After raising rates each of the last three years, Duke Energy Carolinas (DEC) is proposing another series of rate hikes, beginning with a 12% increase to residential bills in early 2027.

While 2026 will see the final “Step 3” increase from the previous 2023 rate case, the utility has officially filed a new proposal for 2027 and 2028 that significantly escalates costs for North Carolina households.

*

At-A-Glance: Duke Energy Carolinas Rate Impact

Why Is Duke Energy Carolinas Asking for Higher Rates?

According to the filing, Duke Energy is requesting a massive revenue boost to support an $8.3 billion investment plan. This plan is driven by North Carolina’s rapid population growth and the massive energy demands of new manufacturing and data centers.

Key drivers include:

• Grid Modernization: $3.2 billion for 436 projects aimed at “self-healing” grid technology and storm resilience.

• Energy Storage: $1.7 billion for battery storage to replace retiring coal plants.

• Nuclear & Renewables: Over $900 million for nuclear license renewals and 276 MW of new solar capacity.

• Greater Return on Equity: Duke is requesting to increase its Return on Equity (ROE) to 10.95%, one of the highest requested ROEs in the industry nationwide.

How Will the Proposed Rates Impact Your Bill?

For a typical family in North Carolina using 1,000 kWh per month, the proposed increases represent a permanent shift in the cost of living. By 2028, the average monthly bill is projected to be $168.54—up significantly from the $130.29 average seen in early 2024.

Over the next decade, this 2027-2028 hike alone will cost the average household an additional $2,800. This does not account for annual “fuel riders” or potential future base rate cases, which could push the total 10-year cost increase well above $5,000 for many families.

How to Offset the Duke Energy Rate Hike

Installing solar is the most effective tool for North Carolinians to hedge against these compounding rate increases. By producing your own power at a low and predictable cost, you reduce the number of kilowatt-hours Duke can charge you for at these new, higher rates.

Plus, solar paired with battery storage can power your home when the grid fails, keeping you safe, comfortable, and productive.

*

*

Frequently Asked Questions

1. When will the next big increase start? While smaller adjustments occur in 2026, the major $17.22 monthly increase is proposed to take effect on January 1, 2027, followed by another jump in 2028.

2. Is this increase due to data centers? Yes, in part. Duke cites “advanced manufacturing and data centers” as primary drivers for the $8.3 billion in new infrastructure needed to support the state’s growth.

3. Can I voice opposition to this rate hike? Yes. The NCUC will hold a series of public hearings in Spring 2026 (including Raleigh on March 30 and Charlotte on April 29) where customers can testify.

Nearly half a million Arizonans are bracing for even higher electricity bills, as utility regulators consider a 14% bill increase request for Tucson Electric Power (TEP) residential customers.

If approved, customers would see their average bill increase by around $16 per month beginning in September 2026.

At-A-Glance: 2026 TEP Rate Impact

Tucson Electric Power has submitted a request to the Arizona Corporation Commission (ACC) for a rate review that would significantly adjust monthly bills starting in late 2026.

Why is TEP proposing higher rates?

TEP states that the new rates are necessary to cover rising operational costs and to recover $1.7 billion invested in the local energy grid since 2021. Key drivers for this request include:

• Reliability & Weather: Investments in substations and grid reinforcement to handle extreme heat and weather events.
• Clean Energy Transition: The $350 million Roadrunner Reserve battery storage system, designed to serve 42,000 homes and better integrate solar/wind resources.
• Rising Costs: Inflation-driven price increases for equipment, construction materials, and labor—noting that consumer prices rose 15% between 2021 and 2025.
• Infrastructure: Upgrades to 5,300 miles of transmission lines and 120 substations to support a 1% annual growth in the customer base.

How will that impact your bill?

For a median residential customer on the Basic pricing plan (using 638 kWh/month), this pending rate hike adds roughly $16 to every bill. During the peak summer months, when usage typically jumps to 823 kWh, that impact is projected to rise to $18 per month.

Over a single year, the average TEP household would pay an additional $192 to $216. Over the next decade—assuming rates do not rise again—this equates to approximately $2,000 in extra costs for the same amount of electricity.

How to Offset the TEP Rate Hike

With TEP projecting even higher future demand due to hotter weather and economic growth, residential customers can “opt out” of future rate hikes by installing solar and/or battery storage. Going solar allows you to set a low, predictable price for the clean electricity powering your home.

Get custom proposals for your home and review your savings potential with an expert Energy Advisor.