Vulnerable Duke Energy customers are facing a double blow as a little-known pilot program that provided a monthly credit of $42 towards their energy bills is set to expire, coinciding with a proposed 7.5% rate hike. This program, the Duke Energy Customer Assistance (CAP) initiative, has been a lifeline for many low-income households, yet it has been largely unknown to its beneficiaries. The CAP program, which cost $33 million over its first two years, has provided a crucial $42 monthly credit to approximately 43,000 income-eligible customers. However, this assistance is set to end in December 2026, leaving many in a precarious financial situation.
The expiration of the CAP program comes at a time when state regulators are deliberating on Duke Energy's request for a 7.5% rate hike, which would significantly impact the utility's most vulnerable customers. The program's credit was often hidden on the bill, making it difficult for recipients to realize they were receiving it. This lack of transparency has been a point of contention, with regulators questioning the utility's efforts to inform its customers about the program's end. Duke Energy's director of vulnerable customer support, Jacob Colley, acknowledged the challenge, stating that the utility plans to inform customers of the credit's expiration and encourage them to budget accordingly.
The financial impact of this situation is particularly severe for those with higher utility bills, such as Simone Fisher, a driver for Charlotte-Mecklenburg Schools. Her monthly bill for a three-bedroom apartment ranges from $200 to $300, making the rate hike a significant burden. Fisher's experience highlights the disproportionate effect of the rate hike on those already struggling with high utility costs. The situation raises questions about the utility's responsibility to its most vulnerable customers and the potential for further financial strain on low-income households.
The Southern Environmental Law Center has raised concerns about the cost-effectiveness of the CAP program, noting that it provided only $600,000 in assistance while costing $33 million to implement. This has led to suggestions that Duke Energy could contribute to the program's continuation through a share of its dividends, which amounted to $4.6 billion in 2025. The North Carolina Utilities Commission is considering this proposal, which could ensure the program's survival and provide much-needed relief to Duke Energy's most vulnerable customers.
In conclusion, the expiration of the Duke Energy Customer Assistance program and the proposed rate hike present a significant challenge for low-income households. The utility's efforts to inform its customers about the program's end are crucial, but more comprehensive solutions are needed to address the financial strain on vulnerable customers. The potential for state regulators to order Duke to continue the program past 2026 offers a glimmer of hope, but the utility's long-term commitment to supporting its most vulnerable customers remains to be seen.
