‘No voice.’ Despite opposition, NC regulators OK 40% rate hike for Carolina Water
Customers packed hearings, signed petitions and pleaded for relief. This week, regulators approved Carolina Water Service’s rate hike anyway.
The North Carolina Utilities Commission on May 26 approved a settlement that sets the uniform water rate at $19.23 per 1,000 gallons, according to case documents. That’s nearly 40% higher than the current $13.78 rate and above the $18.46 rate Carolina Water originally proposed. The decision comes after months of public opposition from customers who argued their bills were already among the highest in the state and who urged regulators to reject the increases altogether. The approved water rate also exceeds what the utility originally proposed.
“We’re extremely disappointed, although not surprised,” said Terry Bravas, a Lake Norman-area resident who has been involved in opposing the increases. “This decision is a complete abdication of the utility commission’s responsibility and, in my judgment, a demonstration of a lack of integrity by the commissioners and the public staff.”
The ruling caps a monthslong battle that drew testimony from residents across the state, generated thousands of petition signatures and prompted complaints to lawmakers, the governor and attorney general. Many customers argued they already pay substantially more than nearby municipal systems and said further increases would strain household budgets.
Carolina Water customers spent months urging regulators to reject the proposal altogether. In testimony and interviews with The Charlotte Observer, residents described monthly bills reaching into the hundreds of dollars, said they had no alternative provider and argued the utility’s rates already far exceeded those charged by many cities and towns.
The opposition extended across more than 40 communities, with residents speaking out at public hearings held in Charlotte, Mooresville, Jacksonville, New Bern, Raleigh and other locations.
For some customers, the decision reinforced a belief that public opposition carried little weight in the outcome.
“We have no voice whatsoever,” said Paul Dascoli, a Mooresville resident served by Carolina Water. “Why even bother having public hearings on these matters, when the utility commission isn’t going to consider them in their decision?”
The commission’s order states that regulators reviewed testimony, exhibits, public comments and a settlement negotiated by the Public Staff, the state agency charged with representing utility customers in rate cases, before concluding the rates were reasonable and in the public interest. State law requires regulators to balance customer interests with the financial needs of utilities and consider whether a water and sewer investment plan will support safe and reliable service.
The settlement approved by regulators was negotiated between Carolina Water Service and the Public Staff in March. Public Staff challenged portions of the company’s proposal, resulting in a lower overall revenue increase and a reduced return on equity compared with Carolina Water’s original request.
But the settlement also eliminated proposed distribution charges where Carolina Water primarily distributes water purchased from another provider, shifting more of the revenue recovery into the rate paid by most customers. As a result, intervenors and customers noted the rate ended up higher than what Carolina Water originally proposed, even as some sewer and other charges were reduced.
Critics of the deal have argued for months that portions of the settlement could leave some customers paying more for water service than they would have under the original proposal – and that’s exactly what happened.
Jeff Wennberg, an HOA president for a community served by Carolina Water, told the Observer in March that while reductions in sewer rates helped offset some impacts, the settlement included water-rate increases that were larger than those originally requested by Carolina Water.
Residents also noted the latest increases come after a previous rate case approved in 2023. Opponents argued repeated increases over a relatively short period have compounded affordability concerns, particularly for customers living where Carolina Water is the only available provider.
“I never thought that I would live in a state where water was going to be unaffordable to so many people,” Dascoli said. “People are going to have to make choices now, everyday choices about where they spend their money, just so they can afford water, which is a basic human need.”
Bravas said the case highlights a broader problem for customers served by private, investor-owned utilities.
“It’s a monopoly, and they can do whatever they want, and the commission is allowing that... People need water to live,” she said. “This is like something happening in a third world country, the people in power taking advantage of the public.”
Carolina Water defended the outcome, saying the order followed a review process and balanced affordability with the need to maintain and improve utility infrastructure.
“The Commission’s decision reflects careful balancing of the need to keep rates as reasonable as possible, and the need to invest in water and wastewater systems to support public health, growth, and reliable essential utility services,” spokesperson Jessica Dey said.
According to the company, Carolina Water plans to invest more than $125 million in water and wastewater infrastructure between April 2026 and March 2029. Those investments include projects intended to support system reliability, regulatory compliance and future growth.
The company said rate changes will vary by service territory and that customers will receive notices explaining how the approved rates will affect their bills. Carolina Water serves approximately 37,655 water customers and 22,598 sewer customers across 39 North Carolina counties, according to commission filings.
