Gov. Stein Denounces Duke Energy Rate Hike, Cites New State Energy Task Force

Governor Josh Stein took aim at Duke Energy’s proposed rate hike on Monday, calling the increase excessive and applauding Attorney General Jeff Jackson’s move to intervene. But even as state leaders escalate their objections, it remains unclear what — if anything — they can do to stop or substantially reduce the increases once the case reaches the North Carolina Utilities Commission, the independent body that holds final authority over investor-owned utility rates.

“Duke Energy’s proposed rate hike is simply too high and comes as the company is also retreating on more affordable clean energy,” Stein said in a statement. “At a time when families are struggling to make ends meet, we should be doing everything we can to make life more affordable, not less.”

Stein has repeatedly pressed for consumer protection in utility policy. Earlier this year, he vetoed Senate Bill 266 after researchers from North Carolina State University and Duke University said the law would drive up ratepayer costs by an estimated $23 billion over the next several years. 

Lawmakers overrode the veto — a shift Stein said leaves regular households carrying more of the burden once carried by major industrial users.

The governor also emphasized the broader pressures on the state’s energy system, pointing to rising electricity demand from data centers, advanced manufacturing, population growth, and increasingly extreme weather. Those factors, he said, make long-term planning essential — a need he sought to address with Executive Order No. 23, signed August 26.

Executive Order 23: A Structured Push for Long-Term Solutions

Executive Order No. 23 establishes the North Carolina Energy Policy Task Force, a 30-member body charged with advising the Governor, General Assembly, and other policymakers on how to maintain an adequate, reliable, affordable, and clean electricity supply as the state confronts unprecedented demand growth.

The order grounds itself in several pillars of state law and scientific assessment:

• The North Carolina Constitution, which directs the state to protect natural resources.

• Session Law 2021-165, the bipartisan “Energy Solutions for North Carolina,” which requires utilities to reach carbon neutrality by 2050.

• The 2020 North Carolina Climate Science Report, which documents increasing risks from extreme heat, stronger storms, and flooding.

• State investment trends showing more than $24 billion in clean-energy-related economic development since 2022 and more than 100,000 jobs in the clean-energy technology sector.

  
  

The Task Force will draw representatives from state agencies, utilities, energy companies, local governments, industry, higher education, data-center customers, and ratepayer advocates. It must meet quarterly, operate under North Carolina’s Open Meetings Law, and produce an annual public report by February 15 each year. The order remains in effect through December 31, 2028.

Its two standing subcommittees — on load growth and technical analysis — will examine demand forecasts, grid constraints, the risk of stranded assets, cost impacts on residential customers, and transparency in electricity-system modeling.

A Growing Gap Between Policy Direction and Rate-Setting Power

Stein’s push to highlight the Task Force underscores a growing tension: the state can plan, model, and recommend — but the Utilities Commission ultimately decides what customers will pay.

The Attorney General can intervene, challenge assumptions, and present consumer impacts. The Governor can oppose hikes, veto legislation, and direct agencies to pursue affordability strategies. But the core authority to approve or deny rate increases rests with the Utilities Commission, an independent regulatory panel whose decisions must be grounded in state law and the evidentiary record of each case.

That reality leaves the outcome far from certain. Duke Energy will present its cost-recovery proposals, and consumer advocates — including the Attorney General’s office — will counter with evidence on affordability, transparency, and alternative options. The Commission will then determine the rates.

Stein said he intends to keep pressing for affordability regardless of the limits of executive authority.

“North Carolinians deserve an energy system that is reliable, fair, and built for the future,” he said. “I will continue to fight to keep costs down and strengthen our economy — and to push for policies that protect families rather than place new burdens on them.”