NC leaders push Duke Energy to make federal data center pledge legally binding
North Carolina Governor Josh Stein and Attorney General Jeff Jackson are urging Duke Energy to make its voluntary federal pledge, which states that households and small businesses will not pay for data center electricity costs, legally binding within the state. This comes as Duke Energy proposes significant rate increases for customers across North Carolina, citing growing electricity demand from data centers and advanced manufacturing. Leaders are pushing for new rate structures through the North Carolina Utilities Commission to ensure data centers cover their full costs.
North Carolina Governor Josh Stein and Attorney General Jeff Jackson are demanding that Duke Energy legally formalize its voluntary federal pledge to shield households and small businesses from the escalating electricity costs associated with data centers. The utility recently signed the expanded Ratepayer Protection Pledge, announced by President Donald Trump, amid concerns that the rapid growth of AI and data centers could drive up electric bills nationwide.
Attorney General Jackson and Governor Stein emphasize that a federal promise is insufficient to protect North Carolina customers and are calling on Duke Energy to make this commitment enforceable through new rate structures approved by the North Carolina Utilities Commission. Duke Energy spokesperson Jeff Brooks stated the company supports the principle that large power users, including data centers, should cover their service costs, aligning with its new Customer Protection Plus framework.
This push for enforceable protections coincides with two major Duke Energy rate cases in North Carolina. Duke Energy Carolinas reached a proposed settlement that would increase residential rates by approximately 9.5% over two years, a settlement Attorney General Jackson declined to join, deeming the increase too high. Separately, Duke Energy Progress is seeking an estimated 15% residential rate increase. Both cases are driven by Duke's projections of unprecedented electricity demand growth from data centers, advanced manufacturing, and population increases, necessitating investments in new power generation and grid infrastructure.
The proposed settlement with Duke Energy Carolinas includes a requirement for the utility to participate in a fast-track regulatory process to develop new rates specifically for data centers and other large power users, which would begin in January 2027 if approved by the Utilities Commission. While data center proponents argue large customers can strengthen the grid and spread fixed costs, consumer advocates warn against the risk of households subsidizing potentially over-projected growth. The federal pledge encourages large energy users to provide their own power, pay for grid upgrades, and negotiate separate rates, though these commitments remain voluntary without state-level enforcement.