Data center companies agree with Duke Energy, customer advocates, to pay more for electricity
Duke Energy, data center companies and customer advocates agreed to proposed rules requiring data centers using at least 50 megawatts to pay upfront for dedicated infrastructure and guarantee a minimum level of billing. The agreement remains subject to approval by the North Carolina Utilities Commission and has drawn criticism from the attorney general's office and environmental groups.
Duke Energy and data center companies reached an agreement with customer advocates on proposed electricity rules for projects demanding at least 50 megawatts in North Carolina. The plan would require developers to fund infrastructure built specifically for their facilities, provide financial guarantees for transmission upgrades, pay penalties if projects are canceled or shut down early, and accept a minimum billing level equal to 75% of requested capacity.
Duke spokesman Bill Norton said the requirements would ensure data centers contribute more of the costs created by their demand for new power plants, substations and transmission lines. Will Scott, North Carolina policy director for the Environmental Defense Fund and a member of the governor's Energy Policy Task Force, called the deal a useful starting point but said it does not address broader issues such as backup generators, noise, local impacts or how new electricity supplies will be selected and paid for.
The agreement is part of Duke Energy Carolinas' rate case. Although public staff approved it, the North Carolina Attorney General's Office, the state ratepayer representative and environmental groups filed comments arguing that it does not adequately protect customers. The North Carolina Utilities Commission is expected to decide on the agreement by the end of November.