Lake Norman lawmaker questions Carolina Water ruling after 40% rate hike approved
A Lake Norman-area lawmaker who opposed Carolina Water Service’s rate increase says the outcome leaves him questioning whether state utility regulators are giving enough weight to customers.
Rep. Todd Carver, an Iredell County Republican who spoke against the proposed increase at two public hearings during the rate case, said he was disappointed regulators approved a settlement that resulted in a uniform water rate higher than the utility originally proposed. Carver said lawmakers should examine whether changes are needed to make the process more responsive to ratepayers. His district covers much of southern Iredell County, including Mooresville and Lake Norman communities affected by the rate increase.
The North Carolina Utilities Commission last week 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 came after months of opposition from customers who argued their bills were already among the highest in the state and packed public hearings to urge regulators to reject the increase.
“I am disappointed that the Commission went along with the full rate request,” Carver said.
The North Carolina Utilities Commission is a state regulatory body responsible for setting rates for investor-owned utilities, including electric, natural gas, water and wastewater companies. In major rate cases, they hear evidence from utilities, customers and the Public Staff, a state agency tasked with representing the interests of utility customers.
The commission ultimately approved a settlement negotiated between Carolina Water and the Public Staff. The settlement reduced the company’s overall revenue request and lowered its proposed return on equity. But it also resulted in a uniform water rate higher than the one originally proposed by the utility, a point critics have repeatedly highlighted.
For Carver, that outcome undermined the idea that the settlement was a compromise.
“You can hardly say the decision was a give and take if the utility ends up with an even larger increase than they had requested,” he said.
Carver said regulators should place greater emphasis on the impact decisions have on customers.
“I’m not sure what the Commission’s thought process is in determining these questions,” he said. “I know they are considering the needs of the utility and the wishes of the community, but they need to give more weight to the needs of the community.”
Carver’s concerns mirror those raised by customer advocate Jeff Wennberg, who previously told the Observer that commissioners spent much of the evidentiary hearing questioning Carolina Water about service quality and customer complaints. While commissioners repeatedly referenced the unusually high volume of public opposition, Wennberg, HOA presdient for a community served by Carolina Water, said he heard little discussion about how the proposed rates would affect customers’ ability to pay.
Carver said the decision should prompt a broader conversation.
“I believe we need to take a look at how we arrive at these decisions in a more just manner,” he said. “I look forward to working with other members of the (General) Assembly to see if we can build a consensus on the method of making these rate increases.”
The ruling affects tens of thousands of Carolina Water customers across North Carolina. The company has said the increase is needed to support more than $125 million in planned investments in water and wastewater infrastructure between 2026 and 2029, including projects aimed at improving reliability, maintaining regulatory compliance and supporting future growth.
Another Lake Norman-area lawmaker who opposed the increase, Sen. Vickie Sawyer, declined to comment on the commission’s decision.
Earlier this year, however, Sawyer told the Observer she was working on legislation aimed at increasing oversight and accountability related to utility regulation and said she believed legislative action could help prevent unreasonable rate increases in the future.
“It is a major priority to keep the people I represent from being subject to unreasonable costs without sacrificing water service because of this, I have actively worked to fight against a rate increase,” Sawyer said at the time. “We are actively working on legislation to help provide solutions that will help increase oversight and accountability to this wing of state government.”
