CHAPEL HILL, N.C. — Monopoly utility Duke Energy signaled it plans to let the Customer Assistance Program expire in December at the conclusion of its three-year pilot, causing bills for tens of thousands of eligible low-income customers to increase on top of rate hikes, according to a brief filed with the North Carolina Utilities Commission by the Southern Environmental Law Center. SELC represents the North Carolina Justice Center, North Carolina Housing Coalition, Southern Alliance for Clean Energy, and Vote Solar in the Duke Energy Carolinas and Duke Energy Progress rate case proceedings.
SELC, on behalf of its clients, intervened in the proceedings to oppose the proposed rate hikes and show that Duke can reduce energy bills by facilitating the investment in clean energy solutions rather than dirty fossil fuels. Duke’s overreliance on fossil fuels leaves ratepayers open to enormous, painful spikes in our utility bills. During the proceedings, SELC advocated for lower Duke shareholder returns through a lower allowed return on equity, and a “Large Load Tariff” to both ensure large customers like data centers pay their fair share and encourage alternative clean energy solutions through an optional clean transition tariff.
The Customer Assistance Program was established in 2023 to provide Duke’s most under-resourced customers with a monthly credit to reduce their electric bills. Additionally, program participants may receive cost-saving weatherization upgrades to their homes, providing overall benefits to the grid by reducing system demand.
Clean energy groups outlined their main concerns for affordability and impacts to customers if the program expires and an unreasonable return on equity proposal is accepted:
- At a time when electricity rates are projected to increase, discontinuance of the customer assistance program would have a devastating impact on as many as 46,000 low-income Duke Energy Carolinas customers and 41,000 low-income Duke Energy Progress customers receiving bill payment assistance.
- Because of Duke’s inaction, low-income customers are facing a $42 a month bill increase through an upcoming winter season, on top of any approved rate increases.
- Duke’s 9.8% return on equity proposal is still too high and represents an unjust and unnecessary wealth transfer from struggling customers to Duke’s shareholders.
- The groups’ proposed a 9.1% return on equity in contrast that would save ratepayers about $140 million and give struggling customers some needed rate relief.
“As a monopoly, Duke has an obligation and duty to provide everybody essential and affordable energy, including customers who don’t have the means, and the Customer Assistance Program helps to fulfill that obligation,” said David Neal, a senior attorney at SELC. “If customers get essential electricity disconnected by a monopoly, there’s no alternative source or competitor. Duke is missing a vital opportunity to continue a program that prioritizes affordability for struggling families across North Carolina.”
The clean energy groups also noted that Duke’s allocation of $20 million ($10 from Duke Energy Carolinas and $10 million from Duke Energy Progress) in shareholder funds, while a welcome addition, will not match the scale, reach, or durability of ratepayer funded customer assistance programs. The Customer Assistance Program reaches more customers and ensures recipients can keep the lights on and keep up with rising utility bills and other expenses.
The clean energy groups and advocates statements are below:
“It’s extremely disappointing to see Duke make little to no effort to save a program that helps thousands of struggling North Carolinians with their costly bills every month,” said Claire Williamson, senior energy policy advocate at the North Carolina Justice Center. “Families deserve affordable and reliable energy, and the Customer Assistance Program makes that possible.”
“Without the Customer Assistance Program, homeowners on the program will have less opportunities to access weatherization upgrades that are proven to bring costs down,” said Samuel Gunter, executive director of the North Carolina Housing Coalition. “Duke’s inaction to continue the program is a failure on its part to support and offer relief to the most vulnerable people.”
“Thousands of families depend on affordability programs to ensure they can cover their energy bills on top of a multitude of other costs,” said Maggie Shober, Research Director for the Southern Alliance for Clean Energy. “If the Customer Assistance Program expires with no alternative, Duke will leave customers they’re obligated to support hanging out to dry.”
“It’s disheartening to see Duke miss opportunities to lower rates or explore cleaner, affordable strategies for our grid,” said Jake Duncan, senior southeast regulatory director, at Vote Solar. “The expiration of the Customer Assistance program, on top of proposing a return on equity that will expose customers to excessive rates, leaves struggling customers in an even tougher position.”
Media contact: Kathleen Sullivan, SELC, 919-945-7106, ksullivan@selc.org
