Duke Energy protects customers from data center costs

• Agreement with North Carolina Public Staff, Amazon, Google, Meta, Microsoft and others enhances existing protections to further insulate customers from data center costs while delivering billions in long-term benefits

CHARLOTTE, N.C., Oct. 7, 2026 /PRNewswire/ -- Duke Energy and stakeholders have reached an agreement that further protects existing customers from costs to serve data centers and other large-load customers in North Carolina.

Duke Energy proactively implemented substantial customer protections in 2024 to ensure that large-load customers pay the costs to serve them. The agreement memorializes and enhances those protections.

These changes are reflected in a new settlement between the company's two North Carolina utilities – Duke Energy Carolinas and Duke Energy Progress – and North Carolina Public Staff, the agency representing utility customers. Other parties to the agreement include Amazon, Google, Meta, Microsoft, Carolina Industrial Group for Fair Utility Rates and the U.S. Department of Defense.

Our view: "It's simple – data centers will pay upfront for all costs to connect to the grid," said Kendal Bowman, Duke Energy's North Carolina president. "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."

Agreement summary:

• Nonrefundable, upfront payment for electric grid facilities serving only that customer, such as a substation to connect to the grid.
• 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.

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

In July, Duke Energy announced its Customer Protection Plus framework, outlining how data center growth will result in billions of dollars of future customer benefits, saving money for existing customers. This agreement adds to that framework in a way that specifically addresses issues raised by North Carolina regulators and customers. Learn more about Duke Energy's approach to data centers at duke-energy.com/DataCenters.

What's next: The agreement is subject to approval by the North Carolina Utilities Commission – a decision is expected by mid-November.

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 will be combined into a single utility as of Jan. 1, 2027.

Duke Energy

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. The company's 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. Its natural gas utilities serve 1.6 million customers in North Carolina, South Carolina, Ohio and Kentucky.

Duke Energy is executing an energy modernization strategy, keeping customer value at the forefront as it invests in electric grid upgrades and efficient generation resources to strengthen the system and serve growing energy needs.

More information is available at duke-energy.com. Follow Duke Energy on X, LinkedIn, Instagram, TikTok and Facebook for stories about the people and innovations powering its communities.

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SOURCE Duke Energy