Benson Sets Public Hearing On Proposed Electric Rate Increase
BENSON — The Town of Benson Board of Commissioners will hold a public hearing next month to gather input on proposed electric rate increases that officials say are necessary to address rising wholesale power costs and stabilize the town’s electric utility finances.
The hearing is scheduled for March 10 at 7 p.m. at the Benson Conference Center, 303 E. Church St., and will allow residents and businesses to comment on proposed modifications to the town’s electric rate schedule.
Town officials say the proposal follows a comprehensive electric cost-of-service study and financial projection conducted by Utility Financial Solutions LLC in partnership with ElectriCities of North Carolina. The study examined Benson’s rate structure and financial data to compare the cost of providing service with current revenue levels.
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. Financial projections for fiscal years 2027 through 2031 show negative adjusted operating income and declining cash balances if rates remain unchanged.
“The goal is to ensure that each customer class equitably pays the cost of service while improving the utility’s financial stability over time,” officials said in a news release.
Proposed changes and customer impact
Under the proposal, residential electric bills would increase in phases beginning April 1, 2026.
For a typical residential customer using 1,000 kilowatt-hours (kWh) per month — a level representing about two-thirds of Benson households — the average monthly bill would rise from about $149.90 to approximately $165.92, an increase of roughly $16. The bill would then decrease slightly to about $161.92 in November 2026 when an existing rider expires, before increasing again to about $186.36 in April 2027.
Town data show that 66% of residential customers use 1,000 kWh or less per month, while about 94% use 2,000 kWh or less.
Projected impacts vary by energy usage. For example:
- Customers using 500 kWh monthly would see an estimated increase of about $8 per month starting in April 2026.
- Customers using 2,000 kWh monthly could see increases of nearly $32 per month.
Officials emphasized that the proposed rates are structured to recover costs fairly across customer classes while maintaining service reliability.
Rising wholesale power costs driving increases
Town of Benson officials cited rising wholesale power prices as a major factor behind the proposed changes. Benson is one of 32 members of the North Carolina Eastern Municipal Power Agency (NCEMPA), which purchases electricity from Duke Energy and sells it to member municipalities.
Key drivers for increasing wholesale rates include growing energy demand, aging generation facilities and ongoing investments in distribution and transmission infrastructure, according to town materials.
The cost of maintaining reliable electric service has also risen significantly in recent years, mirroring national trends. Officials noted that average residential electric bills nationwide increased nearly 30% between 2017 and 2024.
Comparison with other utilities
Town staff said the proposed increases remain comparable to those implemented or proposed by neighboring utilities.
For example, Duke Energy Progress has proposed a two-year plan to raise residential rates by about 13.5% beginning in 2027 and an additional 5% in 2028. 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 monthly would pay about $186.36 by April 2027, compared with an estimated $185.94 for Duke Energy customers at that time.
Public input encouraged
Commissioners say the March hearing is intended to gather community feedback before any final decisions are made.
Residents may attend in person to provide comments or learn more about how the proposed rate structure could affect their monthly electric bills.
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Benson needs to get out of the electric business.
Let Duke or South River operate it.
They want to increase prices but it averages going out 3 times a week about 7am just long enough for you to have to reset everything and Lord not to mention the orange drinking water!
Do people actually think that commissioners listen to the citizens? Laughable. They have these to humor people into thinking their voice matters. Commissioners of every town in joco make up their minds before these open forums so people think they have a voice.
I have been using Colquitt EMC in south Georgia for the past 42 years and my rates have always been less than comparable customers using Georgia Power. Colquitt EMC is a non-profit company….meaning that they borrow money for what they think will be enough for the operating expenses for the upcoming year and it is usually a 10 or 20 year note. When the note matures, if the actual operating expenses are less than the note, the customers are given a check based on the amount of electricity that they have used during that period. I have been pleased when I open a envelope and see a check for approximately the amount of one month’s electricity. Colquitt EMC does not have stock holders like Duke Power or Georgia Power………their stock holders are their customers.