Justice Earls Dissents, Blisters Court Ruling for Duke Rate Hikes 

The pro-polluter NC Supreme Court majority has given the greenlight to unchecked profits for Duke Energy stockholders at the expense of families and businesses. Justice Anita Earls’s blistering dissent points out why they are wrong.

The case deals with appeals from electric rate hikes approved by the NC Utilities Commission (NCUC) in 2023, and was heard by the NC Supreme Court in February 2025. More than a year later, the Court chose to bury the news by releasing a controversial major decision on Friday evening right before the Memorial Day holiday.

First Court Ruling on Rate Hike 

The decision has special significance as the first major case interpreting how carefully the Court will examine NCUC decisions granting Duke Energy the new multi-year rate hikes made possible by deeply flawed legislation approved in late 2021. The pro-polluter majority opinion effectively gives unlimited deference to NCUC’s approval of unjustified profits for Duke’s corporate stockholders. 

In dissent, Justice Earls carefully explains why it is essential that the Court apply a stronger test to protect hardworking families from the multiple rate hikes – rate hikes that come from rewarding a greedy monopoly.

Court Ruling: “Unlawful and Arbitrary”

Justice Earls calls the NCUC’s decision to approve a higher profit margin for Duke without supporting evidence to justify it “plainly unlawful and arbitrary.” She points out that prior to the 2021 legislation, “each time a utility wanted to increase rates, it would have to file a new application with the Commission. Under the new system, certain public utilities can apply once to increase rates over three years.”

As she and Justice Riggs declare, “Because the stakes are higher and chances for review fewer, this Court must exercise utmost diligence when determining the Commission’s compliance with its legal obligations in these proceedings. Yet today, the majority blanketly rejects nine distinct challenges to the Commission’s orders in two such ratemaking cases. In doing so, the majority appears to transform appropriate deference to the Commission’s technical expertise into an exercise in largely taking the Commission at its word. Our critical review requires more. Ratepayers across North Carolina deserve more.”

The significance of the Court’s decision and the minority’s dissent goes well beyond the already high stakes of this case alone. They reflect a critical distinction in how much care North Carolina’s highest Court will take in weighing decisions about the state’s largest corporate monopoly regarding issues critical to North Carolinians’ health, wealth, and future. 

The Costs of Rate Hikes

Will families be able to afford to keep their lights and heat on? Will small businesses close due to rising utilities costs? This winter, Duke Energy Carolinas sent about 10% more disconnection notices due to late payments than last year. 

Will a transition to cleaner energy take place soon enough to avoid the most catastrophic levels of climate change? Under its current path, Duke is increasing its reliance on methane gas, then passing the cost onto North Carolina consumers. Instead of investing in renewable energy sources like solar and wind that would lower electric bills, Duke is continuing to use energy sources that line their pockets in the short-term and pollute our state in the long-term. 

What Can We Do About It?

In a very real sense, these have become questions on our ballot this fall when we vote. Justice Anita Earls’ is running to maintain her seat on the Supreme Court. Earls’ challenger, Rep. Sarah Stevens, has repeatedly voted to enable Duke Energy to keep raising rates while increasing climate pollution. 

Stevens even voted to change the law in a way that allowed Duke to keep ratepayer money that state courts said Duke got by illegally overcharging its customers. 

Retaining Justice Earls on the court in this fall’s election is critical to the possibility of winning a pro-environment, pro-democracy majority of the NC Supreme Court in 2028.Help us get the word out by donating today!