Duke Energy's continued reliance on gas keeps NC ratepayers on a rate hike roller coaster

Yahoo

13-03-2025

The author says Duke Energy's continued stubborn and misguided reliance on natural gas like the kind produced at this processing facility is bad for consumer energy prices and the environment. (IStock photo courtesy of JPM Strategies)
Cold snaps in January and February left many North Carolinians dealing with sustained below-freezing temperatures, making the consequences of the state's energy choices painfully clear. Duke Energy, the state's largest utility provider, reported record-high demand during the January freeze, and now customers are seeing the financial fallout in the form of huge electricity bills, driven largely by Duke's reliance on volatile and unpredictable natural gas prices.
Unfortunately, this surge in costs is not just a short-term anomaly—it's part of a long-term trend that threatens to burden North Carolina families with higher and more unpredictable power bills over time, unless we hold Duke accountable for making better choices.
When you use more energy, it costs more money, but the real root cause of skyrocketing bills lies in Duke Energy's continued dependence on gas-powered energy.
Fuel costs for these plants are passed directly on to ratepayers. Analysis reveals that between 2017 and 2024, rising natural gas prices accounted for more than 67% of residential rate increases in parts of Duke Energy's North Carolina service area, and nearly 50% in other areas. This year's cold snap exacerbated the situation, and Duke Energy's customers are bracing for higher costs.
The problem is compounded by the fact that Duke's costs for generating electricity are tethered to the price-volatile gas market, and because of the way these costs are structured, ratepayers bear the entire burden.
It's a one-two punch: First, customers feel the immediate bill impact of increased electricity use during cold snaps like the one we recently experienced, and then maybe as much as a year later, we are hit with the additional costs for the fuel used to meet the higher demand. So while Duke Energy is benefiting from higher profits as a result of increased electricity usage, customers see higher bills, bearing all of the risk and expense associated with Duke's overreliance on price-volatile gas.
Predictive modeling shows that, if gas prices continue to hit these kinds of highs, residential customers in the Duke Energy Progress service area could see total increases in their power bills of $764 from 2024 to 2031—and up to $2,094 by 2038. For those in Duke Energy Carolinas, the increases will be smaller but still painful, with totals of $474 by 2031, and $1,291 by 2038. These are not just minor adjustments to monthly costs; these are significant hikes that will burden North Carolina's families and businesses.
If Duke Energy's latest proposal to add even more gas-powered plants is approved, the price rollercoaster will get even steeper. A gas price-spike like the one impacting North Carolinians between 2021 and 2023 could raise energy costs for customers by an additional $300 to $500 over a similar two-year period—a heavy financial burden for North Carolina families already struggling with rising living costs and economic uncertainty.
Not only would Duke's new gas-heavy plans further expose ratepayers to the unpredictable price swings of fossil fuels, but it would also hinder North Carolina's ability to transition to a more affordable and price-stable clean energy future. For a state that has made commitments to reducing greenhouse gas pollution and embracing clean energy, the continued construction of expensive, price-volatile fossil fuel power plants is counterproductive. It's at odds with North Carolina's own laws, which call for aggressive steps to speed the transition to less polluting, more affordable sources of energy.
North Carolina must stay the course toward cleaner, more affordable, and price-stable energy sources. Investing in clean energy like wind, solar, and battery storage is not only the responsible environmental choice—it's also the smart financial one. By transitioning to more sustainable energy sources, we can reduce our exposure to the unpredictable costs of fossil fuels, protect North Carolina customers from rising energy costs, and ensure a cleaner, more resilient energy future.
Unfortunately, a newly introduced bill at the North Carolina General Assembly, Senate Bill 261, threatens to hinder that transition and, if passed, would fast-track the costs of additional, unnecessary, and polluting gas plants right through to customer bills.
For the sake of our wallets and our climate, the time has come to stop pouring money into outdated, polluting gas plants. Senate Bill 261 must be defeated. Let's leave gas in the past and invest in a future we can all depend on.