Duke Energy Reaches Settlement to Shield N.C. Customers From Data-Center Costs

By Elias Schisgall

Duke Energy reached an agreement that it said will protect North Carolina electricity customers from the energy costs of artificial-intelligence data centers.

Under the agreement with North Carolina Public Staff, an agency representing utility customers, electric grid facilities that serve just one customer, like substations, will require a nonrefundable, upfront payment. The agreement also calls for upfront deposits and security guarantees for grid upgrades that serve all customers.

"It's simple -- data centers will pay upfront for all costs to connect to the grid," Kendal Bowman, president of Duke's North Carolina arm, said. "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."

New customers that consume at least 50 megawatts, including new data centers, will be required to take service under a new "High Load Factor" rate schedule, Duke said.

Duke said the changes are reflected at its North Carolina utilities, Duke Energy Carolinas and Duke Energy Progress. The U.S. Defense Department and the Carolina Industrial Group for Fair Utility Rates are also parties to the agreement, as are Amazon, Google, Meta Platforms, and Microsoft.

The agreement is subject to approval by the North Carolina Utilities Commission, which is expected to make a decision next month.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

October 07, 2026 16:29 ET (20:29 GMT)