Duke Energy, Tech Giants Agree on Tariff for High-Demand Users in North Carolina
Duke Energy and major technology companies agreed to a proposed large-load tariff for data centers and other high-demand customers in North Carolina. The tariff would require customers to pay minimum usage charges and the full cost of dedicated equipment and certain grid upgrades, but it still requires approval from the North Carolina Utilities Commission.
Duke Energy and seven other organizations filed a settlement with the North Carolina Utilities Commission covering a new large-load tariff for data centers and other customers with substantial electricity demand. The proposal would apply to customers using more than 50 megawatts at high utilization or more than 150 megawatts, requiring them to pay minimum monthly charges and cover dedicated substations, other grid upgrades and early termination penalties.
Amazon, Microsoft, Google and Andale, a Meta subsidiary, signed the settlement along with the U.S. Department of Defense, the North Carolina Public Staff and other groups. Duke Energy North Carolina President Kendal Bowman said the arrangement would protect existing customers from costs associated with connecting large users. Environmental advocates said the proposal does not go far enough because it does not require data centers to use clean energy or fully guarantee payment for new transmission upgrades. The commission is expected to decide on the tariff by mid-November as part of Duke Energy's rate case for Charlotte and western North Carolina.