(CHARLOTTE) -- Duke Energy has reached an agreement with the North Carolina Utilities Commission Public Staff to raise electricity rates by 7.2 percent.  The agreement must be reviewed and approved by the North Carolina Utilities Commission. If approved, the new rate would go into effect in February 2012.

The Charlotte-based utility has also agreed to contribute $11 million of shareholder money to its Share the Warmth program to help low income residents in North Carolina with their energy-related costs.

"This proposed agreement strikes a balance between today's challenging economic times and the need to recover the investments made in the electric system to ensure reliable, affordable and clean energy for the Carolinas today and for tomorrow," said Brett Carter, president, Duke Energy North Carolina.

The settlement agreement will be filed with the North Carolina Utilities Commission in the coming days. The Commission begins a public hearing on the the proposed rate increase on Monday.