North Carolina officials challenge Duke Energy to make federal data center pledge legally binding

North Carolina Governor Josh Stein and Attorney General Jeff Jackson have issued a joint call for Duke Energy to legally formalize its commitment to protect consumers from the escalating energy demands of data centers. They want Duke Energy to transform its voluntary signature on the federal Ratepayer Protection Pledge into a legally enforceable state agreement with the North Carolina Utilities Commission.

The federal pledge requires large commercial energy users, including tech companies operating data centers, to fund the necessary power plants and grid infrastructure themselves, preventing these costs from being passed on to households through rate increases. Several major technology firms, such as Amazon, Google, Meta, OpenAI, and xAI, have already signed this federal commitment.

State leaders are advocating for the North Carolina Utilities Commission and Duke Energy to establish a formal "large load tariff" and a transparent "bring your own power generation" program. These measures would ensure data centers pay their full share for energy resources and infrastructure. Attorney General Jackson emphasized that a promise made in Washington does not guarantee lower power bills in North Carolina, hence the need for a state-enforceable agreement.

This announcement follows a recent conditional settlement between Duke Energy Carolinas and the Utilities Commission's Public Staff concerning new rules for large energy users, which Attorney General Jackson declined to sign due to proposed residential rate increases. The Attorney General's office is also actively fighting a proposed 15% rate hike in an ongoing case involving Duke Energy Progress, citing concerns about unfair costs to ratepayers.