NC AG Jackson requests new Duke rate class for data centers

North Carolina Attorney General Jeff Jackson is asking the state Utilities Commission to make a new rate class for Duke Energy’s data center customers, his office said on Monday.

Jackson argued the separate class would prevent data centers from shifting energy costs to residential consumers.

“Duke Energy is onboarding an unprecedented number of data centers without a clear plan on how to protect ratepayers from higher rates and unacceptable risk,” Jackson said in a statement. 

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The proposal is part of a process the Utilities Commission began in Duke Energy’s rate cases after Jackson asked for a separate proceeding to consider the impact of new data centers and other large-load energy users. 

Jackson’s proposal asks for Duke Energy to make public the template contract it uses with data centers and other large energy users and submit regular reports about any agreements with large energy users that are different from those templates. 

“These data centers are upending our energy system, and we need to know that the Utilities Commission is making sure data centers pay for the strain they put on the grid and don’t unfairly burden ratepayers,” Jackson said in a statement. 

It also suggests that Duke Energy should make projections about energy load forecasts every 90 days, instead of its current schedule of every six months, so that the utility’s energy infrastructure reflects demand. 

Jackson’s proposal includes a request for Duke to pause new natural gas plant development so stakeholders can fully evaluate the company’s load forecast. 

“Duke Energy’s focus is straightforward: data centers and other large-load customers must pay the costs required to serve them,” Duke Energy spokesperson Craig Wilson told NC Newsline. “We’re committed to protecting existing customers from the costs to serve data centers while enabling responsible growth that strengthens our communities.”

State Sen. Natalie Murdock, a Democrat representing Chatham and Durham counties, said at a press conference Monday that she hears from constituents every day saying they’re concerned about rising costs due to rapidly expanding data centers. 

“North Carolina families simply cannot afford it,” Murdock said. “They cannot afford these higher bills that are higher for no reason.”

Over the past few months, the attorney general has consistently pushed back on Duke Energy.

Last month, Jackson accused the utility of providing incorrect information about its rate hike under oath. In July, he fired back against Duke’s proposed rate increase.