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October 24, 2026 - North Carolina needs more electricity to power its growing population, businesses and data centers. But as utility bills rise, lawmakers disagree over which energy sources will keep costs down — and who should pay for new infrastructure.
U.S. Rep. Deborah Ross, D-N.C., brought lawmakers, energy providers and consumer advocates together in Raleigh on Friday to discuss electricity affordability, including natural gas exports, the future of coal plants and growing demand from data centers.
The discussion comes as Duke Energy seeks approval for residential rate increases of more than 9% over two years, even after significantly reducing its original requests.
Could natural gas exports drive up NC electric bills?
The United States produces more natural gas than any other country, but a growing share is being shipped overseas.
U.S. liquefied natural gas exports increased 23% in the first half of 2026 compared with the same period last year, averaging 17.4 billion cubic feet per day, according to the U.S. Energy Information Administration.
Ross questioned whether expanding exports could raise prices for American customers, who increasingly rely on natural gas for electricity.
“What we need to do is have all of the above: get that solar, get that wind, get that nuclear, get that geothermal, get that fusion, lower the rates for everyone, and then be smart about whether we’re exporting things when it’s going to raise the fuel prices here,” Ross said.
Growing overseas demand can put upward pressure on domestic natural gas prices, although production levels, weather and other market conditions also influence costs. Exports provide economic benefits for American producers, and the available data does not establish how much exports have affected North Carolina electricity bills.
When natural gas prices rise, utilities can pass higher fuel costs to customers through adjustments separate from their general rate increases. Those charges can also decrease when fuel costs fall.
North Carolina’s electric cooperatives say they use purchasing contracts and other strategies to limit price fluctuations.
“We try to use our collective buying power to purchase contracts, to make hedging decisions for future purchases, and do everything in our power to mitigate the cost,” said Sharla Wells, representing North Carolina’s electric cooperatives, which serve approximately 2.8 million residents.
Republicans defend keeping coal plants operating
Republicans argue that North Carolina must maintain reliable electricity generation as demand grows, particularly from data centers and industrial development.
U.S. Rep. Tim Moore, R-N.C., has supported keeping existing power plants operating until sufficient replacement generation is available, warning that retiring them too quickly could threaten reliability.
Coal and natural gas plants can generate electricity when needed, while solar and wind production varies with weather conditions. Supporters of extending coal plant operations say existing facilities can help meet demand without immediately requiring costly replacement projects.
Ross disagreed that extending coal plants is necessary.
“There are all sorts of baseload resources that don’t involve extending the life of coal plants,” she said, pointing to natural gas, nuclear power and emerging nuclear technologies.
The debate follows North Carolina lawmakers’ decision to eliminate a requirement for utilities to reduce carbon dioxide emissions 70% by 2030, while retaining the state’s carbon neutrality goal for 2050.
Supporters said the change would provide flexibility as electricity demand grows. Critics warned that extending fossil fuel generation could prolong pollution and expose customers to volatile fuel prices.
Duke Energy expands natural gas generation while seeking higher rates
Duke Energy is investing in new natural gas generation, including plants under construction near Roxboro to replace coal power.
The company says additional generation and grid improvements are needed to serve growing demand while maintaining reliable electricity.
Those investments carry different costs for customers. Building power plants and upgrading infrastructure can affect base electricity rates, while natural gas prices influence the ongoing cost of generating power.
Duke Energy spokesperson Caroline Fountain said the company is working to improve reliability as North Carolina grows.
“That means, you know, more poles and wire infrastructure in order to serve our customers while also enhancing our reliability through things such as self-healing technology, which helps avoid potential outages for many customers,” Fountain told WRAL.
Duke says it reduced its original rate request by more than half and proposed another $20 million in assistance for low-income customers.
For Duke Energy Carolinas customers, a negotiated proposal would increase residential rates approximately 9.5% over two years, down from an original request of about 18%. Duke Energy Progress has a separate proposal involving an approximately 9.3% residential increase.
Attorney General Jeff Jackson has opposed the reduced proposals, saying they remain too expensive for families. Critics have also questioned whether Duke’s original requests were justified.
State regulators must approve the rates before they take effect.
Regulators reject $584 million gas turbine near Amazon data center
The North Carolina Utilities Commission has already challenged one of Duke’s plans to expand natural gas generation.
In September, regulators rejected a proposed $584 million gas turbine at Duke’s existing Sherwood H. Smith Energy Complex near Hamlet, close to Amazon’s planned $10 billion data center campus in Richmond County.
The commission said Duke had not adequately demonstrated the plant was needed or shown how customers would be protected from costs associated with projected electricity demand.
Regulators also questioned whether alternatives could meet that demand at a lower cost. They did not conclude the turbine would specifically serve Amazon.
Duke maintains the project would help provide reliable, affordable electricity. The company can submit another application.
The decision was not unanimous. One commissioner warned that delaying construction could increase costs and threaten reliability. The North Carolina Public Staff, which represents customers in utility proceedings, had also recommended approval.
The ruling illustrates the competing risks facing regulators: approving unnecessary infrastructure could leave customers paying for it for decades, while building too little generation could threaten reliable service.
Who pays for data center growth?
Data centers are another major concern because their electricity demands can require new power plants and transmission infrastructure.
Duke recently proposed new requirements for large electricity customers, including upfront payments, minimum monthly bills and financial guarantees intended to protect existing customers.
Gov. Josh Stein and Attorney General Jackson have raised concerns that the proposal does not go far enough to ensure large customers pay for new generation needed to serve them.
Ross also called for stronger protections.
“Absolutely believe that data centers should have their own rate, based on the construction that has to happen, and that the data centers need to assume the risk of not being around for something that was built just for them,” she said.
Moore has similarly said data center developers should bear the costs of serving their facilities rather than shifting those expenses to other customers.
The proposed large-customer rate structure still requires regulatory approval.
What happens next?
The North Carolina Utilities Commission will decide whether Duke’s proposed rate increases are justified while continuing to review plans for new generation and protections for existing customers.
Meanwhile, fuel prices will remain another variable affecting bills, regardless of whether utilities build more natural gas plants or keep existing coal facilities operating.
The decisions made now could shape North Carolina electricity costs for decades — determining not only how the state meets growing demand, but how much households pay for it. |
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