Fayetteville PWC Proposes 13.45% Electric Rate Hike Over Two Years

Fayetteville Public Works Commission will weigh whether to bump residential electricity prices by 13.45% across the next two years. The jump would roll out in stages. A 6.5% increase hits in May 2026, then another 6.5% follows in May 2027.

Business customers face higher bills, too. Monthly facility charges and assorted fees will climb. The plan calls for a $2 monthly facility charge increase this year, with another $2 tacked on next year. Some residents would see their facility charge rise by $2.50 annually.

This proposed bump dwarfs the last increases. Just 2% in May 2024 and 2% in May 2025. According to Fayetteville PWC, homes using 1,000 kilowatt hours monthly would see increases of $8.02 in May 2026 and $8.59 in 2027.

Mounting costs drive the proposal, said Jason Alban, who directs financial planning. Power purchases from Duke Energy cost more now. Operating expenses keep climbing. Capital projects demand funding, and debt carries steeper interest rates.

"We don't want to have to up the rates. We want to tighten our belts," said board chair Richard King to CityView. "We want to make it to where we don't. But we have a shortfall, you got to cover it."

The commission, owned by the City of Fayetteville, supplies electricity to 86,466 homes, businesses, factories, and other customers in and around the city. Commissioners voted to schedule a hearing at 8:30 a.m. on February 25 at headquarters at 955 Old Wilmington Road. The public can comment in person or by emailing PWCBoard@FayPWC.com.