Benson Electric Rates Increasing Following 4–2 Board Vote

BENSON, N.C. — The Benson Board of Commissioners has approved an increase in electric rates following a public hearing on March 10, citing rising wholesale power costs and the need to stabilize the town’s electric utility finances.

Commissioners voted 4–2 to adopt a new electric rate schedule that will raise residential rates beginning April 1, 2026, with a second increase scheduled for April 1, 2027.

Commissioners Casandra Stack and Maxine Holley voted against the rate increases.

Town officials said the changes were recommended following a comprehensive electric cost-of-service study and financial projection conducted by Utility Financial Solutions LLC in partnership with ElectriCities of North Carolina. The analysis compared Benson’s current electric rate structure with the cost of providing service.

According to town leaders, existing electric revenues do not meet target operating income levels, and the electric fund’s cash balance has fallen below recommended minimums. Without the rate adjustments, officials projected the electric fund could face a shortfall of about $500,000.

Customer impact

Under the approved plan, residential electric bills will increase in phases.

For a typical residential customer using 1,000 kilowatt-hours (kWh) per month — about two-thirds of Benson households — the average monthly bill is expected to increase from about $149.90 to approximately $165.92 beginning April 1, an increase of roughly $16 per month.

The bill would then decrease slightly to about $161.92 in November 2026 when an existing rider expires, before rising again to about $186.36 in April 2027 under the second phase of the increase.

Town data show 66% of residential customers use 1,000 kWh or less per month, while about 94% use 2,000 kWh or less.

Projected increases vary based on electricity usage. For example:

• Customers using 500 kWh per month could see an increase of about $8 per month beginning in April 2026.
• Customers using 2,000 kWh per month could see monthly bills increase by nearly $32.

Rising Wholesale Costs

Town officials said rising wholesale power prices remain the primary driver behind the increases.

Benson is one of 32 members of the North Carolina Eastern Municipal Power Agency (NCEMPA), which purchases electricity from Duke Energy and distributes it to member municipalities.

According to town materials, key factors behind rising wholesale costs include growing energy demand, aging generation facilities and continued investments in power generation, transmission and distribution infrastructure.

Officials also noted that the cost of providing reliable electric service has climbed significantly in recent years, reflecting national trends. Average residential electric bills across the United States increased nearly 30% between 2017 and 2024, according to town data.

Regional comparisons

Town officials said the increases are comparable to rate changes planned by other utilities in the region.

Duke Energy Progress has proposed raising residential rates by about 13.5% beginning in 2027 and an additional 5% in 2028, while South River EMC plans to increase residential rates by an average of 13.8% starting in March 2026.

Under the town’s projections, a Benson customer using 1,000 kWh per month would pay about $186.36 by April 2027, roughly comparable to the estimated $185.94 monthly bill projected for Duke Energy customers at that time.