North Carolina homeowner on a fixed income installed a heat pump, yet his electric bills still climbed

"I don't spend money on anything that is not absolutely essential."

Andrew Hefner, a North Carolina resident, added insulation, swapped out appliances, and installed a heat pump in hopes of lowering his home's energy use. But those changes did not lead to smaller Duke Energy bills, and additional increases may be on the way, WRAL reported.

If rates go up while a $42-a-month bill credit ends, the impact could be especially hard on households living on fixed incomes.

What to know

North Carolina Duke Energy customers are expected to face higher costs from proposed residential rate increases and the planned end of a monthly assistance credit.

About 80,000 customers are enrolled in that program, according to WRAL.

Duke originally sought residential rate increases of roughly 18% over two years, but opposition from customers, consumer advocates, and North Carolina Attorney General Jeff Jackson led the company to revise its request.

The latest proposed settlements would raise Duke Energy Carolinas residential rates by about 9.5% over two years and Duke Energy Progress rates by roughly 6.8%, with phased-in increases starting Jan. 1 if approved, WRAL noted.

Jackson declined to sign either agreement and urged regulators to reject the increases.

"Duke does not need as much as they are asking for from ratepayers to meet demand over the next two years," the attorney general said, according to WRAL.

Customers who receive the full $42 monthly credit would still pay another $504 a year even if their electricity prices and usage remained unchanged.

More background

Duke reported $1.1 billion in second-quarter net income, up from $971 million, as many households continue to face high bills, WRAL reported.

As living costs have increased, Hefner said he and his partner, both living on fixed incomes, have cut discretionary spending and scaled back the animal rescue work they had supported.

"I don't spend money on anything that is not absolutely essential," Hefner told WRAL.

Once regulators approve spending tied to power plants, grid infrastructure, and fuel, customers can end up paying at least part of those costs. Dependence on natural gas also leaves households vulnerable to swings in fuel prices.

Jackson and other advocates want safeguards that would require major new power users, including data centers, to pay those costs rather than shifting them to households.

What is being done?

Consumer groups are urging Duke and the North Carolina Utilities Commission to keep the monthly assistance program in place, according to WRAL.

North Carolina Justice Center senior energy policy advocate Claire Williamson asked Duke and regulators to maintain the credit as heating expenses rise.

Duke said the Customer Assistance Program was created as a three-year pilot and that any decision about extending it belongs to the commission.

The company added that eligible participants will continue receiving credits through the end of the month and that it will contact customers about other assistance options, WRAL noted.

The pending settlements would add $20 million in proposed shareholder support for bill relief and health and safety repairs through the Share the Light Fund and Helping Home Fund.

Duke spokesperson Caroline Fountain said those repairs can help income-qualified households become eligible for weatherization programs that reduce energy use over time, according to WRAL.

Duke said its Neighborhood Energy Saver program has provided free energy-saving help to about 26,000 North Carolina participants.

Consumer Reports recommends checking for drafts, sealing air leaks, and adding insulation where needed before paying for larger upgrades.

"When the prices keep going up, something's got to go somewhere. Something's got to give," Hefner told WRAL.

Where can I learn more?

These stories look at the forces pushing up household energy costs.

• A Minnesota homeowner saw an estimated 18% increase in electricity costs after switching to a heat pump.
• In Texas, HVAC professionals linked a $950 winter bill to expensive heat strips.
• In North Carolina, a Duke rate hike was cut nearly in half, but bills still went up.