Gov. Stein and AG Jackson react to deal on data centers and big energy users, citing a good start but more work to be done
This week, Attorney General Jeff Jackson and Governor Josh Stein reacted to the deal on large energy users made by tech giants behind data centers (including Amazon, Google, Microsoft, and a subsidiary of Meta), Duke Energy, other large energy users, and the NC Utilities Commission’s public staff, calling it a good start but one that needs significant additional protections for residential customers.
On behalf of the state, AG Jackson argued in legal filings before the North Carolina Utilities Commission (NCUC) that large energy users like data centers should pay their fair share for the resources they use and the strain they put on North Carolina’s energy grid.
“My office fought for a large load tariff for months, and now North Carolina families are one step closer to being shielded from the unfair burdens of data centers,” said Attorney General Jeff Jackson. “This is a massive step forward in making sure data centers pay their fair share – but we’re not done yet. We’re going to push for more transparency, more accountability, and more protections for ratepayers.”
Gov. Stein has also worked extensively on this issue and urged the NCUC to take the level of accountability further. “While this action creates a new floor for what is possible, the Utilities Commission has more work to do to ensure families aren’t left footing the bill,” said Stein. “The Utilities Commission must require data centers to pay the full cost of their impact and bring their own clean energy. My bipartisan Energy Policy Task Force and I will continue to push to bring cleaner, more affordable energy to North Carolinians and protect North Carolina consumers.”
Still No Clean Energy Option, but a Possibility That Will Change?
The most significant shortcoming of the deal from a climate perspective is that it doesn’t include provisions to support bringing or building your own clean power. Duke previously announced a clean energy tariff in 2024. However, it has failed to keep its promise to develop and submit it to the Utilities Commission. This proposed deal still doesn’t include one. AG Jackson has advocated for an option for large load customers to build or bring their own clean energy, which would reduce the strain on the energy grid for everyone else.
The tech companies have been calling for a way to make this happen for nearly a decade. Google and other companies have been pushing for a “clean transition tariff” as a solution. The scheme would allow the large customers to pay a premium for new, zero-carbon energy, using Duke as a go-between.
The idea has virtually no opponents, yet Duke has done little to make it a reality. According to reporting by Elizabeth Ouzts for Canary Media, Duke now says they are committed to begin negotiations next spring on a clean transition tariff.
For environmental advocates, a promise for future negotiations is not enough.
“This is a long overdue commitment to allowing new customers like data centers to choose their own new, clean, cheap power,” said Will Scott, North Carolina policy director with the Environmental Defense Fund. “But we need enforceable direction from the Utilities Commission to make sure this leads to a real, on-the-books outcome that saves North Carolina households money.”
The NCUC will announce its decision on the rate cases that prompted this discussion by mid-November. Additional orders on the large load tariff are expected around the same time. Climate advocates hope that includes provisions for clean energy and a deadline for a mechanism to make that a reality.