Data centers are key to fight over Duke electric rates in North Carolina

Duke Energy wants to raise household electric rates by 18% in North Carolina, a move tied largely to preparing the grid for a coming wave of data centers. If regulators approve the increase, a typical household using 1,000 kilowatt-hours a month would pay $280 to $355 more per year by 2028. Duke says the money is needed for grid upgrades, storm resilience, and new power plants, including a large expansion of gas plants, to meet demand that the company says is more than 85% driven by data centers.

Consumer and clean energy groups argue there's a better way to handle this growth without pushing the cost onto homeowners. They want regulators to create a separate "large load" customer class for data centers and other big power users, requiring them to pay for most of their expected usage over a long contract term and allowing them to bring their own renewable power instead of relying entirely on Duke. They also oppose a separate part of Duke's request: a higher profit margin on its investments, which critics say would cost customers hundreds of millions more than a lower rate they're proposing instead.

The state attorney general and the utilities commission's own consumer advocate office back similar reforms. Hearings before the North Carolina Utilities Commission begin next month, with a decision expected in the fall. For homeowners in Duke's service area, the outcome will directly shape how much bills rise and whether data centers help cover the grid costs their growth is creating.