New Bern approves electric rate increase, citing rising power costs

NEW BERN, Craven County — New Bern Alderman voted 5-1 Tuesday night to raise electric rates again, this time by about 3%. Officials say rising wholesale power costs are the main reason for the increase.

This new hike means your electric bill will go up by roughly 3%, but the exact dollar amount depends on how much electricity you use each month.

The decision follows a similar rate hike last year, when the city approved a 3% increase to cover a $3 million shortfall in the utility budget.

Now, the city’s utility director says the utility has been losing money since December 2024. He said it’s falling more than $2 million short on power supply costs.

In addition to the rate hike, the city also plans to change how it pays solar customers.

Instead of offering a fixed credit for energy they produce, the city will switch to a variable rate that adjusts monthly based on the wholesale market.

New Bern buys its electricity from Duke Energy, and city officials say they’re paying more to supply homes and businesses.

Mayor Jeffrey Odham said after the vote that electric rates are becoming increasingly difficult for city leaders to explain to the public, especially with the city’s Power Cost Adjustment (PCA), a charge that fluctuates monthly.

“There will be a 3% rate increase, but there’s also the PCA, which adjusts, and that’s where it gets complicated. When a customer asks me how much their bill is going up, I can’t give them a dollar amount because it depends on how much electricity they use. That’s one reason why I think the city needs to get out of the electric business, it’s a specialized field,” Odham said.

He also pointed out that New Bern’s rates remain lower than Duke Energy’s, even though both serve retail customers and maintain the same infrastructure.

Residents could start seeing the higher rates on their electric bills later this year