Progress on Duke’s Outrageous Rate Request and Making Data Centers Pay Their Fair Share, While Gov. Stein and AG Jackson Push for More

Duke Energy Carolinas, the NC Utilities Commission (NCUC), and several intervenors just announced a proposed settlement agreement on Duke’s rate request. Duke originally requested an 18% hike for residential customers over the next two years, but this settlement, if affirmed by the commissioners, would lead to a 9.5% increase. Significantly, Duke’s guaranteed profit (or ROE) is reduced from their original ask of 10.95% to 9.8% as part of the agreement. 

NCLCV’s Director of Clean Energy Campaigns, Michelle “Meech” Carter characterized the proposed settlement as “a step towards addressing the hold Duke Energy has on North Carolina’s energy prices. One thing we have learned is that greedy Duke Energy was much more concerned about preserving their massive profits than offering fair rates to hard-working, overburdened North Carolinians. They requested twice as much as they ultimately agreed to.”

While multiple intervening parties agreed to this proposal, Attorney General Jeff Jackson (who is an intervenor) and Governor Josh Stein (who is not an intervenor) do not think Duke and data centers have done enough. AG Jackson said in a video posted to social media, “We think they can come down significantly, and still meet demand.” Gov. Stein also criticized the proposed settlement, saying the Utilities Commission needs to impose a large load tariff to ensure data centers cover their own electricity costs. “These are some of the largest and richest companies in the world,” he said on social media. “They can pay more to lower everyone else’s rates.”

How Much Data Centers Pay For Power and Infrastructure Continues To Be A Sticking Point

As Gov. Stein noted, this settlement still leaves important matters unresolved, like the specifics of how data centers will pay their fair share. The proposed settlement agrees to fast track consideration of a large load tariff, but the specifics are still to be determined.

Last week, Duke Energy and multiple tech companies and data center developers agreed to a voluntary and non-binding pledge to President Trump to not pass data center costs onto residential customers. Gov. Stein and AG Jackson applauded this commitment but called for Duke to make it binding through the NCUC.

“Now, Duke Energy must make that voluntary pledge real,” Stein said. “The North Carolina Utilities Commission and Duke Energy must create a legally binding large-load tariff to charge data centers their full freight.”

“Duke just promised the federal government that it won’t shift the cost of data centers onto families,” AG Jackson said. “We agree, but a promise in Washington doesn’t lower a power bill in North Carolina. We’re calling on Duke to make that same promise to the Utilities Commission, in writing, where it can be enforced.”