Understanding the Duke Energy Settlement: What It Means for South Carolina Consumers

The South Carolina Public Service Commission (PSC) is reviewing settlements reached between Duke Energy Progress (DEP) and Duke Energy Carolinas (DEC) regarding their separate proposals to increase electric rates across the state.

The agreements — reached after months of proceedings and public input — would reduce the size of the proposed increases while maintaining commitments to reliable service and customer assistance.

For many South Carolinians, understanding what these settlements mean can help them prepare for potential changes in their utility bills in the coming year.

South Carolina households already pay some of the highest electricity bills in the country. According to the U.S. Energy Information Administration, South Carolina residents spend about 20% more on electricity than the national average.

Because of these high costs, even modest rate increases can affect family budgets, especially for older adults and those living on fixed incomes. AARP South Carolina continues to monitor developments in the energy sector to help residents understand how rate changes impact affordability and everyday living costs.

Both Duke Energy Progress (DEP) and Duke Energy Carolinas (DEC) filed requests with the PSC in 2025 to raise residential electric rates. After negotiations among the utilities, regulators, and consumer advocates, both companies reached separate settlement agreements that are now before the PSC for review.

These settlements include several key provisions:

• Return on Equity (ROE): Duke agreed to a 9.99% ROE, down from the requested 10.85%. The ROE helps determine how much profit the company can earn while recovering its costs to operate and invest in infrastructure.
• Basic Facilities Charge: The monthly Residential Basic Facilities Charge — the fixed fee customers pay before using electricity — will remain at $11.78, rather than increasing to $13.00 as initially requested.
• Customer Assistance Programs: Both companies have committed shareholder funds to assist customers facing financial hardship through the Customer Assistance and Relief Effort (CARE) programs.
  
  • DEP: $750,000 per year for two years.
  • DEC: $1.5 million per year for two years.
• Inflation Reduction Act (IRA) Savings: Duke will apply temporary bill credits, or “decrement riders,” to return federal tax savings from the Inflation Reduction Act to customers.
  
  • DEP: $10 million over two years.
  • DEC: $100 million over 22 months.

If the PSC approves the settlements, most residential customers will see smaller increases than originally proposed.

• Duke Energy Progress (DEP) customers would see an average 7.3% increase, rather than the proposed 15%. A typical residential bill would rise about $11.23 per month instead of $21.66.
• Duke Energy Carolinas (DEC) customers would see an average 0.6% increase, rather than 7.6%. A typical residential bill would rise about $0.84 per month instead of $10.38.

The new rates are expected to take effect February 1, 2026, pending PSC approval.

These changes reflect efforts to balance the company’s need to maintain infrastructure with the financial realities faced by consumers across South Carolina.

In addition to rate changes, the settlements include several agreements that will shape how energy rates and programs are managed in the coming years:

• Large Load Customers: By June 1, 2026, Duke and other stakeholders will jointly petition the PSC to review rate-making structures for very large customers (50 megawatts and above), such as data centers and manufacturing operations.
• Energy Efficiency and Demand-Side Management (EE/DSM): Within six months of Duke’s planned merger approval, the company will file a petition to review its EE/DSM portfolios. These programs help reduce energy consumption, promote efficiency, and potentially lower long-term costs for customers.
• Merger-Related Commitments: Both settlements outline conditions tied to the proposed combination of Duke Energy Progress and Duke Energy Carolinas, including how future rate filings will be handled and how customer benefits from federal tax credits will continue to be applied.

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Even with smaller increases than initially proposed, electricity costs remain a growing concern for many households. AARP South Carolina encourages residents to:

• Review their utility bills carefully once new rates take effect to understand how the changes apply to their usage.
• Explore available assistance programs, including Duke’s Customer Assistance and Relief Effort (CARE) program and other community-based utility assistance initiatives.
• Take advantage of energy efficiency programs that may help reduce monthly costs, such as weatherization and appliance upgrade rebates.
• Stay informed about PSC proceedings, especially as the merger between Duke Energy Progress and Duke Energy Carolinas advances and new rate cases are filed.

The settlements highlight the ongoing challenge of maintaining reliable energy infrastructure while keeping rates affordable. As South Carolina continues to grow, the demand for energy — especially from industries, data centers, and new developments — is expected to increase.

At the same time, extreme weather, aging infrastructure, and the transition to cleaner energy sources are putting additional pressure on utilities and regulators.

Balancing these priorities will remain a central issue for state policymakers, consumer advocates, and residents alike.

AARP South Carolina will continue to follow these developments and share information to help consumers make informed decisions about energy use, assistance programs, and rate changes that affect their household budgets.

The South Carolina Public Service Commission publishes all related dockets and filings publicly. You can review the official settlement documents and petitions here:

• Large Load Rate-Making Petition (June 2026)
• Energy Efficiency and DSM Portfolio Review
• Settlement Expense Provisions and Conditions

For updates and consumer resources, visit aarp.org/sc or follow AARP South Carolina on Facebook, X (formerly Twitter), and LinkedIn.