Attorney General Jeff Jackson Proposes Framework to Ensure Data Centers Pay Their Fair Share for Energy Costs

AG Jackson's case to protect ratepayers is ongoing.

FOR IMMEDIATE RELEASE
Monday, September 14, 2026
Contact: [email protected]
919-538-2809

RALEIGH - Attorney General Jeff Jackson is urging the Utilities Commission to create a new rate class for Duke Energy's data center customers so they pay their fair share. The proposal was filed in Duke's rate cases as part of a process that the Utilities Commission started after Attorney General Jackson requested a separate proceeding to account for the unprecedented strain that new data centers and other large load users put on the energy grid.

Attorney General Jackson argues that the creation of a new, specific rate class for data centers and other large energy users is an important first step to protect ratepayers, energy rates, and infrastructure. A specific rate class will ensure that:

1. Data centers are all playing by the same set of rules,
2. Duke Energy's customers know what those rules are, and
3. The costs and risks created by data centers are not shifted to residential customers.

"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," said Attorney General Jeff Jackson. "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. We're going to keep fighting to protect ratepayers."

This proposal comes on top of a proposed order last month in the ongoing Duke Energy Carbon Plan case. The Utilities Commission's ruling in the Carbon Plan case will determine what Duke can build to meet projected demand in the coming years. Duke projected that 80% of the new energy demand it will need to meet comes from new data centers and other large users of energy and has proposed building new power generation and transmission assets to meet this demand. That could cause rates for other customers to rise and create significant risks if this projected demand does not materialize.

In the proposed order in Duke Energy's Carbon Plan case, Attorney General Jackson asked the Utilities Commission to require Duke Energy to take several steps to make sure it's making reasonable growth projections and building (and charging ratepayers for) only necessary infrastructure. His proposed order includes the following recommendations:

• Duke Energy should make public the template contract it uses with data centers and other large energy users. North Carolinians should know what's in these contracts and what safeguards are in place for North Carolina households.
• Duke should be required to submit regular reports about any agreements with large energy users that are different from these templates.
• Right now, Duke makes projections about energy load forecasts every six months. Duke should start making these projections every 90 days, so that the energy infrastructure Duke is building actually reflects, not overestimates, the demand.
• Pause development of new natural gas plants to give everyone an opportunity to fully evaluate the last minute updates Duke made to its load forecast.

A copy of Attorney General Jackson's data center rate class proposal is here.

A copy of the full proposed order is available here.

This is the third case Attorney General Jackson is fighting to protect North Carolinians from paying more on their utility bills.

He refused to sign on to the proposed settlement in the Duke Energy Carolinas rate case, because DEC residential ratepayers would still rise an average of approximately 9.5%.

He also refused to sign on to Duke Energy Progress's 15% proposed rate increase, which would force DEP ratepayers to pay nearly $960 million in unnecessary rate hikes over the next two years.

He's also challenging Duke Energy to put its money where its mouth is and commit legally - not just verbally - to the promises it made to the federal government'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."

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