Why are electricity rates rising in North Carolina? In 2026, there are several reasons at once. Duke Energy Carolinas raised rates on January 1. A higher fuel charge hit both Duke utilities on June 1, partly because of a severe cold snap last winter. Two more rate cases are pending for 2027. And Duke is investing heavily in power plants and the grid to keep up with fast growth.
This guide breaks down what's already on your bill, what's still pending, and the parts of your bill you can actually control.
North Carolina Has Two Duke Utilities, Not One
Most North Carolina homeowners get power from one of two Duke companies. Duke Energy Carolinas serves about 2.3 million customers in the state, including Charlotte, Durham, the Triad and western North Carolina. Duke Energy Progress serves about 1.6 million, including Raleigh, central and eastern North Carolina, Wilmington and the Asheville region.
The two have different rates, separate fuel charges and separate rate cases. So “Duke raised rates” isn't specific enough. The first step is knowing which one is on your bill.
What a Typical Bill Costs in 2026
The Public Staff, the state agency that represents utility customers, tracks a typical residential bill for 1,000 kWh (kilowatt-hours, the unit on your bill). As of September 1, 2026, before tax, that bill was:
- Duke Energy Carolinas: $159.02 a month
- Duke Energy Progress: $176.85 a month in summer and $174.85 in winter
That means two homes using the same amount of power can pay roughly $16 to $18 a month apart, just based on their utility.
Duke Energy Carolinas Rates Rose on January 1, 2026
Duke Energy Carolinas rates went up about 3.94% on January 1, 2026. That was the final step of a multiyear rate plan approved in 2023, plus updated riders (extra charges listed on your bill). Plans like this fund long-lived investments, such as grid upgrades. Duke Energy Progress had no base-rate increase in January 2026.
A Fuel Charge Was Added on June 1, 2026
On June 1, 2026, both utilities added an increase to the fuel charge (the part of the bill that covers fuel and purchased power). The North Carolina Utilities Commission (NCUC) approved it. For a 1,000-kWh home, it adds about:
- $6.90 a month for Duke Energy Carolinas
- $7.88 a month for Duke Energy Progress
The cost is spread over 19 months, so it will stay on bills into 2027.
Why Last Winter's Cold Snap Shows Up Now
The fuel charge recovers costs that ran higher than forecast from September 2025 through February 2026. A big part came from a severe cold snap in late January 2026. Duke set a winter peak record on January 27. To keep power flowing, it had to buy expensive electricity from neighboring utilities. Those costs reach customers later, after the NCUC reviews them.
Weather Raises Your Usage, Too
Extreme weather can hit you twice. It can raise what power costs Duke. It also makes your own system work harder. In a cold snap, a heat pump may lean on auxiliary heat, a backup electric heater that uses much more power. In a heat wave, the AC runs longer.
Here's a hypothetical example. A home normally uses 1,200 kWh in July, but an aging AC pushes that to 1,750 kWh. That's 550 extra kWh. At a hypothetical 16¢ per kWh, that's about $88 more in one month. That can be bigger than any rate change this year.
Two Rate Cases Are Pending Before the NCUC
On November 20, 2025, both Duke utilities filed new rate cases. Each first asked for about 15% more revenue. Any new rates would start January 1, 2027, with a second step on January 1, 2028. Both cases have since been settled with the Public Staff and other parties. Those settlements are much smaller than the original requests, but neither has been approved. The NCUC will decide, and a decision is expected later in 2026.
The Duke Energy Carolinas Settlement
The Duke Energy Carolinas settlement came on July 17, 2026. It would raise revenue by $496 million over two years, about half of what Duke first asked. That works out to an average of 3.7% a year across all customer classes.
Homes would see more, mostly in the first year. Estimates put the residential increase at about 5.9% in 2027 and 3.6% in 2028. For a 1,000-kWh home, that's roughly $9.39 a month more in 2027 and another $5.52 in 2028. The settlement also includes a refund, with interest, if planned projects run late. Duke shareholders would put $10 million toward bill assistance and weatherization.
The Duke Energy Progress Settlement
The Duke Energy Progress settlement followed on August 5, 2026. It would raise revenue by $338 million over two years, less than half of Duke's original request. That's an average of 3.4% a year across all customer classes. For a 1,000-kWh home, estimates put the bill about $9.60 a month higher in 2027 and about $5.90 more in 2028.
It also includes a refund rider if projects run late, plus $10 million from shareholders for bill help. About $120 million a year in federal tax credits for nuclear, solar and hydro power would go back to customers faster in 2027 and 2028. And coal ash cleanup costs would be spread over eight years instead of five.
Why These Increases Aren't on Your Bill Yet
Both settlements are proposals. The NC Attorney General did not sign either one, and he called the Carolinas deal still too high. Governor Josh Stein did not sign the Carolinas settlement either. Until the NCUC rules, no one should tell you Duke is “already raising your rate” by these amounts. And any savings estimate built on Duke's original, larger requests is out of date.
Some 2026 increases are already on your bill. The 2027 rate cases are still pending. Know which is which before you make any decisions.
Why Duke Says It Needs to Invest
In its rate-case filings, Duke pointed to growth from population, advanced manufacturing and data centers. More homes and businesses need more substations, power lines, transformers and power plants. Duke says the money also goes to grid reliability and power plant upgrades. The NCUC decides how much of those costs customers pay.
The Carolinas Resource Plan and Load Growth
Duke filed its Carolinas Resource Plan, its long-range plan for power supply, on October 1, 2025. Duke says demand will grow about 8 times faster than it did over the prior 15 years. It projects bills rising about 2.1% a year on average over the decade. That's Duke's projection, not a promise. The NCUC is expected to decide on the plan by the end of 2026.
What Senate Bill 266 Changed
Senate Bill 266, the Power Bill Reduction Act, became law on July 29, 2025, through a veto override. It made several changes:
- It repealed the 2030 goal of a 70% carbon cut. The 2050 carbon-neutral goal remains.
- It lets Duke recover financing costs for new baseload power plants each year while they're being built, outside a full rate case.
- It changes how some fuel and capacity costs are split among customer classes. Critics say more of those costs fall on homes.
- It adds quarterly fuel-cost reporting.
Duke Energy Carolinas and Duke Energy Progress Are Combining
The NCUC approved combining the two utilities on May 4, 2026, and federal and South Carolina regulators also approved it. The combination takes effect January 1, 2027. Duke projects about $2.3 billion in customer savings from 2027 to 2040. The two rate schedules stay separate at first and would merge later through a future rate case.
Are Data Centers Raising Rates?
Data centers are part of North Carolina's growth, but the pending rate cases aren't data-center rate increases. The bigger question is who pays for new large customers. In July 2026, Duke announced Customer Protection Plus for very large new customers like data centers. It includes customer-funded connection costs, long-term commitments, upfront financial security, termination charges and temporary curtailment.
Duke says revenue from these customers above their cost to serve will benefit other customers. That's Duke's claim, and the real effect will depend on the contracts and how the NCUC splits costs.
Why Homeowners Can't Shop for Another Supplier
In some states, homeowners can pick a different electricity supplier. North Carolina has no retail choice, so that option isn't available. Your main levers are using fewer kWh, shifting when you use power, and producing some of your own.
Compare kWh Before Comparing Dollars
Here's a hypothetical example. In August 2025, a home used 1,000 kWh and paid $150. In August 2026, it used 1,450 kWh and paid $225. The bill rose $75, but usage rose 45%. That points to the house, not just the rates.
Now suppose usage barely moved, from 1,000 to 1,020 kWh, but the bill still rose noticeably. Then look at the January rate step, the June fuel charge and other riders. That's a price problem.
Efficiency Is the Biggest Lever You Control
Heating and cooling is often a home's largest electric load. Suppose a home uses 20,000 kWh a year. A new heat pump, duct sealing and insulation bring that down to 15,000 kWh. That's 5,000 kWh a year you don't have to buy from Duke, produce with solar or store in a battery. Duke's free Home Energy House Call and Smart $aver rebates can help you start.
Time-of-Use Plans Can Help Some Homes
Duke's time-of-use plans in North Carolina price power by the time of day. Peak hours are 6–9 p.m. on weekdays from May through September and 6–9 a.m. on weekdays from October through April. Overnight hours are cheaper. If you can move laundry, dishes and EV charging out of peak hours, one of these plans may lower your bill.
Energy Saver NC Rebates
Energy Saver NC, run by NC DEQ, has been open in all 100 counties since February 10, 2026. It's for households at or below 150% of area median income. Households under 80% of area median income can get up to 100% of costs covered, and those from 80% to 150% up to 50%. The program has two parts:
- HOMES: up to $16,000 for whole-home projects
- HEAR: up to $14,000 total, including up to $8,000 for a heat pump and $4,000 for an electrical panel
One change matters this fall. Since September 1, 2026, HEAR no longer pays to switch from gas, propane or oil to electric. Electric-to-electric upgrades still qualify. HOMES can still fund a switch to a heat pump if the whole-home plan saves at least 20%. You must use a participating contractor, so don't install first and apply later.
Where Solar Fits
Solar can cut what you buy from Duke, but the rules have changed. New solar customers now choose Residential Solar Choice or the Net Metering Bridge. Residential Solar Choice requires a time-of-use rate and has a monthly minimum bill. Extra power you send to the grid is credited at a lower rate.
The Bridge is a temporary path with yearly enrollment caps. It is scheduled to close to new customers, and it can fill up before then. Customers who get in can keep it for up to 15 years. Duke's PowerPair solar-and-battery incentive has limited space, and it has filled up in Duke Energy Progress territory. Also, the federal 30% solar credit isn't available for systems placed in service after 2025. Any proposal that still counts it is out of date.
The Ashborn Approach
Before recommending anything, Ashborn Partners looks at which Duke utility serves you and your kWh history. We also review 2026 rate and fuel changes, pending rate cases, your HVAC and auxiliary heat, ducts and insulation, and Energy Saver NC eligibility. Then we weigh solar and battery storage. An Ashborn Advisor can connect you with participating providers in your area.
In North Carolina, fix the load first. Then decide how much power is still worth buying, making or storing.
Utility rates and filings can change. The pending Duke Energy Carolinas and Duke Energy Progress rate cases and settlements have not been approved and remain under North Carolina Utilities Commission review. Projections are Duke’s own.