Expert hearings begin on Duke Energy’s proposed NC rate increase
RALEIGH, NC (WWAY) — As North Carolina endures sweltering summer heat and higher electricity demand, the next phase of Duke Energy’s proposed rate increase will move forward Tuesday with a hearing that differs from previous public proceedings.
Unlike earlier hearings, Tuesday’s session will not be open to the public. Instead, testimony will come from expert witnesses representing parties involved in the case, including environmental organizations, the North Carolina Attorney General’s Office and industrial groups.
The hearing comes as air conditioners are working overtime across the state during the current heat wave, putting electricity usage in the spotlight. Another major issue expected to be discussed is how North Carolina will meet the growing energy demands of proposed data centers, which require large amounts of electricity to operate.
Will Scott with the Environmental Defense Fund said the expert testimony could help shape decisions about future energy infrastructure, including how those data centers will be powered.
“In our view, Duke has sort of gone all-in on gas in a way that puts ratepayers at risk. Because remember, when a gas plant burns fuel in North Carolina, 100% of that cost goes under your bill,” said Scott.
Scott said he expects experts to discuss expanding the state’s energy mix beyond natural gas by increasing the use of renewable energy and battery storage.
“Every time you can have solar, wind, or batteries, to mean that you don’t have to run those gas plants as much. That’s sort of a cost-volatility insurance for ratepayers, and we think that’s why it’s a good deal,” said Scott.
Duke Energy initially requested an 18% rate increase but later reduced that request to about 11% following public hearings and objections from North Carolina Attorney General Jeff Jackson.
In a statement to WWAY, Duke Energy said the proposed increase is necessary to improve the reliability of the electric grid.
“This rate request reflects the costs of these investments being made to meet the energy needs of customers and communities across the state. These are proposed rates, subject to give and take during the rigorous and public rate review process, and ultimately set by our regulators.”
Duke Energy spokesperson Jeff Brooks said the investments are especially important during periods of extreme heat, when demand on the electric grid is highest.
“When it’s hot, it’s like any machine. It puts a little more stress on the system. And then, of course, the millions of components across the power grid that have to deliver that power reliably to your home. All of that has to work together and work in some pretty tough conditions,” said Brooks.
The outcome of the hearings could affect what millions of North Carolina customers pay for electricity in the years ahead.
