Charlotte, North Carolina, February 17, 2026
North Carolina is implementing strategies to address a staggering 30% increase in residential electricity bills over the past seven years. A state task force, led by Governor Josh Stein, released an interim report proposing nine recommendations to manage surging energy demand, which is heavily driven by the growth of data centers and population. Duke Energy has suggested significant rate hikes for the upcoming years amid rising fuel costs and infrastructure investments, prompting public hearings for stakeholder feedback.
Charlotte, North Carolina
North Carolina is urgently addressing rising electricity costs, with residential bills having climbed by nearly 30% over the past seven years, from 2017 to 2024. This significant increase has prompted a statewide effort to find sustainable solutions to ensure electricity remains affordable and reliable for residents and businesses. A state task force, established by Governor Josh Stein in August 2025, released an interim report this Tuesday, February 16, 2026, detailing nine key recommendations to tackle surging energy demand across North Carolina. Concurrently, Duke Energy, the state’s largest electric utility, has proposed substantial rate hikes for 2027, which could see typical residential bills increase by approximately 15.8% to 18.5% over two years, potentially adding $20 to $30 monthly to household expenses. These proposed increases are currently under review by the North Carolina Utilities Commission (NCUC), with public hearings scheduled for March and April 2026 across the state.
Driving Factors Behind Rising Costs and Demand
The nearly 30% rise in residential electricity bills from 2017 to 2024 is largely attributed to escalating fuel costs, particularly natural gas prices, which account for about two-thirds of the increase. Looking ahead, Duke Energy projects a dramatic surge in total demand across its two Carolina systems, forecasting an increase of between 16% and almost 60% by 2040. This contrasts sharply with the modest 7% growth in electricity demand observed from 2005 to 2025.
This unprecedented growth in demand is primarily fueled by the rapid expansion of new data centers, the growth of advanced manufacturing facilities, and a rising population within North Carolina. Data centers alone are expected to contribute over 85% of the new load growth in the Carolinas over the next 15 years. On a Nationwide scale, data centers consumed approximately 1.5% of global electricity in 2024 and are projected to account for nearly 10% of global electricity demand growth between 2024 and 2030.
In addition to increased demand, Duke Energy cites significant investments in infrastructure and the construction of new power plants as reasons for its proposed rate increases. These investments include funding for grid improvements, new natural gas facilities, and energy storage projects. The utility reported $4.9 billion in profits last year (2025), a $400 million increase from 2024, driven by these infrastructure investments and overall growth. Duke Energy aims to achieve further profit growth through 2030.
State Task Force Proposes Solutions
The North Carolina Energy Policy Task Force, co-chaired by state Environmental Quality Secretary Reid Wilson and Representative Kyle Hall, has met multiple times since its inception in August 2025. Their interim report, released this week, outlines a series of recommendations to manage the escalating energy demand and maintain affordable, reliable, and clean electricity.
Key proposals from the task force include developing specialized rate structures, also known as large-load tariffs, for major energy consumers like data centers to ensure they bear the full costs associated with their high energy usage. The task force also suggests exploring options that would allow large-load customers to procure their own power capacity. Other recommendations focus on encouraging load flexibility, where large users reduce their electricity consumption during periods of peak demand, and implementing necessary transmission upgrades to the grid.
Furthermore, the task force emphasizes providing incentives for residential energy efficiency improvements and establishing an independent process for electricity demand forecasting. To better understand the impact of data centers, the report recommends evaluating the cost of existing sales tax exemptions for these facilities and requiring them to report their energy and water usage. The task force’s next report, with more refined and detailed recommendations, is anticipated by February 15, 2027.
Proposed Rate Hikes and Public Hearings
The NCUC has been actively reviewing utility rates. For instance, between January and August 2025, residential electricity prices nationwide saw a significant jump of 10.5%. North Carolina, which had the 18th-lowest electricity rates in 2025, is now facing substantial proposed increases.
Duke Energy’s recent proposals to the NCUC would raise average residential rates for Duke Energy Progress customers by 18.5% over two years, with initial monthly bill increases of approximately $23.11, followed by another $6.59. For Duke Energy Carolinas customers, the proposed increase is 15.8% over two years, leading to initial monthly bill increases of about $17.22 and an additional $6.34 later. Commercial and industrial customers would face smaller percentage increases.
State regulators have scheduled public hearings for these proposed rate hikes in March and April 2026. These hearings provide an opportunity for public input on the rate increases, which, according to advocacy groups, contribute to a rising cost of living for many North Carolinians. Governor Stein has expressed his commitment to keeping electricity costs as low as possible for families and ensuring that data centers pay their fair share for the electricity they consume. Attorney General Jeff Jackson has also voiced opposition to Duke Energy’s proposed rate increases and has formally intervened in the rate case.
Additional Efforts and Context
In an effort to provide immediate relief to residents, the Energy Saver NC program has been expanded to all 100 counties in North Carolina. This program offers eligible households rebates of up to $16,000 for energy efficiency improvements, such as heat pump systems and insulation, potentially saving them around $1,000 annually on energy bills. North Carolina is the first state in the nation to fully launch this initiative.
In broader legislative action, Senate Bill 266, known as the Power Bill Reduction Act, became law in June 2025. This measure removed the State-level mandate to reduce carbon emissions by 70% by 2030, a move anticipated to save North Carolinians up to $15 billion in future utility costs. Furthermore, the Nationwide U.S. Department of Energy announced plans to invest $175 million in coal plant upgrades, including a major facility in North Carolina, aimed at strengthening the power grid and maintaining affordable electricity. Duke Energy is also exploring options to add large nuclear reactors and extend the operational life of some coal plants as part of its long-term energy strategy.
Frequently Asked Questions (FAQ)
What is the current status of electricity bills in North Carolina?
Residential electricity bills in North Carolina have climbed by nearly 30% over the past seven years, from 2017 to 2024.
What are the main reasons for the increase in electricity bills?
Approximately two-thirds of the increase in residential electricity bills from 2017 to 2024 is attributed to rising fuel costs, particularly natural gas prices. Duke Energy also cites infrastructure investments and the construction of new power plants as factors.
What is causing the surge in electricity demand in North Carolina?
The surge in demand across North Carolina is primarily driven by new data centers, advanced manufacturing facilities, and population growth. Data centers are expected to account for over 85% of new load growth in the Carolinas over the next 15 years.
What is the North Carolina Energy Policy Task Force?
The North Carolina Energy Policy Task Force was created by Governor Josh Stein in August 2025 to develop recommendations for managing increasing electricity demand while maintaining affordable, reliable, and clean electricity in North Carolina.
What are some of the key recommendations from the Task Force’s interim report?
The interim report recommends developing specialized rate structures for large energy users like data centers, exploring options for large-load customers to procure their own power, encouraging load flexibility, implementing transmission upgrades, and providing incentives for residential energy efficiency improvements. It also suggests evaluating sales tax exemptions for data centers and requiring energy and water usage reporting from them.
Are there new electricity rate hikes proposed for North Carolina customers?
Yes, Duke Energy has proposed significant rate hikes for 2027, ranging from approximately 15.8% to 18.5% for residential customers over two years, potentially adding $20 to $30 monthly to typical household bills.
When are public hearings scheduled for the proposed rate hikes?
Public hearings for Duke Energy’s proposed rate hikes are scheduled for March and April 2026 across North Carolina.
What is the Energy Saver NC program?
The Energy Saver NC program, now available in all 100 counties of North Carolina, offers eligible households rebates of up to $16,000 for energy efficiency improvements, which could result in annual savings of approximately $1,000 on energy bills. North Carolina is the first state to fully launch this program.
What was the impact of the Power Bill Reduction Act?
The Power Bill Reduction Act (Senate Bill 266), which became law in June 2025, removed the State-level mandate to reduce carbon emissions by 70% by 2030, a change expected to save North Carolinians up to $15 billion in future utility costs.
Key Features of North Carolina’s Energy Landscape
| Feature | Description | Scope |
|---|---|---|
| Electricity Bill Increase (2017-2024) | Residential bills climbed nearly 30% in seven years. | State-level |
| Projected Electricity Demand Growth (by 2040) | Duke Energy forecasts 16% to nearly 60% increase. | State-level |
| Primary Drivers of Demand Growth | New data centers, advanced manufacturing, population growth. | State-level |
| Duke Energy Proposed Rate Hikes (2027) | 15.8% to 18.5% for residential customers over two years. | State-level |
| Energy Saver NC Program | Rebates up to $16,000 for home energy efficiency, potential $1,000 annual savings. Available in all 100 counties. | State-level |
| Power Bill Reduction Act (SB 266) | Removed State-level carbon emission reduction mandate (70% by 2030), expected to save up to $15 billion. | State-level |
| Data Center Global Electricity Consumption (2024) | Consumed 1.5% of global electricity. | Nationwide |
| U.S. Department of Energy Investment | $175 million for coal plant upgrades, including a major facility in North Carolina. | Nationwide |
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