Duke tariff tests Florida data center ratepayer protections
Florida regulators are evaluating Duke Energy Florida's proposed tariff for large data centers, which is the first test of a new state law, Senate Bill 484. The law aims to prevent the costs of serving large-load customers from being shifted to residential ratepayers. Consumer advocates argue that Duke's proposal does not go far enough to meet the law's requirements, while Duke maintains its plan provides sufficient protections.
The Florida Public Service Commission recently held a hearing to consider Duke Energy Florida's proposed tariff for large-load customers, including data centers. This case marks the first application of Senate Bill 484, a new state law designed to ensure that large electricity consumers bear their own service costs, preventing these expenses from burdening residential ratepayers.
Consumer advocates, represented by Bradley Marshall of Florida Rising and Walt Trierweiler with the Office of Public Counsel (OPC), strongly opposed Duke's proposal. Marshall emphasized the state's affordability crisis and asserted that Duke's plan "doesn't come close" to meeting the law's mandate for data centers to pay their full cost of service. Trierweiler criticized Duke's failure to propose a separate rate schedule for large-load customers, arguing this makes the proposal non-compliant with SB 484.
Conversely, Dianne Triplett, speaking for Duke Energy Florida, defended the utility's proposal, stating that its provisions, which include a 20-year minimum term, significant financial assurances, early termination obligations, and minimum monthly bills, are sufficient. Triplett acknowledged that a specific large-load customer rate schedule is planned for a future rate proceeding, but argued that the current tariff would not increase existing customer rates before the end of 2027 due to an existing settlement agreement.
The debate highlighted concerns that if Duke's proposal is approved as is, and a potential "data center boom" eventually recedes, general customers could be left with the financial burden of unused infrastructure. The commission's decision in this "case of first impression" will set a precedent for how the new law is implemented across Florida's electric investor utilities, all of which must file compliant tariffs by October 1, 2026.