Duke Energy, data center giants agree on new rules for large power users in NC
Duke Energy and several large energy users, including major data center developers, have agreed to a proposed large-load tariff in North Carolina. The tariff would require major customers to fund dedicated grid infrastructure, provide substantial deposits and pay for unused capacity, but the North Carolina Utilities Commission must still approve it.
Duke Energy and seven supporting organizations have filed a settlement agreement with the North Carolina Utilities Commission backing a new large-load tariff for customers with very high and sustained electricity demand. The proposal would apply to data centers and other large users, requiring them to pay for dedicated infrastructure, provide deposits for grid upgrades and cover at least 75% of projected demand each month. Early contract termination penalties could range from $25 million to more than $587 million.
Amazon, Microsoft, Google, Andale, a Meta subsidiary, the U.S. Department of Defense, the North Carolina Public Staff and an industry group support the agreement. Environmental and renewable-energy organizations opposed the proposal because it does not require large customers to provide clean energy or reduce consumption during periods of peak demand. The five-member Utilities Commission is expected to decide in the coming weeks whether to approve the tariff as part of Duke Energy's rate case involving Charlotte and western North Carolina.