Attorney general, governor join request line for regulation on data centers
North Carolina's Attorney General and Governor are advocating for a separate, higher electricity rate for large users, including data centers, to address grid strain and rising costs. This comes as Duke Energy Carolinas seeks a rate hike, with officials arguing data centers should cover their fair share. Legislation with similar goals is also moving through the state's General Assembly.
North Carolina Attorney General Jeff Jackson and Governor Josh Stein are urging the North Carolina Utilities Commission to establish a distinct, higher electricity rate class for major energy consumers, specifically data centers. The initiative aims to alleviate strain on the state's power grid and protect residential ratepayers, especially as Duke Energy forecasts that data centers will account for 70% of new power demand over the next five years. State Republican lawmakers are also advancing similar legislation, including Senate Bill 730 and House Bill 1063, to implement these changes.
Jackson is actively opposing a proposed $1.4 billion rate increase from Duke Energy Carolinas, contending that it is excessive for families and that a more equitable system for large users would mitigate the burden. He stated that citizens desire specific protections due to the significant impact these facilities have on the entire grid. While the Utilities Commission declined to comment, Duke Energy, through spokesperson Bill Norton, asserted that they have proactively implemented a "robust large load process" to ensure data centers cover their costs and provide benefits to other customers. Norton claimed that existing contracts with large load customers are projected to generate $3.6 billion in benefits over 15 years and reduce residential bills by $4-$6 monthly through 2040.
The discussion takes place against a backdrop of rising national electricity prices, with the Environmental and Energy Study Institute noting a 27% increase in average U.S. electricity prices since 2019, and a staggering 267% increase in states with high data center concentrations, like Virginia, over the last five years.