July 8, 2025

Duke Energy Requests Major Rate Hike in South Carolina

News Summary

Duke Energy Carolinas has proposed a $150.5 million increase in annual revenues, potentially raising residential electricity bills by over $21 in some regions. The rate hike aims to fund infrastructure improvements, including new power lines and transformers, in response to recent storm damage. The South Carolina Public Service Commission will review the proposal, amid concerns from advocacy groups about its impact on low-income households and efficiency.

South Carolina – Duke Energy Carolinas has filed a request for a $150.5 million increase in annual revenues which could lead to significant rate hikes for electrical customers in South Carolina. If approved by the South Carolina Public Service Commission, residential customers in the Upstate may see their average monthly bills rise by approximately $10.38 starting in March 2026, while those in the Pee Dee region could face an increase of about $21.66 beginning in February 2026.

The proposed rate change represents a 7.7% increase over current revenues for Duke Energy, which serves around 835,500 electric retail customers and 164,000 natural gas customers in the state. This adjustment is part of the company’s efforts to enhance its infrastructure, which includes the installation of 600 miles of new power lines and the addition of 6,800 transformers.

Tim Pearson, the president of Duke Energy’s utility operations in South Carolina, oversees the financial performance and regulatory relations of the company. He brings over a decade of experience in government and policy in South Carolina, having previously served as an adviser to multiple governors.

Overview of Infrastructure Investments and Needs

The rate hike follows a previous increase that took effect less than a year ago, illustrating the company’s ongoing need for funds to maintain and upgrade its infrastructure. Duke Energy is also seeking to charge customers for maintenance costs associated with a range of sources, including nuclear ($90 million), gas ($34 million), hydropower ($43 million), and solar battery projects ($11 million). These efforts are geared towards not only restoring but also bolstering the utilities’ ability to respond to future storms and outages, particularly after Hurricane Helene severely impacted service to millions.

Proposed Rate Changes and Impacts

Should the increase be approved, residential customers in the Upstate will see their average bills rise to about $154 per month, while those in the Pee Dee region could expect to pay approximately $167 per month starting in March 2026. These increases come at a time when the company is working to replenish its storm response fund, which was notably diminished by the recent hurricane events.

Regulatory Considerations and Community Response

The South Carolina Public Service Commission is set to review the proposed rate increase for the Pee Dee region in October 2025, while no specific date has been established for the Upstate review. This new rate request reflects an alignment with legislative changes that permit utility companies to implement smaller, more frequent rate increases.

Notably, environmental and consumer advocacy groups have expressed concerns regarding this rate increase, arguing that it does not encourage efficiency within utility operations or appropriately address the needs of the community. Critics suggest that raising rates may disproportionately affect low-income households and that further incentives for efficient operation should be considered.

Conclusion

Duke Energy’s proposal for a $150.5 million rate adjustment underscores the company’s commitment to enhancing service reliability and meeting the demands of economic growth in South Carolina. However, how this request will be received by both regulators and the public remains to be seen as discussions continue leading up to the scheduled reviews.