During its March 10 meeting, the Benson Board of Commissioners approved an increase in town electric rates that will take effect April 1.
The rate increase follows a cost of service study and financial projection conducted by Financial Solutions, LLC in conjunction with Electricities of North Carolina analyzing Benson’s current utility position.
This study was an extensive examination of Benson’s rate structure and electric utility financial data — ultimately resulting in a new rate designed to recover the utility’s financial position over a five-year period.
For the vast majority of Benson’s residential electric customers (around 66% use 1,000 kWh or less per month), April’s increase will equate to just over $16 more per month — from $149.90 for 1,000 kWh per month to $165.92.
Bills will then decrease slightly in November 2026, with the expiration of the $4 rider currently in place, before the second phase of the increase in April 2027. Using the previous 1,000 kWh household example, the April 2027 increase will equate to just over $24 more per month — from $161.92 to $186.36.
Please note, increase percentages are based on electric usage. Residents using less than 1,000 kWh of electricity per month will see a smaller increase in monthly bills, while residents using more than 1,000 kWh will see a larger increase than the aforementioned example.
Why did Benson need to increase electric rates?
Current rate-related revenues do not meet the target operating income and the Electric Fund is below the recommended minimum cash balance.
- Projections for FY 2027-2031 show negative adjusted operating income and projected cash balances in the Electric Fund if rates remain unchanged.
- The largest portion of electric utility expenses are the cost of purchased power and wholesale power rates continue to rise.
The Town of Benson and 31 other members make up the NC Eastern Municipal Power Agency (NCEMPA) which purchases electricity from Duke Energy and sells it to power agency members.
- Drivers for wholesale rate increases from Duke Energy include increasing demand, aging generation facilities, and distribution and transmission improvements.
- The cost of providing and maintaining reliable electric services has increased significantly in recent years and is projected to rise still.
Electric providers across the country are experiencing the same rising costs resulting in the average residential electric bill rising nearly 30% from 2017-2024. Neighboring energy providers are facing the same challenges as Benson in the coming years.
- In a similar effort to Benson, South River EMC will increase rates for residential customers an average of 13.8% beginning March 2026.
- Duke Energy Progress has proposed a similar two-year plan to increase rates for residential customers by 13.5% in January 2027 and 5% January 2028.
The chart below breaks down the approved increases including base charges and per kWh rates based on the type of usage (residential, commercial, area lighting, etc.)