Duke Energy executives faced questions from state regulators Thursday on their plan to sharply hike electricity rates in eastern North Carolina and the Asheville area.
It was opening day for the expert witness hearing that will help the North Carolina Utilities Commission decide whether Duke can raise rates as much as 16% over the next three years for Duke Energy Progress, which includes Asheville, Raleigh and much of eastern North Carolina.
Duke says it needs the extra money to strengthen the electric grid, improve reliability and prepare for more renewable energy. Duke state president Kendal Bowman defended the rate request.
"We're making investments for the reliability and operations of our grid. We have to provide electricity 24 hours a day, it's a statutory obligation. And we need to continue to make those investments. And we need to get cost recovery to ensure that we can maintain a financially viable utility," Bowman said.
Bowman also faced questions Thursday on whether the state's 2021 energy reform law requires multiyear rate plans or merely authorizes regulators to approve them. Lawyers for business and environmental groups also pressed Bowman on whether the increase would be excessive when coupled with an anticipated separate rate hike to cover higher fuel costs.
The hearing is expected to continue for a week or longer with detailed testimony from experts for Duke as well as for business, environmental and customer groups.
Duke Energy Carolinas, which covers central and western North Carolina from Durham to Charlotte to the mountains, has a similar rate increase request pending before the commission. It seeks an increase of 15.7% over three years.
Regulators are expected to hold hearings on that request later this year.
Also Thursday, both of Duke's North Carolina units said in a filing with regulators that they've reached a partial agreement with environmental and social justice groups and the state utility consumer advocate. The agreement covers how Duke provides financial assistance to low-income customers.
Duke agreed to contribute $16 million over three years to energy assistance funds.
