Duke Energy’s ‘light-touch’ large load tariff could be a problem.

Duke Energy, the utility serving the Carolinas, is asking regulators for an 11.6% residential rate hike, and part of that case includes a new rate structure for very large electricity users like data centers, starting in 2027. Customers with loads of 50 megawatts or more would sign 10 to 15 year contracts, pay for at least 75% of the power they request even if they don't use it, and post upfront collateral. Early exit would bring a penalty equal to 25% of remaining bills.

The catch, according to industry analysts, is that Duke's plan groups data centers together with other big power users, like factories, instead of putting data centers in their own rate category. That makes it hard to see how much of the grid's rising costs come specifically from data centers versus other large industrial customers. Regulatory staff have proposed assigning about $200 million of a $247 million grid upgrade request directly to large-load customers, but Duke wants those costs spread across all customers, including regular households, arguing everyone benefits from the upgrades.

This matters for homeowners because it affects who ultimately pays for grid upgrades driven by data center growth. If those costs get spread broadly rather than billed directly to the large users causing them, residential rates could absorb more of the expense. Other states are facing similar fights: Oregon just approved a roughly 29% rate hike for data center customers, while manufacturers in places like Ohio have already seen power bills jump due to nearby data center demand.