Duke Energy Progress reaches agreement with North Carolina Public Staff and other stakeholders to deliver a lower-cost path to power North Carolina's future

Rhea-AI Summary

Duke Energy (NYSE: DUK), through Duke Energy Progress, reached a settlement with North Carolina Public Staff and several customer and energy groups to revise its rate proposal. The agreement, if approved by the North Carolina Utilities Commission, would result in an average annual rate increase of 3.4% over two years starting Jan. 1, 2027.

The company said this represents a reduction of its previously proposed increase by more than half. Duke Energy shareholders will contribute an additional $10 million for low-income bill assistance and weatherization, on top of a prior $10 million Duke Energy Carolinas commitment. The settlement also includes a new Multiyear Rate Plan refund rider, potential customer refunds if infrastructure upgrades are not completed on time, accelerated refund of $120 million in annual federal tax credits, and reduced customer costs for Roxboro Steam Plant upgrades due to federal funding.

Positive

• Rate increase reduced to 3.4% average annually over two years, conditional on approval
• Shareholders to provide an additional $10 million for low-income assistance and weatherization
• Accelerated return of $120 million in annual federal tax credits to customers
• New MYRP refund rider could return funds with interest if projects are delayed
• Customer costs for Roxboro Steam Plant upgrades reduced due to federal funding support

Negative

• Settlement still implies an average annual rate increase of 3.4% over two years for customers
• New rates, if approved, would take effect Jan. 1, 2027, creating a defined timing for higher bills

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• Customer and stakeholder feedback informs more cost-effective way to reliably serve North Carolina's customers
• Duke Energy will contribute another $10 million to help customers most in need

CHARLOTTE, N.C., Aug. 5, 2026 /PRNewswire/ -- After listening carefully to customer and stakeholder feedback, Duke Energy Progress and stakeholders have reached an agreement that will allow the company to continue building the infrastructure needed to reliably serve North Carolina while reducing the proposed rate increase by more than half.

Similar to the agreement reached on behalf of Duke Energy Carolinas customers in July, the changes are reflected in a new settlement between the company and North Carolina Public Staff, the agency representing utility customers. Other parties to the agreement include Carolina Industrial Group for Fair Utility Rates, Carolina Utility Customers Association, North Carolina Sustainable Energy Association and Walmart, with others expected to join in the coming days.

Our view: "We listened to stakeholders and responded to the everyday cost pressures facing our customers," said Kendal Bowman, Duke Energy's North Carolina president. "We appreciate our stakeholders' engagement in finding a path that allows us to more cost-effectively serve all our customers across the state. Our shareholders will also contribute $10 million to low-income bill assistance and weatherization programs – over and above our $10 million Duke Energy Carolinas contribution – which will make a real difference for customers who need help the most."

Agreement summary:

• If the North Carolina Utilities Commission (NCUC) approves this lower-cost path forward, the result is an average annual increase of 3.4% over two years.
• New Multiyear Rate Plan (MYRP) refund rider will return money to customers, with interest, if planned infrastructure upgrades are not completed on time.
• Accelerated customer refund of $120 million in annual federal tax credits for efficient and reliable nuclear, solar and hydro generation.
• Reduced customer costs for Roxboro Steam Plant reliability upgrades due to federal funding.

Why it matters: Since the request was initially filed last November, customers have made clear they're struggling to pay their bills, and Duke Energy has responded.

"We've now agreed to reduce rates for all of our North Carolina customers, while still allowing us to make critical infrastructure investments to meet existing and future customer needs," said Bowman. "We believe this agreement enables us to continue providing reliable service at the lowest possible cost."

What's next: NCUC will consider the agreement and make the final decision – if approved, new rates will go into effect Jan. 1, 2027.

Duke Energy Progress serves about 1.6 million customers in central and eastern North Carolina and in the Asheville region, while Duke Energy Carolinas serves about 2.3 million households and businesses in central and western North Carolina, including Charlotte, Durham and the Triad.

Duke Energy Progress 

Duke Energy Progress, a subsidiary of Duke Energy, owns 13,800 megawatts of energy capacity, supplying electricity to 1.8 million residential, commercial and industrial customers across a 28,000-square-mile service area in North Carolina and South Carolina.

Duke Energy

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. The company's electric utilities serve 8.7 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 55,700 megawatts of energy capacity. Its natural gas utilities serve 1.6 million customers in North Carolina, South Carolina, Ohio and Kentucky.

Duke Energy is executing an energy modernization strategy, keeping customer value at the forefront as it invests in electric grid upgrades and efficient generation resources to strengthen the system and serve growing energy needs.

More information is available at duke-energy.com. Follow Duke Energy on X, LinkedIn, Instagram, TikTok and Facebook for stories about the people and innovations powering its communities.

24-hour media line: 800.559.3853

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SOURCE Duke Energy

FAQ

What is the new Duke Energy Progress rate increase under the August 2026 settlement for DUK?

The settlement sets an average annual rate increase of about 3.4% over two years. According to Duke Energy, this lower-cost path depends on North Carolina Utilities Commission approval and would still allow continued infrastructure investments to reliably serve customers.

How much proposed rate relief does the Duke Energy Progress agreement provide for North Carolina customers?

The agreement reduces Duke Energy Progress’s previously proposed rate increase by more than half. According to Duke Energy, customer and stakeholder feedback drove the revisions while still supporting critical infrastructure investments needed to meet existing and future energy demand in North Carolina.

When will the new Duke Energy Progress (DUK) rates take effect if approved?

If the North Carolina Utilities Commission approves the settlement, new Duke Energy Progress rates would begin on January 1, 2027. According to Duke Energy, this timing applies to the revised rates reflecting the 3.4% average annual increase over two years.

What customer bill assistance is included in the August 2026 Duke Energy Progress settlement?

Duke Energy shareholders will contribute an additional $10 million for low-income bill assistance and weatherization. According to Duke Energy, this is in addition to a prior $10 million Duke Energy Carolinas contribution, targeting customers who need help the most across the state.

How does the Duke Energy Progress settlement return federal tax credits to customers?

The settlement accelerates the refund of $120 million in annual federal tax credits to customers. According to Duke Energy, these credits relate to efficient and reliable nuclear, solar and hydro generation and are intended to help lower overall customer costs over time.

What is the Multiyear Rate Plan refund rider in the Duke Energy Progress agreement?

The settlement introduces a Multiyear Rate Plan refund rider that can return money to customers with interest. According to Duke Energy, this applies if planned infrastructure upgrades are not completed on time under the approved multiyear plan framework.

Which organizations joined the August 2026 Duke Energy Progress rate settlement in North Carolina?

Parties include North Carolina Public Staff, Carolina Industrial Group for Fair Utility Rates, Carolina Utility Customers Association, North Carolina Sustainable Energy Association and Walmart. According to Duke Energy, additional stakeholders are expected to join the agreement in the days following the announcement.