Duke Energy comes to an agreement on long-sought large load tariff for data centers in North Carolina
Duke Energy reached a settlement with data center operators on a mandatory large-load tariff in North Carolina. Environmental groups said the proposal does not ensure data centers will cover all transmission and power-plant costs or provide options to procure new renewable energy.
Duke Energy and data center operators agreed to a proposed large-load tariff that would require data centers and other consistently high-energy customers to pay upfront for dedicated facilities, such as substations. Costs for broader transmission upgrades would initially be spread among all customers and repaid over the data center’s contract term, with potential shortfalls if a project exits early.
The Environmental Defense Fund and Southern Environmental Law Center questioned whether the arrangement fully protects ratepayers and covers the cost of new generation and transmission infrastructure. The tariff could affect projects including Digital Realty’s Moores Chapel project and the University City PowerHouse development in Charlotte, as well as Amazon’s proposed project in Rockingham. The North Carolina Utilities Commission must approve the settlement and determine how and when it takes effect.