Fayetteville's city-owned utility has signed off on a two-year package of electric rate hikes and fee changes that staff say will tack about $8 onto the monthly bill for a typical household using roughly 1,000 kWh. Commissioners voted Wednesday after a public hearing, and Public Works Commission officials say the move is about keeping up with rising costs while protecting local reliability.
Board backs two-year rate plan
At a public hearing on Feb. 25, the Fayetteville Public Works Commission voted to adopt new rates and fees that will roll out over two years. As outlined in a press release from Fayetteville PWC, the updated electric rates will apply to bills sent on or after May 1, 2026. The adjusted fees take effect immediately and are expected to increase overall revenue by about 5.5% in each of the next two years.
"Our priority at PWC is to continue delivering safe, reliable, and affordable electric, water, and wastewater services to all of our customers," PWC CEO Timothy Bryant told ABC11. He said staff had already put cost-saving measures in place, but that rising costs outside the utility’s control have grown faster than those savings.
What is driving the increases
PWC cites higher wholesale power prices and growing capital and operating obligations as its biggest pressures. That includes roughly $16 million more each year in purchased power from Duke Energy, about $6 million in additional debt service for capital projects, and around $4 million tied to electrical systems and other operating expenses. The utility notes that revenue has stayed relatively flat in recent years and says the adjustments are needed to match the actual cost of providing service, according to Fayetteville PWC.
How much your bill could change
PWC projects that a residential customer using 1,000 kWh per month may see an $8.02 increase in May 2026 and an $8.59 increase in May 2027, according to ABC11. The utility also says that, including the May increase, PWC electric rates have risen about 16.5% since 2020, compared with a national increase of 34% that the company cited from J.D. Power, and that even with the adjustments its residential customers remain below the state average.
Earlier funding uncertainties
The decision follows months of concern over federal grants for local infrastructure projects that were put on hold. In April 2025, WRAL reported that more than $60 million in PFAS-related and other awards were under review, and PWC officials warned that if those frozen funds were not restored it could add more pressure for higher rates.
Where to find details and help
PWC has posted its full release and detailed rate tables on the utility's website, and customer-service staff are available to walk people through bill changes or assistance options. Customers looking for official documents or help are directed to contact PWC customer service or visit the utility’s online newsroom for FAQs and information on payment assistance programs.
