struggling,” said Edward Burgess in his testimony as an expert witness for the North Carolina Attorney General’s Office.
In the expert testimony, Attorney General Jackson highlighted several issues with Duke’s proposed 15 percent rate increase and recommended changes to reduce costs for North Carolina families.
Lower Utility Costs for Families
Attorney General Jackson rejects Duke’s request for a 10.95 percent return on equity, arguing instead that Duke can earn a 7.4 percent return – which is lower than its current return of 10.1 percent – while still raising the money it needs to provide reliable service.
Right now, the average Duke Energy Carolinas household pays about $143 every month. About $25 of that is profit that goes to Duke’s shareholders.
Under Duke’s proposal, the average household would pay about $168 a month by 2028, a 17 percent increase in just two years. Of that, about $38, or 22 percent, would be profit. That means about one in every five dollars a customer pays Duke would go to the company’s profit and its shareholders.
NCDOJ’s expert witness argues that setting rates using Attorney General Jackson’s recommendation of a 7.4 percent return would save ratepayers $1.37 billion dollars over the next two years, or roughly $435 per residential customer.
From testimony of Daniel Cassara, energy expert witness for the North Carolina Attorney General’s Office:
“The increased returns that DEC is requesting come on the heels of earning $2.1 billion in net income, an 11.22 percent book return on equity, in 2025. This makes DEC one of the most profitable utilities in the country… It strains credulity to believe that hundreds of millions of dollars in additional profits are needed to attract capital and maintain credit for one of the most profitable and well-resourced utilities in the country.” (pages 121-122)
“An ROE of 7.4 percent would meet DEC’s cost of equity, enabling the company to attract needed capital and providing investors with an opportunity to make a fair return, while also saving DEC’s retail ratepayers from substantial rate increases.” (page 121)
A New Approach to Data Centers and Other Large Customers
Attorney General Jackson argues that data centers and other customers that use large amounts of energy should be placed in a new, separate rate class that accounts for the strain their energy use puts on the grid and the additional generation Duke has to build to serve them. Duke is currently proposing that some of those costs could be spread across the system and paid by other customers.
Duke’s projections for data center growth are likely overstated. That means customers could be charged for infrastructure Duke builds to meet demand that may never materialize. Duke should be planning around likely customers, not uncertain ones.
North Carolina families could also save millions if large users like data centers were allowed to generate their own power, an option already available in many other states. Attorney General Jackson is calling on Duke to offer its largest energy users a transparent, predictable path to build their own power generation.
From testimony of Justin Brant, energy expert witness for the North Carolina Attorney General’s Office
“DEC’s approach shifts significant costs and risks onto other ratepayers and gives DEC significant discretion to negotiate terms with prospective large load customers without appropriate review by the Commission.” (page 12)
“The large load customers currently proposed and under construction represent new loads of unprecedented size that require unprecedented system upgrades to serve. The cost allocation paradigm that has been in use for 100 years was not designed to accommodate such large and unprecedented load growth. The size and scale of data centers create new risks and mean that frameworks that have worked well to create fair cost allocation outcomes in the past will not necessarily work as well in the future.” (page 14)
“It can take 10 or more years for other customers to start benefiting from large load additions. This lag means that other ratepayers could see a decade of increased prices before seeing potential benefits from large loads assuming those benefits materialize.” (page 21)
“The ability to allow large customers to rely on their own resources is a significant offering… because it will create a pathway to dramatically reduce cost shifting from large customers to other customers, while reducing the need for transmission and generation buildout.” (page 63)
Affordable Energy Sources
In a related case, Attorney General Jackson has also filed testimony in Duke Energy’s Carbon Plan, arguing that Duke is overstating future energy demand. That overstatement leads Duke Energy to rely too heavily on natural gas, whose prices swing with global events and can drive electricity bills up sharply for long stretches. Attorney General Jackson argues that Duke should plan based on realistic projections and include more affordable, stable sources like solar.
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The North Carolina Utilities Commission will decide whether to approve, reduce, or reject Duke’s proposed increase. A decision is expected this fall, and if approved as filed, new rates would begin taking effect on January 1, 2027. NCDOJ will continue participating in the case on behalf of North Carolina’s electricity customers.
The testimony for the Carbon Plan can be read here. The Utilities Commission will start a hearing on Duke’s Carbon plan on June 9th.
The Testimony for the DEC Rate Case can be read here, here, and here. The Utilities Commission will start a hearing on the DEC Rate Case on July 7.
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