Gov. Stein, AG Jackson Will Hold Duke Energy to New Federal Data Center Pledge

FOR IMMEDIATE RELEASE
Thursday, July 23, 2026
Contact: [email protected]
919-538-2809

RALEIGH - Today, Duke Energy joined the federal administration's Ratepayer Protection Pledge, a set of commitments to make sure that data centers and other large energy users "build, bring, or buy the new generation resources and electricity needed to satisfy their energy demands, and pay for all new power delivery infrastructure upgrades to service their data centers." Duke Energy is North Carolina's largest investor-owned electric utility, providing power directly or indirectly to most of the state. Attorney General Jeff Jackson and Gov. Josh Stein are challenging Duke to put its money where its mouth is and commit legally - not just verbally - to the promises it made to the federal government.

"Duke just promised the federal government that it won't shift the cost of data centers onto families," said Attorney General Jeff Jackson. "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."

"I am pleased to see that Duke Energy has signed on to the Ratepayer Protection Pledge," said Governor Josh Stein. "Now, Duke Energy must make that voluntary pledge real. The North Carolina Utilities Commission and Duke Energy must create a legally binding large load tariff to charge data centers their full freight, and they must establish a program that allows data centers to directly select and pay for their generation. North Carolinians are struggling to make ends meet, and data centers must pay their own way to protect families from rising electricity costs."

The Ratepayer Protection Pledge that Duke signed asks large energy users and utilities to work together to negotiate agreements so large energy users, like data centers, are in a separate rate class, can generate their own power, and pay for the power and infrastructure they ask for - whether or not they use it. It's designed to protect families and small businesses from bearing the brunt of rising energy costs driven by data center creation. Several large tech companies, including Amazon, Google, Meta, OpenAI, and xAI, have already signed on to the pledge.

Here is language from the Ratepayer Protection Pledge that Duke promised to pursue:

"Companies will voluntarily negotiate new, separate rate structures with their utilities and relevant State governments wherever they build data centers."

Earlier this week, Duke Energy Carolinas, the Utilities Commission's Public Staff, and others reached a settlement to participate in a fast-track process to establish large load tariffs, including new rules for data centers and other large energy users. The Attorney General's Office will participate in that process and fight for rules that require data centers to bear the costs of new power plants, transmission lines, and other infrastructure. In the Duke Energy Progress case, Attorney General Jackson is urging the Utilities Commission to require the utility to create a new, separate rate class for data centers and other large energy users.

Attorney General Jackson is also asking Duke to make realistic projections about data center growth, instead of trying to charge ratepayers for infrastructure that may never materialize. This pledge secures a commitment from Duke that it will propose rules that ensure large companies will bear all the costs of the infrastructure upgrades needed to meet their needs, instead of passing those costs on to ratepayers.

"Companies will build, bring, or buy the new generation resources and electricity needed to satisfy their new energy demands, paying the full cost of those resources whether by building, or buying from, new or otherwise additive power plants."

"Companies will pay for all new power delivery infrastructure upgrades required to service their data centers, including adequate network upgrade costs to ensure that these expenses are not passed on to the ordinary household."

The Ratepayer Protection Pledge also asks large energy users and utilities to work together to establish "bring your own power generation" programs, which can allow large load customers to directly select and acquire the energy resources that they need. Duke Energy claims that it allows large companies the option to build and generate their own power instead of relying on the state's grid - but there's no way to confirm that because Duke's contracts are confidential. Duke needs to work with the Utilities Commission to establish a real "bring your own power generation" program and make agreements transparent to prove they meet Duke's pledge commitments.

Attorney General Jackson has been fighting to protect ratepayers from paying higher energy bills. He declined to sign on the proposed settlement in the Duke Energy Carolinas rate case earlier this week because residential rates would still rise about 9.5%. Duke lowered its proposed increase for residential customers from 18% to 11.6% after Attorney General Jackson and others filed objections to the original request. In a second case, Attorney General Jackson filed testimony arguing that Duke Energy Progress's 15% proposed rate increase is too high and would force ratepayers to pay nearly $960 million in unnecessary rate hikes over the next two years.

Earlier this year, the Governor's Energy Policy Task Force recommended developing options for large load tariffs, "bring your own capacity," and load flexibility programs to protect residential ratepayers from the impacts of data centers and enable those data center companies to fulfill their clean energy commitments. The bipartisan task force includes 30 energy experts and policymakers. Initial work has focused on identifying policy and technology solutions to address the state's growing energy needs, which are fueled by data centers, advanced manufacturing operations, and population growth. The task force will deliver its next report in February 2027.

###