Duke Energy, NC Public Staff Reach Settlement on Data Center Costs

Duke Energy’s two North Carolina utilities, Duke Energy Carolinas and Duke Energy Progress, reached a settlement with the North Carolina Public Staff — joined by Amazon, Google, Meta, Microsoft and other parties — that would expand requirements intended to keep the costs of serving data centers and other large-load customers off existing customers, the company announced on October 7, 2026.

The changes are reflected in a settlement between the two utilities and North Carolina Public Staff, the agency that represents utility customers. Other parties to the agreement include Amazon, Google, Meta, Microsoft, the Carolina Industrial Group for Fair Utility Rates and the U.S. Department of Defense. Duke Energy said it implemented substantial customer protections in 2024 so that large-load customers pay the costs to serve them, and that the agreement memorializes and enhances those protections.

“It’s simple – data centers will pay upfront for all costs to connect to the grid,” Kendal Bowman, Duke Energy’s North Carolina president, said in the announcement. “We’re shielding other customers from these costs in a way that protects reliability and ensures everyone benefits from the economic growth coming to North Carolina.”

Terms of the Settlement

The agreement requires a nonrefundable, upfront payment for electric grid facilities that serve only the connecting customer, such as a substation needed to connect to the grid. It also requires upfront deposits and security guarantees for grid upgrades that serve all customers, such as transmission lines. New large-load customers, including new data centers, must take service under a High Load Factor rate schedule, a separate rate established for large loads.

Expanded Scope for Large-Load Customers

Duke Energy had previously required data centers and other large loads of 100 megawatts or more to agree to contract terms that protect other customers from such costs. If approved by state regulators, the new agreement would apply to all large-load customers of 50 megawatts or more with an 80% load factor that sign an electric service agreement in North Carolina after June 1, 2026. Electric service agreements signed before June 1 contain a full suite of similar customer protections, according to the company.

Customer Protection Plus Framework

The settlement follows the Customer Protection Plus framework Duke Energy announced in July 2026, which the company said outlines how data center growth will result in billions of dollars of future customer benefits. Duke Energy said the new agreement adds to that framework in a way that specifically addresses issues raised by North Carolina regulators and customers.

According to the July release, the framework guides how the company evaluates, plans for and manages data center growth and is built on three priorities: Preserve Reliability, Power Responsible Growth and Produce Shared Value. Under Preserve Reliability, Duke Energy conducts engineering studies before new data center customers connect to the electric system to ensure the grid can safely serve them while maintaining reliable service and power quality for existing customers.

Under Power Responsible Growth, large customers such as data centers sign long-term agreements that can include customer-funded connection costs, long-term commitments, upfront financial security, termination charges and temporary curtailment provisions for limited, targeted grid events. Under Produce Shared Value, when revenues from new large-load customers exceed the cost of serving them, the projects create customer benefits while supporting investments that strengthen the grid and expand energy resources.

“Data centers will provide billions of dollars in customer benefits,” Harry Sideris, Duke Energy’s president and CEO, said in the July announcement. “Duke Energy remains laser-focused on ensuring data centers not only pay their fair share but also yield savings for our existing customers.”

Sasha Weintraub, Duke Energy’s executive vice president and chief customer officer, said in the same release that much of the discussion around data centers focuses on how much energy they use, and that the company is equally focused on what that growth can mean for all customers. She said Duke Energy is committed to an ongoing, collaborative and transparent partnership with customers, regulators and other stakeholders.

Service Territory and Regulatory Review

Duke Energy Carolinas serves about 2.3 million households and businesses in central and western North Carolina, including Charlotte, Durham and the Triad, while Duke Energy Progress serves about 1.6 million customers in central and eastern North Carolina and in the Asheville region. The two utilities will be combined into a single utility as of January 1, 2027.

Duke Energy, a Fortune 150 company headquartered in Charlotte, North Carolina, said its electric utilities serve 8.7 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky and collectively own 55,700 megawatts of energy capacity, while its natural gas utilities serve 1.6 million customers in North Carolina, South Carolina, Ohio and Kentucky.

The settlement is subject to approval by the North Carolina Utilities Commission, and the company said a decision is expected by mid-November 2026.