The Energy & Policy Institute (EPI) recently analyzed 110 investor-owned utilities in the United States and found that Duke Energy Carolinas ranks in the top 10 nationally for highest profit margins. While the median utility company kept 13.5% of an energy bill for profit in 2024, Duke Energy kept 21.7% – meaning that when a North Carolina customer pays a $100 utility bill, $21.70 is pure profit for Duke.
As North Carolinians get hit with ever-increasing energy bills and many face the threat of disconnection, it is worth noting how much of what customers pay for electricity simply flows to investors as profit. Duke Energy stands out even among its counterparts in the Southeast, where profit margins are elevated compared to national averages, ranking third highest out of the 19 EPI investigated. By comparison, Kentucky Power only keeps $5.32 of a $100 utility bill as profit.
Duke Energy’s profit margins are high within the energy industry, and they are particularly high compared to the average profit margins in other industries. Most companies in other industries report profit margins in the single digits, according to an analysis by New York University.
It’s no surprise, then, with such steep profit margins, that Duke Energy is reporting record profits. Duke Energy reported nearly $5 billion in net income in 2025. And yet, Duke has formally requested a 15% rate hike for customers beginning next year.
North Carolina Governor Josh Stein announced his opposition to the rate hikes, saying, “Duke Energy’s proposed rate hike is simply too high and comes as the company is also retreating on more affordable clean energy. At a time when families are struggling to make ends meet, we should be doing everything we can to make life more affordable, not less.”
Stein vetoed legislation that would raise electricity prices for North Carolinians, but his veto was overridden by the Republican-led NC General Assembly.
The North Carolina Utilities Commission will hold hearings to hear the public’s opinions on Duke Energy’s rate hike request at locations throughout the state and online from the end of March through August. The Commission is expected to make a decision on the rate hike by the end of the year.
