Duke Energy's Unit Seeks Rate Hike to Build Smarter Grid

Duke Energy Corp.’s DUK subsidiary, Duke Energy Progress, has submitted a rate review request to the Public Service Commission of South Carolina (PSCSC). The company aims to support its continued investments in enhancing energy reliability, customer service and grid modernization. This is its first rate review request since 2022 and reflects DUK’s efforts to meet future energy needs across central and northeastern South Carolina.

If approved, the proposal will result in an overall revenue increase of $74.8 million, indicating a 12.1% increase over current revenues. For a residential customer using 1,000 kilowatt-hours monthly, the bill would rise by $21.66 to $166.51. Commercial and industrial customers will also see increases, varying based on the costs required to serve each category effectively.

Rate Hike: A Critical Need

The current electric grid infrastructure is aging and requires regular upgrades to ensure reliability, especially during storms and periods of high demand. To keep pace with rising demand and enhance storm preparedness, Duke Energy Progress is investing in grid modernization, fleet improvements and the use of smart technologies.

The proposed rate hike is essential to support these efforts and help the company maintain safe and reliable power delivery. Duke Energy Progress is also focused on keeping electricity affordable for all customers by considering the impact on low and moderate-income households.

Investment in the Electric Industry

The U.S. electric infrastructure is aging and requires immediate upgrades to ensure continued reliability and meet future energy demands. Substantial investment is the need of the hour to modernize the grid and improve system performance. Electric utilities are actively investing in infrastructure improvements and recovering these costs through periodic rate filings, allowing them to continue essential upgrades. Several of Duke Energy’s peers are also making significant investments in U.S. electric infrastructure to enhance resilience and support long-term growth.

CenterPoint Energy CNP has been investing significantly to expand its operations, along with upgrading its aging infrastructure for electric and natural gas transmission and distribution. The company made capital expenditure worth $1.3 billion in the first quarter of 2025 and aims to deploy $4.8 billion of its planned expenditure in 2025.

DTE Energy Company DTE follows a disciplined capital spending program to maintain and upgrade the reliability of its electric and natural gas utility systems. The company currently aims to invest a total of $30 billion over the next five years, which implies a 20% improvement over its prior five-year investment plan.

Public Service Enterprise Group PEG is focusing on enhancing the reliability and resiliency of its transmission and distribution system through meaningful investments in transmission and distribution infrastructure. It has already invested $0.8 billion in the first quarter of 2025 and plans to invest approximately $3.8 billion in 2025, for its infrastructure modernization, energy efficiency, electrification initiatives and load growth.

Price Performance

Shares of Duke Energy have gained 9.2% in the past six months compared with the industry’s 7.6% growth.

Zacks Rank

Duke Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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