NC Court Rules Duke Energy Broke Law in 2024 Fuel Rate Hike

Customers will not receive refunds despite court finding the rate increase was improper.

Published on Feb. 22, 2026

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The North Carolina Court of Appeals ruled that Duke Energy broke state law when it raised fuel rates in 2024, but customers will not receive refunds. The court struck down two Utilities Commission orders that allowed the company to recover fuel-cost shortfalls from earlier years, saying Duke Energy charged customers for fuel costs from two years prior when state law only allows recovery of costs from the previous year.

Why it matters

This ruling highlights ongoing tensions between utility companies, regulators, and consumers over electricity rates. While the court found Duke Energy's actions were improper, the decision ultimately leaves customers without recourse, raising concerns about the ability of the judicial system to provide meaningful relief when utilities break the law.

The details

The North Carolina Utilities Commission had previously approved Duke Energy's fuel rate increase, but the court ruled this approval was improper. Judges stated that refunds would offer 'no meaningful relief' because Duke could simply charge customers again under a newer state law.

  • Duke Energy raised fuel rates in 2024.
  • The North Carolina Court of Appeals ruled on the case in February 2026.

The players

Duke Energy

A major electric power and natural gas company that serves customers in the Carolinas and other southeastern states.

North Carolina Utilities Commission

The state regulatory agency that oversees public utilities in North Carolina, including approving rate increases.

North Carolina Court of Appeals

The intermediate appellate court in North Carolina that hears appeals from the state's trial courts.

Josh Stein

The Governor of North Carolina who released a statement criticizing the utility company and state legislature for allowing higher electricity prices.

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What they’re saying

“At a time when electricity prices are already increasing, utility companies are finding more ways to stick ratepayers with higher prices, and the legislature is helping them get away with it.”

— Josh Stein, Governor of North Carolina (WECT)

“The North Carolina Utilities Commission determined that our customers benefitted from the fuel used to run our power plants – thus the commission approved including these costs in customer bills. Since customers have already paid for these costs, there is no change to future bills.”

— Duke Energy (WECT)

What’s next

The court's ruling does not require Duke Energy to provide refunds to customers, leaving open the possibility that the utility could seek to recover the disputed fuel costs through other means.

The takeaway

This case highlights the ongoing challenges consumers face in holding utility companies accountable when they violate laws or regulations intended to protect ratepayers. The inability of the courts to provide meaningful relief in this instance raises concerns about the effectiveness of the judicial system in addressing utility rate issues.