RALEIGH – North Carolina Attorney General Jeff Jackson is asking state utility regulators to create a separate Duke Energy rate class for data centers and other large energy users.

The proposal was filed in Duke Energy rate cases before the North Carolina Utilities Commission, according to Jackson’s office. The requested classification is intended to create a consistent set of rules for very large customers and reduce the risk that costs tied to their electricity demand are shifted to residential customers.

Jackson’s office said Duke Energy has projected that data centers and other large energy users will account for 80% of the new power demand the company expects to serve. Meeting that growth could require additional generation, transmission and other grid investments.

The attorney general has argued that a separate rate class would make the terms for large-load customers more transparent and allow regulators to better assign the costs and risks created by those customers. Separately, Jackson has asked Duke to publicly disclose its template contracts with large energy users and report agreements that deviate from those templates.

The proposal follows an August proposed order in Duke Energy’s Carbon Plan case. In that filing, Jackson asked regulators to require more frequent load forecasts and to ensure Duke builds — and charges customers for — only necessary infrastructure.

The Utilities Commission has been examining rules for large electric loads as data-center development increases across North Carolina. The commission will determine whether and how any separate rate structure is adopted as part of its regulatory proceedings.

Sources