Attorney General calls on Duke Energy to commit to data center protections for ratepayers
North Carolina Attorney General Jeff Jackson is urging Duke Energy to legally commit to protecting ratepayers from data center electricity costs by agreeing to a new tariff with the state Utilities Commission. This call follows a federal Ratepayer Protection Pledge signed by Duke, as concerns grow over the energy and environmental impacts of data centers across North Carolina, leading to over 30 moratoriums statewide. The proposed tariff aims to ensure large energy customers like data centers cover their infrastructure costs.
North Carolina Attorney General Jeff Jackson has urged Duke Energy to enter into a legally binding agreement with the North Carolina Utilities Commission to protect ratepayers from the rising electricity costs associated with data center growth. Jackson's call comes after Duke Energy joined the federal Ratepayer Protection Pledge, an initiative introduced by the Trump administration and signed by several major tech companies. While acknowledging Duke's own Customer Protection Plus framework, Jackson emphasized that these pledges are not legally enforceable without a formal agreement with the state commission.
The Attorney General advocates for a "large load tariff," which would require significant energy consumers, such as data centers, to fully cover the costs of their electricity generation and associated infrastructure. This proposal addresses concerns over the substantial energy demands of data centers, which can rival that of small towns. Duke Energy had initially sought an 18% rate increase, citing both population growth and data center demand, but later settled for a 9.5% increase with the N.C. Utilities Commission.
According to Duke spokesperson Jeffrey Brooks, data centers currently account for about 1% of the utility's load but are projected to increase by 13% in the coming years. Brooks believes the Customer Protection Pledge demonstrates Duke's commitment to affordable rates, asserting that large load customers will generate revenue that helps keep costs lower for other customers. However, Jackson remains skeptical, questioning Duke's seriousness in formalizing these protections.
The rapid proliferation of hyperscale data centers has generated widespread concern across North Carolina and the nation, crossing political divides. Communities express uncertainty and fear regarding visual blight, water usage, increased energy rates, and air pollution, often feeling excluded from corporate decision-making processes. This has led to a "flurry" of local actions, with over 30 data center moratoriums and bans enacted statewide, including recent votes or considerations in Hot Springs and Hendersonville in western North Carolina.