Lake Norman homeowners may feel Carolina Water hike before state weighs in
Homeowners served by Carolina Water Service could see higher water bills as soon as March 1, even as state regulators continue reviewing whether the increases should ultimately be approved.
In a filing submitted earlier this month, Carolina Water told the North Carolina Utilities Commission it plans to begin charging higher water rates on a temporary basis starting March 1, while its broader rate request is still under review. For residents who have spent months urging regulators to reject the increases altogether, the move felt like a sudden acceleration of a fight they believed was still unresolved. The company serves customers in 38 counties across the state.
Craig Yardley, a Mooresville resident and Carolina Water Service customer, said the early rate filing underscored his concerns about profit-driven decisions taking precedence over customer impact.
“It just reinforces my opinion that private equity is pushing the price level lever as hard as they can, and the earlier you can move prices up, the better,” Yardley said. “The fact that they’re moving up a price increase doesn’t surprise me. I would have to ask, ‘why? What is so pressing that you have to move up an already proposed price increase with a temporary increase?’”
The filing comes amid growing opposition from homeowners across North Carolina. Thousands of residents in more than 40 communities have signed a petition asking the Utilities Commission to deny Carolina Water’s proposed rate hikes, arguing that bills are already unaffordable and that customers have no alternative provider, The Charlotte Observer previously reported.
Public hearings have been held in at least five cities, with residents testifying about monthly water bills reaching hundreds of dollars and, in some cases, far more during peak usage months. The Commission added more public hearings on the rate case after residents expressed widespread interest. One remaining hearing is scheduled for 7 p.m. on Wednesday in Mooresville at South 610 E. Center Avenue.
But residents worry the new filing could mean higher prices arrive well before regulators weigh in, and that once rates go up, they may be difficult to bring back down. Several homeowners told the Observer increases billed as temporary stayed in place for long stretches of time in past cases.
Under the filing, Carolina Water would increase its fixed monthly water charge from $28.61 to $31.47 and raise the usage rate from $13.78 to $15.16 per 1,000 gallons. Those changes would take effect while the Utilities Commission continues to review a separate, broader proposal that would raise water rates by 34% over three years. Carolina Water Services buys some of the water it provides to customers from the Town of Mooresville for $4.18 per 1,000 a town spokesperson told the Observer.
“That seems like an abuse of pricing. People just get upset, in some cases not because you can’t afford it, but because you feel like you’re being you’re being abused,” Yardley said. “People are going to get driven out of their homes eventually, between home insurance and utilities,”
In comparison, Mooresville charges residents a fixed fee of $8 per month and $4.66 per 1,000 gallons for the first 5,000 gallons.
Carolina Water said the move is allowed under state law. In a statement to the Observer, the company said utilities are permitted to implement temporary rates while a case is pending, with the understanding that customers would receive a refund with interest if regulators later approve a lower increase.
The company said the higher rates are needed to support ongoing operations and major infrastructure upgrades, including replacing aging pipes, upgrading treatment plants and complying with new environmental regulations.
When asked whether temporary rates could effectively become permanent for customers, the company did not directly address that question. Instead, it emphasized that the case remains under review and that regulators will ultimately determine final rates.
The commission’s public staff, which represents the interests of utility customers in rate cases, is expected to make a recommendation on the case in early February and regulators should make their final determination in late March or early April.
As the regulatory review continues, residents have also reached out to Gov. Josh Stein, who pushed back on other utility rate hikes over affordability concerns. In a statement to the Observer, a spokesperson said the governor will work to keep costs down for North Carolinians.
‘“The cost of living is going up for too many North Carolinians, and that includes their utility bills,” The statement said. “Governor Stein has consistently opposed and will continue to oppose efforts to raise utility rates unreasonably.”
Yardley said that he doesn’t have faith in the commission to reject the proposed rate hikes, but he hopes it does.
“These people have been raising these prices for years now to unbelievable rates, and your job this year is to say no,” Yardley said he told commissioners at a hearing. “Because this is absolutely insane.”
This story was originally published January 27, 2026 at 5:00 AM.
