Consumer advocates push NC state regulators to create separate rates for data centers

Consumer advocates, including North Carolina Attorney General Jeff Jackson and the state’s utility customer advocacy group, the Public Staff, are pushing the North Carolina Utilities Commission to establish mandatory, separate electricity rates for data centers and other high-energy users. This call comes amidst rising utility bills and growing concerns about the significant energy demands data centers place on the grid, particularly as Duke Energy Carolinas seeks a 14% rate hike.

Attorney General Jackson recently released a video emphasizing the need for specific protections to prevent residential customers from bearing the financial burden of new power infrastructure required by these large consumers. The Public Staff, through testimony and filings, supports this move, citing precedent from a similar action taken with Dominion Energy's electric-vehicle customers. They argue that new mandatory tariffs, including provisions like minimum monthly bills, early termination exit fees, and required curtailment of operations, are necessary to ensure data centers pay their fair share, especially as many have already signed contracts with Duke Energy for substantial future service.

Duke Energy Carolinas has contracts with 16 energy-intensive businesses, projected to add 4,337 megawatts of new demand, nearly double the capacity of the McGuire nuclear power plant. The Public Staff's proposal specifically targets businesses requesting 50 megawatts or more and planning to use at least 80% of their requested load, distinguishing data centers by their round-the-clock power demands. The Utilities Commission is expected to make a decision on Duke’s rate case, which includes this proposal, before the new rates are scheduled to take effect on January 1, 2027.