Duke Energy proposes special rules for data centers in North Carolina

Duke Energy, North Carolina's largest utility, has proposed new pricing rules for data centers and other huge power users, after months of saying such rules weren't needed. The plan, called a "large load tariff," would require these big customers to pay a minimum bill for at least 10 to 15 years, regardless of how much power they actually use. It would replace the private, one-off deals Duke currently negotiates with tech companies. The change matters to homeowners because Duke is planning to build nearly 9.7 gigawatts of new gas-fired power plants over the next decade, largely to serve expected data center growth — costs that could fall on regular ratepayers if the tariff doesn't protect them adequately.

The proposal comes just as Duke prepares to defend a rate hike request of 11.6% over two years for residential customers, with hearings starting July 7. Consumer and clean energy advocates say Duke's data center plan is a step forward but still falls short of what they wanted: a higher minimum usage requirement, longer contract terms, and coverage of smaller large-load customers. They're also concerned Duke hasn't proposed treating data centers as a distinct customer category, which could allow more tailored rate protections for households.

The North Carolina Utilities Commission may open a separate review of the large-load tariff idea. A decision on this and the broader rate case is expected this fall.